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HomeMy WebLinkAboutC10-142 Home Investment Partnerships Program(~untract Rixuin ~#
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CONTRACT
HOME INVESTMENT PARTNERSHIPS PROGRAM (GRANT)
THIS CONTRACT, by and between the State of Colorado for the use and benefit of the Department of Local
Affairs. 1313 Sherman Street. Denver Colorado 80203 hereinafter referred to as the State and Eagle Countv Post
Office 850, Eagle Colorado 81631 hereinafter referred to as the Contractor.
WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated and otherwise
available and a sufficient unencumbered balance thereof remains available for payment in Fund Number
Appropriation Code , Org. Number , GBL Number
Contract Encumbrance Number HOHOM09062 and,
WHEREAS, required approval, clearance and coordination has been accomplished from and with appropriate
agencies; and,
WHEREAS, the United States Government, through the National Affordable Housing Act of 1990 ("NAHA") Pub.
L. No. 101-625, has established the Home Investment Partnerships Program (HOME), and has allowed each state to
elect to administer such federal funds, subject to certain conditions, for the purpose of expansion of the supply of decent,
safe, sanitary, and affordable housing, with primary attention to rental housing, for persons whose income is less than or
equal to eighty percent of area median income.
WHEREAS, the State of Colorado has elected to administer such federal funds for its nonentitlement areas
through the Colorado Department of Local Affairs ("Department"), Division of Housing, pursuant to 24-32-705(1) (i); and
WHEREAS, the Department has received applications from political subdivisions, nonprofit organizations, and for
profit corporations, and Community Housing Development Organizations (CHDOs) in Colorado for allocations from the
federal HOME funds available to Colorado; and
WHEREAS, the Contractor is one of the eligible political subdivisions, nonprofit organizations, for profit
corporations, or community housing development organizations to receive HOME funds; and
WHEREAS, the Executive Director is willing to provide assistance in the form of a grant from the HOME program
to the Contractor for the Project upon mutually agreeable terms and conditions as hereinafter set forth; and
WHEREAS, the Department has approved the proposed Project of the Contractor;
NOW THEREFORE it is hereby agreed that:
1. Scope of Services. In consideration for the monies to be received from the Home Investment Partnership
Program, the Contractor shall do, perform, and carry out, in a satisfactory and proper manner, as determined by
the State, all work elements as indicated in the "Scope of Service," set forth in Exhibit A, which is attached hereto
and is incorporated herein by reference, and is hereinafter referred to as the "Project." Work performed prior to the
execution of this Contract shall not be considered part of this Project.
2. Responsible Administrator. The performance of the services required hereunder shall be under the direct
supervision of Jill Klosterman, an employee or agent of Contractor, who is hereby designated as the responsible
administrator of this Project. At any time the responsible administrator is not assigned to this Project, all work shall
be suspended until the Contractor assigns a mutually acceptable replacement responsible administrator and the
State receives notification of such replacement assignment.
3. Time of Performance. This Contract shall become effective upon proper execution by the State Controller or
designee. The Project contemplated herein shall commence as soon as practicable after the execution of this
Contract and shall be undertaken and performed in the sequence set forth in the attached Scope of Services. The
Contractor agrees that time is of the essence in the performance of its obligations under this Contract, and that
completion of the Project shall occur no later than the termination date set forth in the Scope of Services.
4. Eligible Activities. The Contractor shall ensure that all project activities will be eligible under 24 CFR Part 92,
Section 205 through 209 and Section 212, and all related regulations.
Page 1 of 16 Pages
made
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Obligation, Expenditure and Disbursement of Funds.
a) Prior Expenses. Expenses incurred by the Contractor in association with said Project prior to execution of
this Contract are not eligible HOME expenditures and shall not be reimbursed by the State.
b) Environmental Review Procedures. Funds shall not be obligated or utilized for any activities requiring a
release of funds by the State under the Environmental Review Procedures for the HOME program at 24
CFR Parts 58 until such release is issued in writing. For administrative costs, reasonable engineering and
design costs, and the costs of other exempt activities listed under 24 CFR 58.34(a)(1-8), the Contractor
must notify the state in writing that these costs are exempt activities. Categorically excluded activities listed
under §58.35 and projects which require the completion of an environmental assessment must have written
documentation of compliance and a written release of funds from the state.
Definition of Beneficiaries. Eligible beneficiaries are defined, for the purposes of this contract, as those persons
who are members of families whose annual adjusted income does not exceed eighty percent (80%) of the median
income for the area as determined by U.S. Department of Housing and Urban Development. The effective
incomes for all areas of the state of Colorado by family size is set forth in Exhibit B, which is attached hereto and
incorporated herein by reference.
Residential Anti-displacement and Relocation Assistance Plan. The Contractor shall follow a residential anti-
displacement and relocation assistance plan which, should permanent or temporary displacement occur,
incorporates the following requirements:
(a) Minimizing displacement. Consistent with the other goals and objectives of this part, the contractor must
ensure that it has taken all reasonable steps to minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations, and farms) as a result of a project assisted with HOME funds. To the
extent feasible, residential tenants must be provided a reasonable opportunity to lease and occupy a
suitable, decent, safe, sanitary, and affordable dwelling unit in the building/complex upon completion of the
project.
(b) Temporary relocation. The following policies cover residential tenants who will not be required to move
permanently but who must relocate temporarily for the project. Such tenants must be provided:
(1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary
relocation, including the cost of moving to and from the temporarily occupied housing and any
increase in monthly rent/utility costs.
(2) Appropriate advisory services, including reasonable advance written notice of:
(i) The date and approximate duration of the temporary relocation;
(ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the
temporary period;
(iii) The terms and conditions under which the tenant may lease and occupy a suitable, decent,
safe, and sanitary dwelling in the building/ complex upon completion of the project; and
(iv) The provisions of paragraph (bx1) of this section.
(c) Relocation assistance for displaced persons. (1) General. A displaced person (defined in paragraph (c)(2)
of this section) must be provided relocation assistance at the levels described in, and in accordance with the
requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)
(42 U.S.C. 4201-4655) and 49 CFR part 24. A "displaced person" must be advised of his or her rights under
the Fair Housing Act and, if the comparable replacement dwelling used to establish the amount of the
replacement housing payment to be provided to a minority person is located in an area of minority
concentration, the minority person also must be given, if possible, referrals to comparable and suitable,
decent, safe, and sanitary replacement dwellings not located in such areas.
(2) Displaced Person. (i) For purposes of paragraph (c) of this section, the term displaced person
rneans a person (family individual, business, nonprofit organization, or farm, including any
corporation, partnership or association) that moves from real property or moves personal property
from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a
project assisted with HOME funds. This includes any permanent, involuntary move for an assisted
project, including any permanent move from the real property that is made:
(A) After notice by the owner to move permanently from the property, if the move occurs on or
after:
Page 2 of 16 Pages
(1) Tfie date of the submission of an application to the contractor or the State, if the
applicant has site control and the application is later approved; or
(2) The date the contractor approves the applicable site, if the applicant does not have site
control at the time of the application; or
(B) Before the date described in paragraph (cx2)(iKA) of this section, if the State or HUD
determines that the displacement resulted directly from acquisition, rehabilitation, or
demolition for the project; or
(C) By atenant-occupant of a dwelling unit, if any one of the following three situations occurs:
(1) The tenant moves after execution of the agreement covering the acquisition,
rehabilitation, or demolition and the move occurs before the tenant is provided written
notice offering the tenant the opportunity to lease and occupy a suitable, decent, safe,
and sanitary dwelling in the same building/complex upon completion of the project
under reasonable terms and conditions. Such reasonable terms and conditions must
include a term of at least one year at a monthly rent and estimated average monthly
utility costs that do not exceed the greater of:
(i) The tenant's monthly rent before such agreement and estimated average
monthly utility costs; or
(ii) The total tenant payment, as determined under 24 CFR 813.107, if the tenant is
low-income, or 30 percent of gross household income, if the tenant is not
low-income; or
(2) The tenant is required to relocate temporarily, does not return to the building/complex,
and either
(i) The tenant is not offered payment for all reasonable out-of- pocket expenses
incurred in connection with the temporary relocation; or
(ii) Other conditions of the temporary relocation are not reasonable; or
(3) (i) The tenant is required to move to another dwelling unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move, or other
conditions of the move are not reasonable.
(ii) Notwithstanding paragraph (c)(2)(i) of this section, a person does not qualify as
a displaced person if:
(A) The person has been evicted for cause based upon a serious or
repeated violation of the terms and conditions of the lease or occupancy
agreement, violation of applicable federal, State or focal law, or other
good cause, and the participating jurisdiction determines that the eviction
was not undertaken for the purpose of evading the obligation to provide
relocation assistance. The effective date of any termination or refusal to
renew must be preceded by at least 30 days advance written notice to
the tenant specifying the grounds for the action.
(B) The person moved into the property after the submission of the
application but, before signing a lease and commencing occupancy, was
provided written notice of the project, its possible impact on the person
(e.g., the person may be displaced, temporarily relocated, incur a rent
increase), and the fact that the person would not qualify as a "displaced
person" (or for any assistance under this section) as a result of the
project;
(C) The person is ineligible under 49 CFR 24.2(8)(2); or
(D) HUD determines that the person was not displaced as a direct result of
acquisition, rehabilitation, or demolition for the project.
(iii) The jurisdiction may, at any time, ask HUD to determine whether a
displacement is or would be covered by this rule.
Page 3 of 16 Pages
(3) Initiation of negotiations. For purposes of determining the formula for computing replacement
housing assistance to be provided under paragraph (c) of this section to a tenant displaced from
dwelling as a direct result of private-owner rehabilitation, demolition or acquisition of the real
property, the term initiation of negotiations means the execution of the agreement covering the
acquisition, rehabilitation, or demolition.
(d) Optional relocation assistance. The contractor may provide relocation payments and other relocation
assistance to families, individuals, businesses, nonprofit organizations, and farms displaced by a project
assisted with HOME funds where the displacement is not subject to paragraph (c) of this section. The
contractor may also provide relocation assistance to persons covered under paragraph (c) of this section
beyond that required. For any such assistance that is not required by State or local law, the contractor must
adopt a written policy available to the public that describes the optional relocation assistance that it has
elected to furnish and provides for equal relocation assistance within each class of displaced persons.
(e) Residential antidisplacement and relocation assistance plan. The contactor shall comply with the
requirements of 24 CFR part 42, subpart B.
(f) Real property acquisition requirements. The acquisition of real property for a project is subject to the
URA and the requirements of 49 CFR part 24, subpart B.
(g) Appeals. A person who disagrees with the contractor's determination concerning whether the person
qualifies as a displaced person, or the amount of relocation assistance for which the person may be
eligible, may file a written appeal of that determination with the contractor. Alow-income person who is
dissatisfied with the contractor's determination on his or her appeal may submit a written request for review
of that determination to the Colorado Division of Housing.
Affordability Requirements. The Contractor shall ensure that housing units produced through the activities of
new construction and/or through rehabilitation of existing units remain affordable for the period required under 24
CFR Part 92, Section 252 and 254, respectively.
Affirmatively Furthering Fair Housing. The Contractor shall affirmatively further fair housing in addition to
conducting and administering its Project in conformity with the equal opportunity requirements of Title Vf of the
Civil Rights Act of 1964 and the Fair Housing Act, as required herein.
10. Affirmative Marketing Plan. The Contractor shall prepare and follow an affirmative marketing plan, if the HOME
assisted rental or homeowner project contains more than five (5) housing units, which provides:
a) affirmative marketing steps consisting of actions to provide information and otherwise attract eligible
persons in the housing market area without regard to race, color, national origin, sex, religion, familial
status or disability from all racial, ethnic, and gender groups in the housing market area to the available
housing; and,
b) provisions to annually assess the affirmative marketing program to determine the success of affirmative
marketing actions and any necessary corrective actions.
c) The affirmative marketing requirements and procedures adopted must include:
1) Methods for informing the public, owners, and potential tenants about federal fair housing laws and
the Contractors affirmative marketing policy (e.g., the use of the Equal Housing Opportunity logotype
or slogan in press releases and solicitations for owners, and written communication to fair housing
and other groups);
2) Requirements and practices each owner must adhere to in order to carry out the Contractor's
affirmative marketing procedures and requirements (e.g. use of commercial media, use of
community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair
housing poster);
3) Procedures to be used by owners to inform and solicit applications from persons in the housing
market area who are not likely to apply for the housing without special outreach (e.g., use of
community organizations, places of worship, employment centers, fair housing groups, or housing
counseling agencies);
4) Records that will be kept describing actions taken by the Contractor and by owners to affirmatively
market units and records to assess the results of these actions; and
5) A description of how the Contractor will assess the success of affirmative marketing actions and
what corrective actions will be taken where affirmative marketing requrements are not met.
Page 4 of 16 Pages
d) All units of general local government who receive HOME funding must adopt affirmative marketing
procedures and requirements that meet the requirement in paragraphs a) and b) of this section.
1 1. Minority Outreach. The Contractor must prescribe to the State the procedures it will use to ensure the inclusion,
to the maximum extent possible, of minorities and women, and entities owned by minorities and women, including,
without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions,
investment banking firms, underwriters, accountants, and providers of legal service. Affirmative steps, as outlined
in Section 85.36(e) of this title, to be taken are the following:
(a) placing qualified small and minority businesses and women's business enterprises on solicitation lists;
(b) assuring that small and minority businesses, and women's business enterprises are solicitated whenever
they are potential sources;
(c) dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by small and minority business, and women's business enterprises;
(d) establishing delivery schedules, where the requirement permits, which encourage participation by small and
minority business, and women's business enterprises;
(e) using the services and assistance of the Small Business Development Agency of the Department of
Commerce; and,
(f) requiring the prime contractor, if subcontracts are to be let, to take all of the above mentioned affirmative
steps.
12. Section 3 Requirements. Unless noted in "Exhibit A, Scope of Services" this contract is subject to the following:
a) The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and
Urban Development Act of 1968, as amended, 12 U.S.C. 70u (Section 3). The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted
projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income
persons, particularly persons who are recipients of HUD assistance for housing.
b) The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement
Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are
under no contractual or other impediment that would prevent them from complying with the part 135
regulations.
c) The contractor agrees to send to each labor organization or representative of workers with which the
contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor
organization or workers' representative of the contractor's commitments under this Section 3 clause, and
will post copies of the notice in conspicuous places at the work site where both employees and applicants
for training and employment positions can see the notice. The notice shall describe the Section 3
preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the name and location of the persons) taking applications
for each of the positions; and the anticipated date the work shall begin.
d) The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with
regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable
provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation
of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the
contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in
24 CFR part 135.
e) Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts.
13. Compensation and Method of Payment. The State has allocated for the Contractor in the state's HOME
account, in consideration for the work and services to be performed, a grant amount not to exceed 432 000,
method and time of payment shall be made in accordance with the "Payment Schedule" set forth in Exhibit A:
Scope of Services.
Page 5 of 16 Pages
14. Financial Management. At all times from the effective date of this Contract until completion of this Contract, the
Contractor shall comply with the administrative requirements, cost principles and other requirements set forth in
OMB Circular No. A-87 and the following requirements of 24 CFR part 85, Sections 6, 12, 20, 22, 26, 32, 33, 34,
36, 44, 51, and 52 for state recipients and any governmental subrecipients, and OMB Circular No. A-122 and the
requirements of 24 CFR Part 84, Sections 2, 5, 13-16, 21, 22, 26-28, 30, 31, 34-37, 40-48, 51, 60-62, 62, 72 and
73 for nonprofit organizations.
15. Audit. All audits must be conducted in accordance with 24 CFR part 44 and 45, as applicable. In accordance with
§44.14, the State may withhold future funds if the Contractor shows continued inability or unwillingness to have a
proper audit. Other appropriate sanctions may include: (a) withholding a percentage of assistance payments until
the audit is completed satisfactorily; (b) withholding or disallowing overhead costs; and (c) suspending a future
contract until the audit is received.
a) Discretionary Audit. The State, through the Executive Director of the Department, the State Auditor, or
any of their duly authorized representatives, including an independent Certified Public Accountant of the
State's choosing, or the federal government or any of its properly delegated or authorized representatives
shall have the right to inspect, examine, and audit the Contractor's (and any subcontractor's) records,
books, accounts and other relevant documents. Such discretionary audit may be requested at any time and
for any reason from the effective date of this Contract until five (5) years after the date of the approved
project close out letter for this Project or for the required term of affordability of this Project whichever is
longer.
b) Mandatory Audit for Local Governments. Whether or not the State calls for a discretionary audit as
provided above, the Contractor shall include the Project in its annual audit report as required by the
Colorado Local Government Audit Law, C.R.S. 1973, 29-1-601, et seg and the Single Audit Act of 1996, as
amended Pub. L. 104-156, and federal and State implementing rules and regulations. Such audit reports
shall be simultaneously submitted to the Division of Housing and the State Auditor. Thereafter, the
Contractor shall supply the Division of Housing with copies of all correspondence from any auditor related
to the relevant audit report. If the audit reveals evidence of non-compliance with applicable requirements,
the Department reserves the right to institute compliance or other appropriate proceedings notwithstanding
any other judicial or administrative actions filed pursuant to C.R.S. 1973, 29-1-607 or 29-1-608.
c) Mandatory Audit for nonprofit organizations and CHDOs. Whether or not the State calls for a
discretionary audit as provided above, the Contractor shall include the Project in its annual audit report.
Such audit reports shall be submitted to the Division of Housing. Thereafter, the Contractor shall supply the
Division of Housing with copies of all correspondence from auditors related to the relevant audit report.
16. Contract Suspension. If the Contractor fails to comply with any contractual provision, the State may, after notice
to the Contractor, suspend the contract and withhold further payments or prohibit the Contractor from incurring
additional obligations of contractual funds, pending corrective action by the Contractor or a decision to terminate in
accordance with provisions herein. The State may determine to allow such necessary and proper costs which the
Contractor could not reasonably avoid during the period of suspension provided such costs were necessary and
reasonable for the conduct of the project.
17. Contract Termination. This contract may be terminated as follows:
a) Termination Due to Loss of Funding. The parties hereto expressly recognize that the Contractor is to be
paid, reimbursed, or otherwise compensated with federal HOME funds provided to the State for the
purpose of contracting for the services provided for herein or with program income, and therefore, the
Contractor expressly understands and agrees that all its rights, demands and claims to compensation
arising under this Contract are contingent upon receipt of such funds by the State. In the event that such
funds or any part thereof are not received by the State, the State may immediately terminate or amend this
Contract.
b) Termination for Cause. If, through any cause, the Contractor shall fail to fulfill in a timely and proper
manner his obligations under this Contract, or if the Contractor shall violate any of the covenants,
agreements, or stipulations of this Contract, the State shall thereupon have the right to terminate this
Contract for cause by giving written notice to the Contractor of such termination and specifying the effective
date thereof, at least five (5) days before the effective date of such termination. In that event, all finished or
unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports or other
material prepared by the Contractor under this Contract shall, at the option of the State, become its
property, and the Contractor shall be entitled to receive just and equitable compensation for any
satisfactory work completed on such documents and other materials.
Notwithstanding the above, the Contractor shall not be relieved of liability to the State for any damages
sustained by the State by virtue of any breach of the Contract by the Contractor, and the State may
~roithhold any payments to the Contractor for the purpose of setoff until such time as the exact amount of
damages due the State from the Contractor is determined.
Page 6 of 16 Pages
c) Termination for Convenience. The State may terminate this Contract at any time the State desires. The
State shall effect such termination by giving written notice of termination to the Contractor and specifying
the effective date thereof, at least twenty (20) days before the effective date of such termination. In that
event, all finished or unfinished documents and other materials as described in subparagraph 17 b) above
Shall, at the option of the State, become its property. If the Contract is terminated by the State as provided
herein, the Contractor will be paid an amount which bears the same ratio to the total compensation as the
services actually performed bear to the total services of the Contractor covered by this Contract, less
payments of compensation previously made: Provided, however, that if less than sixty percent (60%) of the
services covered by this Contract have been performed upon the effective date of such termination, the
Contractor shall be reimbursed (in addition to the above payment) for that portion of the actual
out-of-pocket expenses (not otherwise reimbursed under this Contract) incurred by the Contractor during
the Contract period which are directly attributable to the uncompleted portion of the services covered by this
Contract. If this Contract is terminated due to the fault of the Contractor, Paragraph 17b hereof relative to
termination shall apply.
18. Modification and Amendment.
a) Modification by Operation of Law. This Contract is subject to such modifications as may be required by
changes in federal or state law or regulations. Any such required modification shall be incorporated into and
be part of this Contract as if fully set forth herein.
Page 7 of 16 Pages
d) Other Modifications. If either the State or the Contractor desired to modify the terms of this Contract other
than as set forth in subparagraphs 18.b) and 18.c) above, written notice of the proposed modification shall
be given to the other party. No such modification shall take effect unless agreed to in writing by both
parties in an amendment to this Contract properly executed and approved in accordance with applicable
law. Any amendment required per this subparagraph will require the approval of other state agencies as
appropriate, e.g. Attorney General, State Controller, etc.
19. Integration. This Contract, as written, with attachments and references, is intended as the complete integration of
all understandings between the parties at this time and no prior or contemporaneous addition, deletion or
amendment hereto shall have any force or effect whatsoever, unless embodied in a written authorization or
contract amendment incorporating such changes, executed and approved pursuant to applicable law.
20. Conflict of Interest.
a) In the Case of Procurement. In the procurement of supplies, equipment, construction and services by the
Contractor and its subcontractors, no employee, officer or agent of the Contractor or its subcontractors
shall participate in the selection or in the award or administration of a contract if a conflict of interest, real or
apparent, would be involved. Such a conflict would arise when the employee, officer or agent; any member
of his immediate family; his partner; or an organization which employs, or is about to employ, any of the
above, has a financial or other interest in the party or firm selected for award. Officers, employees or
agents of the Contractor and its subcontractors shall neither solicit nor accept gratuities, favors or anything
of monetary value from parties or potential parties to contracts. Unsolicited items provided as gifts are not
prohibited if the intrinsic value of such items is nominal.
b) In all Cases Other Than Procurement. In all cases other than procurement (including the provision of
housing rehabilitation assistance to individuals, the provision of assistance to businesses, and the
acquisition and disposition of real property), no persons described in subparagraph i) below who exercise
or have exercised any functions or responsibilities with respect to HOME activities or who are in a position
to participate in adecision-making process or gain inside information with regard to such activities, may
obtain a personal or financial interest or benefit from the activity, or have an interest in any contract,
subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those
with whom they have family or business ties, during their employment tenure or for one year thereafter.
Persons Covered. The conflict of interest provisions of paragraph b) this section apply to any
person who is an employee, agent, consultant, officer, or elected official or appointed official of the
Contractor or of any designated public agencies or subcontractors receiving HOME funds.
ii) Threshold Requirements for Exceptions. Upon the written request of the Contractor, the State will
forward to HUD a request for an exception to the provisions of the subparagraph b) when it
determines that such an exception will serve to further the purposes of the HOME program and the
effective and efficient administration of the Contractor's Project. An exception may be considered
only after the Contractor has provided in writing the following:
a disclosure of the nature of the conflict, accompanied by an assurance that (1) there has
been or will be a public disclosure of the conflict and a description of how the public
disclosure was or will be made; and (2) the affected person has withdrawn from his or her
functions or responsibilities, or the decision-making process with respect to the specific
HOME-assisted activity in question; and,
an opinion of the Contractor's attorney that the interest for which the exception is sought
would not violate State or local law; and
a written statement signed by the chief elected official or executive director of the Contractor
holding the State harmless from all liability in connection with any exception which may be
granted by the State to the provisions of this subparagraph b) above In All Cases Other
Than Procurement;
iii) Factors to be Considered for Exceptions. In determining whether to grant a requested exception
after the Contractor has satisfactorily met the requirements of subparagraph ii) above, the State
shall consider the cumulative effect of the following factors, where applicable:
whether the exception would provide a significant cost benefit or an essential degree of
expertise to the Project which would otherwise not be available;
b. whether an opportunity was provided for open competitive bidding or negotiation;
Page 8 of 16 Pages
c. whether the person affected is a member of a group or class of low or moderate income
persons intended to be beneficiaries of the HOME assisted activity, and the exception will
permit such person to receive generally the same benefits as are being made available or
provided to the group or class;
d. whether the affected person there has withdrawn or from his or her functions or
responsibilities, or the decision making process with respect to the specific HOME-assisted
activity in question;
e. whether the interest or benefit was present before the affected person was in a position as
described in this subparagraph b) i) Persons Covers;
f. whether undue hardship will result either to the Contractor or the person affected when
weighed against the public interest served by avoiding the prohibited conflict; and
g. any other relevant considerations.
c) Owners and Developers.
(1) No owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent
or consultant of the owner, developer or sponsor) whether private, for profit or non-profit (including a
community housing development organization (CHDO) when acting as an owner, developer or
sponsor) may occupy aHOME-assisted affordable housing unit in a project. This provision does not
apply to an owner-occupant of single-family housing or to an employee or agent of the owner or
developer of a rental housing project who occupies a HOME assisted unit as the project manager or
maintenance worker.
(2) Exceptions. Upon written request of a housing owner or developer, the Contractor may request in
writing from the State an exception to the provisions of paragraph cK 1) of this section on a
case-by-case basis when it determines that the exception will serve to further the purposes of the
HOME program and the effective and efficient administration of the owners or developer's
HOME-assisted project. In determining whether to grant a requested exception, the State shall
consider the following factors:
(i) Whether the person receiving the benefit is a member of a group or class of low-income
persons intended to be the beneficiaries of the assisted housing, and the exception will permit
such person to receive generally the same interests or benefits as are being made available
or provided to the group or class;
(ii) Whether the person has withdrawn from his or her functions or responsibilities, or the decision
making process with respect to the specific assisted housing in question;
(iii) Whether the tenant protection requirements of §92.253 are being observed;
(iv) Whether the affirmative marketing requirements of §92.351 are being observed and followed;
and
(v) Any other factor relevant to the participating jurisdiction's determination, including the timing
of the requested exception.
21. Compliance with Applicable Laws. At all times during the performance of this Contract, the Contractor and any
subcontractors shall strictly adhere to all applicable federal and State laws, orders, and all applicable standards,
regulations, interpretations or guidelines issued pursuant thereto. The applicable federal laws and regulations
include:
a) National Environmental Policy Act of 1969 (42 USC 4321 et seq.), as amended, and the implementing
regulations of HUD (24 CFR Part 58) and of the Council on Environmental Quality (40 CFR Parts 1500 -
1508) providing for establishment of national policy, goals, and procedures for protecting, restoring and
enhancing environmental quality.
b) National Historic Preservation Act of 1966 (16 USC 470 et seq.), as amended, requiring consideration
of the effect of a project on any district, site, building, structure or object that is included in or eligible for
inclusion in the National Register of Historic Places.
c) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971
(36 FR 8921 et seq.) requiring that federally-funded projects contribute to the preservation and
enhancement of sites, structures and objects of historical, architectural or archaeological significance.
Page 9 of 16 Pages
d) The Archaeological and Historical Data Preservation Act of 1974, amending the Reservoir Salvage
Act of 1960 (16 USC 469 et seq.), providing for the preservation of historic and archaeological data that
would be lost due to federally-funded development and construction activities.
e) Executive Order 11988, Floodplain Management, May 24, 1977 (42 FR 26951 et seq.) prohibits
undertaking certain activities in flood plains unless it has been determined that there is no practical
alternative, in which case notice of the action must be provided and the action must be designed or
modified to minimize potential damage.
f) Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 FR 26961 et seq.) requiring review
of all actions proposed to be located in or appreciably affecting a wetland. Undertaking or assisting new
construction located in wetlands must be avoided unless it is determined that there is no practical
alternative to such construction and that the proposed action includes all practical measures to minimize
potential damage.
g) Safe Drinking Water Act of 1974 (42 USC 201, 300 f et seq., 7401 et seq.), as amended, prohibiting the
commitment of federal financial assistance for any project which the Environmental Protection Agency
determines may contaminate an aquifer which is the sole or principal drinking water source for an area.
h) The Endangered Species Act of 1973 (16 USC 1531 et seq.), as amended, requiring that actions
authorized, funded, or carried out by the federal government do not jeopardize the continued existence of
endangered and threatened species or result in the destruction or modification of the habitat of such
species which is determined by the Department of the Interior, after consultation with the State, to be
critical.
i) The Wild and Scenic Rivers Act of 1968 (16 USC 1271 et seq.), as amended, prohibiting federal
assistance in the construction of any water resources project that would have a direct and adverse affect
on any river included in or designated for study or inclusion in the National Wild and Scenic Rivers
System.
j) The Clean Air Act of 1970 (42 USC 1857 et seq.), as amended, requiring that federal assistance will not
be given and that license or permit will not be issued to any activity not conforming to the State
implementation plan for national primary and secondary ambient air quality standards.
k) HUD Environmental Criteria and Standards (24 CFR Part 51) providing national standards for noise
abatement and control, acceptable separation distances from explosive or fire prone substances and
suitable land uses for airport runway clear zones.
I) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 -- Title III, Real
Property Acquisition (Pub. L. 91-646 and implementing regulations at 24 CFR Part 42), providing for
uniform and equitable treatment of persons displaced from their homes, businesses, or farms by federal
or federally-assisted programs and establishing uniform and equitable land acquisition policies for federal
assisted programs. Requirements include bona fide land appraisals as a basis for land acquisition,
specific procedures for selecting contract appraisers and contract negotiations, furnishing to owners of
property to be acquired a written summary statement of the acquisition price offer based on the fair
market price, and specified procedures connected with condemnation.
m) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 -- Title III,
Uniform Relocation Assistance (Pub. L. 91-646 and implementing regulations at 24 CFR Part 42),
providing for fair and equitable treatment of all persons displaced as a result of any federal or
federally-assisted program. Relocation payments and assistance, last-resort housing replacement by
displacing agency, and grievance procedures are covered under the Uniform Act. Payments and
assistance will be made pursuant to state or local law, or the grant recipient must adopt a written policy
available to the public describing the relocation payments and assistance that will be provided. Moving
expenses and up to $22,500 or more for each qualified homeowner or up to $5,250 or more for each
tenant are potential costs.
n) Section 104(d) of the Housing and Community Development Act of 1974, (42 U.S.C. 5301 as
amended and implementing regulations at 24 CFR Part 570) providing for the replacement of all
low/moderate-income dwelling units that are demolished or converted to another use as a direct result of
the use of HOME funds, and which provides for relocation assistance for all low/moderate-income
households so displaced.
o) Davis-Bacon Fair Labor Standards Act (40 USC 276a - 276a-5) requiring that, on all contracts and
subcontracts which exceed $2,000 for federally-assisted construction, alteration or rehabilitation for
projects which include 12 or more units assisted with HOME funds, all laborers and mechanics employed
by contractors or subcontractors shall be paid wages at rates not less than those prevailing on similar
construction in the locality as determined by the Secretary of Labor.
Page 10 of 16 Pages
Similarly, all contracts for construction must contain these wages provisions if HOME funds are used for
any project costs, including construction or non-construction costs, with 12 or more HOME-assisted
housing units. When HOME funds are only used to assist homebuyers to acquire single-family housing,
and not for any other project costs, the wage provisions apply to the construction of the housing if there
is a written agreement with the owner or developer of the housing that HOME funds will be used to assist
homebuyers to buy the housing and the construction contract covers a total of 12 or more HOME-
assisted units, whether one or more than one site location is covered by the construction contract. Once
they are determined to be applicable, the wage provisions must be contained in the construction contract
so as to cover all laborers and mechanics employed in the development of the entire project, including
portions other than the assisted units. Arranging multiple construction contracts within a single project for
the purpose of avoiding the wage provisions is not permitted.
Volunteers. The prevailing wage provisions of this Act do not apply to an individual who receives no
compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for
which the individual volunteered and who is not otherwise employed at any time in the construction
~NOrk.
ii) Sweat equity. The prevailing wage provisions of this Act do not apply to members of an eligible
family who provide labor in exchange for acquisition of a property for homeownership or provide
labor in lieu of, or as a supplement to, rent payments.
p) Contract Work Hours and Safety Standards Act of 1962 (40 USC 327 et seq.) requiring that
mechanics and laborers employed on federally-assisted contracts which exceed $2,000 be paid wages
of not less than one and one-half times their basic wage rates for all hours worked in excess of forty in a
work week.
q) Copeland "Anti-Kickback" Act of 1934 (40 USC 276 (c)) prohibiting and prescribing penalties for
"kickbacks" of wages in federally-financed or assisted construction activities.
r) The Lead-Based Paint Poisoning Prevention Act -- Title IV (42 USC 4831) prohibiting the use of
lead-based paint in residential structures constructed or rehabilitated with federal assistance, and
requiring notification to purchasers and tenants of such housing of the hazards of lead-based paint and
of the symptoms and treatment of lead-based paint poisoning.
s) Section 3 of the Housing and Community Development Act of 1968 (12 USC 1701 (u)), as amended,
providing that, to the greatest extent feasible, opportunities for training and employment that arise
through HUD-financed projects, will be given to lower-income persons in the unit of the project area, and
that contracts be awarded to businesses located in the project area or to businesses owned, in
substantial part, by residents of the project area.
t) Section 109 of the Housing and Community Development Act of 1974 (42 USC 5309), as amended,
providing that no person shall be excluded from participation (including employment), denied program
benefits or subjected to discrimination on the basis of race, color, national origin or sex under any
program or activity funded in whole or in part under Title I (Community Development) of the Act.
u) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 USC 2000 (d)) prohibiting discrimination on
the basis of race, color, religion or religious affiliation, or national origin in any program or activity
receiving federal financial assistance.
v) The Fair Housing Act (42 USC 3601-20), as amended, prohibiting housing discrimination on the basis
of race, color, religion, sex, national origin, handicap and familial status.
w) Executive Order 11246 (1965), as amended by Executive Orders 11375, prohibiting discrimination on
the basis of race, color, religion, sex or national origin in any phase of employment during the
performance of federal orfederally-assisted contracts in excess of $2,000.
x) Executive Order 11063 (1962), as amended by Executive Order 12259, requiring equal opportunity in
housing by prohibiting discrimination on the basis of race, color, religion, sex or national origin in the sale
or rental of housing built with federal assistance.
y) Section 504 of the Rehabilitation Act of 1973 (29 USC 793), as amended, providing that no otherwise
qualified individual shall, solely by reason of a handicap, be excluded from participation (including
employment), denied program benefits or subjected to discrimination under any program or activity
receiving federal funds.
z) Age Discrimination Act of 1975, (42 USC 6101), as amended, providing that no person shall be
excluded from participation, denied program benefits or subjected to discrimination on the basis of age
under any program or activity receiving federal funds.
Page 11 of 16 Pages
~aa) Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations
and Low-Income Populations, February 11, 1994 providing that all persons regardless of their status
(income), race, color, or national origin be afforded the opportunity to live in a quality environment.
22. Monitoring, Evaluation and Inspection. The State will monitor and evaluate the Contract with the Contractor
under the HOME program for the effective and efficient utilization of HOME funds. The attached Exhibit D Project
Performance Plan contains specific benchmarks to be followed by the Contractor. The Contract will also be
monitored for compliance with the rules, regulations, requirements and guidelines, which the State has
promulgated or may promulgate. The Project will be monitored in accordance with Paragraph 12, Exhibit A Scope
of Service to assure compliance with the requirements of the HOME program periodically during the operation of
the project or upon its completion and during the required period of affordability, rental housing projects wtll be
inspected on-site for property standards rent structures, and income requirements:
a) at least every three years for projects containing one to four units;
b) at least every two years for projects containing five to twenty-five units;
c) at least once a year for projects containing more than 26 units.
The Contract will also be subject to monitoring and evaluation by the U.S. Department of Housing and Urban
Development.
23. Severability. To the extent that this Contract may be executed and performance of the obligations of the parties
may be accomplished within the intent of the Contract, the terms of this Contract are severable, and should any
term or provision hereof be declared invalid or become inoperative for any reason, such invalidity or failure shall
not affect the validity of any other term or provision hereof. The waiver of any breach of a term hereof shall not be
construed as waiver of any other term, nor a waiver of a subsequent breach of the same term.
24. Binding on Successors. Except as herein otherwise provided, this agreement shall inure to the benefit of and be
binding upon the parties, or any subcontractors hereto, and their respective successors and assigns.
25 Subletting, Assignment or Transfer. Neither party nor any subcontractors hereto may sublet, sell, transfer,
assign or otherwise dispose of this Contract or any portion thereof, or of its rights, title, interest or duties therein,
without the prior written consent of the other party. No subcontract or transfer of Contract shall in any case release
the Contractor of liability under this Contract.
26. Lobbying. The Contractor assures and certifies that:
a) no federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any
person for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection
with the awarding of any federal contract, the making of a 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.
b) 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 offer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress in connection with this
federally funded contract, grant, loan, or cooperative agreement, it shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions.
c) it shall require that the language of this certification be included in the award documents for all
subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and
cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
d) it understands that this certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not
more than $100,000 for each such failure.
27. Applicant Statement of Assurances and Certifications. The Contractor has previously signed an "Applicant
Statement of Assurances and Certifications" which is hereby incorporated and made a part of this contract by
reference.
28. Survival of Certain Contract Terms. Notwithstanding anything herein to the contrary, the parties understand and
agree that all terms and conditions of this contract and the exhibits and attachments hereto which may require
continued performance or compliance beyond the termination date of the contract shall survive such termination
date and shall be enforceable by the State as provided herein in the event of such failure to perform or comply by
the Contractor or its subcontractors.
Page 12 of 16 Pages
29. Order of Precedence. In the event of conflicts or inconsistencies between this contract and its exhibits or
<3ttachments, such conflicts or inconsistencies shall be resolved by reference to the documents in the following
order of priority:
A. Colorado Special Provisions, pages 15 to 16.
B. Contract, pages 1 to 14.
C. The Scope of Service, Exhibit A.
D. The Project Performance Plan, Exhibit D.
30. Insurance.
30.1 The Contractor shall obtain, and maintain at all times during the term of this agreement, insurance in the
following kinds and amounts:
a: Worker's Compensation Insurance as required by state statute, and Employer's Liability Insurance covering all of
the contractors employees acting within the course and scope of their employment.
b. Commercial General Liability Insurance written on ISO occurrence form CG 00 01 10/93 or equivalent, covering
premises operations, fire damage, independent contractors, products and completed operations, blanket
contractual liability, personal injury, and advertising liability with minimum limits as follows:
i. $1,000,000 each occurrence;
ii. $1,000,000 general aggregate;
iii. $1,000,000 products and completed operations aggregate; and
iv. $50,000 any one fire.
If ~ aggregate limit is reduced below $1,000,000 because of claims made or paid, the contractor shall
immediately obtain additional insurance to restore the full aggregate limit and furnish to the State a certificate or
other document satisfactory to the State showing compliance with this provision.
c. Automobile Liability Insurance covering any auto (including owned, hired and non-owned autos) with a
minimum limit as follows: $1,000,000 each accident combined single limit.
30.2 The State of Colorado shall be named as additional insured on the Commercial General Liability and Automobile
Liability Insurance policies (leases and construction contracts will require the additional insured coverage for
completed operations on endorsements CG 2010 11/85, CG 2037, or equivalent). Coverage required of the
contract will be primary over any insurance or self-insurance program carried by the State of Colorado.
30.3 The Insurance shall include provisions preventing cancellation or non-renewal without at least 45 days prior notice
to the State by certified mail.
30.4 The contractor will require all insurance policies in any way related to the contract and secured and maintained by
the contractor to include clauses stating that each carrier will waive all rights of recovery, under subrogation or
otherwise, against the State of Colorado, its agencies, institutions, organizations, officers, agents, employees and
volunteers.
30.5 All policies evidencing the insurance coverages required hereunder shall be issued by insurance companies
satisfactory to the State.
30.6 The contractor shall provide certificates showing insurance coverage required by this contract to the State within 7
business days of the effective date of the contract, but in no event later than the commencement of the services or
delivery of the goods under the contract. No later than 15 days prior to the expiration date of any such coverage,
the contractor shall deliver the State certificates of insurance evidencing renewals thereof. At any time during the
term of this contract, the State may request in writing, and the contractor shall thereupon within 10 days supply to
the State, evidence satisfactory to the State of compliance with the provisions of this section.
30.7 Notwithstanding subsection a of this section, if the Contractor is a "public entity" within the meaning of the
Colorado Governmental Immunity Act, CRS 24-10-101, et sea•, as amended ("Act"), the contractor shall at all
times during the term of this contract maintain only such liability insurance, by commercial policy or self-insurance,
as is necessary to meet its liabilities under the Act. Upon request by the State, the contractor shall show proof of
such insurance satisfactory to the State.
31. Legal Resident.
Contractor must confirm that any individual natural person eighteen years of age or older is lawfully present in the
United States pursuant to CRS 24-76.5-101 et seq., when such individual applies for public benefits provided
under this Contract by requiring the applicant to:
Page 13 of 16 Pages
(a) Produce:
I. A valid Colorado driver's license or a Colorado identification card, issued pursuant to article 2 of title 42,
C.R.S.; or
II. A United States military card or a military dependent's identification card; or
III. A United States Coast Guard Merchant Mariner card; or
IV. A Native American tribal document; and
(b) Execute an affidavit herein attached as Exhibit E, Affidavit of Legal Residency, stating:
I. That he or she is a United States citizen or legal permanent resident; or
II. That he or she is otherwise lawfully present in the United States ursuant t f d I I
32.
p o e era aw.
Indemnification.
Intergovernmental Grants
If this is an intergovernmental Grant, the provisions hereof shall not be construed or interpreted as a waiver, express
or implied, of any of the immunities, rights, benefits, protection, or other provisions, of the Colorado Governmental
Immunity Act, CRS 24-10-101 et seq., or the Federal Tort Claims Act, 28 U.S.C. 2671 et seq., as applicable, as now
or hereafter amended.
Non-Intergovernmental Grants
Grantee shall indemnify, save, and hold harmless the State, its employees and agents, against any and all claims,
damages, liability and court awards including costs, expenses, and attorney fees and related costs, incurred as a
result of any act or omission by Grantee, or its employees, agents, subcontractors, or assignees pursuant to the
terms of this Grant.
33
Statewide Contract Management System.
[This section shall apply when the State funds provided under this contract is $100,000 or higher]
By entering into this Grant, the Grantee agrees to be governed, and to abide, by the provisions of CRS §24-102-
205, §24-102-206, §24-103-601, §24-103.5-101 and §24-105-102 concerning the monitoring of vendor
performance on state contracts and inclusion of contract performance information in a statewide contract
management system. The Grantee's performance shall be evaluated in accordance with the terms and
conditions of this Grant, State law, including CRS §24-103.5-101, and State Fiscal Rules, Policies and
Guidance. Evaluation of the Grantee's performance shall be part of the normal contract administration process
and the Grantee's performance will be systematically recorded in the statewide Contract Management System.
Areas of review shall include, but shall not be limited to quality, cost and timeliness. Collection of information
relevant to the performance of Grantee's obligations under this Grant shall be determined by the specific
requirements of such obligations and shall include factors tailored to match the requirements of the Statement of
Project of this Grant. Such performance information shall be entered into the statewide Contract Management
System at intervals established in the Statement of Project and a final review and rating shall be rendered within
30 days of the end of the Grant term. The Grantee shall be notified following each performance and shall
address or correct any identified problem in a timely manner and maintain work progress. Should the final
performance evaluation determine that the Grantee demonstrated a gross failure to meet the performance
measures established under the Statement of Project, the Executive Director of the Colorado Department of
Personnel and Administration (Executive Director), upon request by the DOLA, and showing of good cause,
may debar the Grantee and prohibit the Grantee from bidding on future contracts. The Grantee may contest the
final evaluation and result by: (i) filing rebuttal statements, which may result in either removal or correction of the
evaluation (CRS §24-105-102(6)); or (ii) under CRS §24-105-102(6), exercising the debarment protest and
appeal rights provided in CRS §§24-109-106, 107, 201 or 202, which may result in the reversal of the
debarment and reinstatement of the Grantee, by the Executive Director, upon showing of good cause.
Page 14 of 16 Pages
~ SPECIAL PROVISIONS
These Special Provisions apply to all contracts except where noted in italirs.
1. CONTROLLER'S APPROVAL. CRS §24-30-202(1). This contract shall not be valid until it has been approved by the Colorado State
Controller or designee.
2. FUND AVAILABILITY. CRS §2430-202(5.5). Financial obligations of the State payable after the current fiscal year are contingent upon
funds for that purpose being appropriated, budgeted, and otherwise made available.
3. GOVERNMENTAL IMMUNITY. No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of
any of the immunities, rights, benefits, protections, or other provisions, of the Colorado Governmental Immunity Act, CRS §24-10-101 et seq., or
the Federal Tort Claims Act, 28 U.S.C. §§1346(b) and 2671 et seq., as applicable now or hereafter amended.
4. INDEPENDENT CONTRACTOR. Contractor shall perform its duties hereunder as an independent contractor and not as an employee.
Neither Contractor nor any agent or employee of Contractor shall be deemed to be an agent or employee of the State. Contractor and its
employees and agents are not entitled to unemployment insurance or workers compensation benefits through the State and the State shall not
pay for or otherwise provide such coverage for Contractor or any of its agents or employees. Unemployment insurance benefits will be available
to Contractor and its employees and agents only if such coverage is made available by Contractor or a third party. Contractor shall pay when
due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this contract. Contractor shall riot have
authorization, express or implied, to bind the State to any agreement, liability or understanding, except as expressly set forth herein. Contractor
shall (a- provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (b)
provide proof thereof when requested by the State, and (c) be solely responsible for its acts and those of its employees and agents.
5. COMPLIANCE WITH LAW. Contractor shall strictly comply with all applicable federal and State laws, rules, and regulations in effect or
hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices.
6. CHOICE OF LAW. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and
enforcement of this contract. Any provision included or incorporated herein by reference which conflicts with said laws, rules, and regulations
shall be null and void. Any provision incorporated herein by reference which purports to negate this or any other Special Provision in whole or in
part shall not be valid or enforceable or available in any action at law, whether by way of complaint, defense, or otherwise. Any provision
rendered null and void by the operation of this provision shall not invalidate the remainder of this contract, to the extent capable of execution.
7. BINDING ARBITRATION PROHIBITED. The State of Colorado does not agree to binding arbitration by any extra-judicial body or person.
Any provision to the contrary in this contact or incorporated herein by reference shall be null and void.
8. SOFTWARE PIRACY PROHIBITION. Governor's Executive Order D 002 00. State or other public funds payable under this contract shall
not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing
restrictions. Contractor hereby certifies and warrants that, during the term of this contract and any extensions, Contractor has and shall maintain
in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that Contractor is in violation of
this provision, the State may exercise any remedy available at law or in equity or under this contract, including, without limitation, immediate
termination of this contract and any remedy consistent with federal copyright laws or applicable licensing restrictions.
9. EMPLOYEE FINANCIAL INTEREST/CONFLICT OF INTEREST. CRS §§2418-201 and 2450-507. The signatories aver that to their
knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this contract.
Contractor has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance
of Contractor's services and Contractor shall not employ any person having such known interests.
10. VENDOR OFFSET. CRS §§2430-202 (1) and 2430-202.4. [Not Applicable to intergovernmental agreements] Subject to CRS §24-30-
202.4 (3.5), the State Controller may withhold payment under the State's vendor offset intercept system for debts owed to State agencies for: (a)
unpaid child support debts or child support arrearages; (b) unpaid balances of tax, accrued interest, or other charges specified in CRS §39-21-
101, et seq.; (c) unpaid loans due to the Student Loan Division of the Department of Higher Education; (d) amounts required to be paid to the
Unemployment Compensation Fund; and (e) other unpaid debts owing to the State as a result of final agency determination or judicial action.
11. PUBLIC CONTRACTS FOR SERVICES. CRS §8-17.5-101. [Not AppUcab/e to agreements relating to the offer, issuance, or sa/e of
securities, investment advisory services or fund management services, sponsored projects, intergovernmental agreements, or
information technology services or products and services] Contractor certifies. warrants, and agrees that it does not knowingly employ or
contract with an illegal alien who will perform work under this contract and will confirm the employment eligibility of all employees who are newly
hired for employment in the United States to perform work under this contract, through participation in the E-Verify Program or the Department
program established pursuant to CRS §8-17.5-102(5)(c), Contractor shall not knowingly employ or contract with an illegal alien to perform work
under this contract or enter into a contract with a subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly
employ or contract with an illegal alien to perform work under this contract. Contractor (a) shall not use E-Verify Program or Department program
procedures to undertake pre-employment screening of job applicants while this contract is being performed, (b) shall notify the subcontractor
and the contracting State agency within three days if Contractor has actual knowledge that a subcontractor is employing or contracting with an
illegal alien for work under this contract, (c) shall terminate the subcontract if a subcontractor does not stop employing or contracting with the
illegal alien within three days of receiving the notice, and (d) shall comply with reasonable requests made in the course of an investigation,
undertaken pursuant to CRS §8-17.5-102(5), by the Colorado Department of Labor and Employment. If Contractor participates in the
Department program, Contractor shall deliver to the contracting State agency, Institution of Higher Education or political subdivision a written,
notarized affirmation, affirming that Contractor has examined the legal work status of such employee, and shall comply with all of the other
requirements of the Department program. If Contractor fails to comply with any requirement of this provision or CRS §8-17.5-101 et seq., the
contracting State agency, institution of higher education or political subdivision may terminate this contract for breach and, if so terminated,
Contractor shall be liable for damages.
12. PUBLIC CONTRACTS WITH NATURAL PERSONS. CRS §2476.5-101. Contractor, if a natural person eighteen (18) years of age or older,
hereby swears and affirms under penalty of perjury that he or she (a) is a citizen or otherwise lawfully present in the United States pursuant to federal
law, (b) shall comply with the provisions of CRS §2476.5-101 et seq., and (c) has produced one form of identification required by CRS §24-76.5-103
prior to the effective date of this contract.
Revised 1-1-09
Page 15 of 16 Pages
1'11E P:~R"PIES IIF:RE"1'O I1:~VE F:tECUTED THIS CONTR:~CT
* Persons signing t~~r Contractor hereby swear and aft-irm that they are authorized to act nn Contractor's ~
behalf and acknowledge that the State is relying nn their representations to that effect.
CONTRAC"COR
Eagle County
I3y: Sara J. Fisher
Title: Chair, Eagle County Board ofCommissioners
kSignature
i
Date: ~ ~ ~ ~ ~ ~ U
STA"I'E OF COLORADO
13111 Ritter,.Ir., GOVERNOR
DEPARTMENT OF LOCAL AFFAIRS
By:
Susan E. Kirkpatrick, Executive Director
Date:
PRE-APPROVED FORM CONTRACT REVIEWER
\utumn Gold, Housing Programs Manager
E3y:
Date:
ALL CONTRICTS REOC"IRE APPROV ~L by the STATE CONTROLLER
CRS §24-30-202 requires the State Controller to approve all State Contracts. This Contract is not valid until
signed and dated below by the State Controller or delegate. Contractor is not authorized to begin
performance until such time. If Contractor begins performing prior thereto, the State of Colorado is not
obligated to pay Contractor for such performance or for any goods and/or services provided hereunder
A. STATE CONTROLLER
David J. 11cDermott, CPA
B. By:
Yingste Cha, Controller Delegate
Date:
Page 16 of 16 Pages
EXHIBIT A
SCOPE OF SERVICES
Rental Development
EXHIBIT A
SCOPE OF SERVICES
Eagle County #09-062
PROJECT DESCRIPTION, OBJECTIVES, AND REQUIREMENTS.
A. Project Description. Eagle County received a HOME grant in the amount of $432,000 to assist
with the acquisition of the Riverview Apartments at 39169 US HWY 6 and 24, in Avon, Eagle,
Colorado. The project will be developed by a limited liability partnership for tax credit purposes,
with Eagle County as a general partner in the LLP. Eagle County will pass the grant through to
the LLP, which will renovate 72 units of low-income family apartments. The project will use
permanent financing from affixed-rate first mortgage secured loan, Low-Income Housing Tax
Credits, and a seller carried second mortgage, as well as grant funds from Eagle County.
B. Form of Subsidy. $432,000 in HOME grant funds will be administered in accordance with the
requirements of this contract, and the performance goals and timelines outlined in Exhibit D,
Project Performance Plan and any other applicable guidelines implemented by the State. At the
end of the 12 months, if all of HOME funds have not been expended, the remaining HOME funds
must be returned to the State
C. Minimum and Maximum Subsidy Limits. The minimum amount of HOME funds invested in
this project average $1,000 for each HOME-assisted unit in the project. The HOME-subsidy per
unit cannot exceed the average per unit development costs for the unit. The maximum amount
of funds permitted per unit is established periodically by the U.S. Department of Housing and
Urban Development. The maximum per-unit subsidy for this project is the following:
0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
$113,093 $130,397 $157,260 $201,295 $224,251
2. ADMINISTRATIVE REQUIREMENTS.
A. Financial Management. The Contractor shall be responsible for the administration of the
project in accordance with the applicable financial management requirements, as described in
Paragraph 14. within the main body of this Contract. The Contractor may subcontract all or part
of the administration duties.
B. Affirmative Marketing Plan. This project does require an Affirmative Marketing Plan approved
by the Department of Local Affairs, Division of Housing, prior to the release of funds. This plan
must be written in accordance with Paragraph 10 of the main body of this Contract.
C. Program Income, Repayment, and Recaptures. All revenues received by the Contractor or
designated sub-grantee which result directly from aHOME-assisted activity shall be considered
program income. Program income includes but is not limited to, principal and interest payments
and proceeds from the sale of acquired assets. All program income shall be retained by the
Contractor or designated sub-grantee, and shall be used for HOME eligible activities.
A minimum of 90 percent of the program income funds shall be expended on HOME-eligible
housing assistance activities. The remaining 10 percent may be expended on general
administrative program costs.
No more than $5,000 of program income may be retained before requesting additional grant
funds.
D. Interest. The Contractor shall expend the HOME funds within 15 days of receipt, and shall not
earn interest on the funds prior to expenditures.
Section 3 Requirements. This project is not subject to Section 3 Requirements.
Page 1 of 5 Pages
INCOME ELIGIBILITY DETERMINATION. For the initial lease up the Contractor must determine
annual income of the Project beneficiaries using "Annual Income" as defined under the public housing
~3nd Section 8 programs in 24 CFR 5, Subpart F. Contractor may:
A. Continue to use the income qualifying method above for subsequent income determinations
during the period of affordability; or
B. Use "Adjusted gross income" as defined for purposes of reporting under Internal Revenue
Service (IRS) Form 1040 series for individual Federal annual income tax purposes. Once the
subsequent income determination is chosen, that method must be used for all households
during the affordability period.
4. PROJECT ELIGIBLE BENEFICIARIES.
The contractor shall insure that 72 (all the units in the affordable housing project) units will be occupied
by low-income persons whose Area Median Income (AMI) household income is the following:
Type of Units 1r: of Units Income of Beneficiaries
(4 person household)
HOME Assisted Units
(31 26R 3 < 50% of AMI ($43,300)
Other Affordable Units
(2) 38R 2 < 30% of AMI ($26,000
(3) 28R, (2) 3BR 5 < 40% of AMI ($34,640)
(3) 26R, (2) 38R 5 < 50% of AMI ($43,300)
(29) 28R, (28) 36R 57 < 60% of AMI ($51,960)
Total Units
~_-- 72
~riwrnes ns~ea m me cnar[ a~ove are for tour (4) person families. Incomes for other family sizes
are attached as Exhibit B.
An annual review of rents and household incomes by the State will ensure compliance. This review will
consider market or operating conditions that may temporarily impede the Contractor's ability to meet
required rents.
5. AFFORDABILITY REQUIREMENTS. This project must meet the affordability requirements for the
specified time period outlined below or HOME funds shall be repaid to the State.
A. HOME -Assisted Unit Identification
In this project there are 3HOME-assisted units. The units designated as HOME-assisted are 3-
two bedroom. As these units will be floating units over the period of affordability, the Contractor
must insure that the designated units will be comparable in terms of size, features, and number
of bedrooms to the originally designated HOME units.
HOME -Assisted Rent Restrictions.
To insure the housing is affordable to very low and low income persons, all of the HOME-
assisted rental units must have rents that are the lesser of the Section 8 Fair Market Rents
periodically established by U.S. Department of Housing and Urban Development or rents which
are 30 percent of adjusted income for households at 60 percent of AMI minus tenant paid
utilities.
Eagle County 1-Bedroom 2-Bedrooms 3-Bedrooms 4-Bedrooms
Fair Market Rent (eff. 10/1/09) $1,0103 $1,333 $1,677 $2,290
<30% of AMI $455 $487 $585 $753
<40% of AMI $606 $649 $779 $900
<50% of AMI $757 $811 $973 ;1
125
<60%ofAMl $909 $974 $1,168 ,
31.";50
Page 2 of 5 Pages
Additionally, at least 20 percent of the HOME-assisted units must have rents, which are the
lesser of the Section 8 Fair Market Rents periodically established by U.S. Department of Housing
and Urban Development, or 30 percent of annual adjusted incomes for households at 50 percent
of area median income, minus tenant paid utilities.
B. Project Affordability Period. The Contractor shall ensure that all affordable units identified in
Paragraph 1A of this Scope of Service continue to be used to provide housing for very low, low,
and moderate income person families for 30 years from the date of contract execution.
C. Affordability Enforcement. Rent and beneficiary income requirements must be enforced by
deed restriction or covenants running with the land. Affordability restrictions apply without
regard to the term of any loan or mortgage or transfer of ownership and may terminate only upon
foreclosure or transfer in lieu or foreclosure. The affordability restrictions shall be revived
according to the original terms if, during the original affordability period, the owner of record
before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner
of those with whom the former owner has or had family or business ties, obtains an ownership
interest in the project or property.
6. PROPERTY STANDARDS.
A. Code Requirements. Acquisition properties must meet local housing standards or codes at the
time of initial occupancy. If no standards exist, Section 8 Housing Quality Standards (HQS) must
be met.
8. Fair Housing Act and Section 504. HOME-assisted construction must also meet the
accessibility standards of the Fair Housing Act and Section 504. For housing projects which
include any new construction or substantial rehabilitation ofmulti-family housing units, Section
504 requires that at least five percent of those units (or at least one, whichever is greater), be
made handicap accessible according to the uniform Federal Accessibility Standards. An
additional two percent of the units in such a project shall be accessible for persons with hearing
or vision impairments. To the maximum extent feasible, these units are to be evenly distributed
throughout the project site and be sufficient range of size when compared to other units. The
owner or manager of the housing units must make available information regarding the availability
of handicap accessible units to eligible individuals.
TIME OF PERFORMANCE. The Project shall commence upon the full and proper execution of this
Contract and the completion of the appropriate environmental review, and shall be completed on or
before April 30, 2011. However, the project time of performance may be extended by unilateral
amendment, subject to mutual agreement of the State and Contractor. To initiate the extension process,
the Contractor shall submit a written request to the State at least 60 days prior to April 30. 2011, and
shall include a full justification for the extension.
Page 3 of 5 Pages
8. PROJECT BUDGET.
Project Activities Total Project
Cost HOME Funds Other Funds Source
Acquisition $6,520,000 $432,000 $1.295,000
$4.793,000 Seller 2" Mtq.
First Bank 1~ Mtg.
Appr, Mkt. Study,
Surve s $20,000 $20,000 First Bank 15f Mtg.
Bldg. Permit $50,000 $50,000 First Bank 1S1 Mtg.
On-Site Infrastructure $275,000 $275,000 First Bank 15' Mtg.
Construction $3,621,875 $3,521,875
$100,000 LIHTC Proceeds
ECO Build Grant
Contingency $317,500 $317,500 LIHTC Proceeds
Architect, Engineering $250,000 $250,000 First Bank 151 Mtg.
Const. Interest, Fees,
Taxes, Ins. $780,000 $780,000 First Bank 151 Mtg.
Permanent Financing,
Legal Costs $274,800 $274,800 First Bank 151 Mtg.
Developer's Fee $500,000 $500,000 First Bank 151 Mtg.
Operating Reserve $685,000 $685,000 First Bank 151 Mtg.
Relocation $54,000 $54,000 First Bank 15` Mtg.
Totals $13,348,175 $432,000 $12,916,175
9. PAYMENT SCHEDULE.
Payment paid upon receipt and approval of written request from the Contractor for funds to meet immediate
cash needs.
Payment should be remitted to the following address:
Eagle County
500 Broadway
Eagle, Colorado 81631
10. USE RESTRICTION. The Contractor shall ensure that a use restriction is recorded in the land records
for each of the project properties. A copy of the recorded use restriction must be provided to the DOH at
the time of recording, and before any request for payment.
A. Eligible Beneficiaries. The Eagle County, its successors, assignees, heirs, grantees, or
lessees shall insure that 3 unit(s) is affordable to households whose income mirrors Section 4
Project Eligible Beneficiaries table.
HOME Project Rent Restrictions. To insure the housing is affordable to extremely low, and very low
income households, the assisted rental units must have rents that are the lesser of the Section 8 FMR,
as periodically established by HUD, or rents which are 30 percent of adjusted income for households
minus tenant paid utilities.
Eagle County 1-Bedroom 2-Bedrooms 3-Bedrooms 4-Bedrooms
Fair Market Rent (eff. 10/1/09) $1,0103 $1,333 $1,677 $2
290
<30% of AMI $455 $487 $585 ,
$753
<40% of AMI $606 $649 $779 $900
<50% of AMI
<60% of AMI $757 $811 $g73
$1,125
$909 $974 $1,168 51,350
Page 4 of 5 Pages
B. Long Term Affordability. The Eagle Countv, its successors, assignees, heirs, grantees, or
lessees shall ensure that this property remains affordable, without regard to the term of any
mortgage of transfer of ownership, for a period of not less than 30 years from the date of contract
execution. This affordability restriction may terminate upon foreclosure or transfer in lieu of
foreclosure, unless the owner of record, before the foreclosure, or anyone with business or family
ties to the owner, obtains an ownership interest in the property.
C. Change in Use. If this property is not used for housing the above described beneficiaries, at the
above described rents for 30 years from the date of contract execution, the Eagle Countv, its
successors and assignees, heirs, grantees, or lessees shall be required to repay the State the
grant funds attributed to this property, unless the State authorizes the transfer of repaid funds to
one or more public housing entities, or private nonprofit corporations.
If the property is used for housing the above described beneficiaries, at the above described rents
for 30 years following the date of contract execution, the Eagle Countv, its successors and
assignees, heirs, grantees, or lessees shall be absolved of this requirement.
11. REPORTING SCHEDULE. The Contractor shall provide the following reports to the Department of
Local Affairs, Division of Housing:
A. Financial Reports. One copy of the quarterly Financial Status Report must be submitted within
20 calendar days after the end of the calendar quarter. This report must be submitted on forms
provided by the Division of Housing. No requests for payments shall be processed if the
Contractor has not submitted this quarterly report;
B. Performance Reports. One copy of the quarterly Narrative Performance Report shall be
submitted within 20 calendar days after the end of the calendar quarter. This report may be
submitted on forms provided by the Division of Housing. No requests for payments shall be
processed if the Contractor has not submitted this quarterly report;
C. Project Completion Report. Within 30 days after the completion of the Project or the final draw
whichever is later, the Contractor shall submit 1 copy the Project Completion Report, two copies
of the Final Financial Status Report, and two copies of the consolidated Summary Beneficiary
Report on forms provided by the Division of Housing.
D. Rent and Income Qualification Reports. Annually, on the project close out date, for 30 years,
the term of affordability, the Contractor must submit to the Division of Housing information on
rents and occupancy of HOME-assisted units to demonstrate compliance with the affordability
requirements. These reports must be submitted on forms provided by the Division of Housing.
E. Project Photographs. At the time of Project Close Out the Contractor must send before and
after photographs of the project along with either the 35mm slides, negatives, digital copies.
12. CONTRACT MONITORING. The Department of Local Affairs, Division of Housing, shall monitor this
Contract in accordance with the provisions set forth in Paragraph 22. within the main body of this
Contract. This project is subject to 30 years of HOME long-term monitoring, for 3 housing units, every 3
years beginning after the project close-out date.
Page 5 of 5 Pages
EXHIBIT B
INCOME AND RENT CHART
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EXHIBIT E
LEGAL RESIDENCY AFFIDAVIT
.~FFID:IVIT OF LEGAL RESIDENCY
I, swear or affirm under penalty of
perjury under the laws of the State of Colorado that (check one-:
I am a United States citizen, or
[ am a Permanent Resident of the United States, or
[ am lawfully present in the United States pursuant to Federal law.
I understand that this sworn statement is required by law because I have applied for
a public benefit or I am a sole proprietor entering into a contract or purchase order
with the State of Colorado I understand that state law requires me to provide proof
that I am lawfully present in the United States prior to receipt of this public benefit
ur prior to entering into a contract with the State. I further acknowledge that
making a false, tlctitious, ur fraudulent statement or representation in this sworn
affidavit is punishable under the criminal laws of Colorado as perjury in the second
etegree under Colorado Revised Statute 18-8-503 and it shall constitute a separate
criminal offense each time a public benefit is fraudulently received.
Signature
Date
Name (please print)