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HomeMy WebLinkAboutR-2025-175 Resolution authorizing the funding agreements with Housing and Urban Development (HUD) for the 2025 HOME and CDBG grant contractsA RESOLUTION RESOLUTION NO. R-2025-175 authorizing the City Manager to accept the 2025 Community Development Block Grant (CDBG) and HOME Funds and execute the Funding contracts as mandated by the Department of Housing and Urban Development (HUD). WHEREAS, the City of Yakima completed the review of the Draft 2025-2029 Consolidated Plan and 2025 Annual Action Plan on August 4, 2025, and submitted the draft document for review, as required annually by HUD for receiving federal funds; and WHEREAS, the Office of Neighborhood Development Services fulfilled the requirements for two public input meetings held on November 19, 2024, and on August 4, 2025, as well as provided an open 30 day written comment period from July 3, 2025, to August 4, 2025; and WHEREAS, the City was notified by HUD on September 24, 2025, via letter, that its allocations for the 2025 program year are $1,023,311.00 in Community Development Block Grant funding and $502,272.76 in HOME funding; and WHEREAS, the 2025 program year funding approval contracts for CDBG and HOME grants are required to be executed before funding draws can occur for the 2025 program year; and WHEREAS, the funding will be utilized pursuant to the Consolidated Plan and terms and conditions of each federal program; and WHEREAS, the City Council of the City of Yakima finds it is in the best interest of the City and its residents to execute the funding contracts for CDBG and HOME Fund Programs, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: That the City Council of the City of Yakima authorizes the City Manager to accept the program year grants and execute the funding contracts for the 2025 funding approval contracts for CDBG in the amount of $1,023,311.00 and HOME in the amount of $502,272.76, ADOPTED BY THE CITY COUNCIL this 1$ h day of November, 2025. AlIEST: salinda Ibarra, City Clerk a J 'mane. it Patricia Bye s, Mayor U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT Seattle Field Office 909 First Avenue, Suite 310 Seattle, WA 98104 Bill Preston, Director Community and Economic Development City of Yakima 129 North 2nd Street Yakima, WA 98901 SUBJECT: Fiscal Year 2025 Grant Agreement Transmittal Dear Mr. Preston, The Seattle Field Office would like to thank you for your continued partnership in providing quality affordable housing, a suitable living environment, and expanding economic opportunities through the Department of Housing and Urban Development (HUD) programs. One Grant Agreement is attached for each program awarded as follows: Community Development Block Grant Program (CDBG) $1,023,311.00 HOME Investment Partnerships (HOME) $502,272.76 Total FY 2025 Award $1,525,583.76 Federal Award Agreement Transmittal of a grant agreement does not constitute approval of the activities described in your Consolidated Plan or Annual Action Plan. You are reminded that you, as grantee, are responsible for ensuring that all grant funds are used in accordance with all program requirements. By executing the Federal Award Agreement, you are entering into a legally binding agreement with HUD to use the awarded funds and carry out the funded activities in accordance with all Federal statutes, regulations, Federal Register notices, and award terms and conditions that apply to those funds and activities. Please carefully note the addenda that are part of each agreement. HUD recognizes that some U.S. District Courts have issued injunction orders which impact certain FY 2025 CPD formula funding grant agreement(s). To preserve all legal rights and defenses, the enclosed grant agreement contains the same conditions at issue in those court actions. For grantees who are plaintiffs in those court actions, HUD intends to comply with all applicable injunction orders and will not implement or enforce the challenged conditions consistent with those court orders, including disregarding any "certifications" or "compliance" statements. Please return an executed copy of the grant agreement, as discussed below, and HUD will make grant funds at issue in your agreement available consistent with all applicable orders. Please be advised that should the injunction orders that currently prohibit HUD from enforcing the challenged conditions as to your grant be stayed, dissolved, or reversed, the grant agreement, with conditions, will automatically become effective. Executing the Agreement The authorized official must complete Addendum 3. Indirect Cost Rate Schedule for each agreement, even if no indirect costs will be charged under the grant. Please mark one (and only one) checkbox to reflect how indirect costs will be calculated and charged under the grant. Please note that the Office of Management and Budget (OMB) issued revised Guidance and the de tninimis indirect cost rate increased from 10 percent to up to 15 percent of Modified Total Direct Costs. After inputting their name and title, the authorized official must execute each agreement, with a signature, and date. No other additions other than those described here should be made to the grant agreernent without prior written approval. Please ensure the Chief Elected Official or authorized official signs the agreement. You must return the entire Federal Award Agreement, including all addenda, to this office via the Field Office General Email lnbox: Seattle( llftthud„g,ov. HUD will be signing the grant agreement second and will return to your office a copy of each signed agreement for you to maintain in your local program files. HUD congratulates the City of Yakima on your grant awards, and we look forward to assisting you in accomplishing your program goals. lfyou have any questions or need further information or assistance, please contact your assigned Field Office Representative Patrick Wicklund, at Pan ILK Wick lund@huctu.ov or email our Office at SeattleCPaa htid.wv. Sincerely, Digitally signed by Brian Brian Sturdivant Sturdivant Date:2025.0924 07:02;51 -0700' Brian Sturdivant Acting Director Office of Community Planning and Development Enclosure(s) 2 Docusign Envelope ID: 1F0B54E5-3195-44CE-A581-E61A2CD81C53 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT FEDERAL AWARD AGREEMENT A. General Federal Award Information 1. Recipient name (;must match Unique Entity lden name) and address: Yakima 129 NORTH 2ND STREET Yakima, WA 98901 2. Recipient's U FJNNX1XFJ9K3 ue Entity lden 3. Tax identification number: 916001293 _ 4. Federal Award Identification Number B25MC530008 5. Instrument type: Grant Cooperative agreement Lcan Guarantee Ej 6. Period of performance start and end date: 1011/21124 - See Addendum 2 7. Budget period start and end date: 10/1/2024 - See Addendum 2 8, Initial Agreement Amendment 9. Indirect cost rate per § 200.414): Recipients must complete Addendum 3:Indirect Cost Rate Schedule 10. Is this award for research and development (per 2 C.F.R. § 200.1)? Yes [1] No 2. Assistance listing number and title: 14.218, Community Development Block Grant Program for Entitlement Communities + 14.225, Community Development Block Grant Program for Insular Areas 14,228, Community Development Block Grant Program for States and Non -Entitlement Grants in Hawaii . Amount of federa ,023,311.00 unds obligated by this action: 4. Total amount of federal funds obligated: ,023,31 1.00 15. Total approved cost sharing if applicable): N/A 16. Total federal award amount, including approved cost sharing: 1,023,311.00 17. Budget approved by HUD: 12/8/2025 18. Fiscalyear: 2025 �.. .e 19. Statutory authority: 42 U.S.C. 5301 et see. 20. Applicable appropriations act(s): Public Law 119-4 21. Notice notice of funding opportu made under (if applicable): N/A ity this award is Awarding official name and contact information: ma Reed CPD Regional Directo 22. Program regulations (if applicable): 24 C.F,R. Part 570 z . Federal award description: The CDBG program provides funding to eligible grantees for the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Addendum 1. Poticy Requirements Addendum 2. Program -Specific Requirements Addendum 3. Indirect Cost Rate Schedule Authority and Agreement_ This agreement between the U.S. Department of Housing and Urban Development (HUD) and the Recipient is made pursuant to the statutory authority above (box 19) and is subject to the applicable appropriations act(s) (box 20). This agreement incorporates by reference the Community Devetopment Block Grant program statute 42 U.S.C. 5301 et seq., the program regulations at 24 C.F.R. § 570 (as now in effect and as may be Page 1 of 8 Docusign Envelope iD: 1 F0B54E5-3195-44CE-A5B1-E61A2CDB1 C53 U.S. Department of Housing and Urban Development —Federal Award Agreement amended from time to time), Recipient's consolidated plan/action plan, the relevant funding notice (box 21), any attached Specific Terms and Conditions, and the attached addenda (box 23). B. Terms and Conditions 1. General terms and requirements. The Recipient must comply with all applicable federal laws, regulations, and requirements, unless otherwise provided through HUD's formal waiver authorities. This agreement, including any attachments and addenda, may only be amended in writing executed by parties to this agreement and any addenda. 2. Administrative requirements. The Recipient must comptywith the following requirement(s) if checked below: [� The administrative requirements in the HUD Genera(Administrative, National, and Departmental Policy Requirements and Terms for HUD's Financial Assistance Programs 2025, as indicated in the relevant NOFO, apply to this agreement. The grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Unique Entity Identifier (UEI); the System for Award Management (SAM.gov.)o the Federal Funding Accountability and Transparency Act as provided in 2 C.F.R. part 25. Universal Identifier and General Contractor Registration; and 2 C.F.R. part 170, Reporting Subaward and Executive Compensation information. 3. Applicability oft C.F.R. part200. ® The Recipient must comply with the applicable requirements at 2 C.F.R. part 200, as may be amended from time to time. If any previous Dr future amendments to 2 C.F.R, part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations, the amended part 200 requirements will govern award activities carried out after the amendments' effective date. © The Recipient must comply with the applicable requirements at 2 C.F.R. part 200. If any previous amendments to 2 C.F.R. part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations, the amended part 200 requirements will govern award activities carried out after the amendments' effective date. 4. Future budget periods. If the period of performance spans muttlple budget periods, subsequent budget periods are subject to the availability of funds, program authority, satisfactory performance, and compliance with the terms and conditions of the Federal award. 5. indirect Cost Rate, if the Recipient intends to use a negotiated or de minimis rate for indirect costs, the Recipient must submit an Indirect Cost Rate form to HUD, either with its application using HUD-426 (competitive grants) or with this agreement using "Addendum 43 "Indirect Cost Rate Schedule" (formula and congressional grants). The submitted form/addendum will be incorporated into and made part of this agreement, provided that the rate information is consistent with the applicable requirements under 2 C.F.R, g 200.414. If there is any change in the Recipient's Indirect cost rate, it must immediately notify HUD and execute an amendment to this agreement to reflect the change if necessary. 6. Recipient integrity and performance matters. If the Federal share of this award is more than $500,000 over the period of performance (box 6), the terms and conditions in 2 C.F.R. part 200 Appendix XII apply to this agreement. 7. Recordkeeping and Access to Records. The Recipient hereby agrees to maintain complete and accurate books of account for this award and award activities in such a manner as to permit the preparation of statements and reports in accordance with HUD requirements, and to permit timely and effective audit. The Recipient agrees to furnish HUD such financial and project reports, records, statements, subrecipient data, and documents at such times, in such form, and accompanied by such reporting data as required by HUD. HUD and Its duty authorized representative shalt have full and free access to all Recipient offices and facilities, and to all books, documents, and records of the Recipient relevant to the administration, receipt, and use of this award and award activities, including the right to audit and make copies. The Recipient agrees to maintain records that identify the source and application of funds, including relevant subrecipient data, in [14.218, 14.225, 14.228, CMG, FY 2025i Page 2 of B Docusign Envelope ID: 1F0B54E5-3195-44CE-A581-E61A2CD81C53 U.S. Department of Housing and Urban Development— Federal Award Agreement such a manner as to allow HUD to determine that all funds are and have been expended In accordance with program requirements and in a manner consistent with applicable law. Further, the Recipient hereby acknowledges that HUD is in the process of implementing new grants management and reporting tools, which will be made available for the Recipient's use in the future. The Recipient agrees to report on grant performance and financial activfdes (Including vendor and cash disbursement supporting details for the Recipient and its subrecipients) using these new tools when they are released. HUD will work with the Recipient to support the Recipient's transition to this new reporting environment. Once implemented, timely reporting in this new environment will be mandatory. HUD reserves the right to exercise all of its available rights and remedies for any noncompliance with these grants management and financial reporting requirements, to include, without limitation, requiring 100% review, suspension of disbursements, and all other legally available remedies, to the furthest extent permitted by law, as amended. 8. Noncompliance. If the Recipient fails to comply with the provisions of this agreement, HUD may take one e or more of the actions provided in program statutes, regulations or C.F.R. 8 200.339, as applicable. g in this agreement shalt limit any remedies otherwise available to HUD in the case of noncompliance by the Recipient. No delay or omissions by HUD in exercising any right or remedy available to it under this agreement shall impair any such right or remedy or constitute a waiver of or acquiescence in any Recipient noncompliance. 9. Termination provisions. Unless superseded by program statutes, regulations or NOFOs, the termination provisions in 2 C.F.R. 9 200.340 apply. 10. Build America, BuyAmerica. The. Recipient must comply with the requirements of the Build America, Buy America (BABA) Act, 41 U.S.C. 98301 note, and aU applicable rules and notices, as may be amended, if applicable. Pursuant to HUD's Notice, "Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance" (88 Fed. Reg. 17001), BABA requirements apply to any infrastructure projects HUD has obligated funds for after the effective dates, unless excepted by a waiver. 11. Waste, Fraud, Abuse, and Whistleblower Protections. Any person who becomes aware of the existence or apparent existence of fraud, waste, or abuse of any HUD award must report such incidents to both the HUD official responsible for the award and to HUD's Office of Inspector General (OIG). Allegations of fraud, waste, and abuse related to HUD programs can be reported to the HUD 0IG hotline via phone at 1-800-347-3735 or online hotline form. The Recipient must comply with 41 U.S.C. § 4712, which includes informing employees in writing of their rights and remedies, in the predominant native language of the workforce. Under 41 U.S.C. Q 4712, employees of a government contractor, subcontractor, recipient, and subrecipient—as well as a personal services contractor —who make a protected disclosure about a Federal award or contract cannot be discharged, demoted, or otherwise discriminated against If they reasonably believe the Information they disclose is evidence of (1) gross mismanagement of a Federal contract or award; (2) waste of Federal funds; (3) abuse of authority relating to a Federal contract or award; (4) substantial and specific danger to public health and safety; or (5) violations of law, rule, or regulation related to a Federal contract or award. 12. Third -Party Claims. Nothing in this agreement shall be construed as creating or justifying any claim against the federal government or the Recipient by any third party. 13. Rule of Construction and No Construction Against Drafter. Notwithstanding anything contained in this agreement, the terms and conditions hereof are to be construed to have full and expansive effect in both interpretation and application, and the parties agree that the principle of interpretation that holds that ambiguities in terms or conditions are construed against the drafter shall not apply in interpreting this agreement. C. Federal Award Performance Goals The Recipient must meet any applicable performance goals, indicators, targets, and baseline data as required by applicable program requirements. [14.218, 14.225, 14.228, CDBG, FY20251 Page 3 of 8 Docusign Envelope ID: 1FDB54E5-3195-44CE-A581-E61A2CD81C53 U.S. Department of Housing and Urban Development— Federal Award Agreement D. Specific Terms and Conditions Not applicable Attached ❑ For the U.S. Department of HUD (name and title of authorized official) Carma Reed CPD Regional Directo For the Recipient (name and title of authorized official) Signature Signa Dowsrenen h: Lt4 ('aYxla FBT S2WF5D64p7 Date 12/812©25 Date (4t, RG5OLU t ION N©' [14.218. 14.225. 14.228, CMG, FY 2025] Page 4 of 8 Docusign Envelope ID: 1F0B54E5-3195-44CE-A581-E61A2C081C53 U.S. Department of Housing and Urban. Development— Federal Award Agreement ADDENDUM 1. POLICY REQUIREMENTS If applicable: 1. The Recipient shall not use grant funds to promote "gender ideology," as defined in Executive Order (E.O.) 14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; 2. The Recipient agrees that its compliance in all respects with all applicable Federal anti- discrimination laws is material to the U.S. Government's payment decisions for purposes of section 3729(b)(4) of title 31, United States Code; 3. The Recipient certifies that it does not operate any programs that violate any applicable Federal anti -discrimination laws, including Title VI of the Civil Rights Act of 1964; 4, The Recipient shall not use any grant funds to fund or promote elective abortions, as required by E.O. 14182, Enforcing the Hyde Amendment;; and that, 5. Notwithstanding anything in the NOFO or Application, this Grant shall not be governed by Executive Orders revoked by E.O. 14154, including E.O. 14008, or NOFO requirements implementing Executive Orders that have been revoked. 6. The Recipient must administer its grant in accordance with all applicable immigration restrictions and requirements, including the eligibility and verification requirements that apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended ( ) (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U.S. Citizenship and Immigration Services may establish from time to time to comply with PRWORA, , or other Executive Orders or immigration laws. 7. No state or unit of general local government that receives funding under this grant may use that funding in a manner that by design or effect facilitates the subsidization or promotion of illegal immigration or shields illegal aliens from deportation, including by maintaining policies or practices that materially impede enforcement of federal immigration statutes and regulations. 8. The Recipient must use SAVE, or an equivalent verification system approved by the Federal government, to prevent any Federal public benefit from being provided to an ineligible alien who entered the United States illegally or is otherwise unlawfully present in the United States. 9. Faith -based organizations may be subrecipients for funds an the same basis as any other organization. Recipients may not, in the selection of subrecipients, discriminate against an organization based an the organization's religious character, affiliation, or exercise. (14.218, 14.225, 14.228, CDSG, FY 2025) Page 5 of 8 Docusign Envelope ID: 1F0B54E5-3195-44CE-A581-E61A2CD81C53 U.S. Department of Housing and Urban Development — Federal Award Agreement ADDENDUM 2. PROGRAM -SPECIFIC REQUIREMENTS Assistance Listing 14.218, Community Development Block Grant Program for Entitlement Communities Assistance Listing 14.225, Community Development Block Grant Program for Insular Areas Assistance Listing 14.228, Community Development Block Grant Program for States and Non - Entitlement Grants in Hawaii 1. Environmental Review. The Recipient agrees to assume all the responsibilities for environmental review, decision making, and actions, as specified and required in regulations issued by the Secretary pursuant to section 104(g) of title I of the Housing and Community Development Act of 1974 and published in 24 C.F.R. part 58; except that if the Recipient is a state, the Recipient must require the unit of general local government to assume that responsibility and must comply with the state's responsibilities under 24 C.F.R. 58.4. 2. Public Use. The Recipient shall ensure that no CDBG funds are used to support any Federal, State, or local projects that seek to use the power of eminent domain, unless eminent domain is employed only for public use. For the purposes of this requirement, public use shall not be construed to include economic development that primarily benefits private entities. Any use of funds for mass transit, railroad, airport, seaport, or highway projects as well as utility projects that benefit or serve the general public (including energy-, communication-, water-, and wastewater - related infrastructure), other structures designated for use by the general public or which have other common -carrier or public -utility functions that serve the general public and are subject to regulation and oversight by the govemment, and projects for the removal of an immediate threat to public health and safety or browntield as defined in the Small Business Liability Relief and Brownfields Revitalization Act (Pub. Law No. 107-118) shall be considered a public use for purposes of eminent domain. 3. Prohibition on Selling; Trading, and Transferring Funds. The Recipient or unit of general local government that directly or indirectly receives CDBG funds may not sell, trade, or otherwise transfer all or any such portion of such funds to another such entity in exchange for any other funds, credits or non -Federal considerations, but must use such funds for activities eligible under title I of the Housing and Community Development Act of 1974. 4. Construction of Water and Sewer Facilities. Notwithstanding any other provision of this agreement, the Recipient may not obligate or expend award funds to plan or construct water or sewer facilities, including any new or revised activities, until after 1) it completes the review procedures required under Executive Order 12372, Intergovernmental Review of Federal Programs, and 24 C.F.R. part 52 and 2) HUD provides written notice of the release of funds. 5. Funds for For -Profit Entities. Under 42 U.S.C. § 5305(a)(17), CDBG funds may not be provided to a for -profit entity unless such activity or project has been evaluated and selected in accordance with Appendix A to 24 C.F.R. § 570, Guidelines and Objectives for Evaluating Project Costs and Financial Requirements. 6. Violence Against Women Act. The Recipient will comply with the right to report crime and emergencies protections at 34 U.S.C. § 12495 of the Violence Against Women Act. [14.218, 14.225. 14.228, CDBG, FY 2025) Page 6 of 8 Docusign Envelope ID: 1F0B54E5-3185-44CE-A581-E61A2CD81C53 U.S. Department of Housing and Urban Development Federal Award Agreement 7. Funding Information and Period of Performance and Budget Period End Dates QilL nf Funds Amount perlod of PerformaflcP End Date Budget Perod End Da 2025 $1,023,311.00 9/30/2033 9/30/2033 /14.218, 1.4.22514.228,cDeG, Pi 2025] Page 7018 Docusign Envelope ID: 1F0B54E5-3195-44CE-A581-E61A2C081C53 U.S. Department of Housing and Urban Development — Federal Award Agreement ADDENDUM 3. INDIRECT COST RATE SCHEDULE As the duly authorized representative of the Recipient, I certify that the Recipient: ffil Will not use an indirect cost rate to calculate and charge indirect costs under the grant. ❑ Will calculate and charge indirect costs under the grant by applying a de minimis rate as provided by 2 C.F.R. g 200.414(f), as may be amended from time to time. ❑ Will calculate and charge indirect costs under the grant using the indirect cost rate(s) listed below, and each rate listed is included in an indirect cost rate proposal developed in accordance with the applicable appendix to 2 C.F.R. part 200 and, if required, was approved by the cognizant agency for indirect costs. Agency/department/major function Indirect cost rate Type of Direct Cost Base Instructions for the Recipient: The Recipient must mark the one (and only one) checkbox above that best reflects how the Recipient's indirect costs will be calculated and charged under the grant. Do not include indirect cost rate information for subrecipients. The table following the third box must be completed only if that box is checked. When listing a rate in the table, enter both the percentage amount (e.g., 10%) and the type of direct cost base to be used. For example, if the direct cost base used for calculating indirect costs is Modified Total Direct Costs, then enter "MTDC" in the "Type of Direct Cost Base" column. If using the Simplified Allocation Method for indirect costs, enter the applicable indirect cost rate and type of direct cost base in the first row of the table. If using the Multiple Allocation Base Method, enter each major function of the organization for which a rate was developed and will be used under the grant, the indirect cost rate applicable to that major function, and the type of direct cost base to which the rate will be applied. If the Recipient is a government and more than one agency or department will carry out activities under the grant, enter each agency or department that will carry out activities under the grant, the indirect cost rate(s) for that agency or department, and the type of direct cost base to which each rate will be applied. To learn more about the indirect cost requirements, see 2 C.F.R. part 200, subpart E and Appendix VII to Part 200 (for state and local governments). [14.218,14.225,14.228, CDBG. FY 2025] Page 8 of 8 Docusign Envelope ID: 0F0F5395-1D45-4F41-B5E2-77642985A70B U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT FEDERAL AWARD AGREEMENT A. General. FederatAward Information 1. f ecipient name (must match Unique Entity Identi name) and address: Yakima 129 NORTH 2ND STREET YAKIMA, WA 98901-0000 2. Recipient's Unique Entity Identifier: FJNNX1XFJ9K3 3. Tax identi 916001293 4. Federal Award Identification Number M25MC530203 ation n ber: FA 5. Instrument type: Grant Cooperative agreement ❑ Loan Guarantee ❑ 6. Period of performance start and end date: 12/10/2025 - 09/30/2034 7. Budget period start and end date: FY 2025 through FY 2033 nitialAgreement Ameadmen 2. Assistance listing number and title: 4.239, HOME Investment Partnerships Program 9. Indirect cost rate (per § 200.414): Recipients must complete Addendum 3: Indirect Cost Rate Schedule 10. Is this award for research and development (per 2 C.F.R. § 200.1)? Yes D No Amount of federal funds obligated by 02,272.76 4. Total 02,272.76 unt of nds ob g his action ted: . Total approved cost sharing (if applicable): See Addendum 2 16. Total federal award a sharing: $502,272,76 17. Budget approved by HUD: 12/10/2025 unt, including approved cost 18. Fiscal year: See Addendum 2 19. Statutory authority: 42 U.S.C. 12701 et seq 20. Applicable appropriations act(s): Public Law 118-158, Public Law 119-4 21. Notice/notice of funding opportunity this award is made under (if applicable): N/A 11, Awarding official name and contact information, Carma Reed CPD Regional Director 22. Program regulations (if applicable): 24 C.F.R. Part 92 23. Federal award description: Under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible State and local governments to strengthen public -private partnerships and to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income families. • Addendum 1. Policy Requirements • Addendum 2. Program -Specific Requirements • Addendum 3. Indirect Cost Rate Schedule Authority and Agreement. This agreement between the U.S. Department of Housing and Urban Development (HUD) and the Recipient is made pursuant to the statutory authority above (box 19) and is subject to the applicable appropriations acts). (box 20). This agreement incorporates by reference the HOME Investment Partnerships program statute 42 U.S.G. 12701 et seq., the program regulations at 24 C.F.R. § 92, (as now in effect and as may be amended from time to time), Recipient's consolidated plan/action plan,. the relevant funding notice (box 21), any attached Specific Terms and Conditions, and the attached addenda (box 23), Page 1 of 8 Docusign Envelope ID: OF0F5395-1 D45-4F41-B5E2-77642985A70B U.S. department of Housing and Urban Development — Federal Award. Agreement B, Terms and Conditions 1. General terms and requirements. The Recipient must comply with all applicable federal laws, regulations, and requirements unless otherwise provided through HUD's formal waiver authorities. This agreement, including any attachments and addenda, may only be amended In writing executed by parties to this agreement and any addenda. 2. Administrative requirements. The Recipient must comply with the following requirement(s) if checked below: ❑ The administrative requirements in the HUD General Administrative, National, and Departmental Policy Requirements and Terms for HU D's Financial Assistance Programs 2025, as indicated in the relevant NOFO, apply to this agreement. ® The grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Unique Entity Identifier (UEI); the System for Award Management (SAM.gov.); the Federal Funding Accountability and Transparency Act as provided in 2 C.F.R. part 25, Universal Identifier and General Contractor Registration; and 2 C.F.R. part 170, Reporting Subaward and Executive Compensation Information. 3. Applicability oft C.F.R. part 200. Z The Recipient must comply with the applicable requirements at 2 C.F.R. part 200, as may be amended from time to time. If any previous or future amendments to 2 C.F.R. part 200 replace or renumber any part 200 section cited In HUD's regulations in Title 24 of the Code of Federal Regulations, the amended part 200 requirements will govern award activities carried out after the amendments' effective date, The Recipient must comply with the applicable requirements at 2 C.F.R. part 200. If any previous amendments to 2 C.F.R. part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations, the amended part 200 requirements will govern award activities carried out after the amendments' effective date. 4, Future budget periods. It the period of performance spans multiple budget periods, subsequent budget. periods are subject to the availability of funds, program authority, satisfactory performance, and compliance with the terms and conditions of the Federal award. 5. indirect Cost Rate. If the Recipient intends to use a negotiated or de minimis rate for indirect costs, the Recipient must submit an Indirect Cost Rate form to HUD, either with its application using HUD-426 (competitive grants) or with this agreement using "Addendum #3 "Indirect Cost Rate Schedule" (formula and congressional grants). The submitted form/addendum will be incorporated into and made part of this agreement, provided that the rate information is consistent with the applicable requirements under 2 C.F.R. § 200.414_ If there is any change in the Recipient's indirect cost rate, it must immediately notify HUD and execute an amendment to this agreement to reflect the change if necessary. G, Recipient integrity and performance matters. If the Federal share of this award is more than $500,000 over the period of performance (box 6), the terms and conditions in 2 C.F.R. part 200 Appendix XII apply to this agreement. i- Recordkeeping and Access to Records. The Recipient hereby agrees to maintain complete and accurate books of account for this award and award activities in such a manner as to permit the preparation of statements and reports in accordance with HUD requirements, and to permit timely and effective audit. The Recipient agrees to furnish HUD such financial and project reports, records, statements, subrecipient data, and documents at such times, in such farm, and accompanied by such reporting data as required by HUD. HUD and its duly authorized representative shall have full and free access to all Recipient offices and facilities, and to all books, documents, and records of the Recipient relevant to the administration, receipt, and use of this award and award activities, including the right to audit and make copies. The Recipient agrees to maintain records that identify the source and application of funds, including relevant subrecipient data, in such a manner as to allow HUD to determine that all funds are and have been expended in accordance with program requirements and in a manner consistent with applicable law. [14.239, HOME, FY 2025] Page 2 of 8 Docusign Envelope ID: 0F0F5395-1D45-4F41-B5E2-77642985A70B U.S. Department of Housing and Urban Development — Federal Award Agreement Further, the Recipient hereby acknowledges that HUD Is In the process of implementing new grants management and reporting tools, which will be made available for the Recipient's use In the future. The Recipient agrees to report on grant performance and financial activities (including vendor and cash disbursement supporting details for the Recipient and its subrecipients) using these new tools when they are released. HUD will work with the Recipient to support the Recipient's transition to this new reporting environment. Once implemented, timely reporting in this new environment will be mandatory. HUD reserves the right to exercise all of its available rights and remedies for any noncompliance with these grants management and financial reporting requirements, to Include, without limitation, requiring 100% review, suspension of disbursements, and all other legally available remedies, to the furthest extent permitted by law, as amended. 8. Noncompliance. If the Recipient fails to comply with the provisions of this agreement, HUD may take one or more of the actions provided in program statutes, regulations or 2 C.F.R. 5 200.339, as applicable. Nothing In this agreement shall limit any remedies otherwise available to HUD in the case of noncompliance bythe Recipient. No delay or omissions by HUD in exercising any right or remedy available to it under this agreement shall impair any such right or remedy or constitute a waiver of or acquiescence in any Recipient noncompliance. 9. Termination provisions. Unless superseded by program statutes, regulations or NOFOs, the termination provisions in 2 C.F.R. § 200.340 apply. 10. Build America, BuyAmerica. The Recipient must comply with the requirements of the Build America, Buy America (BABA) Act, 41 U.S.C. § 8301 note, and all applicable rules and notices, as may be amended, if applicable. Pursuant to HUD's Notice, "Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance" (88 Fed. Reg. 17001), BABA requirements apply to any Infrastructure projects HUD has obligated funds for after the effective dates, unless excepted by a waiver. 11. Waste, Fraud, Abuse, and WhistfeblowerProtections. Any person who becomes aware of the existence or apparent existence of fraud, waste, or abuse of any HUD award must report such incidents to both the HUD official responsible for the award and to HUD's Office of Inspector General (OIG). Allegations of fraud, waste, and abuse related to HUD programs can be reported to the HUD OIG hotline via phone at 1-800-347-3735 or online hotline form. The Recipient must comply with 41 U.S.C. 5 4712, which includes informing employees in writing of their rights and remedies, in the predominant native language of the workforce. Under 41 U.S.C. § 4712, employees of a government contractor, subcontractor, recipient, and subreciplent—as well as a personal services contractor —who make a protected disclosure about a Federal award or contract cannot be discharged, demoted, or otherwise discriminated against if they reasonably believe the information they disclose is evidence of (1) gross mismanagement of a Federal contract or award; (2) waste of Federal funds; (3) abuse of authority relating to a Federal contract or award; (4) substantial and specific danger to public health and safety; or (5) violations of law, rule, or regulation related to a Federal contract or award. 12. Third -Party Claims. Nothing in this agreement shall be construed as creating or justifying any claim against the federal government or the Recipient by any third party. 13. Rule of Construction and No Construction Against Drafter. Notwithstanding anything contained in this agreement, the terms and conditions hereof are to be construed to have full and expansive effect in both interpretation and application, and the parties agree that the principle of Interpretation that holds that ambiguities in terms or conditions are construed against the drafter shall not apply in interpreting this agreement. C. Federal Award Performance Goals The Recipient must meet any applicable performance goals, indicators, targets, and baseline data as required by applicable program requirements. D. Specific Terms and Conditions Not applicable Attached ❑ [14.239, HOME, FY 2025] Page 3 of 8 Docusign Envelope ID; OF0F5395-1D45-4F41-B5E2-77642985A70B U.S. Department of Housing and Urban Development — Federal Award Agreement For the U.S. Department of HUD (name and title of authorized official) Carma Reed CPD Regional Director For the Recipient (name and title of authorized official) ViCAT) r ffi f Gil CITY CONTRACT N©: 2o.5 -1 ci 0 RESOLUTION NO: 9,1207.5-115 [14,239, HOME.2 ignatu Date 2/10/2025 Date Page 4 of 8 Docusign Envelope ID:0F0F5395-1D45-4F41-B5E2-77642985A70B U.S. Department of Housing and Urban Development— Federal Award Agreement ADDENDUM 1. POLICY REQUIREMENTS If applicable; 1. The Recipient shall not use grant funds to promote "gender ideology; as defined in Executive Order (E.O.) 14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; 2. The Recipient agrees that its compliance in aii respects with all applicable Federal anti- discrimination laws is material to the U.S. Government's payment decisions for purposes of section 3729(b)(4) of title 31, United States Code; 3. The Recipient certifies that it does not operate any programs that violate any applicable Federal anti -discrimination laws, including Title VI of the Civil Rights Act of 1964; 4. The Recipient shall not use any grant funds to fund or promote elective abortions, as required by E.O. 14182, Enforcing the Hyde Amendment; and that, 5. Notwithstanding anything in the NOFO or Application, this Grant shall not be governed by Executive Orders revoked by E.O. 14154, including E.O.140013, or NOFO requirements implementing Executive Orders that have been revoked. 6. The Recipient must administer its grant in accordance with all applicable immigration restrictions and requirements, including the eligibility and verification requirements that apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended ( - 16.15) (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U.S. Citizenship and Immigration Services may establish from time to time to comply with PRWORA, 14'2 , or other Executive Orders or immigration laws. 7. No state or unit of general local government that receives funding under this grant may use that funding in a manner that by design or effect facilitates the subsidization or promotion of illegal immigration or shields illegal aliens from deportation, including by maintaining policies or practices that materially impede enforcement of federal immigration statutes and regulations. 8, The Recipient must use SAVE, or an equivalent verification system approved by the Federal government, to prevent any Federal public benefit from being provided to an ineligible alien who entered the United States illegally or is otherwise unlawfully present in the United States. 9. Faith -based organizations may be subrecipients for funds on the same basis as any other organization. Recipients may not, in the selection of subrecipients, discriminate against an organization based on the organization's religious character, affiliation, or exercise. 114.239, HOME, FY 2025) Page 5 of 8 Docusign Envelope ID: 0F0F5395-1D45-4F41-B5E2-77642985A70B U.S. Department of Housing and Urban Development — Federat Award Agreement ADDENDUM 2. PROGRAM -SPECIFIC REQUIREMENTS Assistance Listing 14.239, HOME Investment Partnerships Program 1. For the purposes of this Agreement and any applicable addenda, the term "recipient" shall have the meaning of "grantee", "participating jurisdiction" as defined in 24 C.F.R. 92.2., or "insular area" as defined in 24 C.F.R. 92.2. 2. Community Housing Dave topmentOrganizations (CHDOs). When 42 U.S.C. 12771(b) is suspended by a given year's appropriations, the Secretary shall not deduct funds set aside for CHDOs from the Recipient's HOME Investment Trust Fund for failure to reserve those funds for projects owned, developed, or sponsored by CHDOs within 24 months after the last day of the month in which HUD notifies the Recipient of HUD's execution of this Agreement. 3. Commitment. When 42 U.S.C. 12749(g) is suspended by a given year's appropriations, the Recipient's ability to commit funds provided through this Agreement will not expire 24 months after the last day of the month in which such funds are deposited in the jurisdiction's HOME Investment Trust Fund. 4. Deobligations. To the extent authorized by HUD regulations at 24 C.F.R. Part 92, HUD may, by its execution of an amendment to this Agreement, deobligate funds previously awarded to the Recipient without the Recipient's execution of the amendment or other consent. 5. State Environmental Review. If a Recipient is a State, as defined in 24 C.F.R. 92.2, and the Recipient provides HOME funds to a "State recipient", as that term is defined in 24 CFR 92.2, then the Recipient must require that the "State recipient" shall assume responsibility for the environmental review in accordance with 24 CFR 92.352 in the written agreement entered into pursuant to 24 CFR 92.504. Notwithstanding the foregoing, as per 24 CFR 92.504(c)(1)(vi), the "State recipient" shall not assume the Recipient's responsibilities for release of funds under 24 CFR 92.352. 6. Reallocations. Alt funds for the specified Fiscal Year provided by HUD by formula reallocation are covered by this Agreement upon execution of an amendment by HUD, without the Recipient's execution of the amendment or other consent. 7. Repayments. The Recipient agrees that funds invested in affordable housing under 24 C.F.R. Part 92 are repayable when the housing no longer qualifies as affordable housing. Repayment shall be made as specified in 24 C.F.R. Part 92. 8. Cost Sharing. This award is subject to match provisions in 24 C.F.R. 92.64(a)(1) and 24 C.F.R. 92.218-222, as applicable. The amount of match that a recipient may be required to provide in a year is not based upon the amount of the recipient's award. Under 24 C.F.R. 92.218, the amount of match that a recipient maybe required to provide is determined by the type of eligible costs incurred by the recipient and the amount of funds drawn from the HOME Investment Trust Fund Treasury Account in that year. Since these factors are fact -sensitive, the amount of match is not included in either Box 15 or Box 16 of this Agreement. [14.239, HOME, FY 2025] Page 6©1B Docusign Envelope ID: 0F0F5395-1D45-4F41-B5E2-77642985A70B U.S. Department of Housing and Urban Development — Federal Award Agreement 9. Funding Information: Source of Funds Appropdan n COLLO PAa.C.Ode Amount 2023 86 3/6 0205 HMF (M) $2,495.50 2024 86 4/7 0205 HtiF (N) Si ,872.98 2025 86 5/8 0205 HMF (P) $49Z904.27 [14.239. HOME.FY20251 Page 7018 Docusign Envelope ID: 0F0F5395-1D45-4F41-B5E2-77642985A7QB U.S. Department of Housing and Urban Development ® Federal Award Agreement ADDENDUM 3. INDIRECT COST RATE SCHEDULE As the duly authorized representative of the Recipient, I certify that the Recipient: sri. Will not use an indirect cost rate to calculate and charge indirect costs under the grant. © Will calculate and charge indirect costs under the grant by applying a de minimis rate as provided by 2 C.F.R. § 200.414(f), as may be amended from time to time. 0 Will calculate and charge indirect costs under the grant using the indirect cost rate(s) listed below, and each rate listed is included in an indirect cost rate proposal developed in accordance with the applicable appendix to 2 C,F.R. part 200 and, if required, was approved by the cognizant agency for indirect costs. Agencyldepartmentimajo Indirect cost Type of Direct Cost lastrthe BeeiP1ent: The Recipient must mark the one (and only one) checkbox above that best reflects how the Recipient's indirect costs will be calculated and charged under the grant. Do not include indirect cost rate information for subrecipients. The table following the third box must be completed only if that box is checked. When listing a rate in the table, enter both the percentage amount (e.g., 10%) and the type of direct cost base to be used. For example, if the direct cost base used for calculating indirect costs is Modified Total Direct Costs, then enter "MTDC" in the "Type of Direct Cost Base" column, If using the Simplified Allocation Method for indirect costs, enter the applicable indirect cost rate and type of direct cost base in the first row of the table. If using the Multiple Allocation Base Method, enter each major function of the organization for which a rate was developed and will be used under the grant, the indirect cost rate applicable to that major function, and the type of direct cost base to which the rate will be applied. If the Recipient is a government and more than one agency or department will carry out activities under the grant, enter each agency or department that will carry out activities under the grant, the indirect cost rate(s) for that agency or department, and the type of direct cost base to which each rate will be applied. To learn more about the indirect cost requirements, see 2 C.F.R. part 200, subpart E and Appendix VII to Part 200 (for state and local governments). (14.239. HOME, FY 2025] Page 8 of 8 ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.K. For Meeting of: November 18, 2025 Resolution authorizing the funding agreements with Housing and Urban Development (HUD) for the 2025 HOME and CDBG grant contracts (No General Fund Impact) SUBMITTED BY: Bill Preston, Community Development Director SUMMARY EXPLANATION: The City received the draft funding agreements from HUD on September 24, 2025, to be awarded the following amounts: • Community Development Block Grant (CDBG): $1,023,311.00 • HOME Investment Partnerships (HOME): $502,272.76. The City's 2025 program year for the HOME and CDBG grants began October 1st and ends September 30, 2026. The 2025-2029 Consolidated Plan and the 2025 Annual Action Plan that City Council adopted on August 4, 2025, identifies how these funds will be used. ITEM BUDGETED: Yes STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution - 2025 CDBG and HOME Grants Acceptance.docx Fiscal Year 2025 Grant Agreement Transmittal CDBG Contract.pdf HOME Contract.pdf