HomeMy WebLinkAboutR-2009-140 Neighborhood Stabilization Program Funds Agreement with Washington State Department of CommerceRESOLUTION NO. R 2009-140
A RESOLUTION authorizing the City Manager to execute an agreement with the Washington
State Department of Commerce to accept Six Hundred Fifty Thousand Six
Hundred Fourteen dollars ($650,614.00) of Neighborhood Stabilization
Program (NSP) funding.
WHEREAS, The Washington State Department of Commerce has allocated
$650,614.00 of Neighborhood Stabilization Program funds to the City of Yakima; and
WHEREAS, The NSP program regulations enable the City of Yakima to purchase
foreclosed properties and redevelop those properties; and
WHEREAS, there is a need to redevelop foreclosed properties within the City of
Yakima, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized to execute an agreement with the
Washington State Department of Commerce accepting $650,614.00 of Neighborhood
Stabilization Program (NSP) funding.
ADOPTED BY THE CITY COUNCIL this 2 ay of Octob ; , 2009.
ATTEST:
16)9--Aolat) Y1(eet_
City C erk
David Edler, Mayor
Department of Commerce
Grant Agreement with:
r n ii t
City of Yakima
through
Washington State Community Development Block Grant Program
Neighborhood Stabilization Program
For:
City of Yakima will remove unfit structures from approximately ten
(10) blighted properties and redevelop two of the recovered
properties to provide low-income housing.
Contract Number: 08-F6401-027
Start date: 2/18/2009
Washington State Department of Commerce www.commerce.wa.gov
FACE SHEET
Contract Number: 08-F6401-027
Washington State Department of Commerce
Local Government Division
Community Development Programs
Community Development Block Grant (CDBG)
Neighborhood Stabilization Program (NSP)
1. Contractor
City of Yakuna
129 North Second Street.
Yakima, Washington 98901
2. Contractor Doing Business As (optional)
N/A
3. Contractor Representative
Archie M Matthews
112 South 8i6 Street
Yakima, Washington 98901
Phone 509-575-6101
Email. 509-576-6176
4. COMMERCE Representative
Bill Mandeville (360) 725-
3051NSP Project Manager PO Box 42525
Phone (360) 725-3051 906 Columbia Street SW
Fax: (360) 664-3123 Olympia, WA 98504-2525
bill.mandeville@commerce coin
5. Agreement Amount
$650,614
6. Funding
Federal:
Q.
Source
State: ❑ Other: ❑ N/A: ❑
7. Start Date
2/18/2009
8. End Date
3/31/2013
Federal Agency CFDA Number
9. Federal Funds (as applicable)
333 14.228 U S. Department of
Development (HUD
Housing and Urban 14.228
10.Tax ID#
91-6001293
11.SWV#
12.UBI#
N/A
13. DUNS#
14. Contract Purpose
City of Yakima will remove unfit structures from approxunately ten (10) blighted properties and redevelop two of the recovered
properties to provide low-income housmg.
COMMERCE, defined as the Department of COMMERCE, and the Contractor, as defined above, acknowledge and accept the
terms of this Agreement and attachments and have executed this Agreement on the date below to start as of the date and year
referenced above. The rights and obligations of both parties to this Agreement are govemed by this Agreement and the following
other documents incorporated by reference: Contractor Special and General Terms and Conditions including Attachment "A" —
Scope of Work and Budget, Attachment "B" — State and Federal Requirements and Assurances, Attachment "C" — Letter to Incur
Costs (if applicable), Attachment "D"- Additional Conditions and Agreement for Interim Financing/CDBG Float -Funded Activity
(if applicable), and Attachment "E" —Assignment of Rights, Title, and Interest (if applicable), and the following documents
incorporated herein by reference Contractor's application for funding and the Community Development Block Grant Policies and
Procedures, prepared by COMMERCE.
FOR CONTRACTOR
����, 5'
FOR COMMERCE
I.,
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Richard A Zais, City Manager
City of Yakima
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L. al Govemment Di :'on
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Date
CITY CONTRAC r NO:
ate
APPROVED AS TO FORM ONLY
Alice Blado, Assistant Attorney General (Signature on File)
May 29, 2009
RESOLUTION NO: -
Date
TABLE OF CONTENTS
FACE SHEET
CONTRACT TERMS AND CONDITIONS
Special Terms and Conditions
1. Definitions . 1
2 Access to Records 1
3. Acquisition and Disposition of Assets 1
4. Agreement Management .... 2
5. Anti -Lobbying Certification and Disclosure Form 2
6. Billing Procedures and Payment 2
7. Closeout ...... 2
8. Environmental Review 3
9. Equal Opportunity Treatment for Faith Based Organizations 4
10. Insurance. 4
11 Subcontracts for Engineering Services ..... 6
12 Program Income......... 6
13. Reports 6
14 Order of Precedence . 6
General Terms and Conditions
1. Definitions .1
2. All Writings Contained Herein .. 1
3. Amendments ........... 1
4. Assignment 1
5. Attorney Fees 1
6. Audit 1
7. Certification Regarding Debarment, Suspension or Ineligibility or
Ineligibility and Voluntary Exclusion 3
8. Confidentiality/Safeguarding of Information 3
9. Conformance 4
10 Copyright Provisions 4
11. Disallowed Costs ... 5
12. Disputes 5
13 Duplicate Payment ... ... 5
14. Ethics/Conflicts of Interest 5
15. Governing Law and Venue 5
16. Indemnification 5
17. Independent Capacity of the Contractor 6
18. Industrial Insurance Coverage 6
19 Laws ....... 6
20. Licensing, Accreditation and Registration .... 8
21. Limitation Of Authority 8
22. Noncompliance With Nondiscrimination Laws 8
23. Political Activities. 8
24 Prevailing Wage Laws 8
25. Procurement Standards for Federally Funded Programs 9
26. Prohibition Against Payment Of Bonus Or Commission. ... 9
27. Publicity. 10
28. Recapture 10
29. Records Maintenance 10
30 Registration With Department Of Revenue 10
31. Savings 10
32. Severability.. 10
33. Subcontracting 10
34. Survival 11
35. Taxes 11
36. Termination for Cause/Suspension 11
37. Termination for Convenience 11
38. Termination Procedures. .............. 11
39. Waiver . 12
Attachment A, Scope of Work
Attachment B, State and Federal Requirements and Assurances
Attachment C, Letter to Incur Costs (if applicable)
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
1. DEFINITIONS
A. "Subcontractor" in the General Conditions of this Agreement shall mean the same as the term
"subrecipient" found in the federal Community Development Block Grant (CDBG) rules and
regulations and the term "contractor" found in the procedures and policies in state's CDBG
Management Handbook.
B. "Low- and moderate -income" shall mean a household income equal to or less than 80 percent of
area median income adjusted by family size.
C. "Low- , moderate-, and middle-income" shall mean a household income equal to or less than 120
percent of the area median income, measured as 2.4 times the current Section 8 income limit for
households below 50 percent of median income, adjusted by family size.
D. For purposes of the Neighborhood Stabilization Program only, the term "low- and moderate -
income person" as it appears throughout the CDBG regulations at 24 CFR part 570 shall be
defined as a member of a low-, moderate-, and middle-income household.
2. ACCESS TO RECORDS
COMMERCE and duly authorized officials of the state and the federal government shall have full
access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records,
and books of the Contractor and of persons or organizations with which the Contractor may contract,
involving transactions related to the project and this contract.
3. ACQUISITION AND DISPOSITION OF ASSETS
The Contractor will account for any tangible personal property acquired with grant funds.
The use and disposition of real property and equipment under this Agreement will be in compliance
with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570 503, 570.504, as applicable,
which include but are not limited to the following.
Real property that was acquired or improved, in whole or in part, with Community Development Block
Grant (CDBG) funds under this Agreement in excess of $25,000 shall be used to meet one of the
CDBG national objectives for ten (10) years after the Agreement is closed. Any exception must be
made with COMMERCE's approval and the Contractor will be responsible to pay COMMERCE an
amount equal to the current fair market value of the property less any portion of the value attributable
to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment
from the disposition of real property acquired with grant funds within 10 -years of closeout of this
Agreement shall be treated as program income under Section 12 of these Special Terms and
Conditions.
In cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold,
the proceeds will be program income.
Real property acquired, improved or sold, in whole or part, with Neighborhood Stabilization Program
(NSP) funds shall comply with the requirements of Public Law 110-289, Housing and Recovery Act of
2008 (HERA), section 2301, which includes but is not limited to:
Section 2301(d)(1) current market appraisal requirements to determine the statutory purchase
discount and to ensure purchasers are paying below-market value for the home or property;
Section 2302(d)(3) sale amount restrictions for any abandoned or foreclosed upon home or
residential property purchased, redeveloped, or otherwise sold to an individual as a primary residence
to an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or
property up to a decent,safe, and habitable condition; and
Section 2301(f)(3) affordability requirements as stipulated in 24 CFR 92.252 for rental housing units
or 24 CFR 92.254 for owner -occupied housing units or for a longer period of time if practicable;
COMMERCE / Local Government Agreement for Federal Funds 1
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
4. AGREEMENT MANAGEMENT
The Representative for each of the parties identified on the Face Sheet of this Agreement shall be
responsible for and shall be the contact person for all communications and billings regarding the
performance of this Agreement.
5. ANTI -LOBBYING CERTIFICATION AND DISCLOSURE FORM
Contractor, defined as the primary participant and its principals, certifies by signing these
Special Terms and Conditions 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 any federal
grant, the making of any federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan,
or cooperative agreement.
B. The above provisions will be met if the grant award from COMMERCE exceeds $100,000 and will
further ensure that their provisions are included in any sub grant, contract, and subcontracts
exceeding $100,000 of grant funds.
6. BILLING PROCEDURES AND PAYMENT
COMMERCE will pay the Contractor for allowable expenses tied to approved project activities
according to Attachment A, Scope of Work and Budget.
Invoices must be submitted on a Washington State Invoice Voucher form. The voucher form must
report all federal funds on hand as of the date of submittal. Any cash on hand must be subtracted
from the amount of funds requested. Program income earned during the reporting period must also
be deducted from the amount requested.
Invoices shall be mailed to:
Department of Commerce
Local Government Division
128 - 10th Avenue SW
P.O. Box 42525
Olympia, Washington 98504-2525
Attention. Contracts Administration Unit (CAU) Project Manager.
Invoices shall describe and document, to COMMERCE 's satisfaction, the work performed, the
progress of the project, and fees. The invoice shall include the Agreement number. If expenses are
invoiced, provide a detailed breakdown of each type. A receipt must accompany any single expenses
in the amount of $50 00 or more in order to receive reimbursement.
Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after
receipt of properly completed invoices. Payment shall be sent to the address designated by the
Contractor.
COMMERCE may, in its sole discretion, terminate the Agreement or withhold payments claimed by
the Contractor for services rendered if the Contractor fails to satisfactorily comply with any term or
condition of this Agreement, including completion of the Environmental Review and the release of
funds (if applicable)
No payments in advance or in anticipation of services or supplies to be provided under this
Agreement shall be made by COMMERCE.
7. CLOSEOUT
COMMERCE / Local Government Agreement for Federal Funds 2
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
The COMMERCE will advise the Contractor to initiate closeout procedures when there are no
impediments to closing and the following criteria have been met or soon will be met:
A. All costs have been incurred with the exception of closeout costs and any unsettled third -party
claims against the Contractor. Costs are incurred when goods and services are received or
contract work is performed
B. The Contractor has held a public hearing to review program performance.
C. The Contractor has submitted the final Closeout Performance Report. Failure to submit a report
will not preclude the COMMERCE from effecting closeout if it is deemed to be in the state's
interest. Any excess grant amount in the Contractor's possession shall be returned in the event
of failure to finish or update the report.
D. Other responsibilities of the Contractor under this Agreement and any closeout Agreement and
applicable laws and regulations appear to have been carried out satisfactorily or there is no
further state interest in keeping the grant open for the purpose of securing performance.
8. ENVIRONMENTAL REVIEW
General Purpose, Housing Enhancement, Neighborhood Stabilization, and Recovery Grants
Funding in excess of the amount stipulated in Attachment C, Letter to Incur Costs, shall not
be released to a Contractor by COMMERCE until the following conditions are met:
A. The Contractor must prepare an environmental assessment of the project and make a finding
of environmental impact. A notice of this finding must be published along with a notice of the
Contractor's intent to request release of funds for the project unless the project is exempt from
the publication requirements as described. The Contractor must allow a seven (7) or fifteen
(15) day period for public review and comment following publication of the notices unless
exempt under the National Environmental Policy Act (NEPA) and the Washington State
Environmental Policy Act (SEPA). When this review and comment period expires, the
Contractor may, after considering any comments received, submit a request for release of
funds to COMMERCE. Upon receipt of the request, COMMERCE must allow a fifteen (15) day
period for public review and comment. When COMMERCE 's public review and comment
period expires, COMMERCE may, after considering any comments received, formally notify the
Contractor in writing of the release of federal funds for the project.
B. This special condition is satisfied when the Contractor completes the environmental review and
request for release of funds from COMMERCE. The special condition is effectively removed on
the date COMMERCE provides the Contractor with written notice of release of funds.
Imminent Threat Grants
Funding shall not be released to an Imminent Threat grant recipient until the following conditions
are met: The Contractor assures that assisted activities are for temporary or permanent
improvements limited to the protection, repair or arrest of imminent threats to public health and
safety or physical deterioration. The Contractor further assures that assisted activities will result
in either no change or minimal change in the environmental conditions that existed prior to the
emergency. In addition, the Contractor assures it will document, in writing, its determination that
each activity or project is exempt and meets the conditions specified for such exemption under
Section 58.34 of 24 CFR, Environmental Review Procedures for Title I CDBG Programs. In
cases where Contractors must take action immediately, or within a time too short to allow full
SEPA compliance, to avoid an imminent threat to public health or safety, to prevent an imminent
danger to public or private property, or to prevent an immediate threat of serious environmental
degradation, such actions are exempt from SEPA pursuant to WAC 197-11-880.
Planning -Only and Public Services Grants
Funding shall not be released to a Planning -Only or Public Services grant recipient until the
following conditions are met: The Contractor assures that assisted activities are exempt under
NEPA (24 CFR 58 32) and categorically exempt under SEPA (RCW 43.21C.110). The
Contractor further assures that the activities do not come under the purview of any other federal,
state, and known local environmental laws, statutes, regulations or executive orders. In addition,
COMMERCE / Local Government Agreement for Federal Funds 3
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
the Contractor assures it will document, in writing, its determination that each activity or project is
exempt and meets the conditions specified for such exemption under (NEPA) 24 CFR 58.34(3)
(for POG) or 58 34(4) (for PS) and (SEPA) WAC 197-11-800 (for POG) or WAC 197-11-305 (for
PS).
Float -Funded Activity Grants
Funding shall not be released to a Float -Funded Activity grant recipient until the following
conditions are met:
A. If the Contractor completed a CDBG environmental review for the project under a previous
CDBG, and has written notification from COMMERCE of the release of federal funds under
that grant, the Contractor must provide a Letter of Continuation notifying COMMERCE that
the environmental review requirements have been met. The Letter of Continuation must
reference the grant under which CDBG environmental review requirements were met. It must
also confirm that the project scope has not changed and no additional environmental review
activities are required.
B. If the Contractor has not completed a CDBG environmental review for the project under a
previous grant, it must meet the same conditions required for that grant as described in this
Environmental Review clause.
9. EQUAL OPPORTUNITY TREATMENT FOR FAITH BASED. ORGANIZATIONS
The Contractor agrees to comply with the applicable requirements of 24 CFR 570.200(j) Housing and
Urban Development Department (HUD).
10. INSURANCE
The Contractor shall provide insurance coverage as set out in this section. The intent of the required
insurance is to protect COMMERCE should there be any claims, suits, actions, costs, damages or
expenses arising from any loss, or negligent or intentional act or omission of the Contractor or
Subcontractor, or agents of either, while performing under the terms of this Agreement.
The insurance required shall be issued by an insurance company authorized to do business within
the state of Washington Except for Professional Liability or Errors and Omissions Insurance, the
insurance shall name the state of Washington, its agents, officers, and employees as additional
insureds under the insurance policy. All policies shall be primary to any other valid and collectable
insurance. The Contractor shall instruct the insurers to give COMMERCE thirty (30) calendar days
advance notice of any insurance cancellation, non -renewal or modification
The Contractor shall submit to COMMERCE within fifteen (15) calendar days of the Agreement start
date, a certificate of insurance which outlines the coverage and limits defined in this insurance
section During the term of the Agreement, the Contractor shall submit renewal certificates not less
than thirty (30) calendar days prior to expiration of each policy required under this section.
The Contractor shall provide insurance coverage that shall be maintained in full force and effect
during the term of this Agreement, as follows.
Commercial General Liability Insurance Policy Provide a Commercial General Liability
Insurance Policy, including contractual liability, written on an occurrence basis, in adequate
quantity to protect against legal liability arising out of Agreement activity but no less than
$1,000,000 per occurrence. Additionally, the Contractor is responsible for ensuring that any
Subcontractors provide adequate insurance coverage for the activities arising out of subcontracts.
Automobile Liability. In the event that performance pursuant to this Agreement involves the use
of vehicles, owned or operated by the Contractor or its Subcontractor, automobile liability
insurance shall be required. The minimum limit for automobile liability is $1,000,000 per
occurrence, using a Combined Single Limit for bodily injury and property damage.
Professional Liability, Errors and Omissions Insurance. The Contractor shall maintain
Professional Liability or Errors and Omissions Insurance. The Contractor shall maintain minimum
limits of no less than $1,000,000 per occurrence to cover all activities by the Contractor and
COMMERCE / Local Government Agreement for Federal Funds 4
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
licensed staff employed or under contract to the Contractor. The state of Washington, its agents,
officers, and employees need not be named as additional insureds under this policy.
Fidelity Insurance. Every officer, director, employee, or agent who is authorized to act on behalf
of the Contractor for the purpose of receiving or depositing funds into program accounts or
issuing financial documents, checks, or other instruments of payment for program costs shall be
insured to provide protection against loss:
A. The amount of fidelity coverage secured pursuant to this Agreement shall be $100,000 or the
highest of planned reimbursement for the Agreement period, whichever is lowest. Fidelity
insurance secured pursuant to this paragraph shall name COMMERCE as beneficiary.
B. Subcontractors that receive $10,000 or more per year in funding through this Agreement shall
secure fidelity insurance as noted above Fidelity insurance secured by Subcontractors
pursuant to this paragraph shall name the Contractor as beneficiary
C. The Contractor shall provide, at COMMERCE's request, copies of insurance instruments or
certifications from the insurance issuing agency The copies or certifications shall show the
insurance coverage, the designated beneficiary, who is covered, the amounts, the period of
coverage, and that COMMERCE will be provided thirty (30) days advance written notice of
cancellation.
Additional Provisions:
Above insurance policy shall include the following provisions:
1. Additional Insured. The state of Washington, COMMERCE, its elected and appointed officials,
agents and employees shall be named as an additional insured on all general liability, excess,
umbrella and property insurance policies. All insurance provided in compliance with this
Agreement shall be primary as to any other insurance or self-insurance programs afforded to or
maintained by the State.
2. Identification. The policy must reference COMMERCE's Agreement number and the State
agency name.
3. Insurance Carrier Rating. All insurance and bonds should be issued by companies admitted to
do business within the state of Washington and have a rating of A-, Class VII or better in the most
recently published edition of Best's Reports. Any exception shall be reviewed and approved by
COMMERCE's Risk Manager, or the Risk Manager for the state of Washington, before the
Agreement is accepted or work may begin. If an insurer is not admitted, all insurance policies
and procedures for issuing the insurance policies must comply with Chapter 48.15 RCW and 284-
15 WAC.
4. Excess Coverage. By requiring insurance herein, COMMERCE does not represent that coverage
and limits will be adequate to protect Contractor and such coverage and limits shall not limit
Contractor's liability under the indemnities and reimbursements granted to COMMERCE in this
Agreement.
Local Government Contractors that Participate in a Self -Insurance Program
Self-Insured/Liability Pool or Self -Insured Risk Management Program — With prior approval from
COMMERCE, the Contractor may provide the coverage above under a self-insured/liability pool or
self-insured risk management program. In order to obtain permission from COMMERCE, the
Contractor shall provide: (1) a description of its self-insurance program, and (2) a certificate an/or
letter of coverage that outlines coverage limits and deductibles All self-insured risk management
programs or self-insured/liability pool financial reports must comply with Generally Accepted
Accounting Principles (GAAP) and adhere to accounting standards promulgated by: 1) Governmental
Accounting Standards Board (GASB), 2) Financial Accounting Standards Board (FASB), and 3) the
Washington State Auditor's annual instructions for financial reporting. Contractor's participating in
joint risk pools shall maintain sufficient documentation to support the aggregate claim liability
information reported on the balance sheet. The state of Washington, its agents, and employees need
COMMERCE / Local Government Agreement for Federal Funds 5
SPECIAL TERMS AND CONDITIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
not be named as additional insured under a self-insured property/liability pool, if the pool is prohibited
from naming third parties as additional insured
Contractor shall provide annually to COMMERCE a summary of coverages and a letter of self
insurance, evidencing continued coverage under Contractor's self-insured/liability pool or self-insured
risk management program. Such annual summary of coverage and letter of self insurance will be
provided on the anniversary of the start date of this Agreement.
11. SUBCONTRACTS FOR ENGINEERING SERVICES
Engineering firms must certify that they are authorized to do business in the state of Washington and
are in full compliance with the requirements of the Board of Professional Registration. The Contractor
shall require that professional services providers be covered by errors and omissions insurance in an
amount not less than the amount of the firm's subcontract. If the firm is unable to obtain errors and
omissions insurance, the firm shall post a bond with the Contractor for not less than the amount of the
subcontract. Such insurance or bond shall remain in effect for the entire term of the subcontract. The
subcontract shall provide that cancellation or lapse of the bond or insurance during the term of the
subcontract shall constitute a material breach of the subcontract and cause for subcontract
termination The Contractor shall cause the subcontractor to provide 30 -day notice of cancellation If
the engineering firm is also the project administrator, the Contractor shall require that the bond or
insurance shall be for not less than the amount of the entire CDBG project.
12. PROGRAM INCOME
Program income, as defined in 24 CFR 570.489(e), retains federal identity and will be used before
drawing additional CDBG or NSP funds to complete activities included in the Scope of Work and
E3udget. The Contractor must maintain records of program income received and expended, and
annually report program income received after closeout of this Agreement, if the total amount of
program income received in a single year equals or exceeds $25,000. Program Income shall be used
to continue the same activities to benefit low- and moderate -income persons or, with COMMERCE -
approval, for other activities to benefit low- and moderate -income persons. Interest earned on CDBG
or NSP funds in excess of $100 must be remitted to COMMERCE for return to the U.S. Treasury.
13. REPORTS
The Contractor, at such times and in such forms as COMMERCE may require, shall furnish periodic
reports pertaining to the activities undertaken pursuant to this Agreement. These reports may include
environmental review records, publication affidavits, procurement and contracting records,
documentation of compliance with HUD civil rights requirements, job creation records, program
income reports, reports of the costs and obligations incurred in connection therewith, the final
closeout report, and any other matters covered by this Agreement.
14. ORDER OF PRECEDENCE
In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving
precedence in the following order:
• Applicable federal and state of Washington statutes and regulations
• Special Terms and Conditions
• General Terms and Conditions
• Scope of Work and Budget
COMMERCE / Local Government Agreement for Federal Funds 6
GENERAL TERMS AND CONDITIONS
1. DEFINITIONS
As used throughout this Agreement, the following terms shall have the meaning set forth below:
A. "Authorized Representative" shall mean the Director and/or the designee authorized in writing to
act on the Director's behalf
B. "Contractor" shall mean the entity identified on the face sheet performing service(s) under this
Contract, and shall include all employees and agents of the Contractor.
C. "COMMERCE" shall mean the Department of COMMERCE or its successor agency.
D. "Personal Information" shall mean information identifiable to any person, including, but not limited
to, information that relates to a person's name, health, finances, education, business, use or
receipt of governmental services or other activities, addresses, telephone numbers, social
security numbers, driver license numbers, other identifying numbers, and any financial identifiers.
E. "State" shall mean the state of Washington.
F. "Subcontractor" shall mean one not in the employment of the Contractor, who is performing all or
part of those services under this Agreement under a separate contract with the Contractor. The
terms "subcontractor" and "subcontractors" mean subcontractor(s) in any tier.
2. ALL WRITINGS CONTAINED HEREIN
This Agreement contains all the terms and conditions agreed upon by the parties. No other
understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to
exist or to bind any of the parties hereto.
3. AMENDMENTS
This Agreement may be amended by mutual agreement of the parties. Such amendments shall not
be binding unless they are in writing and signed by personnel authorized to bind each of the parties.
4. ASSIGNMENT
Neither this Agreement, nor any claim arising under this Agreement, shall be transferred or assigned
by the Contractor without prior written consent of COMMERCE.
5. ATTORNEYS' FEES
Unless expressly permitted under another provision of the Agreement, in the event of litigation or
other action brought to enforce Agreement terms, each party agrees to bear its own attorneys fees
and costs.
6. AUDIT
A. General Requirements
Contractors are to procure audit services based on the following guidelines.
The Contractor shall maintain its records and accounts so as to facilitate the audit requirement
and shall ensure that Subcontractors also maintain auditable records
The Contractor is responsible for any audit exceptions incurred by its own organization or that of
its Subcontractors.
COMMERCE reserves the right to recover from the Contractor all disallowed costs resulting from
the audit.
COMMERCE / Local Government Agreement for Federal Funds 1
GENERAL TERMS AND CONDITIONS
As applicable, Contractors required to have an audit must ensure the audits are performed in
accordance with Generally Accepted Auditing Standards (GAAS); Government Auditing
Standards (the Revised Yellow Book) developed by the Comptroller General.
Responses to any unresolved management findings and disallowed or questioned costs shall be
included with the audit report. The Contractor must respond to COMMERCE requests for
information or corrective action concerning audit issues within thirty (30) days of the date of
request.
B. Federal Funds Requirements - OMB Circular A-133 Audits of States, Local Governments
and Non -Profit Organizations
Contractors expending $500,000 or more in a fiscal year in federal funds from all sources, direct
and indirect, are required to have an audit conducted in accordance with Office of Management
and Budget (OMB) Revised Circular A-133 "Audits of States, Local Governments, and Non -Profit
Organizations." Revised OMB A-133 requires the Contractor to provide the auditor with a
schedule of Federal Expenditure for the fiscal year(s) being audited. The Schedule of State
Financial Assistance must be included. Both schedules include*
Grantor agency name
Federal agency
Federal program name
Other identifying agreement numbers
Catalog of Federal Domestic Assistance (CFDA) number
Grantor agreement number
Total award amount including amendments (total grant award)
Beginning balance
Current year revenues
Current year expenditures
Ending balance
Program total
If the Contractor is a state or local government entity, the Office of the State Auditor shall conduct
the audit. Audits of non-profit organizations are to be conducted by a certified public accountant
selected by the Contractor in accordance with OMB Circular A-110 "Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and
Other Non -Profit Organizations."
The Contractor shall include the above audit requirements in any subcontracts.
In any case, the Contractor's financial records must be available for review by COMMERCE
C. Documentation Requirements
The Contractor must send a copy of any required audit Reporting Package as described in OMB
Circular A-133, Part C, Section 320(c) no later than nine (9) months after the end of the
Contractor's fiscal year(s) to:
Department of Commerce
ATTN. Audit Review and Resolution Office
906 Columbia Street SW, Fifth Floor
PO Box 42525
Olympia WA 98504-2525
• Corrective action plan for audit findings within three (3) months of the audit being
received by COMMERCE.
• Copy of the Management Letter
COMMERCE / Local Government Agreement for Federal Funds 2
GENERAL TERMS AND CONDITIONS
7. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND
VOLUNTARY EXCLUSION—PRIMARY AND LOWER TIER COVERED TRANSACTIONS
A. Contractor, defined as the primary participant and it principals, certifies by signing these
General Terms and Conditions that to the best of its knowledge and belief that they:
1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any Federal department or agency.
2. Have not within a three-year period preceding this Agreement, been convicted of or had a
civil judgment rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public or private agreement
or transaction, violation of Federal or State antitrust statutes or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records, making false statements, tax
evasion, receiving stolen property, making false claims, or obstruction of justice;
3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental
entity (Federal, State, or local) with commission of any of the offenses enumerated in
paragraph (1)(b) of this section; and
4. Have not within a three-year period preceding the signing of this Agreement had one or more
public transactions (Federal, State, or local) terminated for cause of default.
B. Where the Contractor is unable to certify to any of the statements in this Agreement, the
Contractor shall attach an explanation to this Agreement.
C. The Contractor agrees by signing this Agreement that it shall not knowingly enter into any lower
tier covered transaction with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction, unless authorized by
COMMERCE.
D. The Contractor further agrees by signing this Agreement that it will include the clause titled
"Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier
Covered Transaction," as follows, without modification, in all lower tier covered transactions and
in all solicitations for lower tier covered transactions:
LOWER TIER COVERED TRANSACTIONS
a) The lower tier contractor certifies, by signing this Agreement that neither it nor its principals is
presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal department or agency.
b) Where the lower tier contractor is unable to certify to any of the statements in this Agreement,
such contractor shall attach an explanation to this Agreement.
E. The terms covered transaction, debarred, suspended, ineligible, lower tier covered
transaction, person, primary covered transaction, principal, and voluntarily excluded, as
used in this section, have the meanings set out in the Definitions and Coverage sections of the
rules implementing Executive Order 12549. You may contact COMMERCE for assistance in
obtaining a copy of these regulations.
8. CONFIDENTIALITY/SAFEGUARDING OF INFORMATION
A. "Confidential Information" as used in this section includes:
1. All material provided to the Contractor by COMMERCE that is designated as "confidential"
by COMMERCE;
2. All material produced by the Contractor that is designated as "confidential" by COMMERCE;
and
COMMERCE / Local Government Agreement for Federal Funds 3
GENERAL TERMS AND CONDITIONS
3. All Personal Information in the possession of the Contractor that may not be disclosed under
state or federal law "Personal Information" includes but is not limited to information related to
a person's name, health, finances, education, business, use of government services,
addresses, telephone numbers, social security number, driver's license number and other
identifying numbers, and "Protected Health Information" under the federal Health Insurance
Portability and Accountability Act of 1996 (HIPAA).
B. The Contractor shall comply with all state and federal laws related to the use, sharing, transfer,
sale, or disclosure of Confidential Information. The Contractor shall use Confidential Information
solely for the purposes of this Agreement and shall not use, share, transfer, sell or disclose any
Confidential Information to any third party except with the prior written consent of COMMERCE or
as may be required by law. The Contractor shall take all necessary steps to assure that
Confidential Information is safeguarded to prevent unauthorized use, sharing, transfer, sale or
disclosure of Confidential Information or violation of any state or federal laws related thereto.
Upon request, the Contractor shall provide COMMERCE with its policies and procedures on
confidentiality. COMMERCE may require changes to such policies and procedures as they apply
to this Agreement whenever COMMERCE reasonably determines that changes are necessary to
prevent unauthorized disclosures. The Contractor shall make the changes within the time period
specified by COMMERCE. Upon request, the Contractor shall immediately return to
COMMERCE any Confidential Information that COMMERCE reasonably determines has not
been adequately protected by the Contractor against unauthorized disclosure.
C. Unauthorized Use or Disclosure. The Contractor shall notify COMMERCE within five (5) working
days of any unauthorized use or disclosure of any confidential information, and shall take
necessary steps to mitigate the harmful effects of such use or disclosure.
9. CONFORMANCE
If any provision of this Agreement violates any statute or rule of law of the state of Washington, it is
considered modified to conform to that statute or rule of law.
10. COPYRIGHT PROVISIONS
Unless otherwise provided, all Materials produced under this Agreement shall be considered "works
for hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE COMMERCE
shall be considered the author of such Materials. In the event the Materials are not considered
"works for hire" under the U S. Copyright laws, the Contractor hereby irrevocably assigns all right,
title, and interest in all Materials, including all intellectual property rights, moral rights, and rights of
publicity to COMMERCE effective from the moment of creation of such Materials.
"Materials" means all items in any format and includes, but is not limited to, data, reports, documents,
pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes,
and/or sound reproductions. "Ownership" includes the right to copyright, patent, register and the
ability to transfer these rights.
For Materials that are delivered under the Agreement, but that incorporate pre-existing materials not
produced under the Agreement, the Contractor hereby grants to COMMERCE a nonexclusive,
royalty -free, irrevocable license (with rights to sublicense to others) in such Materials to translate,
reproduce, distribute, prepare derivative works, publicly perform, and publicly display. The Contractor
warrants and represents that the Contractor has all rights and permissions, including intellectual
property rights, moral rights and rights of publicity, necessary to grant such a license to COMMERCE
The Contractor shall exert all reasonable effort to advise COMMERCE, at the time of delivery of
Nlaterials furnished under this Agreement, of all known or potential invasions of privacy contained
therein and of any portion of such document which was not produced in the performance of this
Agreement. The Contractor shall provide COMMERCE with prompt written notice of each notice or
claim of infringement received by the Contractor with respect to any Materials delivered under this
Agreement. COMMERCE shall have the right to modify or remove any restrictive markings placed
upon the Materials by the Contractor.
COMMERCE / Local Government Agreement for Federal Funds 4
GENERAL TERMS AND CONDITIONS
11. DISALLOWED COSTS
The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own
organization or that of its Subcontractors.
12. DISPUTES
Except as otherwise provided in this Agreement, when a dispute arises between the parties and it
cannot be resolved by direct negotiation, either party may request a dispute hearing with the Director
of COMMERCE, who may designate a neutral person to decide the dispute.
The request for a dispute hearing must:
• be in writing;
• state the disputed issues;
• state the relative positions of the parties;
• state the Contractor's name, address, and Agreement number; and
• be mailed to the Director and the other party's (respondent's) Agreement Representative
within three (3) working days after the parties agree that they cannot resolve the dispute.
The respondent shall send a written answer to the requestor's statement to both the Director or the
Director's designee and the requestor within five (5) working days.
The Director or designee shall review the written statements and reply in writing to both parties within
ten (10) working days. The Director or designee may extend this period if necessary by notifying the
parties.
The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding.
The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial
tribunal
Nothing in this Agreement shall be construed to limit the parties' choice of a mutually acceptable
alternate dispute resolution (ADR) method in addition to the dispute hearing procedure outlined
above.
13. DUPLICATE PAYMENT
The Contractor certifies that work to be performed under this Agreement does not duplicate any work
to be charged against any other contract, subcontract, or other source.
14. ETHICS/CONFLICTS OF INTEREST
In performing under this Agreement, the Contractor shall assure compliance with the Ethics in Public
Service Act (Chapter 42.52 RCW ) and any other applicable state or federal law related to ethics or
conflicts of interest.
15. GOVERNING LAW AND VENUE
This Agreement shall be construed and interpreted in accordance with the laws of the state of
Washington, and the venue of any action brought hereunder shall be in the Superior Court for
Thurston County.
16. INDEMNIFICATION
To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the
state of Washington, COMMERCE, all other agencies of the state and all officers, agents and
employees of the State, from and against all claims or damages for injuries to persons or property or
death arising out of or incident to the Contractor's performance or failure to perform the Agreement.
The Contractor's obligation to indemnify, defend, and hold harmless includes any claim by
COMMERCE / Local Government Agreement for Federal Funds 5
GENERAL TERMS AND CONDITIONS
the Contractor's agents, employees, representatives, or any Subcontractor or its agents, employees,
or representatives
The Contractor's obligation to indemnify, defend, and hold harmless shall not be eliminated by any
actual or alleged concurrent negligence of the State or its agents, agencies, employees and officers.
Subcontracts shall include a comprehensive indemnification clause holding harmless the Contractor,
COMMERCE, the state of Washington, its officers, employees and authorized agents.
The Contractor waives its immunity under Title 51 RCW to the extent it is required to indemnify,
defend and hold harmless the State and its agencies, officers, agents or employees.
17. INDEPENDENT CAPACITY OF THE CONTRACTOR
The parties intend that an independent contractor relationship will be created by this Contract. The
Contractor and its employees or agents performing under this Agreement are not employees or
agents of the state of Washington or COMMERCE. The Contractor will not hold itself out as or claim
to be an officer or employee of COMMERCE or of the state of Washington by reason hereof, nor will
the Contractor make any claim of right, privilege or benefit which would accrue to such officer or
employee under law. Conduct and control of the work will be solely with the Contractor.
18. INDUSTRIAL INSURANCE COVERAGE
The Contractor shall comply with all applicable provisions of Title 51 RCW, Industrial Insurance. If
the Contractor fails to provide industrial insurance coverage or fails to pay premiums or penalties on
behalf of its employees as may be required by law, COMMERCE may collect from the Contractor the
full amount payable to the Industrial Insurance Accident Fund COMMERCE may deduct the amount
owed by the Contractor to the accident fund from the amount payable to the Contractor by
COMMERCE under this Contract, and transmit the deducted amount to the Department of Labor and
Industries, (L&I) Division of Insurance Services. This provision does not waive any of L&I's rights to
collect from the Contractor.
19. LAWS
The Contractor shall comply with all applicable laws, ordinances, codes, regulations, and policies of
local, state, and federal governments, as now or hereafter amended, including, but not limited to:
United States Laws, Regulations and Circulars (Federal)
A. Audits
Office of Management and Budget (OMB) Revised Circular A-133 "Audits of States, Local
Governments, and Non -Profit Organizations."
B. Labor and Safety Standards
Convict Labor, 18 U.S C. 751, 752, 4081, 4082.
Drug -Free Workplace Act of 1988, 41 USC 701 et seq.
Federal Fair Labor Standards Act, 29 U.S.C. 201 et seq
Work Hours and Safety Act of 1962, 40 U.S.0 327-330 and Department of Labor Regulations, 29
CFR Part 5.
C. Laws against Discrimination
Age Discrimination Act of 1975, Public Law 94-135, 42 U S.C. 6101-07, 45 CFR Part 90
Nondiscrimination in Federally Assisted Programs.
Americans with Disabilities Act of 1990, Public Law 101-336
Equal Employment Opportunity, Executive Order 11246, as amended by Executive Order 11375
and supplemented in U.S. Department of Labor Regulations, 41 CFR Chapter 60.
COMMERCE / Local Government Agreement for Federal Funds 6
GENERAL TERMS AND CONDITIONS
Executive Order 11246, as amended by EO 11375, 11478, 12086 and 12102
Handicapped Employees of Government Contractors, Rehabilitation Act of 1973, Section 503, 29
U.S.C. 793.
Handicapped Recipients of Federal Financial Assistance, Rehabilitation Act of 1973, Section 504,
29 U.S.C. 794.
Minority Business Enterprises, Executive Order 11625, 15 U S C. 631
Minority Business Enterprise Development, Executive Order 12432, 48 FR 32551.
Nondiscrimination and Equal Opportunity, 24 CFR 5.105(a).
Nondiscrimination in benefits, Title VI of the Civil Rights Act of 1964, Public Law 88-352, 42
U.S.C. 2002d et seq, 24 CFR Part 1.
Nondiscrimination in employment, Title VII of the Civil Rights Act of 1964, Public Law 88-352.
Nondiscrimination in Federally Assisted Construction Contracts, Executive Order 11246, 42
U.S.0 2000e, as amended by Executive Order 11375, 41 CFR Chapter 60.
Section 3, Housing and Urban Development Act of 1968, 12 USC 1701u (See 24 CFR
570 607(b)).
D. Office of Management and Budget Circulars
Cost Principles for State, Local and Indian Tribal Governments, OMB Circular A-87, 2 CFR, Part
225.
Cost Principles for Nonprofit Organizations, OMB Circular A-122 (if the Contractor is a nonprofit
organization).
Grants and Cooperative Agreements with State and Local Governments, OMB Circular A-102 (if
the Contractor is a local government or federally recognized Indian tribal government)
Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher
Education, Hospitals and Other Nonprofit Organizations, OMB Circular A-110.
E. Other
Anti -Kickback Act, 18 U.S C 874; 40 U.S.C. 276b, 276c; 41 U.S.0 51-54.
Governmental Guidance for New Restrictions on Lobbying; Interim Final Guidance, Federal
Register 1, Vol. 54, No. 243\Wednesday, December 20, 1989.
Hatch Political Activity Act, 5 U.S.C. 1501-8.
Internal Revenue Service Rules, August 31, 1990.
Lobbying and Disclosure, 42 USC 3537a and 3545 and 31 USC 1352 (Byrd Anti -Lobbying
Amendment). 31 U.S.C. 1352 provides that contractors who apply or bid for an award of $100,000
or more must file the required certification. Each tier certifies to the tier above that it will not and
has not used Federal appropriated funds to pay any person or organization for influencing or
attempting to influence an officer or employee of any agency, a member of Congress, officer or
employee of Congress, or an employee of a member of Congress in connection with obtaining
any Federal contract, grant or other award covered by 31 U.S.C. 1352. Each tier must disclose
any lobbying with non -Federal funds that takes place in connection with obtaining any Federal
award. Such disclosures are forwarded from tier to tier up to the recipient.
Non -Supplanting Federal Funds.
Section 8 Housing Assistance Payments Program.
F. Privacy
Privacy Act of 1974, 5 U.S.C. 552a.
COMMERCE / Local Government Agreement for Federal Funds 7
GENERAL -TERMS AND CONDITIONS
Washington State Laws and Regulations
A. Affirmative action, RCW 41.06.020 (11).
B. Boards of directors or officers of non-profit corporations — Liability - Limitations, RCW 4.24.264
C. Disclosure -campaign finances -lobbying, Chapter 42.17 RCW
D. Discrimination -human rights commission, Chapter 49.60 RCW.
E. Ethics in public service, Chapter 42.52 RCW.
F. Office of minority and women's business enterprises, Chapter 39.19 RCW and Chapter 326-02
WAC.
G. Open public meetings act, Chapter 42.30 RCW
H. Public records act, Chapter 42.56 RCW.
I. State budgeting, accounting, and reporting system, Chapter 43.88 RCW.
20. (LICENSING, ACCREDITATION AND REGISTRATION
The Contractor shall comply with all applicable local, state, and federal licensing, accreditation and
registration requirements or standards necessary for the performance of this Contract.
21. LIMITATION OF AUTHORITY
Only the Authorized Representative or Authorized Representative's designee by writing (designation
to be made prior to action) shall have the express, implied, or apparent authority to alter, amend,
modify, or waive any clause or condition of this Contract.
22. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS
During the performance of this Agreement, the Contractor shall comply with all federal, state, and
local nondiscrimination laws, regulations and policies. In the event of the Contractor's non-compliance
or refusal to comply with any nondiscrimination law, regulation or policy, this Agreement may be
rescinded, canceled or terminated in whole or in part, and the Contractor may be declared ineligible
for further Agreements with COMMERCE. The Contractor shall, however, be given a reasonable
time in which to cure this noncompliance Any dispute may be resolved in accordance with the
"Disputes" procedure set forth herein.
23. POLITICAL ACTIVITIES
Political activity of Contractor employees and officers are limited by the State Campaign Finances
and Lobbying provisions of Chapter 42 17 RCW and the Federal Hatch Act, 5 USC 1501 - 1508.
No funds may be used for working for or against ballot measures or for or against the candidacy of
any person for public office.
24. PREVAILING WAGE LAWS
All contractors and subcontractors performing work on a construction project funded through this
agreement shall comply with prevailing wage laws by paying the higher of state or federal prevailing
wages according to:
State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable to the Project funded by
this agreement, including but not limited to the filing of the "Statement of Intent to Pay Prevailing
Wages" and "Affidavit of Wages Paid" as required by RCW 39.12.040. The Contractor shall maintain
records sufficient to evidence compliance with Chapter 39.12 RCW, and shall make such records
available for COMMERCE's review upon request; or
The Davis Bacon Act, 40 U.S.0 276a -276a-5 and related federal acts provide that all laborers and
mechanics employed by contractors or subcontractors in the performance shall be paid wages at
COMMERCE / Local Government Agreement for Federal Funds 8
GENERAL TERMS AND CONDITIONS
rates not less than those prevailing on similar construction in the locality as determined by the
Secretary of Labor.
25. PROCUREMENT STANDARDS FOR FEDERALLY FUNDED PROGRAMS
A Contractor which is a local government or Indian Tribal government must establish procurement
policies and procedures in accordance with OMB Circulars A-102, Uniform Administrative
Requirements for Grants in Aid for State and Local Governments, for all purchases funded by this
Agreement.
A Contractor which is a nonprofit organization shall establish procurement policies in accordance with
OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Nonprofit
Agencies, for all purchases funded by this Agreement.
The Contractor's procurement system should include at least the following:
1. A code or standard of conduct that shall govern the performance of its officers, employees, or
agents engaged in the awarding of contracts using federal funds.
2. Procedures that ensure all procurement transactions shall be conducted in a manner to
provide, to the maximum extent practical, open and free competition.
3. Minimum procedural requirements, as follows:
a. Follow a procedure to assure the avoidance of purchasing unnecessary or duplicative
items.
b. Solicitations shall be based upon a clear and accurate description of the technical
requirements of the procured items.
c. Positive efforts shall be made to use small and minority-owned businesses.
d. The type of procuring instrument (fixed price, cost reimbursement) shall be determined by
the Contractor, but must be appropriate for the particular procurement and for promoting
the best interest of the program involved.
e. Contracts shall be made only with reasonable subcontractors who possess the potential
ability to perform successfully under the terms and conditions of the proposed
procurement.
f Some form of price or cost analysis should be performed in connection with every
procurement action.
g. Procurement records and files for purchases shall include all of the following:
1) Contractor selection or rejection.
2) The basis for the cost or price.
3) Justification for lack of competitive bids if offers are not obtained.
h. A system for Agreement administration to ensure Contractor conformance with terms,
conditions and specifications of this Agreement, and to ensure adequate and timely
follow-up of all purchases.
4. Contractor and Subcontractor must receive prior approval from COMMERCE for using funds
from this Agreement to enter into a sole source Agreement or an Agreement where only one
bid or proposal is received when value of this Agreement is expected to exceed $5,000.
Prior approval requests shall include a copy of proposed contracts and any related
procurement documents and justification for non-competitive procurement, if applicable.
26. PROHIBITION AGAINST PAYMENT OF BONUS OR COMMISSION
The funds provided under this Agreement shall not be used in payment of any bonus or commission
for the purpose of obtaining approval of the application for such funds or any other approval or
COMMERCE / Local Government Agreement for Federal Funds 9
GENERAL TERMS AND CONDITIONS
concurrence under this Agreement provided, however, that reasonable fees or bona fide technical
consultant, managerial, or other such services, other than actual solicitation, are not hereby
prohibited if otherwise eligible as project costs.
27. PUBLICITY
The Contractor agrees not to publish or use any advertising or publicity materials in which the state of
Washington or COMMERCE's name is mentioned, or language used from which the connection with
the state of Washington's or COMMERCE's name may reasonably be inferred or implied, without the
prior written consent of COMMERCE.
28. RECAPTURE
In the event that the Contractor fails to perform this Agreement in accordance with state laws, federal
laws, and/or the provisions of this Agreement, COMMERCE reserves the right to recapture funds in
an amount to compensate COMMERCE for the noncompliance in addition to any other remedies
available at law or in equity.
29. RECORDS MAINTENANCE
The Contractor shall maintain all books, records, documents, data and other evidence relating to this
Agreement and performance of the services described herein, including but not limited to accounting
procedures and practices which sufficiently and properly reflect all direct and indirect costs of any
nature expended in the performance of this Agreement. Contractor shall retain such records for a
period of six years following the date of final payment.
If any litigation, claim or audit is started before the expiration of the six (6) year period, the records
shall be retained until all litigation, claims, or audit findings involving the records have been finally
resolved.
30. REGISTRATION WITH DEPARTMENT OF REVENUE
If required by law, the Contractor shall complete registration with the Washington State Department of
Revenue
31. SAVINGS
In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way
after the effective date of this Agreement and prior to normal completion, COMMERCE may terminate
the Agreement under the "Termination for Convenience" clause, without the ten calendar day notice
requirement. In lieu of termination, the Agreement may be amended to reflect the new funding
limitations and conditions.
32. SEVERABILITY
If any provision of this Agreement or any provision of any document incorporated by reference shall
be held invalid, such invalidity shall not affect the other provisions of this Agreement that can be given
effect without the invalid provision, if such remainder conforms to the requirements of law and the
fundamental purpose of this Agreement and to this end the provisions of this Agreement are declared
to be severable
33. SUBCONTRACTING
The Contractor may only subcontract work contemplated under this Agreement if it obtains the prior
written approval of COMMERCE.
If COMMERCE approves subcontracting, the Contractor shall maintain written procedures related to
subcontracting, as well as copies of all subcontracts and records related to subcontracts. For cause,
COMMERCE in writing may: (a) require the Contractor to amend its subcontracting procedures as
they relate to this Contract; (b) prohibit the Contractor from subcontracting with a particular person or
entity; or (c) require the Contractor to rescind or amend a subcontract.
COMMERCE / Local Government Agreement for Federal Funds 10
GENERAL TERMS AND CONDITIONS
Every subcontract shall bind the Subcontractor to follow all applicable terms of this Contract. The
Contractor is responsible to COMMERCE if the Subcontractor fails to comply with any applicable term
or condition of this Contract. The Contractor shall appropriately monitor the activities of the
Subcontractor to assure fiscal conditions of this Contract. In no event shall the existence of a
subcontract operate to release or reduce the liability of the Contractor to COMMERCE for any breach
in the performance of the Contractor's duties.
Every subcontract shall include a term that COMMERCE and the State of Washington are not liable
for claims or damages arising from a Subcontractor's performance of the subcontract.
34. SURVIVAL
The terms, conditions, and warranties contained in this Agreement that by their sense and context are
intended to survive the completion of the performance, cancellation or termination of this Agreement
shall so survive.
35. TAXES
All payments accrued on account of payroll taxes, unemployment contributions, the Contractor's
income or gross receipts, any other taxes, insurance or expenses for the Contractor or its staff shall
be the sole responsibility of the Contractor.
36. TERMINATION FOR CAUSE / SUSPENSION
In event COMMERCE determines that the Contractor failed to comply with any term or condition of
this Agreement, COMMERCE may terminate the Agreement in whole or in part upon written notice to
the Contractor. Such termination shall be deemed "for cause." Termination shall take effect on the
date specified in the notice.
In the alternative, COMMERCE upon written notice may allow the Contractor a specific period of time
in which to correct the non-compliance. During the corrective -action time period, COMMERCE may
suspend further payment to the Contractor in whole or in part, or may restrict the Contractor's right to
perform duties under this Agreement. Failure by the Contractor to take timely corrective action shall
allow COMMERCE to terminate the Agreement upon written notice to the Contractor.
"Termination for Cause" shall be deemed a "Termination for Convenience" when COMMERCE
determines that the Contractor did not fail to comply with the terms of the Agreement or when
COMMERCE determines the failure was not caused by the Contractor's actions or negligence.
If the Agreement is terminated for cause, the Contractor shall be liable for damages as authorized by
law, including, but not limited to, any cost difference between the original Agreement and the
replacement Agreement, as well as all costs associated with entering into the replacement
Agreement (i e , competitive bidding, mailing, advertising, and staff time).
37. TERMINATION FOR CONVENIENCE
Except as otherwise provided in this Agreement, COMMERCE may, by ten (10) business days written
notice, beginning on the second day after the mailing, terminate this Agreement, in whole or in part. If
this Agreement is so terminated, COMMERCE shall be liable only for payment required under the
terms of this Agreement for services rendered or goods delivered prior to the effective date of
termination.
38. TERMINATION PROCEDURES
After receipt of a notice of termination, except as otherwise directed by COMMERCE, the Contractor
shall:
A. Stop work under the Agreement on the date, and to the extent specified, in the notice;
B. Place no further orders or subcontracts for materials, services, or facilities related to the
Agreement;
COMMERCE / Local Government Agreement for Federal Funds 11
GENERAL TERMS AND CONDITIONS
C. Assign to COMMERCE all of the rights, title, and interest of the Contractor under the orders and
subcontracts so terminated, in which case COMMERCE has the right, at its discretion, to settle or
pay any or all claims arising out of the termination of such orders and subcontracts. Any attempt
by the Contractor to settle such claims must have the prior written approval of COMMERCE, and
D. Preserve and transfer any materials, Agreement deliverables and/or COMMERCE property in the
Contractor's possession as directed by COMMERCE.
Upon termination of the Agreement, COMMERCE shall pay the Contractor for any service provided
by the Contractor under the Agreement prior to the date of termination. COMMERCE may withhold
any amount due as COMMERCE reasonably determines is necessary to protect COMMERCE
against potential loss or liability resulting from the termination COMMERCE shall pay any withheld
amount to the Contractor if COMMERCE later determines that loss or liability will not occur.
The rights and remedies of COMMERCE under this section are in addition to any other rights and
remedies provided under this Agreement or otherwise provided under law.
39. WAIVER
Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or
breach Any waiver shall not be construed to be a modification of the terms of this Agreement unless
stated to be such in writing and signed by Authorized Representative of COMMERCE.
COMMERCE / Local Government Agreement for Federal Funds 12
ATTACHMENT A - SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section A: Brief Description
City of Yakima is awarded $650,614 from the Neighborhood Stabilization Program (NSP) to purchase, rehabilitate and sell foreclosed homes to low, moderate
and middle income households. It will use its NSP funds to remove unfit structures from approximately ten (10) blighted properties. The State of
Washington designated Yakima as an area with a signficantly higher than average rate of home foreclosures and, therefore, in need of this type of emergency
financial assistance. The City of Yakima will establish a program whereby it will recover the costs to remove the blight from the private property it selects in
accordance with applicable state laws. The program will include plans for the use of the funds that it recovers as program income for its NSP. Upon the sell
of the property, the City of Yakima will assure the continued affordability of the property in accordance with the requirements of 24 CFR 92.252 for rental
units and 24 CFR 92.254 for owner -occupied units. Redevelopment of existing housing and/or the provision of new housing will comply with the minimum
housing quality standards for Section 8 housing as defined in 24 CFR 982.401.
Section B: Goals /Expected Results /Products
Budget Category
Goals / Expected Results / Products
02 - Disposition
04 - Removal of Blight
21A - General Admin.
• City of Yakima will use NSP funds to redevelop approximately two (2) demolished or vacant properties (Type E NSP Eligible Use
Activity).
• City of Yakima will use NSP funds to remove unfit structures from approximately ten (10) blighted properties (Type D NSP
Eligible Use).
• City of Yakima will satisfy all requirements for the proper handling and distribution of NSP funds targeted to this project
including, but not limited to, the following:
• When encountering blighted properties, it will need to comply with the definitions and requirements RCW 35.80A.010 -
Condemnation of Blighted Property, and RCW 35.80 - Unfit Dwellings, Buildings and Structures.
• City of Yakima will adopt the Home definitions of affordable rent stipulated in 24 CFR 92.252 (a), (c) and (f), adjusted for
the neighborhood Stabilization Program's 50 percent (50%) and 120 percent (120%) target populations.
• Continued affordability will be ensured through deed restrictions, covenants running with the land, or other mechanisms
approved by HUD, in accordance with the requirements of 24 CFR 92.252 for rental units and 24 CFR 92.254 for owner -
occupied units.
• Redevelopment of existing housing and/or the provision of new housing will comply with the minimum housing quality
standards for Section 8 housing as defined in 24 CFR 982.401.
• City of Yakima agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the
funds provided under this contract. City of Yakima further agrees to utilize funds available under this Agreement to supplement
rather than supplant funds otherwise available.
1
ATTACHMENT A — SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section C: Work Activities, Expectations and Budget
I
Budget Category
Project Activities
Schedule
Budget Amount
02 - Disposition
• City of Yakima will award a grant to local non-profit agencies to use its NSP funds to
acquire and rehabilitate approximately two (2) foreclosed properties in order to sell it to
households who earn less than fifty percent (50%) of the area median household income
(AMI). (Type E NSP Eligible Use Activity).
• Any purchase of a foreclosed upon home or residential property must be at a discount
from the current, market appraised value of the home or property. Each foreclosed -upon
home or residential property must be purchased at a discount of at least one percent
(1%) from the current market -appraised value of the home or property.
• Within 60 days prior to an offer on the property, an appraisal must be conducted that
conforms to the requirements of URA at 49 CFR 29.103, "Criteria for Appraisals".
• Unless otherwise adjusted by HUD, each NSP -assisted homebuyer must receive and
complete at least eight (8) hours of homebuyer counseling from a HUD -approved housing
counseling agency before obtaining a mortgage and/or real estate loan.
• City of Yakima must ensure that the homebuyer obtains a mortgage or loan from a
lender who agrees to comply with the bank regulators' guidance for non-traditional
mortgages.
• If the abandoned or foreclosed home or residential property is sold to an individual as a
primary residence, then such sale must be in an amount equal to or less than the cost to
acquire, redevelop and/or rehabilitate such home or property as necessary to meet
minimum housing quality standards
• Redevelopment and/or rehabilitation activities of foreclosed, abandoned or vacant
property must meet applicable laws, codes and other requirements relating to housing
safety, quality and habitability.
• Redevelopment and/or rehabilitation activities may include improvements to increase the
energy efficiency or conservation of such homes or property or provide a renewable
energy source for such homes or property.
2/18/2009 to
3/19/2013 or
sooner
$300,000
2
ATTACHMENT A - SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section C: Work Activities, Expectations and Budget (continued)
02 - Disposition
(continued)
• In addition to the above requirements regarding acquisition of property, any
redevelopment of foreclosed, abandoned or vacant property must meet applicable laws,
codes and other requirements relating to housing safety, quality and habitability.
04 - Removal of
Blight
• City of Yakima will demolish and remove the structures from approximately ten (10)
properties in order to remove blight.
• City of Yakima will use its NSP funds to eliminate specific conditions of blight or
deterioration as an area -wide benefit in accordance 24 CFR 570. 208 (a)(1), Criteria for
National Objectives, Area -Benefit Activities.
• City of Yakima will limit the use of NSP funds to just the activities involved to remove the
unfit structures on the blighted property. It will not use its NSP funds to acquire the
blighted property.
• For each property on which NSP funds are used to remove blight, the City of Yakima will
document and record how the property meets the definition of blight as stipulated in
RCW 35.80A.010, Condemnation of Blighted Property.
• The City of Yakima will establish an ordinance, if it does not already have such an
ordinance, which meets the requirements of RCW 35.80, Unfit Dwellings, Buildings and
Structures, Declaration of Purpose.
• In addition to meeting the definition of blight, the City of Yakima will document and
record how the structures on the property must meet the definition of unfit as
established in RCW 35.80.010, Unfit Dwellings, Buildings and Structures, Declaration of
Purpose. It will then proceed to remove the structures in accordance to the provisions of
its ordinance and state laws.
• The City of Yakima will assess the costs to remove the blight against the real property
upon which the costs were incurred. In accordance with RCW 35:80.030 (1)(h), the
assessment will constitute a lien against the property. The City of Yakima will make the
necessary arrangements to levy the assessment and begin collection procedures within
the year the blight and unfit structure(s) was removed. It will record the tax lien and
place a copy of it in the written file or record of the land transaction.
• The City of Yakima will treat the collection of the assessment or tax lien as program
income for the Neighborhood Stabilization Program.
2/18/2009 to
3/19/2013 or
sooner
$318,083
3
ATTACHMENT A - SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section C: Work Activities, Expectations and Budget (continued)
21A - General Admin.
• City of Yakima will establish and maintain an administrative point of contact and perform
the necessary program administration, record keeping and financial management
procedures necessary to comply with federal and state CDBG and NSP requirements.
• City of Yakima will compile, complete, and submit quarterly NSP progress reports along
with other necessary CDBG reports, as requested.
• City of Yakima will execute a contract with CTED, submit payment vouchers and, at the
end of the project, a Grantee Closeout Performance Report.
• City of Yakima will conduct an environmental review and prepare environmental review
record; and monitor program progress and compliance with applicable federal and state
regulations.
• City of Yakima will enter into a contract with the subrecipients of NSP funds. The
contract will stipulate their respective roles and responsibilities. Subrecipient
agreements must comply with applicable federal and state regulations. Contract
provisions regarding residential construction and rehabilitation must include, but are not
limited to, requirements for preparing bid documents, requesting federal and state
prevailing wage rates, completing final design and construction plans, conducting a bid
opening and selecting a qualified contractor.
• City of Yakima and its subrecipients must comply and complete applicable civil rights
requirements, including an affirmative marketing plan to procure necessary goods and
services from minority and women business enterprises (MWBEO). It will verify that
consultants are not on the federal "Excluded Parties List System" (EPLS).
• After the award of any subrecipient agreement, City of Yakima will routinely and
regularly monitor the contractor's progress, collect necessary construction and/or project
documents, and resolve any monitoring issues.
• City of Yakima will provide documentation to CTED demonstrating that it is administering
the project in accordance with federal and state requirements. They must document and
keep a record for each property acquired using NSP funds, and they must retain these
records for at least ten years.
2/18/2009 to
3/19/2013 or
sooner
$32,531
4
ATTACHMENT A - SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section C: Work Activities, Expectations and Budget (continued)
21A - General Admin.
(continued)
• The City of Yakima must treat the collection of receipts from deferred loans and/or the
net proceeds from the sale of foreclosed properties as program income for the
Neighborhood Stabilization Program. If it does not already have a program designed to
distribute program income in accordance to CDBG / NSP guidelines, then it will need to
create one.
• Each property acquired with NSP funds must have a written file or record that includes,
but not limited to, the following information:
- A copy of the "NSP Voluntary Acquisition of Foreclosed Property" notice to the Owner
that includes a statement that the property will not be acquired through the
jurisdiction's powers of eminent domain and statement acknowledging the Owner's
rights to choose not to sell the property.
- A copy of the appraisal.
- A copy of the written purchase offer, along with a statement regarding just
compensation of the property.
- A copy of the purchase contract and a financial statement detailing the settlement
costs.
- A copy of the recorded deed.
- A copy of the recorded instruments used to assure the continued affordability of the
property.
- A copy of any appeal or complaint concerning a payment, together with a copy of all
pertinent determinations.
TOTAL: $650,614
5
ATTACHMENT A - SCOPE OF WORK AND BUDGET
Contractor: City of Yakima
Contract No. 08-F6401-027
Section D: Project Schedule
MILESTONE #
MILESTONES
DUE DATE
Milestone #1
CTED and City of Yakima execute a grant contract and funds become available for
disbursement.
September 1, 2009 or sooner
Milestone #2
If the City of Yakima solicits proposals and executes grant contracts with participating
non-profit organizations, then it will forward copies of the executed contracts to
October 19, 2009 or sooner
CTED.
Milestone #3
City of Yakima will have created a program that complies with applicable state laws to
remove unfit structures and recover costs. It will send a copy of its program,
ordinances and/or municipal code regarding such program.
December 31, 2009 or sooner
Milestone #4
City of Yakima will have identified and obtained the legal authority it needs to remove
unfit structures from blighted properties. It will provide CTED an inventory of the
properties it plans to clean-up along with information regarding the street address for
each property and the justification used to determine the structures were unfit and
the property was blighted.
September 18, 2010 or sooner
Milestone #5
Acquire the foreclosed properties that City of Yakima intends to rehabilitate and
sell/rent to eligible buyers/tenants. Provide CTED an inventory of the acquired
properties with information regarding the street addresses and purchase prices for
each property.
September 18, 2010 or sooner
Milestone #6
City of Yakima will have completed its clean-up of blighted property and certify a lien
sufficient to establish the necessary authority to collect the funds expended. It will
provide CTED an updated inventory that includes information regarding tax liens, or
comparable financial instruments, to recover the clean-up costs.
December 31, 2012 or sooner
Milestone #7
City of Yakima will provides CTED a financial report that itemizes the disbursement of
December 31, 2012 or sooner
NSP funds, an inventory of properties assisted which includes street addresses,
purchase amounts and the financial assistance provided, along with the final steps
necessary to close NSP.
Milestone #8
City of Yakima will prepare and submit final reports, invoices and financial statements
to CTED.
March 19, 2013 or sooner
6
ATTACHMENT B
STATE AND FEDERAL
REQUIREMENTS AND ASSURANCES
In addition to laws listed in the general terms and conditions of this Agreement, the Grantee
assures compliance with the following regulations as they pertain to the local project.
Contact the State if you want assistance in obtaining a copy of these regulations.
A. HOUSING AND COMMUNITY DEVELOPMENT
1. Public Law 90-284, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq ),
commonly referred to as the Federal Fair Housing Act, as amended by the Fair Housing
Amendments Act of 1988 (P.L. 100-430)
2. Executive Order 11063, as amended by Executive Order 12259 (24 CFR Part 107)
3. The Housing and Community Development Act of 1974, as amended through 1992.
Sections 109; 104 (b) 4; 104 (d); and 104 (I), which prohibit discrimination and require
identification of housing and community development needs; a "residential anti -
displacement and relocation assistance plan"; and adoption and enforcement of policies
prohibiting the use of excessive force.
4. Title 11 and 111 of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (42 U.S.C. 4630) as amended in 1989)
5. Title IV of the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4831b)
6. Public Law 110-289, section 3, "Emergency Assistance for the Redevelopment of
Abandoned and Foreclosed Homes" (also referred to as the Neighborhood Stabilization
Program), of the Housing and Economic Recovery Act, 2008 (Docket No. FR -5255-1-
01)
7. The American Recovery and Reinvestment Act of 2009
B. LABOR
1. Davis -Bacon Act, as amended (40 U.S C. 3141 et seq.)
2. Prohibition of Use of CDBG for Job -Pirating Activities, 24 CFR Part 570.482(f), revised
June 2006
C. ENVIRONMENTAL AND CULTURAL
1. The National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. Section 4321 et seq.,
and 24 CFR Part 58)
2. The Clean Air Act, as amended (42 U.S C. 7401 et seq.)
3. HUD Environmental Criteria and Standards (24 CFR Part 51)
4. Executive Order 11990, May 24, 1977, as amended by Executive Order 11990:
Protection of Wetlands (42 FR 26961 et seq.)
5. The Wild and Scenic Rivers Act of 1968, as amended (16 U.S.C. 1271 et seq.)
6.. Executive Order 11988, May 24, 197.7: Floodplain Management and Wetland Protection
(42 FR 26951 et seq.)
7. Coastal Zone Management Act of 1972, as amended (16 U.S.C. 1451 et seq.)
8. The Endangered Species Act of 1973, as amended (16 U.S.C. 1531 et seq )
9. The Reservoir Salvage Act of 1960, as amended by the Archaeological and Historic
Preservation Act of 1974 (16 U.S.C. 469 et seq.)
10. The Safe Drinking Water Act of 1974, as amended (42 U.S.C. 300f et seq., 21 U.S.C.
349, as amended, and 40 CFR Part 149 (Environmental Protection Agency));
11. The Federal Water Pollution Control Act of 1972, as amended, including the Clean
Water Act of 1977, Public Law 92-212 (33 U.S.C. Section 1251 et seq.)
12. The Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.)
13. The Fish and Wildlife Coordination Act of 1958, as amended (16 U.S.C. Section 661 et
seq.)
14. The National Historic Preservation Act of 1966 (16 U S C. 470)
15. The Archaeological and Historical Data Preservation Act of 1974 (16 U S.C. 469a-1 et
seq.)
16. Executive Order 11593, Protection and Enhancement of the Cultural Environment, May
13, 1971
17.. Farmland Protection Policy Act of 1981 (7 U.S.C. 4201 et seq. and 7 CFR Part 658)
18. Environmental Justice (Executive Order 12898), as amended by Executive Order 12948
19. Explosive and Flammable Operations (Section 2 of the Housing Act of 1949, as
amended (42 U.S C. 1441), Section 7(d) of the Dept HUD Act of 1965 (42 U.S C.
3535(d)), Section 2 of the Housing and Urban Development Act of 1969 (42 U.S C.
1441(a)), and 24 CFR Part 51 Subpart C)
20. Airport Clear Zones and Accident Potential Zones (Section 2 of the Housing Act of 1949
as amended (42 U S C. 1441), affirmed by Section 2 of the Housing and Urban
Development Act of 1969, P.L. No 90-448, Section 7(d) of the Dept HUD Act of 1965
(42 U.S.C. 3535(d)), and 24 CFR Part 51 Subpart D)
21. Toxic Chemicals and Radioactive Materials (Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 as amended by Superfund Amendments and
Reauthorization Act and 24 CFR 58.5(i))
22. Determining Conformity of Federal Actions to State or Federal Implementation Plans
(Environmental Protection Agency — 40 CFR Parts 6, 51, and 93)
STATE
1. Relocation Assistance and Real Property Acquisition Policy, Chapter 8.26 RCW
2. Prevailing Wages on Public Works, Chapter 39.12 RCW
3. State Environmental Policy Act (SEPA), Chapter 43 21C RCW
4. State Building Code, Chapter 19.27 RCW; Energy Related Building Standards, Chapter
19.27A RCW, and Provisions in Buildings for Aged and Handicapped Persons, Chapter
70.92 RCW
5. Interlocal Cooperation Act, Chapter 39.34 RCW
6. State Environmental Policy Act (SEPA), Chapter 43.21(C) RCW
7. Noise Control, Chapter 70.107 RCW
8. Shoreline Management Act of 1971, Chapter 90.58 RCW
9. Governor's Executive Order 89-10, December 11, 1989: Protection of Wetlands, and
Governor's Executive Order 90-04, April 21, 1990: Protection of Wetlands
Mr. Michael A. Morales
Deputy Director of Yakima
129 North Second Street
Yakima, WA 98901
Dear Mr. Morales:
1 am pleased to inform you that the Department of Community, Trade and Economic Development
(CTED) is awarding up to $650,614 to fund Neighborhood Stabilization Program (NSP) activities
in the City of Yakima. This award is contingent upon CTED's receipt of the Neighborhood
Stabilization Program agreement from the U. S. Depaitment of Housing and Urban Development
(HUD).
This letter allows the City of Yakima to begin incurring costs as of February 18, 2009, in an amount
not to exceed ten percent of the award for the following activities needed to begin your project and
not requiring an environmental review:
• Administration: including staffing, travel and other administrative expenses;
• Preliminary environmental studies and review of 24 CFR 58.5 laws and authorities including
Section 106 of the National Historic Preservation Act of 1996;
• Preliminary engineering feasibility studies to the extent needed for environmental assessment;
and
• Subrecipient agreements or professional service contracts for any of the above activities.
All eligible costs will be reimbursed by CTED after an interlocal agreement between the CTED and
the City of Yakima has been formally executed and an environmental review is complete. All costs
to be reimbursed must comply with applicable state and federal requirements.
Costs for activities that require an environmental review cannot be incurred, nor can HUD or Non -
HUD funds be committed (Refer to 24 CFR 58.22), until specific procedures required by the State
Environmental Policy Act (SEPA) and the National Environmental Policy Act (NEPA) have been
completed and the time period for public review, if applicable, has expired.
MiChael'A..-KOrateS •
• "
110f, Oe. tO,' set ;Oh
agreerheh*as qiifOkTY: as d,„SSible and no Tater than my, I, 2009. DelayS t4.,the a1f.'.1Y00't•ittrOgi'
-fth:41 agreement may lead to the rescission ofthis aWard. In the event the grant award is rescinded;
the resources will be redirected to an eligible. Neighborhood Stabilization Prograna project:that is
ready to proceed.
I congratulate you and yOur staff for your efforts thus far. ,If you have .any questions about this
letter or your award, please contact Bill Cole at (360) 725-3005 or via email at billc@cted:wa.gov.
We look forward to working with you on this worthwhile project.
Sincerely,
,./ren J. Larkin,
Local Government
t Director
'vision
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. ( I
For Meeting of October 20, 2009
A Resolution authorizing the City Manager to execute an agreement with
the Washington State Department of Commerce accepting six -hundred
fifty thousand six hundred fourteen dollars ($650,614.00) of
Neighborhood Stabilization Program (NSP)
SUBMITTED BY: Bill Cook, CED Director
CONTACT PERSON/TELEPHONE: Michael Morales, CED Deputy Director
(575-3533)
SUMMARY EXPLANATION: The Washington State •Department' of Commerce has
allocated $650.614.00 of to the City of Yakima for implementation of the' Neighborhood
Stabilization Program (NSP).
The NSP program was developed by the federal government to help relieve the local
impacts of the mortgage foreclosure crisis by enabling units of local govemment to purchase
and redevelop or resell foreclosed properties. Eligible activities include rehabilitation of
existing structures, removal of substandard structures; and new construction on foreclosed
lots for low to moderate income single family dwellings.
Resolution X Ordinance Other (Specify)
Contract X Mail to (name and address):
Funding Source (NSP) - • . s
APPROVED FOR SUBMITTAL: \ City Manager
STAFF RECOMMENDATION: Approve Resolution
BOARD/COMMISSION RECOMMENDATION: On October 7, 2009 the City
Council Neighborhood Development Committee voted to forward the proposal to
the City Council with a recommendation to approve.
COUNCIL ACTION:
CLOSEOUT AGREEMENT FACE SHEET
Agreement Number: 08-F6401-027CA
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1)
Washington State Department of Commerce
1. Contractor
City of Yakima
129 North Second Street
Yakuna, Washington 98901
2. Contractor Doing Business As (optional)
N/A
3. Contractor Representative
Archie M. Matthews, Office of Neighborhood Services
112 South 8th Street, Yakima, WA 98901
Phone: 509.575.6101
Email. amatthew@ci.yaknna.wa.us
4. COMMERCE Representative
Genny Matteson 1011 Plum St. SE
Program Manager PO Box 42525
Phone. (360) 725-3093 Olympia, WA 98504-2525
Fax: (360) 586-8440
Genny.matteson@commerce.vva.gov
5. Grant Amount
$650,614
6. Final Grant Amount
$650,614
7. DeObligation
$0 00
8. Agreement Funding Source
Federal: Q State: ❑ Other: ❑ N/A:
9. Agreement Start Date
Date of Execution
10. Agreement End Date
12/23/2034
■
11. Federal Funds (as applicable) Federal Agency CFDA Number
333 14.228 U S. Department of Housing and Urban 14.228
Development
12. Agreement Purpose
The purpose of this Closeout Agreement is to certify the project completion and to close out the Neighborhood Stabilization
Program 1 (NSP1) Agreement Number 08-F6401-027 This Closeout Agreement shall set out the conditions that the Contractor
needs to meet beyond the closeout of the NSP1 Agreement Number 08-F6401-027
COMMERCE, defined as the Department of Commerce, and the Contractor acknowledge and accept the terms of this Closeout
Agreement and its Attachments as an amendment to the Agreement Number 08-F6401-027 They executed this Closeout
Agreement on the date of the last signature below (Date of Execution). The rights and obligations of both parties to this Closeout
Agreement are governed by this Closeout Agreement and the following other documents incorporated by reference. Attachment A
- NSP1 Closeout Performance Report and Attachment B - Program Income Reuse Plan. A copy of this Closeout Agreement shall
be attached to and made a part of the original Agreement Number 08-F4601-027 between COMMERCE and the Contractor
FOR TOE CONTRACTOR
FOR COMMERCE
//IV
Signature F,
jn " M (/// Mire
/ (
K. BARKLE ,
Assistant Director, Local Government Division
711-S //0/ b
Pnnt Name
'/aZmQ, `", L/r!nap
Date
APPROVED AS TO FORM ONLY
7t Day of ,Tune, 2012
Title
/(t/j
1 1 l 1 ii
g
Date GThis
Na,°,'! - i,;241
i4!17e'
Signature on File
CITY CONTRACT
NO: 8 - d ,0OGj.. /yam,
Sandra Adix, Assistant Attorney General
RESOLUTION
Department of Commerce
Neighborhood Stabilization Program 1
Page 1
Closeout Amendment
08-F6401-027CA
CLOSEOUT AGREEMENT TERMS AND CONDITIONS
Agreement Number: 08-F4601-027CA
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1)
Washington State Department of Commerce
The purpose of this Closeout Agreement is to acknowledge that the project has been certified complete
and the final grant amount for the Neighborhood Stabilization Program 1 (NSP1) Agreement Number
08-F4601-027 has been adjusted, if necessary, as reflected on the Closeout Agreement Face Sheet.
Washington State Department of Commerce (hereinafter referred to as "COMMERCE"), and City of
Aberdeen (hereinafter referred to as the "Contractor") agree to close-out NSP1 Agreement Number
08-F4601-027 and agree to the following:
1. PROJECT COMPLETE. All activities identified in the Statement of Work of NSP1 Agreement
Number 08-F4601-027 are complete.
2. FINAL GRANT AMOUNT. Any NSP1 funds not disbursed before the date this Closeout
Agreement is executed shall be returned to COMMERCE. The final amount of the NSP1 grant shall
be $650,614
3. NSP1 CLOSEOUT PERFORMANCE REPORT. The Contractor submitted to COMMERCE, to
COMMERCE's satisfaction, a NSP1 Closeout Performance Report accounting for all the NSP1
activities and beneficiaries resulting from the NSP1 project, herein included as Attachment A to this
Closeout Agreement.
4 FINAL PUBLIC HEARING. On March 17, 2015 the Contractor held a public hearing to solicit
public comments and review the performance of the completed NSP1 project, in accordance with 24
CFR 570.486.
5. SINGLE AUDITS. If the Contractor expended or accrued $500,000 or more in federal funds in a
fiscal year during the term of NSP1 Agreement Number 08-F4601-027, the Contractor submitted to
COMMERCE single audits conducted in accordance with OMB Circular 133 for each applicable
year. If any of the Contractor's NSP 1 sub -recipients expended or accrued $500,000 or more in
federal funds in a fiscal year during the term of NSP1 Agreement Number 08-F4601-027, the
Contractor has reviewed to the Contractor's satisfaction the single audits of such sub-recipient(s),
which were conducted in accordance with OMB Circular 133 for each applicable year.
6. CONTINUED AFFORDABILITY. The Contractor will ensure the continued affordability of all
the properties assisted with NSP1 funds, in accordance with the requirements of 24 CFR 92.252 for
rental units and 24 CFR 92.254 for owner -occupied units, and in accordance with NSP1 Agreement
Number 08-F4601-027.
7. AD €>I ITIONAL DATA AND REPORTING. Should the U.S. Department of Housing and Urban
Development (HUD) or COMMERCE request additional information or data about the NSP1 project
and/or use of NSP1 funds, the Contractor agrees to provide such information or data within 30
Department of Commerce
Page 2 Closeout Amendment
Neighborhood Stabilization Program 1 08-F6401-027CA
calendar days from the date the Contractor receives the request. If required, the Contractor agrees to
submit to HUD or COMMERCE penodic reports and financial data related to program income
and/or revolving loan funds generated from the use of the NSP1 funds, as applicable.
8 RECORDS RETENTION. As described in NSP1 Agreement Number 08-F4601-027, the
Contractor will retain all records related to the NSP1 project for a period of six (6) years from the
date this Closeout Agreement is executed. This includes but is not limited to financial reports,
property acquisition documents, rehabilitation or construction related documents. If any litigation,
claim or audit is started before the expiration of the six (6) year penod, the records shall be retained
until all litigation, claims or audit findings involving the records have been resolved.
9 PROGRAM INCOME REUSE PLAN. The Contractor submitted to COMMERCE a Program
Income Reuse Plan, which was approved by COMMERCE, and which is included as Attachment B to
this Closeout Agreement.
The Contractor agrees to comply with all applicable federal regulations and requirements for the
administration and use of program income, as defined in 24 CFR 570.500(a) and as stipulated in 24
CFR 570.504 All program income received by the Contractor shall be solely used for NSP1 eligible
activities, as described in the Statement of Work of NSP1 Agreement Number 08-F4601-027 and in
the attached Program Income Reuse Plan. The Contractor agrees that no more than ten percent (10%)
of program income received can be used to pay for administrative costs.
Note: At least 25 percent (25%) of any program income received by the Grantee or its
subrecipients after October 18, 2010, must be used to benefit persons with incomes at or below
50 percent (50%) of the median household income.
The requirements of this section shall survive the termination of this Closeout Agreement. In the
event that the Contractor fails to comply with the requirements for the administration and use of
program income contained in this Closeout Agreement (including but not limited to the attached
Program Income Reuse Plan), in the applicable federal regulations, or in the NSP 1 Agreement
Number 08-F4601-027, COMMERCE reserves the nght to recapture funds in the amount of the non-
compliance in addition to any other remedies available at law or in equity.
10. SURVIVAL. The terms, conditions, and warranties contained in this Closeout Agreement that by their
sense and context are intended to survive the termination of this Closeout Agreement shall so survive
Department of Commerce Page 3 Closeout Amendment
Neighborhood Stabilization Program 1 08-F6401-027CA
ATTACHMENT A:
NSP1 CLOSEOUT REPORT
Agreement Number: 08-F4601-027CA
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1)
Washington State Department of Commerce
Department of Commerce Closeout Amendment
Neighborhood Stabilization Program 1 08-F6401-027CA
Department of Commerce
innovation is in our nature.
Neighborhood Stabilization Program 1 (NSP1)
Closeout Performance Report for
Contract Number 08-F6401-027
_uN 1 4 2016
Department of Commerce
1.
NSP1 Grantee:
City of Yakima
2. Address:
129 North Second St.
Yakima, WA 98901
3.
NSP1 Project Period:
2/18109 to 3/17/15
4.
Date of Final Public Hearing:
3/17/15
5.
Name of Chief Administrative Official:
Jeff Cutter
6.
Title of Chief Administrative Official:
interim City Manager
The chief administrative official of the NSP1 grantee jurisdiction certifies that:
® To the best of their knowledge and belief, the data provided in this report is true and correct as
of the date of signing below;
• Records supporting the information provided in this report are being maintained for a minimum
of six (6) years from the NSP1 project completion date and will be made available upon
request;
• The NSP1 project funded by this grant has met the Community Development Block Grant
(CDBG) National Objective for NSP, which is benefiting low-, moderate-, and middle-income
individuals or families (as defined in FR -5255-N-01).
• Should U.S. Department of Housing and Urban Development or Department of Commerce
request additional information or data about this NSP1 project, the NSP1 grantee agrees to
provide such information or data within 30 calendar days from the date the NSP1 grantee
receives the request.
In the event the audits disclose disallowable costs, the Department of Commerce shall retain the
right to recover an appropriate amount after fully considering the recommendations on disallowed
costs resulting from the final audit.
Signature:
Date:
Chi'ministrative Official
NSP 1 Closeout Performance Report
Page 1of12
TABLE OF CONTENTS
TABLE OF CONTENTS. 2
GENERAL INSTRUCTIONS 2
PROJECT SUMMARY 3
FINANCIAL SUMMARY & PROPERTY REPORT 4
PROGRAM INCOME REPORT 5
BENEFICIARY SUMMARY REPORT 6
BENEFICIARY SUMMARY INSTRUCTIONS 7
CONTRACT AND SUBCONTRACT ACTIVITY 8
HUD'S "CONTRACT AND SUBCONTRACT ACTIVITY' FORM INSTRUCTIONS 9
LABOR STANDARDS COMPLIANCE REPORT 11
STANDARD FORM 425 12
GENERAL INSTRUCTIONS
This Closeout Performance Report is designed to provide a format for the NSP1 grantee to document
project completion in compliance with U.S. Department of Housing and Urban Development (HUD) funding
requirements and to certify that the NSP1 project was completed in compliance with the NSP1 contract
between the NSP1 grantee and Department of Commerce (Commerce).
Cover Page & Certification:
• Items 1, 2, 5, and 6 on the cover page are self-explanatory.
• Item 3: Please enter the time frame of your NSP1 project The start date is the execution date of your
NSP1 contract (the date Commerce signed the contract). The end date is listed on your NSP1 contract
cover sheet, or on the most recent amendment If your project was completed prior to this end date,
please enter the actual date on which the project was completed.
• Item 4: Please insert the date of the required final public hearing. According to the NSP1 contract
(Section 7. Closeout), the NSP1 grantee must hold a final public hearing to review the performance of
the NSP1 project.
Project Summary: In 500 words or Tess, describe your NSP1 project. This summary will help inform the
public or the legislature about your NSP1 program.
Financial Summary & Property Report: Please completely fill -out the Excel spreadsheet that was sent to
you together with this Closeout Performance Report. For convenience, some columns have instructions:
hover over the column headings. When complete, replace page 4 with a printout of the completed Excel
spreadsheet. If you are uncertain what data to include, please contact your Commerce project manager.
Program Income Report: Please check one answer on each of the two questions - Yes or No. Please
contact your Commerce project manager if you have questions.
Beneficiary Summary Report: This information is required by HUD_ Please contact your Commerce
project manager if you have questions.
Contract and Subcontract Activity Form and Standard Form 425: These forms are required by HUD and
have their own instructions. Please contact your Commerce project manager if you have questions.
Labor Standards Compliance Report: This form must be completed and SIGNED for construction
projects. Complete this report for your entire NSP1 project. If Your NSP1 project did not include
construction and you believe that this report is not applicable to your project please check the appropriate
box at the top of the page. Please contact your Commerce project manager if you have questions.
NSP1 Closeout Performance Report Page 2 of 12
PROJECT SUMMARY
NSP1 Grantee:
YAKIMA
Contract #:
08-F6401-027
Name and Phone of Person
Completing This Report:
Archie Matthews, (509) 575-6101
Date:
5120116
Please write a brief summary of your NSP1 program. This summary will help inform the public or legislature
about your NSP1 project (e.g., similar to a stand-alone short newspaper article). Please start by describing
the "problem" and your need for neighborhood stabilization, and then highlight what was accomplished with
the NSP1 grant. It should include at a minimum:
1. the amount of NSP1 funds invested in the project
2. the amount of other funds invested in this project;
3. the amount of any program income received and invested back into the project,,
4. the involvement of any subrecipients/housing organizations/nonprofits/developers;
5. the number of foreclosed or abandoned properties/housing units recovered;
6. the type(s) of assistance provided (downpayment, rehabilitation, construction, etc.);
7. the type of housing provided (resale, rental, public facilities, etc.);
8. the number of low-, moderate-, and middle-income families that benefited from this project.
PROJECT NAME: Neighborhood Stablization Program
SUMMARY (max. 500 words or half a page):
As with much of the country, the City of Yakima was experiencing an affordable housing
shortage, with a recent rise in "foreclosure" and/or "Distressed" properties as defined by
the Department Housing and Urban Development .
In 2009, the City of Yakima was awarded $650,614.00 of NSP funds. With these funds the
City of Yakima purchased five (5) parcels, subdivided those into thirteen (13) lots. On those
thirteen lots, using approximately $1,950,000 of HOME Investment funds for new
construction, and approximately $80,000 of CDBG to fund the infrastructure to eight of
those homes. Thus thirteen new single family homes were constructed in partnership with
two qualified Community Housing Development Organizations, Opportunities
Industrialization of Washington(OIC) and Yakima Valley Habitat for Humanity.
Twelve of those homes were sold to qualified low to moderate income first time
homebuyers, with the Habitat for Humanity newly constructed dwelling being sold to a Low
income first time homebuyer. The rehabilitated single family dwelling was granted to
Habitat for humanity by the City of Yakima and after being rehabilitated, was sold to a
qualified Low Income First time home buyer.
The City of Yakima does not expect to earn NSP program income until one of the houses
sell. If the City of Yakima does earn NSP program income, the City of Yakima plans to work
with Habitat for Humanity (as a developer) to utilize these funds on NSP eligible costs.
NSP1 Closeout Performance Report Page 3 of 12
FINANCIAL SUMMARY AND PROPERTY REPORT
DRGR
Activity
5
P g rtvAddress
Nem Grantee
Responsible
OrganlsatWN
Non -Profit
Total NSP1
Oram Funds
Spanton Tilts
Properly
(Purohasse,
Rehaboic,
ACQUISITION
DISPOSITION
DROR PERFORMANCE MEASURES
Resale
Rental
Ofhor Uses
FernsHeeded Household
(1 oro) I
cill
0
i .,-,-
° ob
1.1
oe F
Racial Categories (enter
1$82111••gold
mint
Dale
Purehase
Price
Appraised
Vehra
Appraisal
Data
Mc. %
Housing
Units
or
gale
Resale
Pries
Clotting
Costs
PI
Received
Singia-
Family
Units
RAI-
Family
Unita
Trans).
Clonal
or
Group
Homes
Pubfo
Fed
Ilties
Unita
Land
Trust
Units
DPA
E
c
!� 8 g
1e.
8
E
I
s
a
`
t
1
2
b
t
g
4
i
/
Si
.i
u
88.8027
18246VoakarAve
Yakima
'1. 47,620,48.
4129710
$ 73,800
4 02,000
12110108
10.00%
1
$ 137,000
BD
1
4
4
0&8027
1822SVoelker Ave
Yakima
$ 47,630,48
Voekor
1
i 137,000
80
0
4
4-
07.8027
202 South BIh 5l (HFH)
YakimaHabea
Yakima
tfar
Humanity
3. Bi,O... ...
1115170
$ $8,600
1 46,000
118/10
14.44%
1
$ 90,000
50
1
2
2
Lukehart Property
6/16/10
5 418,906
8 418,178
4/10/10
1.00%
-
-
07-8027
213 E "S" Street
Yakima
$ :400;40'
wow
—
1
5 132,000
,-
80
0
4
4
08.8627
214 E'I" Street (HFH)
Yakima
Habgel for
Humanity
'.i,� '4�,'F8,2.;78�
Luketen •1rFti
—
1
$ 114,002
e0
1
4
4
07-6027
216 E'6" Street
Yakima
$ ..4.418`.
Lutwn
•-
1
$ 132,000
80
0
2
2
07.8027
218E"T"Street
Yakima
:is :4#9:163)8.
LiaMiab
--
1
$ 130,000
80
0
2
2
07-8027
218 E "T" Street
Yakima
li: ,41,9;152:18'
Luatloft
--
1
$ 136,600
80
0
0
1
07.0027
220 0'7' Street
Yakima
'4. 43165 89,
/Aetna
—
1
5 130,000
60
0
2
2
07-8027
222 E "7' Street
Yakima
'$40;Y82.111
Luteen
—
1
6 130,000
80
0
3
3
07.8027
308 E `8' Street
Yakima
4' -41.44.10.
tunnel
—
1
$ 132,0(10
80
0
4
4
07-8027
307E "S" 6hse1
Yakima
'7 416:10;
wkmwt
—
1
$ 14000
00
0
3
3
07-8027
1802 N. 4111 Street
Yakime
5' .43,482.1.8,
Wool
--
1
5 132,000
80
1
1
1
Program AdmSNstration
$ :55,62.e.BT.,j
-
-
9 -
NSP1
Total Draws
i 650,614.42
Total HU by Dlepoeitom
Total HU Recovered/gestated
Type
13
$ -
0
0
0
0
0
0
4
35
36
0
0
0
0
0
13
NSP1 (3rani,4MI$yd
NSP1'.Tgtp) glees.
PT° m)1ilt:aru R6belysd
Program inclxne.8peni:
Pinisam'inoaia Placid In an ALP,
NaP1914nt Bel#F9b * Pfojeet p6so01t4 '1 A:
<•• ENTER YOUR NOPI GRANT AWARD
ENTER THE TOTAL PI SPENT TO DATE
<_ ENTER THE TOTAL Pf PLACED IN THE FRP
if your hrhol balanoe le not60, please contact the Commerce project manager
before subm5are this CIowa Performance Report.
XNSP1 Total Draws consistent wtih DROR (HUD)
��JJ 0 Program Income received and spent oonnlstent with DROR (HUD), If applicable
❑ RLF approved by Department of Commerce prior to protect being closed, if applicable
R DEPARTMENT OP COMMERCE'S USE ONLY
Verified by:
' A parson of Hispanic ethnicity can also be considered es being iron a racial category. Race Is separate from ethnicity and every person (regam3ess of their ethnidty) should counted once in a single race or a mold -race group.
•' The Revolving Loan Fund must have Department of Commerce's approval before int. NSP1 project can be dosed,
NSP1 Closeout Performance Repgt
PROGRAM INCOME REPORT
NSP1 Grantee:
YAKIMA
Contract #:
08-F6401-027
Name and Phone of Person
Completing This Report:
Archie Matthews
Date:
05/20/16
WILL THIS PROJECT GENERATE PROGRAM INCOME IN THE FUTURE?
❑No
►Yes
Please check only one: Yes or No.
If you checked "Yes,' you may be contacted in the future for more information and for
reporting on program income generated and expended. The program income
generated as a result of this NSP1 project must be managed and expended in
accordance with 24 CFR 570.504.
WILL PROGRAM INCOME BE PLACED IN AN APPROVED REVOLVING
DYes
/1 No
LOAN FUND (RLF)? Please check only one: Yes or No.
If you checked "Yes," the RLF must have been approved by Department of Commerce
before the completion of this NSP1 project. The RLF must be maintained and managed
in accordance with 24 CFR 570.500(b).
More information about program income and revolving loan funds:
• 24 CFR 570.504 (Program Income)
• 24 CFR 570.500(b) (Revolving Loan Fund)
• NSP Policy Alert! 'Program Income in the Neighborhood Stabilization Program,' dated July 13, 2011.
NSP1 Closeout Performance Report Page 5 of 12
BENEFICIARY SUMMARY REPORT
NSP1 Grantee:
YAKIMA
Contract #:
08-F6401-027
Name and Phone of Person
Completing This Report:
Archie Matthews
Date:
05/20/16
For 1, 2, and 3 below, count persons and ensure that the totals match. For 4 and 5,
count households.
NSP Activity Type
Type A
Type B
Type B*
Type D
Type E
Type E*
DRGR Activity Number
1.
Total Persons Benefiting
36
2.
Ethnic Breakdown (persons)
Hispanic/Latino
35
Non-Hispanic/Latino
1
Total by Ethnicity
36
3.
Racial Breakdown (persons)
White
36
Black/African American
Asian
American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander
American Indian/Alaskan Native and White
Asian and White
Black/African American and White
American Indian/Alaskan Native and
Black/African American
Other Multi -Racial
Unknown
Total by Race
36
4.
Low, Moderate, Middle Income Breakdown (households)
Low Income (O-50% AM[)
2
Moderate Income (51-80% AMI)
11
Middle Income (81-120% AMI)
Total LMMI Served
13
5.
Group Breakdown (households)
Female -Headed Households
4
Disabled/Special Needs Households
Homeless Households
Total Served by Group
4
NSPI Closeout Performance Report
Page 6 of 11.2
BENEFICIARY SUMMARY INSTRUCTIONS
HUD requires this information for your NSP1 project
For 1, 2, and 3 below, count persons and ensure that the totals match. For 4 and 5,
count households.
1. Total Persons Benefiting
Enter the total number of persons who benefited from your NSP1 project.
2. Ethnic Background
Every person should be counted as belonging to one of these two groups and everyone should be
counted only once. Please note that Hispanic persons may include people from Puerto Rico, the other
Caribbean islands, Mexico, Central and South America, and other locations that share a cultural
heritage linked to the Spanish language. There are many different ethnic groups, but Hispanic is the
only ethnic group being tracked by HUD at this time.
3. Racial Breakdown
A person of Hispanic ethnicity can also be considered as being from any of the racial categories listed
in this section. Race is separate from ethnicity and every person (regardless of their ethnicity) should
be counted once in a single race or a multi -race group.
4. Low, Moderate, Middle Income Breakdown
Enter the number of low, moderate, middle income households.
5. Group Breakdown
Please provide the number of households that fit within the groups listed.
NSP 1 Closeout Performance Report Page 7 of 12
CONTRACT AND SUBCONTRACT ACTIVITY
U.S. Department of Housing and Urban Development
Public Reporting Burden for this collection of information is estimated to average ,50 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing
information is voluntary HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB Control Number.
Executive Order 12421 dated July 14, 1983, directs the Minority Business Development Plans shall be developed by each Federal Agency and that these annual plans shall establish minority business development objectives. The information is
against the total program activity and the designated minority business enterprise (MBE) goals. The Department requires the information to provide guidance and oversight for programs for the development of minority business enterprise cone'
not collected HUD would not be able to establish meaningful MBE goals nor evaluate MBE performance against these goals. While no assurances of confidentiality is pledged to respondents, HUD generally discloses this data only in response
Privacy Act Notice - The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the information requested in this form by virtue of Title 12, United States Code, Section 1701 et
Code of Federal Regulations. 11 will not be disclosed or released outside the United States Department of Housing and Urban Development without your consent, except as required or permitted by law.
1, Grantee/Project Owner/Developer/Sponsor/Bullder/Agency
Check If:
2. Location (City, State, ZIP Code)
City of Yakima, Office of Neighborhood Development
PHA
❑
Yakima, WA, 98901
iHA
❑
3a. Name of Contact Person
Archie Matthews
3b. Phone Number (Including Area Code)
509-575-6101
4. Reporting Period
02/18/2009-03/17/2015
5. Program Code (Not applicable for CPD programs.)
see explanation of codes at bottom of page. N/A
Use a separate sheet for each program code.
Grant/Project Number or
HUD Case Number or
other Identification of property,
subdivision, dwelling unit, etc.
7a.
Amount of
Contract
or Subcontract
7b
Type of
Trade
Code
(Sea
below)
7c
Contractor or
Subcontractor
Business
Racial/Ethnic
Code
(See below)
7d.
Woman
Owned
Business
(Yes or
No)
7e.
Prime
Contractor
Identification
(ID)
Number
7f.
Sec.
3
7g.
Subcontractor
Identification
(ID)
Number
7h,
Sec,
3
71,
Contractor/Subcontractor Name
7j.
Name
Street
CPD:
1 = New Construction
2 = Education/Training
3 = Other
7c: Type of Trade Codes:
1 = New Construction
2 = Substantial Rehab.
3 = Repair
4 = Service
5 = Project Mangt.
6 = Professional
7 = Tenant Services
8 = Education/Training
B = Arch./Engrg. Appraisal
0 = Other
7d: Racial/Ethnic Codes:
1 = White Americans
2 = Black Americans
3 = Native Americans
4 = Hispanic Americans
5 = AslanlPadfic Americans
8 = Hasidic Jews
5: Program Codes (Complete for Hous
1 = AR insured, Including Section 8
2 = Flexible Subsidy
3 = Section 8 Noninsured, Non -HFC
4 = Insured (Management
• Previous editions are obsolete.
NSP 1 Closeout Performance Report
HUD'S "CONTRACT AND SUBCONTRACT ACTIVITY" FORM INSTRUCTIONS
This report is to be completed by grantees, developers, sponsors, builders, agencies, and/or project owners for reporting
contract and subcontract activities of $10,000 or more under the following programs: Community Development Block
Grants (entitlement and small cities); Urban Development Action Grants; Housing Development Grants; Multifamily Insured
and Noninsured; Public and Indian Housing Authorities; and contracts entered into by recipients of CDBG rehabilitation
assistance.
Contracts/subcontracts of less than $10,000 need be reported only if such contracts represent a significant portion of your
total contracting activity. Include only contracts executed during this reporting period.
This form has been modified to capture Section 3 contract data in columns 7g and 7i. Section 3 requires that the
employment and other economic opportunities generated by HUD financial assistance for housing and community
development programs shall, to the greatest extent feasible, be directed toward low- and very low-income persons,
particularly those who are recipients of government assistance for housing. Recipients using this form to report Section 3
contract data must also use Part I of form HUD- 60002 to report employment and training opportunities data. Fomi HUD -
2516 is to be completed for public and Indian housing and most community development programs. Form HUD -60002 is to
be completed by all other HUD programs including State administered community development programs covered under
Section 3.
A Section 3 contractor/subcontractor is a business concern that provides economic opportunities to low- and very low-
income residents of the metropolitan area (or nonrnetropolitan county), including a business concern that is 51 percent or
more owned by low- or very low-income residents; employs a substantial number of low- or very low-income residents; or
provides subcontracting or business development opportunities to businesses owned by low- or very low-income residents.
Low- and very low-income residents include participants in Youthbuild programs established under Subtitle D of Title IV of
the Cranston -Gonzalez National Affordable Housing Act.
The terms "low-income persons' and "very low-income persons' have the same meanings given the terms in section
3(b)(2) of the United States Housing Act of 1937. Low-income persons mean families (including single persons) whose
incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than
80 per centum of the median for the area on the basis of the Secretary's findings that such variations are necessary
because of prevailing levels of construction costs or unusually high or low-income families. Very low-income persons
means low-income families (including single persons) whose incomes do not exceed 50 per centum of the median family
income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the
Secretary may establish income ceilings higher or lower than 50 per centum of the median for the area on the basis of the
Secretary's findings that such variations are necessary because of unusually high or low family incomes.
Submit two (2) copies of this report to your local HUD Office within ten (10) days after the end of the reporting period you
checked In item 4 on the front.
Complete item Th. only once for each contractor/subcontractor on each semi-annual report.
Enter the prime contractor's ID in item 7f. for all contracts and subcontracts. Include only contracts executed during this
reporting period. PI-iAs/IHAs are to report all contracts/subcontracts.
Community Development Programs
1. Grantee: Enter the name of the unit of government submitting this report.
3. Contact Person: Enter name and phone of person responsible for maintaining and submitting contract/subcontract
data.
7a. Grant Number. Enter the HUD Community Development Block Grant Identification Number (with dashes). For
example: B -32 -MC -25-0034. For Entitlement Programs and Small City multi-year comprehensive programs, enter the latest
approved grant number.
7b. Amount of Contract/Subcontract: Enter the dollar amount rounded to the nearest dollar. If subcontractor ID number
is provided in 7f, the dollar figure would be for the subcontract only and not for the prime contract.
7c. Type of Trade: Enter the numeric codes which best indicates the contractor's/ subcontractor's service. If subcontractor
ID number is provided in 7f., the type of trade code would be for the subcontractor only and not for the prime contractor.
The "other" category includes supply, professional services and all other activities except construction
and education/training activities.
7d. Business Racial/Ethnic/Gender Code: Enter the numeric code which indicates the racial/ethnic /gender character of
the owner(s) and controller(s) of 51 % of the business. When 51 % or more is not owned and controlled by any single
racial/ethnic/gender category, enter the code which seems most appropriate. If the subcontractor ID number is provided,
the code would apply to the subcontractor and not to the prime contractor.
7e. Woman Owned Business: Enter Yes or No.
7f. Contractor Identification (ID) Number: Enter the Employer (IRS) Number of the Prime Contractor as the unique
identifier for prime recipient of HUD funds. Note that the Employer (IRS) Number must be provided for each
contract/subcontract awarded.
7g. Section 3 Contractor: Enter Yes or No.
7h. Subcontractor identification (ID) Number: Enter the Employer (IRS) Number of the subcontractor as the unique
identifier for each subcontract awarded from HUD funds. When the subcontractor ID Number is provided_ the respective
7f. Contractor Identification (ID) Number: Same as item 7f. under CPD Programs.
7g. Section 3 Contractor. Enter Yes or No.
7h. Subcontractor Identification (ID) Number: Same as item 7h. under CPD Programs.
71. Section 3 Contractor: Enter Yes or No.
7j. Contractor/Subcontractor Name and Address: Same as item 7j. under CPD Programs.
Public Housing and Indian Housing Programs
PHAs/THAs are to report all contracts/subcontracts. Include only contracts executed during this reporting period.
1. Project Owner: Enter the name of the unit of government, agency or mortgagor entity submitting this report. Check box
as appropriate.
3. Contact Person: Same as ftem 3 under CPD Programs.
4. Reporting Period: Check only one period.
5. Program Code: Enter the appropriate program code.
7a. Grant/Project Number: Enter the HUD Project Number or Housing Development Grant or number assigned.
7b. Amount of Contract/Subcontract: Same as item 7b. under CPD Programs.
7c. Type of Trade: Same as item 7c. under CPD Programs.
7d. Business Racial/Ethnic/Gender Code: Same as item 7d. under CPD Programs.
7e. Woman Owned Business: Enter Yes or No.
7f. Contractor Identification (ID) Number: Same as item 7f. under CPD Programs.
7g. Section 3 Contractor: Enter Yes or No.
7h. Subcontractor identification (ID) Number: Same as item 7h. under CPD Programs.
7i. Section 3 Contractor: Enter Yes or No.
7j. Contractor/Subcontractor Name and Address: Same as item 7j. under CPD Programs.
LABOR STANDARDS COMPLIANCE REPORT
x
NSP1 grantee certifies that federal labor standards do not apply to this NSP1 project
(the project did not include construction work or construction contracts in excess of $2,000,
OR the project involved rehabilitation of residential property containing fewer than 8 housing units)
This From Must Be Used for Restitution (Underpayments) of $.00 to $999.99
(See Federal Labor Standards Handbook 1344.1, Paragraph g., page 3-15, for amounts totaling $1,000 or more)
Agency Name and Address: The City of Yakima Office of Neighborhood Development Services
Description of Work: Land Acquisition to include Rehabilitation of one residential dwelling
HUD Program or Source of Funds: NSP1
Contract # 08-F6401-027
Prime Contractor: The City of Yakima
Contract Amount: $
Pre -Construction Conference Date:
Location:
Federal Labor Standards Provisions Included in Specs: http:l/www.hud.gov/olfces/admlhuddips/formstrles/4O10.pdf
Wage Determination Included in the Specs:
Number:
Number of Modfications:
Are Contractor(s) Payroll Certifications Submissions Current & Complete?
Number of Construction Wage Interviews (HUD —11) Completed:
Number of Trades Interviewed:
Were Any Violations Discovered and Resolved?
Number:
Number of Employees Involved:
Number of Subs Involved:
Total Amount of Underpayments:
$
Contract Work Hours
(overtime underpayments):
& Safety Standards Act
Briefly Describe Any Labor Standards Complaints & Resolutions:
Is any contractor retainage
held at this time?
Amount:
$
SUBCONTRACTORS) WHO WORKED ON THIS PROJECT
Name
Address
Contract Amount
Type of Work
$
Note: Please attach more
pages, if needed, for any additional information.
1 CERTIFY TO THE BEST OF MY KNOWLEDGE THAT ALL LABORERS AND MECHANICS EMPLOYED ON THIS CONSTRUCTION CONTRACT
WERE PAID IN ACCORDANCE w1TH THE LABOR PROVISIONS, EXCEPT AS NOTED. THERE ARE NO OUTSTANDING OR UNRESOLVED
LABOR STAND , U DERPAYMENTS, COM TS, OR DISPUTES.
Signature: -cf le
Name: Archie Matthews
Date: 6-19//6
Title: ONDS Manager
NSP1 Closeout Performance Report
Page 11 of 12
STANDARD FORM 425
FEDERAL FINANCIAL REPORT
Foil
1. Federal Agency and Organizational Element
to Which Report is Submitted
2. Federal Grant or Other Identifying Number Assigned by Federal Agency Page
(To report multiple gra, use FFR Attachment)
Oa -FU Lib) •017
1
of
Pages
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13. Certification: By signing this report I certify that it Is true, complete, and accurate to the best of my knowledge. 1 am aware that
any tale e, fictitious, orfraudutent information may subject me to criminal, civB, or administrative panalities. (U.S. Code, Title 18, Section 1001)
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OMB Approval Nuttier. 0348-0081
Expiration ilea10131:2011
Paperwork Burden Statement
Recording tithe Paperwork Reduction Ad, as amended, no persons am required to respond to a collection of information unless a displays avoid OMB Coniml Number. The valid 0846 control
numberforthls information collection Is 0348.0061. Public reporting burden for this colledbn of information is estimated to average 1.5 hours per response, including time far reviewing instrucfuns,
searching extsling data sources, gathering and maintaining the data needed, and completing and reviewing the collection of inrormatbn. Send comments ragaMing the buaen estimate or any other
,,asited at this collection of information. indudinp suggestions for redudnq this burden, lathe Office of krIananement and eudeet, Paperwork Reduction Project ( 0348-0060), Washington, DC 20503.
NSl51 Closeout Performance Report
Page 12 of 12
ATTACHMENT B:
PROGRAM INCOME REUSE PLAN
Agreement Number: 08-F4601-027CA
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1)
Washington State Department of Commerce
Department of Commerce Closeout Amendment
Neighborhood Stabilization Program 1 08-F6401-027CA
Attach i ent B
NEIGHBORHOOD STABILIZATION PROGRAM
PROGRAM INCOME REUSE PLAN
Contractor Name
Contractor Address
Contractor Telephone #
Closeout Agreement #
City of Yakima
129 North Second St, Yakima, WA 98901
Archie Matthews, Office of Neighborhood Services (509) 575-8101
08-F6401 -027CA
This Program Income Reuse Plan establishes guidelines regarding policies and procedures to
administer and use program income received through activities funded by the Neighborhood
Stabilization Program (NSP). In this Plan, the City of Yakima or "Contractor" will detail to the
Washington State Department of Commerce or "Commerce" how it plans to reuse any program
income that it earns.
Need for Plan Governing Reuse of NSP Program Income
NSP is authorized under Title III of Division B of the Housing and Economic Recovery Act of
2008 (HERA). It falls under the heading of the Emergency Assistance for Redevelopment of
Abandoned and Foreclosed Homes. HERA states that grants funded by NSP are considered
Community Development Block Grant (CDBG) funds.
This Program Income Reuse Plan is intended to satisfy the requirements specified in federal
statute and regulation at Section 104(j) of the Housing and Community Development Act ("the
Act"), as amended in 1992 and 24 Code of Federal Regulations (CFR) 570.489 (e)(3) and of
Title III of Division B of HERA. These statutory and regulatory sections permit the Contractor
to retain for reuse, NSP Program Income generated by eligible NSP activities pursuant to HERA.
The eligible NSP activities shall benefit low-, moderate-, or middle-income (LIMIT) individuals
and families, and be limited to the following activities:
• Establish financing mechanisms for purchase and redevelopment of foreclosed -upon homes
and residential properties, including such mechanisms as soft -seconds, loan loss reserves, and
shared -equity loans for low- and moderate -income homebuyers.
o Purchase and rehabilitate abandoned or foreclosed residential properties in order to sell, rent,
or redevelop such homes and properties.
• Demolish blighted structures
• Redevelop demolished or vacant properties.
Note: At least twenty-five percent (25%) of any program income received by the
Contractor or its sub -recipient must be used to benefit persons with incomes at or below
fifty percent (50%) of median household income.
Department of Commerce
Neighborhood Stabilization Program
Program Income Reuse Plan
Page 1
Program Income Defined
Federal regulation 24 CFR 570.500(a) defines NSP Program Income. It states program income
is the gross income directly generated from the use of NSP funds. Examples of program income
include:
• payments of principal and interest on loans made using NSP funds,
• income (net of costs that are incidental to the generation of the income) from the sale or
rental of real property that has been acquired, constructed or improved with NSP funds and
that is owned (in whole or in part) by the participating Jurisdiction or subrecipient.
General Administration (GA) Cost Limitation
The Contractor may use up to ten percent (10%) of NSP Program Income received for general
administrative costs.
Cash Management
The accounting and financial management system used to manage program income must comply
with generally accepted accounting principles. Accounting procedures must demonstrate that the
Contractor used NSP program income solely for NSP eligible activities. The annual financial
statements must present the financial position of the program income account and the results of
its operations.
Note: If program income account balances are held in an interest bearing account, then any
interest earned on the account must to remitted back to HUD.
Reporting
Subrecipients will submit to Commerce an annual Program Income Report (for the calendar
year) by January 15th of the following year (unless otherwise directed by Commerce) This
Report will detail program income revenues and expenditures. Commerce will incorporate this
program income information into the State's Annual Program Income report.
Federal Overlay Compliance
The Contractor must ensure that the use of NSP Program Income complies with all federal
overlay requirements including, but not limited to:
o citizen participation e environmental review • equal opportunity
® Section 3 employment ® lead-based paint ® labor standards
• acquisition and relocation ® procurement ® continued affordability
® maintenance of adequate accounting & recordkeeping systems
Department of Commerce
Neighborhood Stabilization Program
Program Income Reuse Plan
Page 2
DETAILS OF PROGRAM INCOME PLAN:
The City of Yakima does not expect to eam NSP program income until one of the NSP houses
sell. If Yakima does earn NSP program income, the City will either work with Habitat for
Humanity (as a developer) to utilize these funds on NSP eligible costs or if allowed by HUD,
transfer the NSP program income into its Community Development Block Grant (CDBG)
program to be used on CDBG eligible costs.
Revising This Plan
The Contractor has the authority to revise this document with a properly noticed Council/Board
public hearing, board resolution, and acceptance by Commerce. The Contractor must send any
proposed revisions to their Program Income Reuse Plan to Commerce for review and approval.
Then the Contractor's governing board must approve the revised plan. They will need to
conduct a public hearing prior to adopting it. Proof of publishmg a public hearing notice, along
with a copy of the resolution or ordinance showing the adoption of the revised plan, must be
submitted to Commerce.
SIGNA O ERTIFYING OFFICIAL:
Cliff Moore, City Manager
Vile/Hp
Date
TITLE OF CERTIFYING OFFICIAL:
Accepted and Certified.
G :;:--42.0 l
MARK K. BARKLEY, ate
D
Assistant Director, Local Government and Infrastructure Division
Department of Commerce
Neighborhood Stabilization Program
Program Income Reuse Plan
Page 3
Department of Commerce
Innovation is in our nature.
Neighborhood Stabilization Program (NSP)
Guidelines for Program Income and Revolving Loan Funds
Edition Date: January, 2013
Many of Washington's NSP Subrecipients generate Program Income. With just a few exceptions, these
Subrecipients will retain their NSP Program Income, even after their grant agreements with the
Washington State Department of Commerce are closed out. The use of this Program Income must
comply with NSP and CDBG regulations. These guidelines document and address some unique issues
or questions pertaining to NSP Program Income.
The guidelines include:
1. Definition of Key Terms 1
2. HUD Guidance on Program Income 2
3. Continued Affordability Requirements . 2
4. Program Income Prior to Grant Closeout 2
5. Program Income After Grant Closeout . 2
6 Examples of NSP Program Income 3
7. Rental Income from NSP Properties 3
8. Using NSP to Make Loan Payments 4
9. The NSP Closeout Agreement... 4
10. Reversion of Assets 5
11. Program Income Reuse Plan 5
12. Revolving Loan Fund (RLF) Administration Plan 6
13. Non-Subrecipient Administration of RLFs 7
14. Accounting Standards and Financial Statements 8
15. Revisions 8
16. Reporting to Commerce and/or HUD 8
1. Definition of Key Terms
Commerce: State of Washington's Department of Commerce, which is the direct recipient of the NSP
grant from HUD.
NSP Subrecipient or Subrecipient: Local jurisdictions awarded an NSP grant from Commerce.
NSP Guidelines for Program Income & Revolving Loan Funds Page 1
January 2013
Responsible Organizations: Non-profit organizations who received NSP funds from NSP Subrecipients
to help them implement their NSP programs.
Developers: An entity receiving NSP assistance, through a "developer's agreement", to acquire and
rehabilitate/redevelop properties for resale or rentals. The developer must demonstrate ownership or
control of the property
Program Income: Income received by the Subrecipient or Responsible Organization directly generated
from the use of NSP funds.
2. HUD Guidance on Program Income
HUD issued an NSP Policy Alert on Program Income on July 13, 2011. Other relevant regulatory
citations include:
• 24 CFR 570.500: Definitions.
• 24 CFR 570.504: Program Income.
• 24 CFR 570.504(c): Disposition of Program Income Received by Subrecipients.
• 24 CFR 570.509: Grant Closeout Procedures.
• 24 CFR Part 570: Administrative Rule changes dates April 16, 2012.
3. Continued Affordability Requirements
Subrecipients must ensure the continued affordability of all the properties assisted with NSP funds or
with Program Income generated by NSP funds, in accordance with the requirements of 24 CFR 92.252
for rental units and 24 CFR 92.254 for owner -occupied units.
4. Program Income Prior to Grant Closeout
During the term of their NSP grant agreement, Subrecipients use Program Income for NSP eligible
activities. They must follow all NSP/CDBG requirements such as environmental, fair housing,
affordability, labor laws, NSP purchase price discounts, appraisals, and homeownership counseling.
Subrecipients must document the receipt and use of Program Income. Unless they deposit the funds into
a revolving loan fund (RLF) approved by Commerce, Subrecipients must spend Program Income first
before drawing down any more NSP grant funds.
At least 25 percent of any Program Income received after October 18, 2010, MUST be used to
benefit persons with incomes at or below 50 percent of the median household income (see HUD's
NSP Policy Alert dated September 1, 2011).
5. Program Income After Grant Closeout
Upon the completion and closeout of their NSP grant agreement, Subrecipients must document any
Program Income generated by their NSP activities. They will treat it like NSP/CDBG funds subject to
all applicable state and federal requirements governing the use of NSP and CDBG funds.
NSP Guidelines for Program Income & Revolving Loan Funds Page 2
January 2013
1
A written NSP Closeout Agreement between Commerce and the Subrecipient will specify how the
Subrecipient will use its Program Income after the grant closeout (see Section 11 and 12 below). This
NSP Closeout Agreement will close their existing NSP grant agreement.
Subrecipients may use up to 10% of Program Income received for eligible NSP administrative purposes.
HUD issued Federal Guidance on NSP Closeout. This guidance requires that if a Subrecipient
earns over $250,000 annually in Program Income, then 25% MUST be used to benefit persons
with incomes at or below 50 percent of the median household income (see HUD's Federal Register,
Vol. 77, No. 228, dated November 27, 2012).
6. Examples of NSP Program Income
Common sources of NSP Program Income are:
• Proceeds from the sale of properties acquired and/or improved with NSP funds.
• Gross income from the use or rental of real property constructed or improved with NSP funds, less
the costs incidental to the generation of that income.
• Payments of principal and/or interest on loans made with NSP funds (including Habitat for
Humanity loans and recovery of deferred loans).
• Recapture of NSP subsidies if an assisted home is sold before the end of the affordability period.
• Interest earned on loans made with NSP funds.
• Repayments of liens placed on privately owned property when blighted buildings were demolished
and cleaned up using NSP funds.
The following revenues are NOT Program Income:
• Funds collected through special assessments on public improvements (e.g., local improvement
districts created to fund infrastructure improvements in subdivisions purchased with NSP funds).
• Program Income (NSP & CDBG) received in a single calendar year by the Subrecipient and all its
Responsible Organizations (combined) if the total amount of such income does not exceed $25,000.
• Interest earned on cash advances from Commerce or funds held in a Program Income or RLF
account (except for funds in approved lump -sum drawdown accounts). These interest earnings must
be remitted to HUD for transmittal to the U.S. Treasury.
• Revenues earned by "developers" of NSP -assisted properties. Subrecipients must implement
mechanisms that prevent undue enrichment of their Responsible Organizations.
7. Program Income from NSP Rental Properties
Some NSP Subrecipients and their Responsible Organizations used their NSP funds to purchase and
rehabilitate rental properties. Program Income includes rental income from properties acquired using
NSP funds.
NSP Guidelines for Program Income & Revolving Loan Funds Page 3
January 2013
Program Income from rental properties refers to rental receipts less costs necessary to generate that
income. In other words, Program Income for rental properties corresponds to the calculation of net
operating income (NOI). NOI for rental properties is the difference between the total rent collected and
the operational costs such as maintenance, insurance, utilities, management fees, etc.
Calculation of Program Income should include all rental properties. If a Subrecipient, or their
Responsible Organizations, has more than one rental property, then the calculation of program income
must include the combined total of all the properties. (In addition, the Subrecipient must add this
combined total of Program Income to the any other Program Income earned from CDBG funded
projects.)
8. Using NSP Program Income to Make Loan Payments
The calculation of rental income is calculated prior to debt service payments. HUD allows the use of
Program Income to be applied to debt service under the following conditions:
• Private loans were used solely to finance the costs of the approved NSP project and were made at the
same time as the NSP loan (i.e., was not an existing mortgage).
• The private loan was made by an external lender (not the Subrecipient).
• Loan proceeds were used in accordance with all applicable NSP requirements (e.g., environmental
review, labor standards, price discounts, appraisals, homeownership counseling, etc.).
• Use of the Program Income for debt service payments was contemplated (as evidenced in a written
budget) when the NSP project was approved by Commerce.
9. NSP Closeout Agreement
At the end of the NSP program, the Subrecipient and Commerce will execute an NSP Closeout
Agreement. The NSP Closeout Agreement, which closes the original NSP Agreement, will include
provisions addressing each of the following:
• Identification of any closeout costs or contingent liabilities subject to payment with NSP funds after
grant closeout.
• Identification of any unused grant funds that revert to Commerce.
• Identification of any Program Income at the time of the NSP Closeout Agreement.
• Description of the Subrecipients' responsibility after closeout for:
- Compliance with all program requirements, certifications and assurances in using Program
Income and in using any other remaining NSP funds available for closeout costs and contingent
liabilities;
- Use of real property assisted with NSP funds in accordance with the principles described in
24 CFR 570.505;
- Compliance with the affordability requirement stipulated in 24 CFR 92.252 for rental housing
units or 24 CFR 92.254 for owner -occupied housing units;
- Compliance with requirements governing Program Income received subsequent to grant
closeout, as described in 24 CFR 570.504(b)(4) and (5); and
NSP Guidelines for Program Income & Revolving Loan Funds Page 4
January 2013
- Ensuring that flood insurance coverage for affected property owners is maintained for the
mandatory period.
• Federal Financial Report / Settlement Statement: Contractors must submit a Federal Financial
Report using a Standard Form 425 (SF -425). This report reflects the cumulative actual federal
monies and unliquidated obligations incurred, local matching contributions, and the unobligated
balance of federal funds.
10. Reversion of Assets
Real property acquired or improved, in whole or in part, with NSP funds must meet one of the CDBG
national objectives for ten (10) years after the NSP grant closeout. Any exceptions need to be addressed
and approved in the NSP Closeout Agreement.
The sale of real property acquired or improved, in whole or part, with NSP funds must comply with the
requirements of Public Law 110-289, Housing and Recovery Act of 2008 (HERA), section 2301, which
includes but is not limited to:
• Section 2301(d)(1) current market appraisal requirements to determine the statutory purchase
discount and to ensure purchasers are paying below-market value for the home or property.
• Section 2302(d)(3) sale amount restrictions for any abandoned or foreclosed upon home or
residential property purchased, redeveloped, or otherwise sold to an individual as a primary
residence to an amount equal to or less than the cost to acquire and redevelop or rehabilitate such
home or property up to a decent, safe, and habitable condition.
•
• Section 2301(f)(3) affordability requirements as stipulated in 24 CFR 92.252 for rental housing units
or 24 CFR 92.254 for owner -occupied housing units or for a longer period of time if practicable.
• Environmental review -according to 24 CFR 58.
11. Program Income Reuse Plan
A Program Income Reuse Plan governs the Subrecipient's continuing use of Program Income. It
identifies all proposed uses of Program Income. The Program Income Reuse Plan needs to indicate the
Subrecipient's compliance with all applicable NSP program requirements. These include but are not
limited to the following: environmental requirements; procurement; Section 3 employment; prevailing
wage rates and labor standards; acquisition and relocation requirements; housing quality standards; NSP
national objective requirements; continued affordability; citizen participation; equal employment
opportunity, financial audits, and annual reporting.
The Program Income Reuse Plan will become part of the NSP Closeout Agreement. Commerce closes
the original NSP grant upon satisfactory completion,of the terms and conditions of the grant agreement.
However, federal statute requires Commerce to track Program Income after the grant closeout. To that
end, the Program Income Reuse Plan satisfies the federal requirement that Subrecipients obtain
Commerce's advance approval of a local plan administering and reusing Program Income.
NSP Guidelines for Program Income & Revolving Loan Funds Page 5
January 2013
12. Revolving Loan Fund (RLF) Administration Plan
If the Subrecipient plans to create and operate an RLF, an RLF Administration Plan will become part of
the NSP Closeout Agreement. This RLF Administration Plan authorizes the Subrecipient to establish
and operate the RLF.
In accordance with 24 CFR 570.500(b), the RLF refers to a separate fund from any other NSP funds. It
has its own set of accounts that are independent of other program accounts. The Subrecipient's audited
financial statement will present the RLF account separately from other funds.
Once approved by Commerce, the RLF Administration Plan needs to have a specific term — typically
five years. During this time, the Subrecipient must demonstrate it has the capacity to administer and
implement the RLF activities. Otherwise, the Program Income generated by NSP -funded activities may
revert back to Commerce.
The Subrecipient's RLF must carry out specific revenue -generating activities. It is initially capitalized
with Program Income received from the use of NSP grant funds, e.g., the sale of property. The RLF is a
fund from which moneys are continuously expended, replenished, and again expended for the same
activity.
RLF Administration Plan Contents
To assist NSP Subrecipients, Commerce has identified the primary elements which generally make up
an RLF Administration Plan. These elements provide only a general framework to help the Subrecipient
develop the RLF Administration Plan. The Subrecipient is encouraged to add their own information and
details about how the RLF will be used and managed. However, the following topics must be included,
at a minimum:
A. Goals and Objectives: Develop a clear set of goals and objectives, which articulate in quantifiable
terms, the purpose of the RLF and how Program Income will be reused. The purpose of the RLF
would reflect the economic conditions and opportunities in the community that the RLF will address.
B. Compliance with applicable NSP and CDBG Requirements. Indicate compliance with all the
applicable NSP and CDBG provisions of the statutes, rules, regulations, and guidelines. These
include but are not limited to the following: environmental requirements; procurement; Section 3
employment; prevailing wage rates and labor standards; acquisition and relocation requirements;
housing quality standards; national objective requirements; continued affordability; citizen
participation; and equal employment opportunity.
C. Eligible Activities: Describe the specific eligible activities that the RLF will fund. Show how they
relate to the community's problems or needs AND to the goals and objectives of the RLF. Ensure
that the eligible activities meet all NSP and CDBG requirements.
D. Eligible Applicants: Establish criteria for eligibility of applicants for the RLF. Limited RLF
resources may necessitate the targeting of loans. Targeting of loans might include a specific area of
need; geographic area of discrimination in lending; existing businesses versus start-up businesses;
addressing specific industries affected by lending patterns; addressing discrimination against women
and minorities in lending; etc.
NSP Guidelines for Program Income & Revolving Loan Funds Page 6
January 2013
E. Eligible Types of Financial Assistance: Establish what types of financial assistance (loans) are to be
funded, e.g., amortized loans, deferred loans, 100% financing versus public or private partnerships,
etc.
F. Financing Policies: Establish any minimum or maximum dollar amount of financial assistance.
Include terms and rates of interest for the repayment. Include policies for restructuring loans or
modifying terms, along with any other financing policies required. Quantify acceptable levels of
risk.
G. Loan Review, Selection, and Approval (if applicable): Create a process for "advertising" the RLF to
the public. Establish criteria and procedures for review and approval of loan applications. Establish
a loan review committee whose purpose is to make recommendations to the governing body.
Ideally, its membership would include private sector finance professionals.
H. Loan Security (if applicable): Secure each amortized real property loan by trust indenture, and
secure each deferred real property loan that provides a contingency for repayment, by lien. Require
each borrower, where appropriate, to protect the NSP Subrecipient against insurable risks. A copy
of each policy underwritten should be filed with the RLF administrator.
I. Loan Servicing (if applicable): Establish policies and procedures for loan repayments, loan
delinquencies, loan defaults, and loan monitoring, and designate who will be responsible for carrying
out each of these functions.
J. Recapitalization Strategy: If needed, develop a recapitalization strategy and identify which other
financial resources might be used to recapitalize or supplement the RLF.
K. Internal Control: Identify the internal control system which will be put in place to ensure that the
RLF is managed according to the RLF Administration Plan. The objectives of internal control
should be to provide the RLF administrator (and the NSP Subrecipient) with reasonable assurance
that the RLF assets are safeguarded against loss and that all RLF transactions are executed in
accordance with the approved RLF Administration Plan.
L. Public Participation and Information: Identify the RLF's program reporting and public participation
process. For CDBG entitlement jurisdictions, this process must comply with the "Public
Participation Plan" stipulated in the jurisdiction's CDBG Consolidated Plan.
13. Non-Subrecipient Administration of Program Income or RLFs
The Subrecipient may contract with a non-profit organization (the responsible organization that
administered the NSP project for instance) or a financial institution to administer any Program Income
or RLFs, subject to Commerce's approval. However, the ownership of and ultimate responsibility for
the Program Income or RLF must remain with the Subrecipient. A written agreement must exist
between the Subrecipient and non-profit organization. This Agreement must remain in effect during any
period that the Program Income or RLF administrator has responsibility for Program Income or RLF
program activity.
Minimum provisions in this Agreement are:
1. Statement of work to be performed including a timeline;
2. Records and reports to be maintained;
3. Requirements for how Program Income and the RLF are to be managed;
NSP Guidelines for Program Income & Revolving Loan Funds Page 7
January 2013
4. Applicability of Federal Circulars and other such requirements;
5. Provision for termination of the agreement; and
6. A policy on reversion of assets at termination.
The NSP Subrecipient must maintain accounting oversight, including an annual audit of the RLF.
Copies of such audit(s) and any reports must be submitted to Commerce.
Regardless of who is administering the Program Income or RLF, a written Administration Plan needs to
be approved by Commerce and incorporated in the NSP Closeout Agreement.
14. Accounting Standards and Financial Statements
The accounting and financial management system used to manage Program Income and RLFs must
comply with generally accepted accounting principles.
Subrecipients must be able to demonstrate that Program Income or funds received into the RLF are used
solely for NSP eligible activities. The financial position of all Program Income or RLF proceeds must
be included in the Subrecipients' annual audit (unless the RLF is managed by another organization on
behalf of the Subrecipient). The annual financial statements must present the financial position of
Program Income or the RLF and results of their operations.
Any Program Income or the cash balance of the RLF must held in an interest-bearing account.
And any interest earned on these cash balances must be remitted at least annually to HUD.
15. Revisions
Subrecipients must send any revisions of either their Program Income Reuse Plans or RLF
Administration Plan to Commerce for review and approval. The jurisdictions' governing board must
approve the revised plan(s). They must to conduct a public hearing prior to adopting it if the proposed
changes could directly affect the potential beneficiaries. A copy of the resolution or ordinance showing
the adoption of the revised plan must be submitted to Commerce.
16. Reporting to Commerce and/or HUD
Because Commerce has ultimate responsibility for any Program Income retained and used, it must
ensure that Program Income is used in a manner consistent with federal requirements (24 CFR 570.504
and 24 CFR 570.500(b)). Subrecipients must submit to Commerce an annual Proram Income
Report which details program income or RLF's (for the calendar year) by January 15" of the following
year (unless otherwise directed by Commerce). Report forms are provided in Commerce's CDBG
Management Handbook (or www.commerce.wa.gov). Commerce will report this information on
Program Income annually to HUD.
In addition, the Subrecipient must provide details of any existing NSP properties that have been
sold or additional properties purchased over that year and how continuing affordability
requirements have been met.
NSP Guidelines for Program Income & Revolving Loan Funds Page 8
January 2013