Loading...
HomeMy WebLinkAboutR-2014-100 HOME Investment Funds; Habitat for Humanity; New Construction 402 S. 10th St. and 1409 S. 16th Ave. RESOLUTION NO. R- 2014 -100 A RESOLUTION Consideration of a Resolution granting $40,000 of HOME Investment funds to Habitat for Humanity to demolish the existing substandard structures and construct new single family homes at 402 S. 10 Street and 1409 S 16 Ave, to be sold to qualified low to moderate income first time homebuyers. WHEREAS, the City of Yakima is a recipient of HOME Investment funds, and WHEREAS, the HUD HOME Investment funding requires a 15% set aside to support qualified Community Housing Development Organizations (CHDO's). WHEREAS, the Yakima Habitat for Humanity as a certified Community Housing Development Organization ( CHDO) has the ability to construct a single family dwelling to be sold to a qualified low to moderate first time homebuyer and monitor this property through the required affordability period, and WHEREAS, the sale proceeds will be kept by Habitat and used as program income to further affordable housing within the City of Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The city council hereby authorizes the Yakima City Manager to execute such documents necessary or appropriate granting $40,000 of HOME Investment funds to Yakima Habitat for Humanity to remove the existing substandard structure and construct new single family homes at 402 S. 10 Street and 1409 S. 16 Ave, Yakima, for the sale of such property by Yakima Habitat for Humanity to qualified low to moderate income first time home buyers and for monitoring such properties through the required affordability period, all in accordance with applicable requirements and procedures of HUD concerning the HOME Investment regulations, and sign documents as required. ADOPTED BY THE CITY COUNCIL this day of August 5, 2014. L":-22 TEST: Micah Ca ley, Mayor City Clerk i } '7"\ i ` yam r � - ...„......„..„ 7-:-,,,.1--ii,-_\ f� rill ) \. Ii ~ n � BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5.C. For Meeting of: August 05, 2014 ITEM TITLE: Resolution authorizing two contracts granting $40,000 of HOME Investment funding to Habitat for Humanity to demolish the existing substandard structures and construct two new single - family dwelling units to be sold to qualified low to moderate income first time homebuyers located at 402 South 10th Street and 1409 South 16th Avenue SUBMITTED BY: Joan Davenport, Interim Community Development Director (509) 576 -6417 Archie Matthews, ONDS Manager (509) 575 -6101 SUMMARY EXPLANATION: As a recipient of HOME Investment funds, the City of Yakima is required to set aside 15% to support qualified Community Housing Development Organizations (CHDO's). Neighborhood Development Services proposes to grant Yakima Valley Habitat for Humanity, a certified CHDO, $40,000 to remove substandard structures and construct two new single family dwelling units located at 402 South 10th Street and 1409 South 16th Avenue to be sold to qualified low to moderate income first time homebuyers and monitor the projects for the required "Affordability Period" as per Federal HOME regulations. Resolution: X Ordinance: Other (Specify): Contract: X Contract Term: One year Start Date: 08/05/2014 End Date: 07/07/2015 OR UPON COMPLETION Item Budgeted: Yes Amount: $40,000 Funding Source /Fiscal Impact: HOME Investment Fund Strategic Priority: Improve the Built Environment Insurance Required? No Mail to: Yakima Valley Partners Habitat for Humanity - c/o Steve Luten, 21 W Mead Ave. Ste #110, Yakima, WA 98902 Phone: (509) 453 -8077 APPROVED FOR SUBMITTAL: City Manager RECOMMENDATION: Staff recommends approval of the contract and resolution granting $40,000 to Yakima Valley Habitat for Humanity. ATTACHMENTS: Description Upload Date Type 0 Resolution - 402 S 10th St and 1409 S 16th Ave 7/14/2014 Resolution 0 Contract - 402 S 10th Street 7/11/2014 Contract 0 Contract - 1409 S 16th Avenue 7/11/2014 Contract SUBSTITUTED AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES AND AWARDEE - HABITAT FOR HUMANITY (402 South 10 Street) 1. AWARDEE: Yakima Valley Partners Habitat for Humanity 2. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902 3. Phone: (509) 453 -8077 4. Contact Person: Steve Luten , 5. Title of Service or Program being funded: New Construction of single family home located at 402 South 10 Street. 6. 7. Amount of Contract Award: $20,000 (HOME) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood Development Services and terminate on July 7, 2015 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A ", attached hereto and incorporated herein by this reference. 8 This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: (a) "Terms and Conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and (b) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference. (c) City of Yakima Resolution No. R- 2014 -100, a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B ", and satisfaction of all contract terms and conditions as stated in Exhibit "A ", Exhibit "B" and Exhibit "C ". This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of agreement between the parties hereto. IN WITNESS THERE rties have executed this Contract as of the day and year stated below. CITY. F YAKIM , AWA- DEE: Habitat ,1• r Humanity ony O'R. e, Ci ` Manager �� recf Title: � Date: ■ ) Date: /,// / 1 of 20 City of Yakima 8/26/2015 a// a_. / %l._� J _ Joan I' enpo 7C Dire . or Dat . /0-/ ,5 :� ;Ci '' t AT EST I ' -* ' � 1 1 / ' 1 10202_ 6 4 . i • 7 V3 S i 4 % onya CI• ;a Tee, City Clerk , ' City Contract No.: 2014 -153 2 of 20 City of Yakima 8/26/2015 EXHIBIT "A" TERMS AND CONDITIONS WITNESSETH WHEREAS, the CITY is the recipient of HOME Investment Partnerships Program Funds from theU S. Department of Housing and Urban Development (HUD), including funds that are reserved forthe use of Community Housing Development Organizations (CHDOs); and WHEREAS, the AWARDEE has been certified with the CITY as a CHDO, and has submitted a proposal for use of CHDO funds for a CHDO - eligible project under HOME regulations; NOW, THEREFORE in consideration of the mutual covenants and obligations herein contained, including the Attachments, and subject to the terms and conditions hereinafter stated, the parties hereto understand and agree as follows: Section I — Definitions A. AGENCY — is hereby defined as the Office of Neighborhood Development Services, the HOMEProgram administering agency of the City of Yakima. For the purpose of this Agreement and all administration of HOME funds, the AGENCY shall act on behalf of the CITY in the execution and fiscal and programmatic control of this agreement. The term "Approval by the CITY" or like term used in this Agreement shall in no way relieve the AWARDEE from any duties or responsibilities under the terms of this Agreement, or obligation State or local law or regulation B. FEE — is hereby defined as the amount of money the CITY agrees to pay and the AWARDEE agrees to accept as payment in full for all the professional, technical and construction services rendered pursuant to this Agreement to complete the WORK as further defined in Section III -SCOPE OF WORK, hereof. C WORK — is hereby defined as all the professional, technical and construction services to berendered or provided by the AWARDEE as described here. D. PROJECT — is defined in Section IV below. E HOME — is hereby defined as the HOME Investment Partnerships Program as described in 24 CFR Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 - 12839. Section II — Term The AWARDEE expressly agrees to complete all work required by this agreement in accordancewith the timetable set forth. Milestone Deadline Project Start Date Date of signature. Interim Milestones /Deadlines (list below): Project Completion Date: July 7, 2015 In addition, this project is subject to ongoing compliance requirements of HOME for Ten (10) years from the date of initial occupancy. During this compliance period, the AWARDEE will assure continuedcompliance with HOME requirements For homebuyer units this includes monitoring units for principal residency and recapture of funds at 3 of 20 City of Yakima 8/26/2015 time of resale For rental units, this includes ongoing property standards, occupancy and rent limits compliance Timely completion of the work specified in this agreement is an integral and essential part of performance. The expenditure of HOME funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this agreement, it is understood and agreed by the AWARDEE that the PROJECT will be completed as expeditiously as possible and that the AWARDEE will make every effort to ensure that the project will proceed and will not be delayed Failure to meet these deadlines can result in cancellation of this contract and the revocation of HOME funds Since it is mutually agreed that time is of the essence as regards this agreement, the AWARDEE shall cause appropriate provisions to be inserted in all contracts or subcontracts relative to the work tasks required by this agreement, in order to ensure that the PROJECT will be completed according to the timetable set forth. It is intended that such provisions inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit of the CITY and enforceable by the CITY against the AWARDEE and its successors and assigns to the project or any part thereof or any interest therein. In the event the AWARDEE is unable to meet the above schedule or complete the above services because of delays resulting from Acts of God, untimely review and approval by the CITY and other governmental authorities having jurisdiction over the PROJECT, or other delays that are not caused by the AWARDEE, the CITY shall grant a reasonable extension of time for completion of the WORK. It shall be the responsibility of the AWARDEE to notify the CITY promptly in writing whenever a delay is anticipated or experienced, and to inform the CITY of all facts and details related to the delay. Section III — Scope of Work The AWARDEE, in close coordination with the CITY, shall perform all professional services (the "WORK ") necessary to complete the development and occupancy of the following project in fullcompliance w_.._.__. Exhibit "B "project description, including HOME - assisted units description & compliance term) It is understood that the AWARDEE will provide a specific working budget and realistic timetable as relates to: acquisition, construction /rehabilitation, soft costs, development fees and other allowable costs /activities prior to any fund usage. Said budget shall identify all sources and uses of funds, and allocate HOME and non -HOME funds to activities or line items. The aforementioned Work tasks will be performed in essentially the manner proposed in the AWARDEE's proposal as received by the AGENCY on May 8, 2014. The aforementioned document will be considered to be a part and portion of this agreement for reference. Section IV — Reimbursement of Expenses & Developer Fees A. GENERAL. Project expenses (excluding developer fee) shall be paid based on vouchers for actual expenses incurred or paid. Requests for payment must be submitted by the AWARDEE on forms specified by the CITY, with adequate and proper documentation of eligible costs incurred in compliance with 92.206 and necessary for HUD IDIS disbursement requirements. All such expenses shall be in conformance to the approved project budget. Budget revision and approval shall be required prior to payment of any expenses not conforming to the approved project budget. 4 of 20 City of Yakima 8/26/2015 The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: B. PAYMENT AND DISBURSEMENTS: Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2 Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74 -4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. The Contractor shall submit monthly written claims for reimbursement of services performed under this Agreement. C. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. D. 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10 %) or more per home, from what has been set forth in the approved budget subject category. The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories. 2. When the revision of the Contractor budget does not exceed ten percent (10 %) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. E. CITY reserves the right to inspect records and project sites to determine that reimbursement and compensation requests are reasonable. The CITY also reserves the right to hold payment until adequate documentation has been provided and reviewed. F AWARDEE may submit a final invoice upon completion. Final payment shall be made afterthe CITY has determined that all services have been rendered, files 5 of 20 City of Yakima 8/26/2015 and documentation delivered, and units have been placed in service in full compliance with HOME regulations, including submission of a completion report and documentation of eligible occupancy, property standards and long -term use restrictions G. CITY shall have the right to review and audit all records of the AWARDEE pertaining to any payment by the CITY Said records shall be maintained for a period of five years aftercompletion. Section V — Project Requirements The AWARDEE agrees to comply with all requirements of the HOME Program as stated in 24 CFRPart 92, including but not limited to the following. A. No HOME project funds will be advanced, and no costs can be incurred, until the City has conducted an environmental review of the proposed project site as required under 24 CFR Part 58. The environmental review may result in a decision to proceed with, modify or cancel theproject. Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of environmental review and receipt by the CITY of a release of funds from the U S. Department of Housing and Urban Development [or the State of Washington] under 24 CFR Part §58. Further, the AWARDEE will not undertake or commit any funds to physical or choice - limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance, and must indicate that the violation of this provision may result in the denial of any funds under the agreement. B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage, and inthe case of a rental project, a deed covenant as required by 24 CFR Part 92. C. The AWARDEE will ensure that any expenditure of HOME funds will be in compliance with the requirements at 92.206, and acknowledges that HOME funds will only be provided as reimbursement for eligible costs incurred, including actual expenditures or invoices for work completed D If the project is to be owner - occupied, the AWARDEE will ensure that all HOME assisted unitswill be in compliance with 24 CFR 92.254, including documenting that the property is eligible under 92.254(a)(1) — (2), and will maintain compliance during the minimum compliance period. (If the property also contains a rental unit assisted with HOME funds, the AWARDEE will ensure that occupancy complies with the requirements of 92 254(a)(6).) If the project is to be a rental, the AWARDEE will ensure that that project is eligible under 92.214, and that it will meet the applicable standards of 24 CFR 92.252 253 at occupancy and for the minimum compliance period. E. The designated HOME - assisted units of this PROJECT will meet the affordability requirements as found in 24 CFR 92.252 (rental) or 92.254 (owner- occupied) as applicable. The AWARDEE shall collect and maintain Project beneficiary information pertaining to household size, income levels, racial characteristics, and the presence of Female Headed Households in order to determine low and moderate - income benefit in a cumulative and individual manner. Income documentation shall be in a form consistent with HOME requirements as stated in the HUD Technical Guide for 6 of 20 City of Yakima 8/26/2015 Determining Income and Allowances Under the HOMEProgram F. In the selection of occupants for PROJECT units, the AWARDEE shall comply with all nondiscrimination requirements of 24 CFR 92.350. If the project consists of 5 or more units, the AWARDEE will implement affirmative marketing procedures as required by 24 CFR 92.351 Such procedures are subject to approval of the AGENCY G. If the PROJECT is occupied at the time of this commitment, the AWARDEE will comply with the relocation requirements of 24 CFR 92.353. H AWARDEE shall assure compliance with 24 CFR 92.251 as relates to Property Standards and Housing Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a)(3) as applicable, and Lead Based Paint Requirements as found in 24 CFR 92.355 and 24 CFR Part 35 I. If the PROJECT is to be owner - occupied, the AWARDEE shall assure that any NOTES and MORTGAGES recorded for homebuyers shall be in compliance with 24 CFR 92.254 and that the AWARDEE will monitor each unit for principal residency (under 92.254(a)(3)) and resale /recapture (under 92.254 (a)(4) — (5)). J AWARDEE will provide any documentation required by the AGENCY regarding match as may be required to document match for purposes of the HOME program. K. If any project under this agreement involves the construction or rehabilitation of 12 or more HOME - assisted units, the AWARDEE shall comply with the provisions of the Davis -Bacon Act (40 U.S.C. 276 a to a - 7) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5),as amended. L. If the property is sold through a lease- purchase agreement, the AWARDEE will ensure compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B. M. AWARDEE will be monitored by the AGENCY for compliance with the regulations of 24 CFR 92 for the compliance period specified above The AWARDEE will provide reports and access to project files as requested by the AGENCY during the PROJECT and for Five (5) yearsafter completion and closeout of the AGREEMENT Section VI — Repayment of Loan A. All HOME funds are subject to repayment in the event the PROJECT does not meet the ProjectRequirements as outlined above. B It is understood that upon the completion of the PROJECT, any HOME funds reserved but notexpended under this agreement will revert to the CITY C. If the PROJECT is for owner - occupancy, the AWARDEE shall lend the HOME funds to the individual buyers in an amount sufficient to make the purchase affordable. Any HOME funds that reduce the price of the property below the fair market value of the property shall be secured by a HOME note and mortgage as required in 92.254(a)(5)(ii), using the note and mortgage prescribed or approved by the AGENCY (and consistent with the method of recapture identified in the CITY's "Consolidated Plan "). All net sales proceeds from the sale of units are considered to be CDHO proceeds that may be retained by the AWARDEE and used in conformance with 24 CFR 92 300(a)(2), to be retained by the CDHO and used to further affordable housing for qualified first time home buyers within the City of Yakima 7 of 20 City of Yakima 8/26/2015 Section VII — CHDO Provisions It is understood that the AWARDEE has certified that it is and will maintain CHDO (Community Housing Development Organization) status for the term of the PROJECT /AGREEMENT in accordance with 24 CFR 92. The AWARDEE agrees to provide information as may be requested by the AGENCY to document its continued compliance, including but not limited to an annual board roster and certification of continued compliance Any funds advanced as CHDO pre - development funds must be in compliance with 92.301, and are forgivable only under the terms in 92 301. Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as CHDO proceeds from this project shall be used in compliance with 24 CFR 92 300(a)(2) or as specified in this Agreement. If the project is rental, the AWARDEE will create and follow a tenant participation plan as required in 24 CFR 92 303 Section VIII — Procurement Standards The AWARDEE shall establish procurement procedures to ensure that materials and services are obtained in a cost - effective manner. When procuring for services to be provided under this agreement, the AWARDEE shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84 40 - .48. In addition, the following requirements are imposed on any procurement under this PROJECT: Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and /or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A -102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property 2 A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition 5 If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An 8 of 20 City of Yakima 8/26/2015 election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8 As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. In addition, it is understood that any AWARDEE that can be considered to be a religious organization shallabide by all portions of 24 CFR 92.257. Section IX — Conflict of Interest Provisions The AWARDEE warrants and covenants that it presently has no interest and shall not acquire anyinterest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The AWARDEE further warrants and covenants that in the performanceof this contract, no person having such interest shall be employed HOME conflict of interest provisions, as stated in 92.356, apply to the award of any contracts under the agreement and the selection of tenant households to occupy HOME - assisted units. No employee, agent, consultant, elected official, or appointed official of the AWARDEE may obtain a financial interest or unit benefits from a HOME - assisted activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter This prohibition includes the following: • Any interest in any contract, subcontract or agreement with respect to a HOME - assisted project or program administered by the AWARDEE, or the proceeds thereunder; or 9 of 20 City of Yakima 8/26/2015 • Any unit benefits or financial assistance associated with HOME projects or programs administered by the AWARDEE, including: Occupancy of a rental housing unit in a HOME - assisted rental project; Receipt of HOME tenant -based rental assistance; Purchase or occupancy of a homebuyer unit in a HOME - assisted project; Receipt of HOME homebuyer acquisition assistance; or Receipt of HOME owner - occupied rehabilitation assistance. This prohibition does not apply to an employee or agent of the AWARDEE who occupies a HOME assisted unit as the on -site project manager or maintenance worker. In addition, no member of Congress of the United States, official or employee of HUD, or official or employee of the Participating Jurisdiction shall be permitted to receive or share any financial or unit benefits arising from the HOME - assisted project or program. Prior to the implementation of the HOME - assisted activity, exceptions to these provisions may be requested by the AWARDEE in writing to the Participating Jurisdiction. The AWARDEE must demonstrate and certify that the policies and procedures adopted for the activity will ensure fair treatment of all parties, and that the covered persons referenced in this policy will have no inside information or undue influence regarding the award of contracts or benefits of the HOME assistance. The Jurisdiction may grant exceptions or forward the requests to HUD as permitted by24 CFR 92.356, 85.36 and 84.42, as they apply. Section X — City Responsibilities CITY shall furnish the AWARDEE with the following services and information from existing CITY records and CITY files: A. CITY shall provide to the AWARDEE information regarding its requirements for the PROJECT. B. CITY will provide the AWARDEE with any changes in HOME regulations or program limits that affect the project, including but not limited to income limits, property value limits and rent limits. C. CITY will conduct progress inspections of work completed to protect its interests as lender and regulatory authority for the project, and will provide information to the AWARDEE regarding any progress inspections or monitoring to assist it in ensuring compliance. CITY's review and approval of the WORK will relate only to overall compliance with the general requirements of this Agreement and HOME regulations, and all CITY regulations and ordinances. Nothing contained herein shall relieve the AWARDEE of any responsibility as provided under this Agreement. Section XI — Equal Employment Opportunity During the performance of this contract, the AWARDEE agrees as follows A. AWARDEE will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin(s). The AWARDEE will take 10 of 20 City of Yakima 8/26/2015 affirmative action to ensure the applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin(s). Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination, rates of pay or other forms of compensation; and selection for training, including apprenticeship. The AWARDEE agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer of the CITY setting forth the provisions of this nondiscrimination clause. B. AWARDEE will, in all solicitations or advertisements for employees placed by or on behalf of the AWARDEE, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. C. AWARDEE will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the CITY's contracting officer, advising the labor union or worker's representative of the AWARDEE's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. D. AWARDEE will comply with all provisions of Executive Order 11246 of September 24,1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. E. AWARDEE will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the AGENCY and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and order. F. In the event the AWARDEE is found to be in noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the AWARDEE may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the Secretary of Labor or as otherwise provided by law. G. AWARDEE will include the provisions of paragraphs (a) through (g) of this agreement in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor The AWARDEE will take such action with respect to any subcontract or purchase order as the AGENCY may direct as a means of enforcing such provisions, including sanctions for noncompliance, provided, however, that in the event the AWARDEE becomes involved in, or is threatened with litigation with a subcontractor or vendor as a result of such direction by the AGENCY, the AWARDEE may request the United States to enter into such litigation to protect the interest of the United States. Section XII — Labor, Training & Business Opportunity AWARDEE agrees to comply with the federal regulations governing training, employment andbusiness opportunities as follows: 11 of 20 City of Yakima 8/26/2015 A. It is agreed that the WORK to be performed under this agreement is on a project assisted under a program providing direct Federal financial assistance from the US Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.0 1701 u, as well as any and all applicable amendments thereto. Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given low and moderate income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the project area. B. AWARDEE shall comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder as well as any and all applicable amendments thereto prior to the execution of this contract as well as during the term of this contract. The AWARDEE certifies and agrees that it is under no contractual or other disability, which would prevent it from complying with these requirements as well as any and all applicable amendments thereto. C AWARDEE will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the CITY, take appropriate action pursuant to the subcontractor upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, in 24 Code of Federal Regulations. The AWARDEE will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 code of Federal Regulations and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with these requirements as well as with any and all applicable amendments thereto. D. Compliance with the provisions of Section 3, the regulations set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder prior to the execution of the contract shall be a condition precedent to federal financial assistance being provided to the PROJECT as well as a continuing condition, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the AWARDEE or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by 24 Code of Federal Regulations as well as with any and all applicable amendments thereto. Section XIII — Compliance with Federal, State & Local Laws A. GENERAL. The AWARDEE covenants and warrants that it will comply with all applicable laws, ordinances, codes, rules and regulations of the state local and federal governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil Rights Act of 1968 PL.90 -284; Executive Order 11063 on Equal Opportunity and Housing Section 3 of the Housing and Urban Development Act of 968; Housing and Community Development Act of 1974, as well as all requirements set forth in 24 CFR 92 of the HOME INVESTMENT PARTNERSHIP PROGRAM. The AWARDEE covenants and warrants that it will indemnify and hold the City forever free and harmless with respect to any and all damages whether directly or indirectly arising out of the provisions and maintenance of this contract. AWARDEE agrees to comply with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR 12 of 20 City of Yakima 8/26/2015 part 15). AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of this section in every non - exempt subcontract in excess of $100,000. AWARDEE also agrees to take such action as the federal, state or local government may direct to enforce aforesaid provisions. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY EXCLUSION — PRIMARY AND LOWER TIER COVERED TRANSACTIONS (a) AWARDEE, 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 (b) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. (c) 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, (d) 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 (i) 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. (ii) Where the AWARDEE is unable to certify to any of the statements in this Agreement, the AWARDEE shall attach an explanation to this Agreement. (iii) The AWARDEE 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. (iv) The AWARDEE further agrees by signing this Agreement that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - 13 of 20 City of Yakima 8/26/2015 Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions (e) LOWER TIER COVERED TRANSACTIONS (i) Each 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. (ii) 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. 2. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570 601 (Discrimination prohibited). 3. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 4. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010 -.090 (Protection of Archaeological Resources), and RCW 43.51.750 -.820 (Preservation of Historic Properties). 5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq , implementing regulations, and Chapter 70.92 RCW. 6. Accessibility Standard as set forth in 92.251(a)(3). 7. Clean Air Act as amended, 42 USC Section 1857 et seq.; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40 CFR Part 15. 8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 9 Contract Work Hours and Safety Standards Act, 40 USC Sections 327- 333, (Overtime Compensation). 10 Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates). 11. Attachment 0 of the Office of management and Budget Circular, A -102 (Procurement Standards) and Federal Management Circular, FMC 74 -4 12. The Uniform Relocation Assistance and Real Property Acquisition 14 of 20 City of Yakima 8/26/2015 Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570 13. Title VI of the Civil Rights Act of 1964 (P L. 88 -352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate 14. Age Discrimination Act of 1975 (24 CFR 146) 15. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 16. Washington State /Local Building Codes /Housing Quality Standards (24 CFR 882.109). 17 WBE /MBE (24 CFR 85.36 (e)). Section XIV — Suspension & Termination In accordance with 24 CFR 85.43, suspension or termination may occur if the AWARDEE materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85.44. If, through any cause, the AWARDEE shall fail to fulfill in timely and proper manner its obligations under this contract, or if the AWARDEE shall violate any of the covenants, agreements, or stipulations of this contract, the CITY shall thereupon have the right to terminate this contract by giving written notice to the AWARDEE of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. In such event, the AWARDEE shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder to the date of said termination. Notwithstanding the above, the AWARDEE shall not be relieved of liability to the CITY for damages sustained by the CITY by virtue of any breach of the contract by the AWARDEE and the CITY may withhold any payments to the AWARDEE for the purpose of setoff until such time as the exact amount of damages due the CITY from the AWARDEE is determined whether by court of competent jurisdiction or otherwise. Section XV — Termination for Convenience of the CITY The CITY may terminate for its convenience this contract at any time by giving at least thirty (30) days notice in writing to the AWARDEE If the contract is terminated by the CITY, as provided herein, the City will reimburse for any actual and approved expenses incurred, including those costs involved in terminating the contracts and shutting down the work as of the date of notice, and the AWARDEE will be paid as a FEE an amount which bears the same ratio to the total compensation as the services actually performed bear to the total service of the AWARDEE covered by this contract, less payments of compensation previously made. Claims and disputes between the parties 15 of 20 City of Yakima 8/26/2015 will be submitted to the American Arbitration Association for resolution Award or judgment may be entered in any court having jurisdiction thereof. Section XVI — Default -Loss of Grant Funds If the AWARDEE fails in any manner to fully perform and carry out any of the terms, covenants, and conditions of the agreement, and more particularly if the AWARDEE refuses or fails to proceedwith the work with such diligence as will insure its completion within the time fixed by the schedule set forth in Exhibit B of this agreement, the AWARDEE shall be in default and notice in writing shall be given to the AWARDEE of such default by the AGENCY or an agent of the AGENCY. If the AWARDEE fails to cure such default within such time as may be required by such notice, the CITY, acting by and through the AGENCY, may at its option terminate and cancel the contract. In the event of such termination, all grant funds awarded to the AWARDEE pursuant to this agreement shall be immediately revoked and any approvals related to the PROJECT shall immediately be deemed revoked and canceled. In such event, the AWARDEE will no longer be entitled to receive any compensation for work undertaken after the date of the termination of this agreement, as the grant funds will no longer be available for this project. Such termination shall not effect or terminate any of the rights of the CITY as against the AWARDEE then existing, or which may thereafter accrue because of such default, and the foregoing provision shall be in addition to all other rights and remedies available to the CITY under the law and the note and mortgage (if in effect), including but not limited to compelling the AWARDEE to complete the project in accordance with the terms of this agreement, in a court of equity. The waiver of a breach of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant, or condition hereof. Section XVII — Reporting Responsibilities AWARDEE agrees to submit any and all quarterly reports required by HUD or the CITY to the AGENCY on the following due dates: October 1, January 1, April 1, and July 1, next following the date of this agreement. The AGENCY will send the AWARDEE one reminder notice if the quarterly report has not been received fourteen (14) days after the due date. If the AWARDEE has not submitted a report fourteen (14) days after the date on the reminder notice, the CITY will have the option to terminate the contract as described in this agreement. In addition, the AWARDEE agrees to provide the AGENCY information as required to determine program eligibility, in meeting national objectives, and financial records pertinent to the project. Additional reporting requirements are included in Exhibit B. Section XVIII — Inspection, Monitoring & Access to Records CITY reserves the right to inspect, monitors, and observe work and services performed by the AWARDEE at any and all reasonable times. CITY reserves the right to audit the records of the AWARDEE any time during the performance of this Agreement and for a period of five years after final payment is made under this Agreement. If required, the AWARDEE will provide the AGENCY with a certified audit of the AWARDEE's records representing the Fiscal Year during which the PROJECT becomes complete whenever the amount listed in SECTION VII is at or exceeds $300,000, pursuant to the requirements of OMB Circular A -133. Access shall be immediately granted to the CITY, HUD, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the AWARDEE or its contractors which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions. Section XIX — General Conditions A. All notices or other communication which shall or may be given pursuant to this 16 of 20 City of Yakima 8/26/2015 Agreement shall be in writing and shall be delivered by personal service, or by registered mail addressed to the other party at the address indicated herein or as the same may be changed from time to time Such notice shall be deemed given on the day on which personally served; or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. City address. City Manager Yakima City Hall 129 North 2nd Street Yakima, Washington 98901 Awardee address: Habitat for Humanity 21 W. Mead Avenue, Suite 110 Yakima, Washington 98902 B. Title and paragraph headings are for convenient reference and are not a part of this Agreement. C. In the event of conflict between the terms of this Agreement and any terms or conditionscontained in any attached documents, the terms in this Agreement shall rule. D. No waiver or breach of any provision of this Agreement shall constitute a waiver of a subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. E. The parties hereto agree that this Agreement shall be construed and enforced according to thelaws of the State of Washington. F. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the State of Washington or the City of Yakima, such provisions, paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable to conform with such laws, then same shall be deemed severable, and in either event, the remaining terms and provisions of this Agreement shall remain unmodified and in full force and effect. G. AWARDEE shall comply with the provisions of the Copeland Anti - Kick -Back Act(18 U.S.C. 874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), asamended. H AWARDEE shall comply with the provisions of sections 103 and 107 of the Contract Work Hours and Safety Standard Act (40 U.S C. 327 -330) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5), as amended. I. AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of paragraphs (G) through (H) of this section in every nonexempt subcontract. The AWARDEE also agrees to take such action as the federal, state or local government may directto enforce aforesaid provisions. J The obligations undertaken by AWARDEE pursuant to this Agreement shall not be delegated orassigned to any other person or agency unless CITY shall first consent to the performance orassignment of such service or any part thereof by another person or agency. 17 of 20 City of Yakima 8/26/2015 K. This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representative, successors and assigns. L AWARDEE shall indemnify and save CITY harmless from and against any negligent claims, liabilities, losses and causes of action which may arise out of AWARDEE's activities under thisAgreement, including all other acts or omissions to act on the part of AWARDEE, including any person acting for or on its behalf, and, from and against any orders, judgments, or decrees which may be entered, and from and against all costs, attorneys fees, expenses and liabilities incurred in the defense of any such claims, or in the investigation thereof. M AWARDEE and its employees and agents shall be deemed to be independent contractors, and not agents or employees of the CITY, and shall not attain any rights or benefits under the civil service or pension ordinances of the CITY, or any rights generally afforded classified or unclassified employee, further they shall not be deemed entitled to state Compensation benefits as an employee of the CITY N. Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and is subject to amendment or termination due to lack offunds, or authorization, reduction of funds, and /or change in regulations Section XX — Substituted Agreement This Agreement is substituted for, and replaces, the Agreement previously executed by and between the parties as approved and authorized pursuant to CITY's Resolution No. 2014 -100 on August 5, 2014 and executed on August 5, 2014. 18 of 20 City of Yakima 8/26/2015 Exhibit "B" Yakima Valley Partners Habitat for Humanity A.) PROPOSAL SUMMARY /PROJECT ABSTRACT Yakima Valley Partners Habitat for Humanity will demolish the substandard existing structure and construct a single family home located at 402 South 10 Street and sell it to a qualified low income first time homebuyer and monitor the "Affordability Period" for a period of no less than Ten (10) years, after which all net proceeds shall be granted to Habitat. B.) ASSESSMENT OF NEED /PROBLEM STATEMENT Yakima Valley Partners Habitat for Humanity will provide the demolition of the substandard existing structure, the construction of a single family dwelling to be sold to a qualified low to moderate income first time homebuyer and monitor the project for a period of no less than Ten (10) year affordability period in exchange for all net proceeds redeemed from the sale of the home located at 402 South 10 Street. C.) PROGRAM GOAL AND OBJECTIVES Goal Demolish a substandard building and create another affordable single family residence within the City of Yakima Objectives 1. Demolish the existing substandard structure. 2 Construct a new single family dwelling. 3. Sell the new single family home to a qualified low to moderate first time homebuyer. D.) METHODOLOGY From the contract execution date to continue until the termination date at which it will expire at midnight, Yakima Valley Habitat for Humanity will demolish the existing substandard structure, construct a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer to be monitored for a Ten (10) year affordability period per HUD regulations governing HOME Investment funded projects. E.) OUTCOMES & EVALUATION As a condition of reimbursement, Habitat for Humanity will, 1. Demolish the existing substandard structure. 2. Construct a new single family dwelling 3. Affect the sale of the property and dwelling to qualified low to moderate income first time homebuyer 4. Agree to monitor the property at 402 South 10 Street for a period of no less than a Ten (10) year affordability period as per HOME Investment requirements. F.) BUDGET Yakima Valley Habitat for Humanity will be reimbursed up to $20,000 between the contract execution date and terminate on July 7, 2015 at midnight, for eligible activities. 19 of 20 City of Yakima 8/26/2015 EXHIBIT "C" RESOLUTION 20 of 20 City of Yakima 8/26/2015 RESOLUTION NO. R -2014 -100 A RESOLUTION Consideration of a Resolution granting $40,000 of HOME Investment funds to Habitat for Humanity to demolish the existing substandard structures and construct new single family homes at 402 S. 10 Street and 1409 S 16 Ave, to be sold to qualified low to moderate income first time homebuyers WHEREAS, the City of Yakima is a recipient of HOME Investment funds, and WHEREAS, the HUD HOME Investment funding requires a 15% set aside to support qualified Community Housing Development Organizations (CHDO's) WHEREAS, the Yakima Habitat for Humanity as a certified Community Housing Development Organization ( CHDO) has the ability to construct a single family dwelling to be sold to a qualified low to moderate first time homebuyer and monitor this property through the required affordability period, and WHEREAS, the sale proceeds will be kept by Habitat and used as program income to further affordable housing within the City of Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The city council hereby authorizes the Yakima City Manager to execute such documents necessary or appropriate granting $40,000 of HOME Investment funds to Yakima Habitat for Humanity to remove the existing substandard structure and construct new single family homes at 402 S 10 Street and 1409 S 16 Ave, Yakima. for the sale of such property by Yakima Habitat for Humanity to qualified low to moderate income first time home buyers and for monitoring such properties through the required affordability period, all in accordance with applicable requirements and procedures of HUD concerning the HOME Investment regulations, and sign documents as required ADOPTED BY THE CITY COUNCIL this day of August 5, 2014. /s/ Micah Cawley ATTEST Micah Cawley, Mayor /s/ Sonya Claar Tee City Clerk Certified to be a true and correct copy of the original filed in my office. / C CLERIC k "dr :/ .; • el--. Deputy AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1 Contracting Organization.Yakima Valley Partners Habitat for Humanity 2. Address:21 W. Mead Ave. Ste 110, Yakima, WA. 98902 3 Phone: (509) 453 -8077 4 Contact Person.Steve Luten , 5. Title of Service or Program being funded• New Construction of a single family home located at 402 S. 10 Street 6. Amount of Contract Award: $20,000 (HOME) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood Development Services and terminate on July 7, 2015 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A ", attached hereto and incorporated herein by this reference. 8 This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following. 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference 3) City of Yakima Resolution No. R -2014- /00 , A copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9 Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B ", and satisfaction of all contract terms and conditions as stated in Exhibit "A ", Exhibit "B" and Exhibit "C ". This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of agreeme •etween the parties hereto. IN WIT SS THEREOF th= parties h. - executed this Contract as of the day and year stated below I (c.[ Tonl�RourkT(r7. ger Date . _ r-5 Joa/ Davy po , Actin./ DD Dir-ctor Date • tractor Date Title: `� •I �11 Tex_ cam. / ATTEST 0 6 1 . 4 ' �' 1 • ( 4 City Clerk • City Contract No.: 8011- 3 � `� 1 of 17 City of Yakima 7/10/2014 Page 1 EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B ", Scope of Work (hereinafter "the project "). II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS) ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58 B AMOUNT OF GRANT $20,000 of HOME Investment funds for said project. III GENERAL BUDGET PROVISIONS The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation, and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74- 4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. 2 of 17 City of Yakima 7/10/2014 Page 2 C. 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10 %) or more per home, from what has been set forth in the approved budget subject category. The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories. 2. When the revision of the Contractor budget does not exceed ten percent (10 %) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS in accord with Sec II, "Sub -Grant " A. (above)." V BILLING PROCEDURES A. The Contractor shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to substantially reduce the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus budget funds at the end of the project shall be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future Contracts. Assets purchased with CDBG funds shall continue to be used in accordance with its original purpose as provided in 24CFR 570.503 (b)(8). VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 3 of 17 City of Yakima 7/10/2014 Page 3 1. 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: B. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. C. 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; D 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 1 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. 2. Where the Contractor is unable to certify to any of the statements in this Agreement, the Contractor shall attach an explanation to this Agreement. 3 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. 4. 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: E LOWER TIER COVERED TRANSACTIONS i) 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 ii) 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. 4 of 17 City of Yakima 7/10/2014 Page 4 5. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570 601 (Discrimination prohibited). 6. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 7. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44 010 (Native American Burial Law), RCW 27.53 010 -.090 (Protection of Archaeological Resources), and RCW 43 51 750 -.820 (Preservation of Historic Properties). 8. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq , implementing regulations, and Chapter 70.92 RCW. 9. Accessibility Standard as set forth in 92.251(a)(3). 10. Clean Air Act as amended, 42 USC Section 1857 et weq, Water Pollution Control Act, as amended, 33 USC Section 1251 et seq , and Environmental Protection Agency regulations, 40 CFR Part 15. 11 Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 12 Contract Work Hours and Safety Standards Act, 40 USC Sections 327- 333, (Overtime Compensation) 13. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 —12 (Prevailing Wage Rates) 14. Attachment 0 of the Office of management and Budget Circular, A -102 (Procurement Standards) and Federal Management Circular, FMC 74- 4. 15. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 16 Title VI of the Civil Rights Act of 1964 (P.L 88 -352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate 5 of 17 City of Yakima 7/10/2014 Page 5 ' 17. Age Discrimination Act of 1975 (24 CFR 146) 18 Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 19 Washington State /Local Building Codes /Housing Quality Standards (24 CFR 882.109). 20. WBE /MBE (24 CFR 85.36 (e)). 1. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contractor to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. B SEPA The Contractor retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder C. COMPLIANCE AS PRE - CONDITION Performance by either the City of Yakima ONDS or the Contractor under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON - DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. During the performance of this Agreement, Contractor shall not discriminate in violation of any applicable federal, state and /or local law or regulation on the basis of race, color, sex, religion, national origin, creed, age, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement. The Contractor specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570 601 6 of 17 City of Yakima 7/10/2014 Page 6 X NON - DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to make all services available through this contract (24 CFR 92 352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age. 1. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and /or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each Contractor or Subcontractor. The Contractor shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance XI LICENSING AND PROGRAM STANDARDS The Contractor agrees to comply with all applicable Federal, State, City and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the CDBG and /or HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B. At any reasonable time and as often as City may deem necessary, Contractor shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and /or copies of same. Contractor records shall include, but shall not be limited to, the following payroll, personnel and employment records; procurement bidding documents; contracts; sales closing statements; and invoices. 7 of 17 City of Yakima 7/10/2014 Page 7 C The City shall have the right to review and audit all records of the Contractor pertaining to any payment by the City. Said records shall be maintained for a period of seven years after the completion of the project. D. The Contractor shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his /her attorney or his /her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND /OR SUBCONTRACTING The Contractor shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City. All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments ", hereinafter referred to as "BARS ", as issued by the Office of State Auditor, State of Washington. The Contractor further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contractor shall retain all books, records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S. Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program. C. The Contractor agrees to have an audit performed when spending $500,000 or more in federal awards during a fiscal year A copy of such audit will be presented upon request to ONDS for monitoring purposes 8 of 17 City of Yakima 7/10/2014 Page 8 XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and /or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A -102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements - 1 Property records shall be maintained accurately and provide for A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property 2 A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6 Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7 Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8 As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9 of 17 City of Yakima 7/10/2014 Page 9 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor /city relationship shall be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor shall be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, Subcontractors, or otherwise during the performance of this Contract. XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due XIX QUARTERLY REPORT The Contractor agrees to submit written quarterly reports outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima ONDS XX INSURANCE A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and /or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. 10 of 17 City of Yakima 7/10/2014 Page 10 C COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000 00) combined single limit bodily injury and property damage Automobile liability will apply to Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents, and employees as additional insured /s, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company or= companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. D WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractor's workers' compensation coverage will be furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services that are rendered or performed under this Contract shall be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, including reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. 11 of 17 City of Yakima 7/10/2014 Page 11 A. TERMINATION FOR CAUSE If the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract are of such scope and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non - beneficial to the public interest; 2. The Contractor has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same, 3. The Contractor has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then The City of Yakima ONDS may terminate this Contract in whole or in part, and thereupon shall notify the Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. After this effective date, no charges incurred under any terminated portions are allowable. B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, notwithstanding any other termination provision of this Contract. If the level of funding so reduced or limited is so great that the City of Yakima ONDS deems that the continuation of the program covered by this Contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this Contract in whole notwithstanding any other termination provisions of this Contract. Termination under this Section shall be effective upon receipt of written notice by the Contractor or its representative The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials. The Contractor agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This Contract may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand. 12 of 17 City of Yakima 7/10/2014 Page 12 D. CLOSEOUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply 1. Upon written request by the Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2. The Contractor shall submit within fifteen (15) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee 3. In the event a financial audit has not been performed prior to closeout of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. XXIII COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. C The Contractor warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The Contractor further warrants and covenants that in the performance of this contract, no person having such interest shall be employed 13 of 17 City of Yakima 7/10/2014 Page 13 XXV RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The Contractor hereby grants to the City of Yakima, a royalty -free, non - exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this Contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause. The Contractor shall report to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVI RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD CDBG Regulations. 2 General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work /project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4 City of Yakima Resolution No. R -2014- (Exhibit C), and 5 Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVII GOVERNING LAW This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance XXVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. 14 of 17 City of Yakima 7/10/2014 Page 14 XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1 The Contractor materially changes the primary purpose and scope of the Project as described on Exhibit "B" to the 2 Contract. The Contractor is unable to continue and /or provide services as described in Exhibit "B ". 15 of 17 City of Yakima 7/10/2014 Page 15 Exhibit "B" Yakima Valley Partners Habitat for Humanity A.) PROPOSAL SUMMARY /PROJECT ABSTRACT Yakima Valley Partners Habitat for Humanity will demolish the substandard existing structure and construct a single family home located at 402 S 10 Street and sell it to a qualified low income first time homebuyer and monitor the "Affordability Period" for a period of no less than Ten (10) years, after which all net proceeds shall be granted to Habitat. B.) ASSESSMENT OF NEED /PROBLEM STATEMENT Habitat for Humanity will provide the demolition of the substandard existing structure, the construction of a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer and monitor the project for a Ten (10) year affordability period in exchange for all net proceeds redeemed from the sale of the home located at 402 S 10th Street. C.) PROGRAM GOAL AND OBJECTIVES Goal Demolish a substandard building and create another affordable single family residence within in the City of Yakima. Objectives 1. Demolish the existing substandard structure. 2. Construct a new single family dwelling. 3. Sell the new single family home to a qualified low to moderate first time homebuyer. D.) METHODOLOGY From the contract execution date to continue until the termination date at which it will expire at midnight, Yakima Valley Habitat for Humanity will demolish the existing substandard structure, construct a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer to be monitored for a ten (10) year affordability period per HUD regulations governing HOME Investment funded projects. E.) OUTCOMES & EVALUATION As a condition of reimbursement, Habitat for Humanity will, 1. Demolish the existing substandard structure 2. Construct a new single family dwelling 3. Affect the sale of the property and dwelling to a qualified low to moderate income first time homebuyer. 4. Agree to monitor the property at 402 S 10th Street for a period of no less than a ten (10) year affordability period as per HOME Investment requirements. F.) BUDGET Yakima Valley Habitat for Humanity will be reimbursed up to $20,000 between 16 of 17 City of Yakima 7/10/2014 Page 16 the contract execution date and terminate on July 7, 2015 at midnight, for eligible activities. 17 of 17 City of Yakima 7/10/2014 Page 17 (THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION ") 18 of 17 City of Yakima 7/10/2014 Page 18 Exhibit "D" SERVICES PROVIDED A.) As a condition of reimbursement, Habitat for Humanity will, Demolish the existing substandard Structure B.) Construct a new single family dwelling located at 402 S 10th Street. C.) Affect the sale of the property and dwelling to a qualified low to moderate income first time homebuyer as per HUD regulations governing HOME Investment funds. B.) Monitor the property at 402 S 10th Street for a period of no less than a ten (10) year affordability period as per HOME Investment requirements. 19 of 17 City of Yakima 7/10/2014 Page 19 1909 50Lotik 1V'''' Au•e. SUBSTITUTED AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES AND AWARDEE — HABITAT FOR HUMANITY (1409 South 16 Avenue) 1. AWARDEE: Yakima Valley Partners Habitat for Humanity 2. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902 3. Phone: (509) 453 -8077 4. Contact Person: Steve Luten , 5. Title of Service or Program being funded: New Construction of single family home located at 1409 South 16 Avenue. 6. 7. Amount of Contract Award. $20,000 (HOME) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood Development Services and terminate on July 7, 2015 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A ", attached hereto and incorporated herein by this reference. 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: (a) "Terms and Conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and (b) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference. (c) City of Yakima Resolution No. R- 2014 -100, a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B ", and satisfaction of all contract terms and conditions as stated in Exhibit "A ", Exhibit "B" and Exhibit "C ". This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of agreement between the parties hereto. IN WITNESS THE OF the parties have executed this Contract as of the day and year stated below CI OF YAKIM AWA EE: Habitat r Humanity Vii' Ro IZi. City Manager AreCIT0 Title: c, fru , c. � 17 g Date: / /C ?/ 5 1200/ Date: ,/31 S` 1 of 20 City of Yakima 8/26/2015 11111 401 — ri / / Joan I:'enport, CDD Dire:tor Dat:. AT ST Lrtg 11 , /I /l ( i � Son CI Cl. Tee, City Clerk 1,` pi A r• City Contract No.: 2014 -154 2 of 20 City of Yakima 8/26/2015 EXHIBIT "A" TERMS AND CONDITIONS WITNESSETH WHEREAS, the CITY is the recipient of HOME Investment Partnerships Program Funds from the U.S. Department of Housing and Urban Development (HUD), including funds that are reserved forthe use of Community Housing Development Organizations (CHDOs); and WHEREAS, the AWARDEE has been certified with the CITY as a CHDO, and has submitted a proposal for use of CHDO funds for a CHDO - eligible project under HOME regulations; NOW, THEREFORE in consideration of the mutual covenants and obligations herein contained, including the Attachments, and subject to the terms and conditions hereinafter stated, the parties hereto understand and agree as follows: Section I — Definitions A. AGENCY — is hereby defined as the Office of Neighborhood Development Services, the HOMEProgram administering agency of the City of Yakima. For the purpose of this Agreement and all administration of HOME funds, the AGENCY shall act on behalf of the CITY in the execution and fiscal and programmatic control of this agreement. The term "Approval by the CITY" or like term used in this Agreement shall in no way relieve the AWARDEE from any duties or responsibilities under the terms of this Agreement, or obligation State or local law or regulation. B. FEE — is hereby defined as the amount of money the CITY agrees to pay and the AWARDEE agrees to accept as payment in full for all the professional, technical and construction services rendered pursuant to this Agreement to complete the WORK as further defined in Section III -SCOPE OF WORK, hereof. C. WORK — is hereby defined as all the professional, technical and construction services to berendered or provided by the AWARDEE as described here. D. PROJECT — is defined in Section IV below. E. HOME — is hereby defined as the HOME Investment Partnerships Program as described in 24 CFR Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 - 12839. Section II — Term The AWARDEE expressly agrees to complete all work required by this agreement in accordancewith the timetable set forth. Milestone Deadline Project Start Date.Date of signature. Interim Milestones /Deadlines (list below): Project Completion Date: July 7, 2015 In addition, this project is subject to ongoing compliance requirements of HOME for Ten (10) years from the date of initial occupancy. During this compliance period, the AWARDEE will assure continuedcompliance with HOME requirements For homebuyer units this includes monitoring units for principal residency and recapture of funds at 3 of 20 City of Yakima 8/26/2015 time of resale. For rental units, this includes ongoing property standards, occupancy and rent limits compliance. Timely completion of the work specified in this agreement is an integral and essential part of performance The expenditure of HOME funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this agreement, it is understood and agreed by the AWARDEE that the PROJECT will be completed as expeditiously as possible and that the AWARDEE will make every effort to ensure that the project will proceed and will not be delayed. Failure to meet these deadlines can result in cancellation of this contract and the revocation of HOME funds. Since it is mutually agreed that time is of the essence as regards this agreement, the AWARDEE shall cause appropriate provisions to be inserted in all contracts or subcontracts relative to the work tasks required by this agreement, in order to ensure that the PROJECT will be completed according to the timetable set forth. It is intended that such provisions inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit of the CITY and enforceable by the CITY against the AWARDEE and its successors and assigns to the project or any part thereof or any interest therein. In the event the AWARDEE is unable to meet the above schedule or complete the above services because of delays resulting from Acts of God, untimely review and approval by the CITY and other governmental authorities having jurisdiction over the PROJECT, or other delays that are not caused by the AWARDEE, the CITY shall grant a reasonable extension of time for completion of the WORK. It shall be the responsibility of the AWARDEE to notify the CITY promptly in writing whenever a delay is anticipated or experienced, and to inform the CITY of all facts and details related to the delay. Section III — Scope of Work The AWARDEE, in close coordination with the CITY, shall perform all professional services (the "WORK ") necessary to complete the development and occupancy of the following project in fullcompliance w. Exhibit "B "project description, including HOME - assisted units description & compliance term) It is understood that the AWARDEE will provide a specific working budget and realistic timetable as relates to: acquisition, construction /rehabilitation, soft costs, development fees and other allowable costs /activities prior to any fund usage. Said budget shall identify all sources and uses of funds, and allocate HOME and non -HOME funds to activities or line items. The aforementioned Work tasks will be performed in essentially the manner proposed in the AWARDEE's proposal as received by the AGENCY on May 8, 2014. The aforementioned document will be considered to be a part and portion of this agreement for reference. Section IV — Reimbursement of Expenses & Developer Fees A. GENERAL Project expenses (excluding developer fee) shall be paid based on vouchers for actual expenses incurred or paid. Requests for payment must be submitted by the AWARDEE on forms specified by the CITY, with adequate and proper documentation of eligible costs incurred in compliance with 92 206 and necessary for HUD IDIS disbursement requirements. All such expenses shall be in conformance to the approved project budget. Budget revision and approval shall be required prior to payment of any expenses not conforming to the approved project budget. 4 of 20 City of Yakima 8/26/2015 The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: B. PAYMENT AND DISBURSEMENTS: Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74 -4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. The Contractor shall submit monthly written claims for reimbursement of services performed under this Agreement. C. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. D 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10 %) or more per home, from what has been set forth in the approved budget subject category. The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories. 2. When the revision of the Contractor budget does not exceed ten percent (10 %) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. E. CITY reserves the right to inspect records and project sites to determine that reimbursement and compensation requests are reasonable. The CITY also reserves the right to hold payment until adequate documentation has been provided and reviewed. F. AWARDEE may submit a final invoice upon completion Final payment shall be made afterthe CITY has determined that all services have been rendered, files 5 of 20 City of Yakima 8/26/2015 and documentation delivered, and units have been placed in service in full compliance with HOME regulations, including submission of a completion report and documentation of eligible occupancy, property standards and long -term use restrictions. G. CITY shall have the right to review and audit all records of the AWARDEE pertaining to any payment by the CITY. Said records shall be maintained for a period of five years aftercompletion. Section V — Project Requirements The AWARDEE agrees to comply with all requirements of the HOME Program as stated in 24 CFRPart 92, including but not limited to the following. A. No HOME project funds will be advanced, and no costs can be incurred, until the City has conducted an environmental review of the proposed project site as required under 24 CFR Part 58. The environmental review may result in a decision to proceed with, modify or cancel theproject. Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of environmental review and receipt by the CITY of a release of funds from the U.S. Department of Housing and Urban Development [or the State of Washington] under 24 CFR Part §58. Further, the AWARDEE will not undertake or commit any funds to physical or choice - limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance, and must indicate that the violation of this provision may result in the denial of any funds under the agreement. B Any HOME funds advanced to the PROJECT will be secured by a note and mortgage, and inthe case of a rental project, a deed covenant as required by 24 CFR Part 92. C. The AWARDEE will ensure that any expenditure of HOME funds will be in compliance with the requirements at 92.206, and acknowledges that HOME funds will only be provided as reimbursement for eligible costs incurred, including actual expenditures or invoices for work completed. D. If the project is to be owner - occupied, the AWARDEE will ensure that all HOME assisted unitswill be in compliance with 24 CFR 92.254, including documenting that the property is eligible under 92.254(a)(1) — (2), and will maintain compliance during the minimum compliance period. (If the property also contains a rental unit assisted with HOME funds, the AWARDEE will ensure that occupancy complies with the requirements of 92.254(a)(6).) If the project is to be a rental, the AWARDEE will ensure that that project is eligible under 92.214, and that it will meet the applicable standards of 24 CFR 92.252 253 at occupancy and for the minimum compliance period. E The designated HOME - assisted units of this PROJECT will meet the affordability requirements as found in 24 CFR 92 252 (rental) or 92.254 (owner- occupied) as applicable. The AWARDEE shall collect and maintain Project beneficiary information pertaining to household size, income levels, racial characteristics, and the presence of Female Headed Households in order to determine low and moderate - income benefit in a cumulative and individual manner. Income documentation shall be in a form consistent with HOME requirements as stated in the HUD Technical Guide for 6 of 20 City of Yakima 8/26/2015 Determining Income and Allowances Under the HOMEProgram F. In the selection of occupants for PROJECT units, the AWARDEE shall comply with all nondiscrimination requirements of 24 CFR 92 350. If the project consists of 5 or more units, the AWARDEE will implement affirmative marketing procedures as required by 24 CFR 92.351. Such procedures are subject to approval of the AGENCY. G If the PROJECT is occupied at the time of this commitment, the AWARDEE will comply with the relocation requirements of 24 CFR 92.353 H. AWARDEE shall assure compliance with 24 CFR 92.251 as relates to Property Standards and Housing Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a)(3) as applicable, and Lead Based Paint Requirements as found in 24 CFR 92.355 and 24 CFR Part 35. I. If the PROJECT is to be owner - occupied, the AWARDEE shall assure that any NOTES and MORTGAGES recorded for homebuyers shall be in compliance with 24 CFR 92.254 and that the AWARDEE will monitor each unit for principal residency (under 92.254(a)(3)) and resale /recapture (under 92.254 (a)(4) — (5)). J. AWARDEE will provide any documentation required by the AGENCY regarding match as may be required to document match for purposes of the HOME program. K. If any project under this agreement involves the construction or rehabilitation of 12 or more HOME - assisted units, the AWARDEE shall comply with the provisions of the Davis -Bacon Act (40 U.S C. 276 a to a - 7) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5),as amended. L. If the property is sold through a lease- purchase agreement, the AWARDEE will ensure compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B. M. AWARDEE will be monitored by the AGENCY for compliance with the regulations of 24 CFR 92 for the compliance period specified above. The AWARDEE will provide reports and access to project files as requested by the AGENCY during the PROJECT and for Five (5) yearsafter completion and closeout of the AGREEMENT. Section VI — Repayment of Loan A. All HOME funds are subject to repayment in the event the PROJECT does not meet the ProjectRequirements as outlined above B. It is understood that upon the completion of the PROJECT, any HOME funds reserved but notexpended under this agreement will revert to the CITY. C. If the PROJECT is for owner - occupancy, the AWARDEE shall lend the HOME funds to the individual buyers in an amount sufficient to make the purchase affordable. Any HOME funds that reduce the price of the property below the fair market value of the property shall be secured by a HOME note and mortgage as required in 92.254(a)(5)(ii), using the note and mortgage prescribed or approved by the AGENCY (and consistent with the method of recapture identified in the CITY's "Consolidated Plan "). All net sales proceeds from the sale of units are considered to be CDHO proceeds that may be retained by the AWARDEE and used in conformance with 24 CFR 92.300(a)(2), to be retained by the CDHO and used to further affordable housing for qualified first time home buyers within the City of Yakima. 7 of 20 City of Yakima 8/26/2015 Section VII — CHDO Provisions It is understood that the AWARDEE has certified that it is and will maintain CHDO (Community Housing Development Organization) status for the term of the PROJECT /AGREEMENT in accordance with 24 CFR 92. The AWARDEE agrees to provide information as may be requested by the AGENCY to document its continued compliance, including but not limited to an annual board roster and certification of continued compliance. Any funds advanced as CHDO pre - development funds must be in compliance with 92 301, and are forgivable only under the terms in 92.301. Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in compliance with 24 CFR 92 208. Any funds that the CHDO is permitted to retain as CHDO proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2) or as specified in this Agreement. If the project is rental, the AWARDEE will create and follow a tenant participation plan as required in 24 CFR 92.303. Section VIII — Procurement Standards The AWARDEE shall establish procurement procedures to ensure that materials and services are obtained in a cost - effective manner. When procuring for services to be provided under this agreement, the AWARDEE shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84.40 - .48. In addition, the following requirements are imposed on any procurement under this PROJECT - Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and /or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A -102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1 Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An 8 of 20 City of Yakima 8/26/2015 election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. In addition, it is understood that any AWARDEE that can be considered to be a religious organization shallabide by all portions of 24 CFR 92 257. Section IX — Conflict of Interest Provisions The AWARDEE warrants and covenants that it presently has no interest and shall not acquire anyinterest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The AWARDEE further warrants and covenants that in the performanceof this contract, no person having such interest shall be employed. HOME conflict of interest provisions, as stated in 92.356, apply to the award of any contracts under the agreement and the selection of tenant households to occupy HOME - assisted units No employee, agent, consultant, elected official, or appointed official of the AWARDEE may obtain a financial interest or unit benefits from a HOME - assisted activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. This prohibition includes the following: • Any interest in any contract, subcontract or agreement with respect to a HOME - assisted project or program administered by the AWARDEE, or the proceeds thereunder; or 9 of 20 City of Yakima 8/26/2015 • Any unit benefits or financial assistance associated with HOME projects or programs administered by the AWARDEE, including Occupancy of a rental housing unit in a HOME - assisted rental project; Receipt of HOME tenant -based rental assistance; Purchase or occupancy of a homebuyer unit in a HOME - assisted project; Receipt of HOME homebuyer acquisition assistance, or Receipt of HOME owner - occupied rehabilitation assistance This prohibition does not apply to an employee or agent of the AWARDEE who occupies a HOME assisted unit as the on -site project manager or maintenance worker. In addition, no member of Congress of the United States, official or employee of HUD, or official or employee of the Participating Jurisdiction shall be permitted to receive or share any financial or unit benefits arising from the HOME - assisted project or program. Prior to the implementation of the HOME - assisted activity, exceptions to these provisions may be requested by the AWARDEE in writing to the Participating Jurisdiction. The AWARDEE must demonstrate and certify that the policies and procedures adopted for the activity will ensure fair treatment of all parties, and that the covered persons referenced in this policy will have no inside information or undue influence regarding the award of contracts or benefits of the HOME assistance. The Jurisdiction may grant exceptions or forward the requests to HUD as permitted by24 CFR 92.356, 85.36 and 84.42, as they apply. Section X — City Responsibilities CITY shall furnish the AWARDEE with the following services and information from existing CITY records and CITY files: A. CITY shall provide to the AWARDEE information regarding its requirements for the PROJECT. B. CITY will provide the AWARDEE with any changes in HOME regulations or program limits that affect the project, including but not limited to income limits, property value limits and rent limits. C. CITY will conduct progress inspections of work completed to protect its interests as lender and regulatory authority for the project, and will provide information to the AWARDEE regarding any progress inspections or monitoring to assist it in ensuring compliance. CITY's review and approval of the WORK will relate only to overall compliance with the general requirements of this Agreement and HOME regulations, and all CITY regulations and ordinances. Nothing contained herein shall relieve the AWARDEE of any responsibility as provided under this Agreement. Section XI — Equal Employment Opportunity During the performance of this contract, the AWARDEE agrees as follows: A. AWARDEE will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin(s). The AWARDEE will take 10 of 20 City of Yakima 8/26/2015 affirmative action to ensure the applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin(s). Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The AWARDEE agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer of the CITY setting forth the provisions of this nondiscrimination clause. B. AWARDEE will, in all solicitations or advertisements for employees placed by or on behalf of the AWARDEE, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. C. AWARDEE will send to each labor union or representative of workers with which he has acollective bargaining agreement or other contract or understanding, a notice to be provided by the CITY's contracting officer, advising the labor union or worker's representative of the AWARDEE's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. D. AWARDEE will comply with all provisions of Executive Order 11246 of September 24,1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. E. AWARDEE will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the AGENCY and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and order. F. In the event the AWARDEE is found to be in noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the AWARDEE may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the Secretary of Labor or as otherwise provided by law. G. AWARDEE will include the provisions of paragraphs (a) through (g) of this agreement in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The AWARDEE will take such action with respect to any subcontract or purchase order as the AGENCY may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the AWARDEE becomes involved in, or is threatened with litigation with a subcontractor or vendor as a result of such direction by the AGENCY, the AWARDEE may request the United States to enter into such litigation to protect the interest of the United States. Section XII — Labor, Training & Business Opportunity AWARDEE agrees to comply with the federal regulations governing training, employment andbusiness opportunities as follows: 11 of 20 City of Yakima 8/26/2015 A. It is agreed that the WORK to be performed under this agreement is on a project assisted under a program providing direct Federal financial assistance from the US Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, as well as any and all applicable amendments thereto. Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given low and moderate income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the project area B AWARDEE shall comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder as well as any and all applicable amendments thereto prior to the execution of this contract as well as during the term of this contract. The AWARDEE certifies and agrees that it is under no contractual or other disability, which would prevent it from complying with these requirements as well as any and all applicable amendments thereto. C. AWARDEE will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the CITY, take appropriate action pursuant to the subcontractor upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, in 24 Code of Federal Regulations. The AWARDEE will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 code of Federal Regulations and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with these requirements as well as with any and all applicable amendments thereto. D. Compliance with the provisions of Section 3, the regulations set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder prior to the execution of the contract shall be a condition precedent to federal financial assistance being provided to the PROJECT as well as a continuing condition, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the AWARDEE or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by 24 Code of Federal Regulations as well as with any and all applicable amendments thereto. Section XIII — Compliance with Federal, State & Local Laws A. GENERAL. The AWARDEE covenants and warrants that it will comply with all applicable laws, ordinances, codes, rules and regulations of the state local and federal governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil Rights Act of 1968 PL.90 -284; Executive Order 11063 on Equal Opportunity and Housing Section 3 of the Housing and Urban Development Act of 968; Housing and Community Development Act of 1974, as well as all requirements set forth in 24 CFR 92 of the HOME INVESTMENT PARTNERSHIP PROGRAM. The AWARDEE covenants and warrants that it will indemnify and hold the City forever free and harmless with respect to any and all damages whether directly or indirectly arising out of the provisions and maintenance of this contract. AWARDEE agrees to comply with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR 12 of 20 City of Yakima 8/26/2015 part 15) AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of this section in every non - exempt subcontract in excess of $100,000. AWARDEE also agrees to take such action as the federal, state or local government may direct to enforce aforesaid provisions. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS. The following federal provisions may apply, among others, to this Contract: 1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY EXCLUSION — PRIMARY AND LOWER TIER COVERED TRANSACTIONS (a) AWARDEE, 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: (b) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. (c) 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; (d) 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 (i) 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. (ii) Where the AWARDEE is unable to certify to any of the statements in this Agreement, the AWARDEE shall attach an explanation to this Agreement. (iii) The AWARDEE 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. (iv) The AWARDEE further agrees by signing this Agreement that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - 13 of 20 City of Yakima 8/26/2015 Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: (e) LOWER TIER COVERED TRANSACTIONS (i) Each 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 (ii) 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. 2. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited). 3. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq , and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 4. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010 -.090 (Protection of Archaeological Resources), and RCW 43.51.750 -.820 (Preservation of Historic Properties). 5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq , implementing regulations, and Chapter 70.92 RCW. 6. Accessibility Standard as set forth in 92.251(a)(3). 7. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40 CFR Part 15. 8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons) 9. Contract Work Hours and Safety Standards Act, 40 USC Sections 327- 333, (Overtime Compensation). 10 Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates). 11. Attachment 0 of the Office of management and Budget Circular, A -102 (Procurement Standards) and Federal Management Circular, FMC 74 -4. 12. The Uniform Relocation Assistance and Real Property Acquisition 14 of 20 City of Yakima 8/26/2015 Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 13. Title VI of the Civil Rights Act of 1964 (P.L. 88 -352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 14. Age Discrimination Act of 1975 (24 CFR 146). 15. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 16. Washington State /Local Building Codes /Housing Quality Standards (24 CFR 882.109). 17. WBE /MBE (24 CFR 85.36 (e)). Section XIV — Suspension & Termination In accordance with 24 CFR 85.43, suspension or termination may occur if the AWARDEE materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85.44. If, through any cause, the AWARDEE shall fail to fulfill in timely and proper manner its obligations under this contract, or if the AWARDEE shall violate any of the covenants, agreements, or stipulations of this contract, the CITY shall thereupon have the right to terminate this contract by giving written notice to the AWARDEE of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. In such event, the AWARDEE shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder to the date of said termination. Notwithstanding the above, the AWARDEE shall not be relieved of liability to the CITY for damages sustained by the CITY by virtue of any breach of the contract by the AWARDEE and the CITY may withhold any payments to the AWARDEE for the purpose of setoff until such time as the exact amount of damages due the CITY from the AWARDEE is determined whether by court of competent jurisdiction or otherwise. Section XV — Termination for Convenience of the CITY The CITY may terminate for its convenience this contract at any time by giving at least thirty (30) days notice in writing to the AWARDEE If the contract is terminated by the CITY, as provided herein, the City will reimburse for any actual and approved expenses incurred, including those costs involved in terminating the contracts and shutting down the work as of the date of notice, and the AWARDEE will be paid as a FEE an amount which bears the same ratio to the total compensation as the services actually performed bear to the total service of the AWARDEE covered by this contract, less payments of compensation previously made. Claims and disputes between the parties 15 of 20 City of Yakima 8/26/2015 will be submitted to the American Arbitration Association for resolution. Award or judgment may be entered in any court having jurisdiction thereof. Section XVI — Default -Loss of Grant Funds If the AWARDEE fails in any manner to fully perform and carry out any of the terms, covenants, and conditions of the agreement, and more particularly if the AWARDEE refuses or fails to proceedwith the work with such diligence as will insure its completion within the time fixed by the schedule set forth in Exhibit B of this agreement, the AWARDEE shall be in default and notice in writing shall be given to the AWARDEE of such default by the AGENCY or an agent of the AGENCY. If the AWARDEE fails to cure such default within such time as may be required by such notice, the CITY, acting by and through the AGENCY, may at its option terminate and cancel the contract. In the event of such termination, all grant funds awarded to the AWARDEE pursuant to this agreement shall be immediately revoked and any approvals related to the PROJECT shall immediately be deemed revoked and canceled. In such event, the AWARDEE will no longer be entitled to receive any compensation for work undertaken after the date of the termination of this agreement, as the grant funds will no longer be available for this project. Such termination shall not effect or terminate any of the rights of the CITY as against the AWARDEE then existing, or which may thereafter accrue because of such default, and the foregoing provision shall be in addition to all other rights and remedies available to the CITY under the law and the note and mortgage (if in effect), including but not limited to compelling the AWARDEE to complete the project in accordance with the terms of this agreement, in a court of equity. The waiver of a breach of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant, or condition hereof. Section XVII — Reporting Responsibilities AWARDEE agrees to submit any and all quarterly reports required by HUD or the CITY to the AGENCY on the following due dates October 1, January 1, April 1, and July 1, next following thedate of this agreement. The AGENCY will send the AWARDEE one reminder notice if the quarterly report has not been received fourteen (14) days after the due date If the AWARDEE has not submitted a report fourteen (14) days after the date on the reminder notice, the CITY will have the option to terminate the contract as described in this agreement. In addition, the AWARDEE agrees to provide the AGENCY information as required to determine program eligibility, in meeting national objectives, and financial records pertinent to the project. Additional reporting requirements are included in Exhibit B Section XVIII — Inspection, Monitoring & Access to Records CITY reserves the right to inspect, monitors, and observe work and services performed by theAWARDEE at any and all reasonable times. CITY reserves the right to audit the records of the AWARDEE any time during the performance of this Agreement and for a period of five years after final payment is made under this Agreement. If required, the AWARDEE will provide the AGENCY with a certified audit of the AWARDEE's records representing the Fiscal Year during which the PROJECT becomes complete whenever the amount listed in SECTION VII is at or exceeds $300,000, pursuant to the requirements of OMB Circular A -133 Access shall be immediately granted to the CITY, HUD, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the AWARDEE or its contractors which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions. Section XIX — General Conditions A. All notices or other communication which shall or may be given pursuant to this 16 of 20 City of Yakima 8/26/2015 Agreement shall be in writing and shall be delivered by personal service, or by registered mail addressed to the other party at the address indicated herein or as the same may be changed from time to time. Such notice shall be deemed given on the day on which personally served; or, if by mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier. City address: City Manager Yakima City Hall 129 North 2nd Street Yakima, Washington 98901 Awardee address: Habitat for Humanity 21 W. Mead Avenue, Suite 110 Yakima, Washington 98902 B. Title and paragraph headings are for convenient reference and are not a part of this Agreement. C. In the event of conflict between the terms of this Agreement and any terms or conditionscontained in any attached documents, the terms in this Agreement shall rule. D. No waiver or breach of any provision of this Agreement shall constitute a waiver of a subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing. E. The parties hereto agree that this Agreement shall be construed and enforced according to thelaws of the State of Washington. F. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the State of Washington or the City of Yakima, such provisions, paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable to conform with such laws, then same shall be deemed severable, and in either event, the remaining terms and provisions of this Agreement shall remain unmodified and in full force and effect. G. AWARDEE shall comply with the provisions of the Copeland Anti - Kick -Back Act(18 U.S.C. 874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), asamended. H. AWARDEE shall comply with the provisions of sections 103 and 107 of the Contract Work Hours and Safety Standard Act (40 U.S.C. 327 -330) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5), as amended I. AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of paragraphs (G) through (H) of this section in every nonexempt subcontract. The AWARDEE also agrees to take such action as the federal, state or local government may directto enforce aforesaid provisions. J. The obligations undertaken by AWARDEE pursuant to this Agreement shall not be delegated orassigned to any other person or agency unless CITY shall first consent to the performance orassignment of such service or any part thereof by another person or agency. 17 of 20 City of Yakima 8/26/2015 K. This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representative, successors and assigns. L. AWARDEE shall indemnify and save CITY harmless from and against any negligent claims, liabilities, losses and causes of action which may arise out of AWARDEE's activities under thisAgreement, including all other acts or omissions to act on the part of AWARDEE, including anyperson acting for or on its behalf, and, from and against any orders, judgments, or decrees which may be entered, and from and against all costs, attorneys fees, expenses and liabilities incurred in the defense of any such claims, or in the investigation thereof. M AWARDEE and its employees and agents shall be deemed to be independent contractors, and not agents or employees of the CITY, and shall not attain any rights or benefits under the civil service or pension ordinances of the CITY, or any rights generally afforded classified or unclassified employee; further they shall not be deemed entitled to state Compensation benefits as an employee of the CITY. N. Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and is subject to amendment or termination due to lack offunds, or authorization, reduction of funds, and /or change in regulations. Section XX — Substituted Agreement This Agreement is substituted for, and replaces, the Agreement previously executed by and between the parties as approved and authorized pursuant to CITY's Resolution No. 2014 -100 on August 5, 2014 and executed on August 5, 2014. 18 of 20 City of Yakima 8/26/2015 Exhibit "B" Yakima Valley Partners Habitat for Humanity A.) PROPOSAL SUMMARY /PROJECT ABSTRACT Yakima Valley Partners Habitat for Humanity will demolish the substandard existing structure and construct a single family home located at 1409 South 16 Avenue and sell it to a qualified low income first time homebuyer and monitor the "Affordability Period" for a period of no less than Ten (10) years, after which all net proceeds shall be granted to Habitat. B.) ASSESSMENT OF NEED /PROBLEM STATEMENT Yakima Valley Partners Habitat for Humanity will provide the demolition of the substandard existing structure, the construction of a single family dwelling to be sold to a qualified low to moderate income first time homebuyer and monitor the project for a period of no less than Ten (10) year affordability period in exchange for all net proceeds redeemed from the sale of the home located at 1409 South 16 Avenue. C.) PROGRAM GOAL AND OBJECTIVES Goal Demolish a substandard building and create another affordable single family residence within in the City of Yakima. Objectives 1 Demolish the existing substandard structure. 2. Construct a new single family dwelling. 3 Sell the new single family home to a qualified low to moderate first time homebuyer. D.) METHODOLOGY From the contract execution date to continue until the termination date at which it will expire at midnight, Yakima Valley Habitat for Humanity will demolish the existing substandard structure, construct a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer to be monitored for a Ten (10) year affordability period per HUD regulations governing HOME Investment funded projects. E.) OUTCOMES & EVALUATION As a condition of reimbursement, Habitat for Humanity will, 1. Demolish the existing substandard structure. 2. Construct a new single family dwelling 3. Affect the sale of the property and dwelling to qualified low to moderate income first time homebuyer. 4. Agree to monitor the property at 1409 South 16 Avenue for a period of no less than a Ten (10) year affordability period as per HOME Investment requirements. F.) BUDGET Yakima Valley Habitat for Humanity will be reimbursed up to $20,000 between the contract execution date and terminate on July 7, 2015 at midnight, for eligible activities 19 of 20 City of Yakima 8/26/2015 EXHIBIT "C" RESOLUTION 20 of 20 City of Yakima 8/26/2015 RESOLUTION NO. R- 2014 -100 A RESOLUTION Consideration of a Resolution granting $40,000 of HOME Investment funds to Habitat for Humanity to demolish the existing substandard structures and construct new single family homes at 402 S. 10 Street and 1409 S. 16 Ave, to be sold to qualified low to moderate income first time homebuyers WHEREAS, the City of Yakima is a recipient of HOME Investment funds, and WHEREAS, the HUD HOME Investment funding requires a 15% set aside to support qualified Community Housing Development Organizations (CHDO's) WHEREAS, the Yakima Habitat for Humanity as a certified Community Housing Development Organization ( CHDO) has the ability to construct a single family dwelling to be sold to a qualified low to moderate first time homebuyer and monitor this property through the required affordability period, and WHEREAS, the sale proceeds will be kept by Habitat and used as program income to further affordable housing within the City of Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The city council hereby authorizes the Yakima City Manager to execute such documents necessary or appropriate granting $40,000 of HOME Investment funds to Yakima Habitat for Humanity to remove the existing substandard structure and construct new single family homes at 402 S 10 Street and 1409 S. 16 Ave, Yakima, for the sale of such property by Yakima Habitat for Humanity to qualified low to moderate income first time home buyers and for monitoring such properties through the required affordability period, all in accordance with applicable requirements and procedures of HUD concerning the HOME Investment regulations, and sign documents as required ADOPTED BY THE CITY COUNCIL this day of August 5, 2014. /s/ Micah Cawley ATTEST Micah Cawley, Mayor /s/ Sonya Claar Tee City Clerk y Certified to be a true and correct copy of the orienal< filed in my office. ^ � C CLERK , -,Bir5 r { 40 011F % ,--, Deputy AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1 Contracting Organization.Yakima Valley Partners Habitat for Humanity 2. Address.21 W. Mead Ave. Ste 110, Yakima, WA. 98902 3 Phone: (509) 453 -8077 4. Contact Person.Steve Luten , 5. Title of Service or Program being funded: New Construction of a single family home located at 1409 S. le Ave 6. Amount of Contract Award: $20,000 (HOME) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood Development Services and terminate on July 7, 2015 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A ", attached hereto and incorporated herein by this reference. 8 This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference, and 2) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference 3) City of Yakima Resolution No R -2014- ®O . , A copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference 9 Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B ", and satisfaction of all contract terms and conditions as stated in Exhibit "A ", Exhibit "B" and Exhibit "C" This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of a. - - en between the parties hereto IN l NESS THER` OF t - parties have executed this Contract as of the day and year stated bel e tq_ 1 %.1 e, Cit . nager Date 11 11. iL A /4 Jo. Da fnport, ` *cti : DB D Date � - 10 —1V Co' trac or Date "* 4 •4 Title: ATTEST: .44 / / 1 � � / ( - 4 5 y + < r City Clerk � / ; -� • City Contract No.: 19/1./../5 1 of 17 City of Yakima 7/10/2014 Page 1 EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B ", Scope of Work (hereinafter "the project ") II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS). ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58 B AMOUNT OF GRANT $20,000 of HOME Investment funds for said project. III GENERAL BUDGET PROVISIONS The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74- 4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. 2 of 17 City of Yakima 7/10/2014 Page 2 C. 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10 %) or more per home, from what has been set forth in the approved budget subject category The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories. 2. When the revision of the Contractor budget does not exceed ten percent (10 %) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS in accord with Sec.lI, "Sub -Grant " A. (above)." V BILLING PROCEDURES A. The Contractor shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to substantially reduce the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus budget funds at the end of the project shall be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future Contracts Assets purchased with CDBG funds shall continue to be used in accordance with its original purpose as provided in 24CFR 570.503 (b)(8). VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 3 of 17 City of Yakima 7/10/2014 Page 3 1 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: B. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. C. 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, D. 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 1 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. 2. Where the Contractor is unable to certify to any of the statements in this Agreement, the Contractor shall attach an explanation to this Agreement. 3 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. 4. 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 E. LOWER TIER COVERED TRANSACTIONS i) 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. ii) 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. 4 of 17 City of Yakima 7/10/2014 Page 4 5 Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570 601 (Discrimination prohibited). 6. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations 7. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44 010 (Native American Burial Law), RCW 27.53.010- 090 (Protection of Archaeological Resources), and RCW 43 51.750- 820 (Preservation of Historic Properties). 8. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70 92 RCW 9. Accessibility Standard as set forth in 92.251(a)(3). 10. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq., and Environmental Protection Agency regulations, 40 CFR Part 15 11. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 12. Contract Work Hours and Safety Standards Act, 40 USC Sections 327- 333, (Overtime Compensation). 13 Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 —12 (Prevailing Wage Rates). 14. Attachment 0 of the Office of management and Budget Circular, A -102 (Procurement Standards) and Federal Management Circular, FMC 74- 4. 15 The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 16. Title VI of the Civil Rights Act of 1964 (P L. 88 -352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 5 of 17 City of Yakima 7/10/2014 Page 5 17 Age Discrimination Act of 1975 (24 CFR 146). 18. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 19. Washington State /Local Building Codes /Housing Quality Standards (24 CFR 882.109). 20 WBE /MBE (24 CFR 85.36 (e)). 1. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contractor to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. B. SEPA The Contractor retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE - CONDITION Performance by either the City of Yakima ONDS or the Contractor under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON - DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer B. During the performance of this Agreement, Contractor shall not discriminate in violation of any applicable federal, state and /or local law or regulation on the basis of race, color, sex, religion, national origin, creed, age, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement. The Contractor specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. 6 of 17 City of Yakima 7/10/2014 Page 6 X NON - DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to make all services available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 1 Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3 Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and /or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each Contractor or Subcontractor. The Contractor shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. XI LICENSING AND PROGRAM STANDARDS The Contractor agrees to comply with all applicable Federal, State, City and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the CDBG and /or HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B At any reasonable time and as often as City may deem necessary, Contractor shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and /or copies of same Contractor records shall include, but shall not be limited to, the following• payroll, personnel and employment records; procurement bidding documents; contracts, sales closing statements; and invoices. 7 of 17 City of Yakima 7/10/2014 Page 7 C The City shall have the right to review and audit all records of the Contractor pertaining to any payment by the City. Said records shall be maintained for a period of seven years after the completion of the project. D The Contractor shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his /her attorney or his /her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND /OR SUBCONTRACTING The Contractor shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments ", hereinafter referred to as "BARS ", as issued by the Office of State Auditor, State of Washington. The Contractor further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contractor shall retain all books, records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S. Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program. C. The Contractor agrees to have an audit performed when spending $500,000 or more in federal awards during a fiscal year. A copy of such audit will be presented upon request to ONDS for monitoring purposes. 8 of 17 City of Yakima 7/10/2014 Page 8 XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and /or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A -102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7 Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9 of 17 City of Yakima 7/10/2014 Page 9 9 The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor /city relationship shall be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor shall be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, Subcontractors, or otherwise during the performance of this Contract. XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due XIX QUARTERLY REPORT The Contractor agrees to submit written quarterly reports outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima ONDS XX INSURANCE A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and /or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. 10 of 17 City of Yakima 7/10/2014 Page 10 C COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00) combined single limit bodily injury and property damage. Automobile liability will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted) Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents, and employees as additional insured /s, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington D. - WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractor's workers' compensation coverage will be furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements XXI INDEMNIFICATION AND HOLD HARMLESS All services that are rendered or performed under this Contract shall be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, including reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. 11 of 17 City of Yakima 7/10/2014 Page 11 A. TERMINATION FOR CAUSE If the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1 The lack of compliance with the provisions of this Contract are of such scope and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non - beneficial to the public interest; 2. The Contractor has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contractor has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then. The City of Yakima ONDS may terminate this Contract in whole or in part, and thereupon shall notify the Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. After this effective date, no charges incurred under any terminated portions are allowable B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, notwithstanding any other termination provision of this Contract. If the level of funding so reduced or limited is so great that the City of Yakima ONDS deems that the continuation of the program covered by this Contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this Contract in whole notwithstanding any other termination provisions of this Contract. Termination under this Section shall be effective upon receipt of written notice by the Contractor or its representative The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials. The Contractor agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This Contract may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand 12 of 17 City of Yakima 7/10/2014 Page 12 D. CLOSEOUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2. The Contractor shall submit within fifteen (15) days after the date of C expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee 3. In the event a financial audit has not been performed prior to closeout of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. XXIII COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law C. The Contractor warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder The Contractor further warrants and covenants that in the performance of this contract, no person having such interest shall be employed 13 of 17 City of Yakima 7/10/2014 Page 13 XXV RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The Contractor hereby grants to the City of Yakima, a royalty -free, non - exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this Contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause The Contractor shall report to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings XXVI RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order 1. Appropriate provisions of state and federal statutes and regulations including HUD CDBG Regulations. 2. General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work /project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4. City of Yakima Resolution No. R -2014- (Exhibit C), and 5. Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVII GOVERNING LAW This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance. XXVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. 14 of 17 City of Yakima 7/10/2014 Page 14 XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1. The Contractor materially changes the primary purpose and scope of the Project as described on Exhibit "B" to the 2 Contract. The Contractor is unable to continue and /or provide services as described in Exhibit "B ". 15 of 17 City of Yakima 7/10/2014 Page 15 Exhibit "B" Yakima Valley Partners Habitat for Humanity A.) PROPOSAL SUMMARY /PROJECT ABSTRACT Yakima Valley Partners Habitat for Humanity will demolish the substandard existing structure and construct a single family home located at 1409 S. 16th Ave and sell it to a qualified low income first time homebuyer and monitor the "Affordability Period" for a period of no less than Ten (10) years, after which all net proceeds shall be granted to Habitat. B.) ASSESSMENT OF NEED /PROBLEM STATEMENT Habitat for Humanity will provide the demolition of the substandard existing structure, the construction of a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer and monitor the project for a Ten (10) year affordability period in exchange for all net proceeds redeemed from the sale of the home located at 1409 S. 16 Ave. C.) PROGRAM GOAL AND OBJECTIVES Goal Demolish a substandard building and create another affordable single family residence within in the City of Yakima. Objectives 1. Demolish the existing substandard structure. 2. Construct a new single family dwelling. 3. Sell the new single family home to a qualified low to moderate first time homebuyer. D.) METHODOLOGY From the contract execution date to continue until the termination date at which it will expire at midnight, Yakima Valley Habitat for Humanity will demolish the existing substandard structure, construct a new single family dwelling to be sold to a qualified low to moderate income first time homebuyer to be monitored for a ten (10) year affordability period per HUD regulations governing HOME Investment funded projects. E.) OUTCOMES & EVALUATION As a condition of reimbursement, Habitat for Humanity will, 1. Demolish the existing substandard structure 2. Construct a new single family dwelling 3. Affect the sale of the property and dwelling to a qualified low to moderate income first time homebuyer. 4. Agree to monitor the property at 1409 S. 16 Ave for a period of no less than a ten (10) year affordability period as per HOME Investment requirements. 16 of 17 City of Yakima 7/10/2014 Page 16 F.) BUDGET Yakima Valley Habitat for Humanity will be reimbursed up to $20,000 between the contract execution date and terminate on July 7, 2015 at midnight, for eligible activities. 17 of 17 City of Yakima 7/10/2014 Page 17 (THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION ") 18 of 17 City of Yakima 7/10/2014 Page 18 Exhibit "D" SERVICES PROVIDED A.) As a condition of reimbursement, Habitat for Humanity will, Demolish the existing substandard Structure B) Construct a new single family dwelling located at 1409 S. 16 Ave. C.) Affect the sale of the property and dwelling to a qualified low to moderate income first time homebuyer as per HUD regulations governing HOME Investment funds. B.) Monitor the property at 1409 S. 16th Ave for a period of no less than a ten (10) year affordability period as per HOME Investment requirements. 19 of 17 City of Yakima 7/10/2014 Page 19 ...„......„..„ 7-:-,,,.1--ii,-_\ f� rill ) \. Ii ~ n � BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5.C. For Meeting of: August 05, 2014 ITEM TITLE: Resolution authorizing two contracts granting $40,000 of HOME Investment funding to Habitat for Humanity to demolish the existing substandard structures and construct two new single - family dwelling units to be sold to qualified low to moderate income first time homebuyers located at 402 South 10th Street and 1409 South 16th Avenue SUBMITTED BY: Joan Davenport, Interim Community Development Director (509) 576 -6417 Archie Matthews, ONDS Manager (509) 575 -6101 SUMMARY EXPLANATION: As a recipient of HOME Investment funds, the City of Yakima is required to set aside 15% to support qualified Community Housing Development Organizations (CHDO's). Neighborhood Development Services proposes to grant Yakima Valley Habitat for Humanity, a certified CHDO, $40,000 to remove substandard structures and construct two new single family dwelling units located at 402 South 10th Street and 1409 South 16th Avenue to be sold to qualified low to moderate income first time homebuyers and monitor the projects for the required "Affordability Period" as per Federal HOME regulations. Resolution: X Ordinance: Other (Specify): Contract: X Contract Term: One year Start Date: 08/05/2014 End Date: 07/07/2015 OR UPON COMPLETION Item Budgeted: Yes Amount: $40,000 Funding Source /Fiscal Impact: HOME Investment Fund Strategic Priority: Improve the Built Environment Insurance Required? No Mail to: Yakima Valley Partners Habitat for Humanity - c/o Steve Luten, 21 W Mead Ave. Ste #110, Yakima, WA 98902 Phone: (509) 453 -8077 APPROVED FOR SUBMITTAL: City Manager RECOMMENDATION: Staff recommends approval of the contract and resolution granting $40,000 to Yakima Valley Habitat for Humanity. ATTACHMENTS: Description Upload Date Type 0 Resolution - 402 S 10th St and 1409 S 16th Ave 7/14/2014 Resolution 0 Contract - 402 S 10th Street 7/11/2014 Contract 0 Contract - 1409 S 16th Avenue 7/11/2014 Contract