Meeting Date APRIL 02, 2013
Agenda Item #2. Resolution Approving the Community Development Block Grant (CDBG) Program Income (PI) Reuse Plan
CDBG Program Income Reuse Plan With Jurisdictional Certifications
Note from TheGardeningSnail. This section has been produced by taking a PDF Image File and running it through a program that converts image to text. So there may be several textual goofs, gaffs and gremlins. But you can always reference the pages above.
AGENDA ITEM: Resolution Approving the Community Development Block Grant (CDBG)
Program Income (PI) Reuse Plan.
MEETING DATE: April 2, 2013
PREPARED BY: Jasmin Bains, Senior Accountant
REVIEWED BY: Jose Antonio Ramirez, City Manager
Staff recommends adoption of Resolution No. 2013- , approving the California Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) Program Income (PI) Reuse Plan.
In order to assist jurisdictions and maintain compliance with Federal requirements, State CDBG has revised the Program Income Reuse Plan template. The template has fill-in areas and includes federally required contractual agreements and assertions governing the use and re-use of Program Income in Revolving Loan Accounts (RLAs).
The City proposes to approve the State’s CDBG PI Reuse Plan and continue to distribute the Program Income received according to the existing distribution of 100% to the Housing Rehabilitation RLA.
1. Resolution No. 2013-
2. Revised CDBG Program Income Reuse Plan
RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING THE CITY’S COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCOME REUSE PLAN
WHEREAS, the City of Livingston, a political subdivision of the State of California, has received income from the repayment of loans made with Community Development Block Grant (CDBG) funds; and
WHEREAS, the City has established a CDBG Program Income Reuse Plan; and
WHEREAS, State CDBG has revised the Program Income Reuse Plan template to assist jurisdictions and maintain compliance with Federal requirements.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston approves the revised CDBG Program Income Reuse Plan to use the State CDBG template.
Passed and adopted this 2nd day of April, 2013, by the following vote:
Rodrigo Espinoza, Mayor
of the City of Livingston
I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 2nd day of April, 2013.
Antonio Silva, City Clerk
of the City of Livingston
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COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
PROGRAM INCOME (PI) REUSE PLAN
This Agreement provides official notification of the Jurisdiction’s PI Reuse Plan’s
(hereinafter, "PI Reuse Plan") approval under the State’s administration of the Federal
Community Development Block Grant Program (hereinafter, "CDBG" or "the Program’)
for Non-entitlement jurisdictions pursuant to the provisions of 42 U. S. Code (U. S. C.)
5301 at seq., 24 Code of Federal Regulations (CFR) Part 570, Subpar` 1, and 25
California Code of Regulations (CCR), Sections 7050 et seq. The Program is listed in
the Catalog of Federal Domestic Assistance as 14.228 – CDBG Community
Development. Block Grant Program.
By completing this P1 Reuse Plan and signing the end of this document, the Authorized
Representative certifies the Jurisdiction has read, understands and will adhere to the
Program Income (PI) Reuse Plan detailed in the first section of this document, the Pi
definitions and rules in the second section of this document, and Department of Housing
and Community Development (the Department herein) terms and conditions in the third
section of this document.
SECTION ONE: PROGRAM INCOME (PI) REUSE PLAN
JURISDICTION: City of Livingston
GOVERNING BODY ADOPTED ON: 04/02/2013
This P1 Reuse plan establishes policies and procedures for the administration and
utilization of P1 received as a direct result of eligible activities funded under the State of
California CDBG Program (Department). All revenue received from CDBG funded activities are required to be used per this adopted plan.
DISTRIBUTION OF PROGRAM INCOME
Introduction: There are six (6) methods of distribution for Pi listed below. The four (4) non-Revolving Loan Account obligation methods are optional and can be used on a case-by-case basis as needed for activity funding by the Jurisdiction.
The use of one or more Revolving Loan Account (RLA) is mandatory under this adopted Pi Reuse Plan.
City of Livingston
certifies that PI will only be distributed, as
Deposit into Revolving Loan Accounts (RLAs)
The following RLAs are hereby established to utilize the
City of Livingston PI. If an RLA activity is not going to be
utilized, zero percent (0%) is to be indicated in percentage area below. One or
more of the RLAs will be utilized annually. The allocation of receipted PI to each
RLA is as follows:
A. 100% (insert percentage, 0 to 100 percent (0%-900%)) of Pl received
will be deposited into the Housing Rehabilitation – Single Family (1-4
Units) Revolving Loan Account (HR-RLA).
B. 0% (insert percentage, 0 to 100 percent (0%-900%)) of Pi received
will be deposited into the Homeownership Assistance Revolving Loan
C. 0% (insert percentage, 0 to 100 percent (0%-100%)) of PI received
will be deposited into the Business Assistance Revolving Loan Account
D. 0% (insert percentage, 0 to 100 percent (0%-100%)) of Receipted PI
will be deposited into the Microenterprise Financial Assistance
Revolving Loan Account (ME-RLA).
2. PI Waiver Activity
The City of Livingston may utilize the Department’s PI Waiver
process to commit PI to eligible activities that are not considered RLAs. The
Ci of Livingston will follow all PI Waiver procedural requirements as
stated in the Program Income chapter of the Grant Management Manual (GMM).
The City of Livingston will obtain prior Department approval before
expending any PI funds on a Waiver project. A PI Waiver project can only be
approved if the total project/program cost for the proposed activity is on hand in
the Jurisdiction’s PI account. The City of Livingston understands that
PI Waiver activities are limited to two "active" projects and/or programs and will
remain active until close out has been completed and approved by the
3.. Committal to Funding Application
The City of Livingston may choose to commit non-obligated RLA
funds to one or more activities in an annual CDBG application for funding.
Committed P1 can only be expended when application and activities with
committed PI are awarded, contracted, and have all special conditions cleared.
PI committed to an application for grant funding must have the PI on hand at the time of application submittal and may not remove or add to the PI amount committed without prior Department approval.
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4. Augmenting Funding to An Awarded Activity/Proiect
City of Livingston may request that the Department allow PI to be
added to a funded activity/project due to a funding short fall. To obtain
Department approval, the City of Livingston will submit justification to
their CDBG Representative outlining in detail the need/reason for the augmentation of funding.
If the Department approves the augmentation (requires a Department contract
amendment) the City of Livingston would need to complete a Citizen
Participation process before the Department would begin a contract amendment
This option only applies to awarded activities/projects and the Department will not approve adding a new activity to an awarded contract.
5. Fund Pro ram Income General Administration PI GA) Activities
The City of Livingston may set aside up to seventeen percent (17%)
of PI received from activities funded with CDBG funds for payment of eligible
General Administration costs. The City of Livingston may choose to
move the PI GA to eligible CDBG activities, as noted above, but once the funds
are removed from the PI GA account they cannot be put back at a later date.
6. Return to the Department
The City of Livingston has the option to return PI back to the
ADMINISTRATIVE PROCESS FOR DISTRIBUTION OF
introduction: CDBG is a federal funding source and requires a Citizen Participation
process as part of utilizing any of the six (6) methods of distribution for P1 listed above.
Below is a general description of how to conduct proper Citizen Participation process for
each of the six (6) distribution methods. See the Department’s current Grant
Management Manua! (GMM) Chapter on Citizen Participation for specific information and sample documents.
City of Livingston certifies that:
1. The PI Reuse Plan will be formally adopted via public hearing and resolution of
City of Livingston ‘s Governing Body, executed by Authorized
Representative and fully executed by the Department. After the PI Reuse Plan is
executed, the Jurisdiction reserves the right to set aside up to seventeen percent
(17%) of PI received for payment of eligible GA costs. RLA activities which have
PI funds being deposited into them may be activated with written Departmental approval.
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The P1 Reuse Plan may be amended by the City of Livingston is
Governing Body to change the distribution percentages in a RLA via public
hearing and resolution, and receipt of the Department’s written approval.
2. All P1 Waiver requests will be submitted for the Department’s written approval.
After the Department’s review of the activity for Eligibility and National Objective
compliance, the Pt Waiver will be formally adopted via public hearing and
resolution of the City of Livingston ‘s Governing Body, as part of the PI
Waiver Special Condition Clearance process.
3. P1 committed to an open CDBG Contract to augment funding for an activity or
committed to a pending application for grant funds will be formally adopted via public hearing and approval via resolution for an annual application submittal. Department approval and P1 must be on hand.
4. Once a P1 Reuse Plan has been executed by the Department, it is then in effect.
GA PI funds can then be expended for eligible costs. GA P1 funds will not be
expended once the Reuse Plan is terminated by either party or the Reuse Plan
has reached the 5 year expiration.
5. P1 will be returned to the Department after a public hearing and formal resolution
is passed by the City of Livingston ‘s Governing Body.
6. Each of the above administrative processes must be in compliance with the
CDBG Citizen Participation process as specified in federal regulations at 24 CFR 570.486, Local Government Requirements.
ADMINISTRATION OF ELIGIBLE ACTIVITIES AFTER DISTRIBUTION
Introduction: Administration of all CDBG eligible activities conducted under the distribution methods must be conducted in compliance with all current State and federal regulations and policies.
The City of Livingston will follow the Department’s guidance for
administering RLA activities, PI Waiver activities, or activities funded with PI committed
to an open grant contract per the Department’s current GMM Chapter regarding Pl.
If ineligible activities or costs are paid for with CDBG PI, those funds must be returned to
the City of Livingston PI account using local jurisdiction funds.
1. RLA Administration
The City of Livingston certifies that the four RLAs under this P1 Reuse
Plan will be administered under the following criteria:
A. RLAs with a balance must be "substantially revolving," which means on
an annual basis at least 60 percent (60%) of the funds in an RLA must be
used for loans which will be repaid to a PI account, based on the distribution
noted in this plan. Up to the remaining 40 percent (40%) may be expended
on non-revolving activities, which include Activity Delivery (AD), and grants
for the same activity as the RLA.
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Note: General Administration costs are not considered part of the
jurisdiction’s RLA Activities and should not be used in the
consideration of "substantially revolving".
B. A RLA which is the same activity as any funded open grant activity will be
"substantially expended" before grant funds are requested for the grant
The Department considers "substantially expended", to mean having no
more than $5,000 in a RLA.
C. Pl funds shall not be transferred between RLAs after execution of this
Plan without following the proper CDBG Citizen Participation process, which includes a public hearing resulting in a certified resolution being submitted to the Department for written approval. However, the transfer of P1 between RLAs each fiscal year, in the aggregate amount of $5,000 or less, is not be subject to the Citizen Participation requirement, as stated above; but does require prior written Department approval.
D. All PI funded activities shall be provided to project activities located within
the boundaries of the City of Uvingston
If an additional jurisdiction(s) receives benefit, a Joint Power’s Agreement
(JPA) between Jurisdictions(s) is required. The
City of Livingston must receive written approval from the
Department prior to implementation and prior to parties’ execution of the JPA between the parties.
.E. The City of Livingston will submit program guidelines specific
to each RLA activity for written Department approval. Once approval is issued to the Jurisdiction, the RLA will then be deemed active.
F. This PI Reuse Plan will not be executed by the Department until all RLAs
have clear distribution percentages listed above, and have Department
approved program guidelines.
All CDBG PI Reuse Plans are limited to a five (5) year term from the date
PI funds within an RLA cannot be expended until this P1 Reuse Plan is executed.
G. Reporting on RLAs and other PI Activities will be required per the
Department’s current policies, including financial accounting of PI received
and expended for RLAs and other PI Activities. Additionally, P1
performance (National Objective data and beneficiary demographics)
reported as HUD required accomplishment information will be required to
be submitted in a timely manner or the Jurisdiction understands that it will
be required to repay a PI account for ineligible cost or activities.
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H. AD costs are only eligible if one or more projects are funded and
accomplishments (such as beneficiaries), for those activity(ies), on an
annual basis, are reported on.
2. Eligible RLA Activities
The four (4) RLA(s) listed below each have a single eligible CDBG program
activity. The City of Livingston certifies that all CDBG rules pertaining
to each eligible activity will be followed.
A. Housing Rehabilitation Revolving Loan Account
The CDBG eligible activity under this RLA is a single-family housing
rehabilitation program. The program will be used for the purpose of
making loans to rehabilitate residential units (1-4 units), occupied by
income eligible households. The CDBG National Objective of benefit to
.Low/Moderate-income (Low/Mod) households will be met by limiting
program participants to households that have an annual income at or
below eighty percent (80%) of HUD median income limits for the
City of Livingston ‘s county. Households will be income qualified
based on the income calculation method specified in 24 CFR Part 5, and in accord with the Department’s Income Manual.
Rehabilitation of "projects" (projects with five (5) or more units on one site)
is not allowed under this RLA. Projects with five or more units must be
funded via the annual grant process or through the PI Waiver process.
Jurisdictions wishing to include tenant occupied projects for the Housing
Rehabilitation program must submit separate (distinguishable from the
Owner Occupied Housing Rehabilitation guidelines) guidelines outlining the unique tenant occupied rules and processes.
The review and funding of requests for CDBG loans or grant assistance under this RLA shall be conducted under the Housing Rehabilitation Program Guidelines that have been adopted by City of Livingston
and approved in writing by the Department.
No more than 19 percent (19%) of program funds expended from this RLA
shall be used for AD costs.
B. Homeownership Assistance (Homebuyer) Revolvina Loan Account
The CDBG eligible activity under this RLA is acquisition of single family
housing. The program will be used for the purpose of making loans to
assist income eligible homebuyers to purchase a residential property (1-4
units). The CDBG National Objective of benefit to Low/Mod-income
households will be met by limiting program participants to households that
have an annual income at or below eighty percent (80%) of HUD median
income limits. Households will be income qualified based on income
calculation method specified in 24 CFR Part 5 and in accord with the
Department’s Income Manual.
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The review and funding of requests for CDBG loans or grant assistance under this RLA shall be conducted under the Homeownership Assistance Program Guidelines that have been adopted by the City of Livingston and approved in writing by the Department.
No more than 8 percent (8%) of the funds expended from this RLA shall be used for AD costs.
C. Business Assistance Revolving Loan Account
The CDBG eligible activity of Special Economic Development will be
conducted under this RLA. Specifically, the RLA will fund a business
assistance program that provides direct financial assistance for eligible
businesses that propose projects which create or retain permanent jobs.
The CDBG National Objective being met by the Special Economic
Development activity will typically be benefit to Low/Mod-income persons.
As such, at least fifty one percent (51%) of the full time job positions
created or retained will be made available to persons whose households
have an annual income at or below 80 percent (80%) or less of the
City of Livingston ‘s county median income. Income eligibility
is based on the income calculation method specified in 24 CPR Part 5, and in accord with the Department’s Income Manual.
Business assistance projects under this RLA program may also meet the
National Objective of elimination of slums and blight, but this must be
approved by the Department in writing as part of the initial business’s loan
Local review and underwriting of business assistance projects requesting
a CDBG loan under this RLA shall be conducted under the Business
Assistance Program Guidelines that have been adopted by
City of Livingston and approved in writing by the Department.
Each individual project funding request made under this RLA program must be submitted for Department review and written approval, prior to closing the loan.
No more than 15 percent (15%) of the total funds expended for business
assistance activities shall be used for AD costs.
D. Microenterprise Assistance Revolving Loan Account
The CDBG eligible activity of direct financial assistant to eligible
microenterprise businesses will be conducted under this RLA.
Specifically, the RLA will fund a microenterprise direct financial assistance
program that provides financial assistance to start up or existing
microenterprise businesses. Eligible businesses must meet the HUD
definition of microenterprise. A microenterprise is defined as a business
that has five (5) or fewer employees including the owner(s). The only
CDBG National Objective which will be used for this activity is benefit to
Low/Mod-income households. As such, micro business owners assisted
under this program must be documented as having an annual household
income at or below 80 percent (80%) of the Jurisdiction’s county median income, based on income calculation method specified in 24 CFR Part 5, and in accord with the Department’s Income Manual.
Local review and underwriting of microenterprise business assistance
projects requesting a CDBG loan or grant under this RLA shall be
conducted under the Microenterprise Financial Assistance Program
Guidelines that have been adopted by the City of Livingston
and approved in writing by the Department.
Each individual project funding request made under this RLA program must be submitted for Department review and written approval, prior to closing the loan.
No more than 15 percent (15%) of the total funds expended for business assistance activities shall be used for AD costs.
3. Administration of Non-RLA Program Income Expenditures
A. Program Income Waiver Eligible Activities
City of Livingston certifies that the PI Waiver Submission
Process below will be followed if a PI Waiver is to be requested:
1) This process will involve discussion at a properly noticed public
hearing, held in front of the City of Livingston ‘s
Governing Body, and submission of a Certified Resolution as part of a PI Waiver Request to the Department, in accordance with current Department policy, and any subsequent policy, regulation, or statutor y-guidance, in writing, from The Department.
2) Final commitment and expenditure of PI Waiver funds will not
commence until clearance of all required Special Conditions have
been met, and written Department approval has been issued to the
City of Livingston
3) Reporting -on PI Waiver activities will take place per current
Departmental policies and include financial accounting of P1 received
and expended for PI Waivers and PI Waiver activity performance.
4) PI Waiver activities must be fully funded with program income
already on hand. Therefore, future Pi may not be pledged to the PI Waiver activity.
5) Only two (2) P1 Waiver agreements may be open and active at any
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B. Program Income Committed In an Annual Grant Application and
Included in an Open Grant A reement
City of Livingston certifies that the PI Committed to a funded
Annual CDBG Application will be:
1) Funded with PI currently on hand;
Future P1 may not be pledged to an open grant activity.
2) Expended first and prior to requesting grant funds;
3) Administered in accordance with terms and conditions of the grant
contract with the Department; and,
4) Reported using the Department’s current PI and fiscal reporting
forms. All PI activity performance data will be reported using grant
and fiscal reports.
C. Program Income Added to an Existing Open Grant
City, of Livingston certifies that the PI committed to an existing
CDBG Grant will be:
1) Approved by the Department, with a Grant Amendment fully
executed before PI can be committed to a grant activity.
2) Funded with PI currently on hand.
Future P1 may not be pledged to an open grant activity.
3) Expended first and prior to requesting grant funds.
4) Administered in accordance with terms and conditions of the grant
contract with the Department.
5) Reported using the Department’s current PI and fiscal reporting
forms. All PI activity performance data will be reported using grant and fiscal reports.
4. Program Income General Administration (PI GA) Cost Limitation and
City of Livingston certifies that no more than 17 percent (17%) of the
total amount of PI received annually will be expended for P1 GA costs. These funds will accumulate annually and be carried from one fiscal year to the next if unexpended.
If more funds are expended than what is available in PI GA, the Jurisdiction will
be required to return the over-expended GA amount back into their PI Account.
Additionally, any ineligible Pl GA costs will also be required to be returned to their
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GA eligible costs for PI are the same as open grant agreements with the
Department. See the current CDBG Grant Management Manual (GMM) for list of eligible activities and allowable costs.
PI GA activity costs will be reflected on fiscal reports submitted to the Department as per current reporting forms and policies.
A. Planning Activities
The City of Livingston reserves the option of utilizing P1, within
the 17 percent (17%) P1 GA annual cap to fund planning studies for CDBG eligible activities.
All proposed planning activities must receive written Department approval prior to expending PI on the activity.
Eligible planning activities funded with PI are the same as open grant
agreements with the Department. See current NOFA for a list of eligible
All planning activities must have a final product (report or study) resulting from the expenditure of P1.
Upon completion of the planning activity, the study must be formally
accepted by the Jurisdiction and submitted to the Department for review.
The planning activity costs will be reflected on fiscal reports submitted to the Department.
B. Loan Portfolio and Asset Management Policies and Costs
The City of Livingston certifies that it has asset management
policies and loan portfolio servicing policies that are in compliance with
HUD standards per 24 CFR Part 570. The use of CDBG funds creates.
public financial assets. The public financial assets created can be in the
form of loans or other repayment instruments which result in PI. Financial
assets may also be in the form of real property or chattel (equipment and
fixtures). All assets created from the use of CDBG funds must be
administered in compliance with OMB Circulars A-67, A-122 A-133, 24
CFR Part 85.
Loan payment tracking and collection systems must be put in place for collection purposes of all loans funded with CDBG. In addition, loan servicing policies and procedures must be in place to service the loan assets, ensuring repayment.
Costs of managing the portfolio of CDBG funded loans may be charged to
PI under GA within the allowable limits set by the Department.
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SECTION TWO: JURISDICTION ASSERTIONS AND CERTIFICATIONS
1. Requirements of Program Income
The P1 Reuse Plan is intended to satisfy the requirements specified in federal
statute and regulation at Section 1040) of the Housing and Community
Development Act ("the Act"), as amended in 1992 and 24 CFR 570.489(e) and
(f). These statutory and regulatory sections permit a unit of local government to
retain PI for CDBG-eligible community development activities. Under federal
guidelines adopted by the State of California’s CDBG Program, local
governments are permitted to retain PI as long as the local government has
received advance approval from the State of a local plan that will govern the
expenditure of the Pl. This plan has been developed to meet that requirement.
City of Livingston certifies that their PI will be used to fund eligible
CDBG activities that meet a National Objective and any public benefit
requirements. Eligible activities, National Objective and public benefit
requirements are’ specified in Federal Statute at Sections 104(b), 105(a) of The
Housing and Community Development Act of 1974, and in Federal Regulations
at 24 CFR 570.482 and 24 CFR 570.483. The Jurisdiction understands, if it is determined that an activity/project funded with PI that does not meet a National Objective and/or meet the public benefit requirement, the Jurisdiction will be required to use its own local funds to repay the PI Account.
2. Definition of Program Income
"Program Income" means gross income earned by the Jurisdiction from grant-
funded activities and is subject to CDBG regulatory requirements pursuant to
24 CFR, Part 570.489(e) – Program Administrative Requirements as amended in
the CDBG Final Rule, 24 CFR, Part 570.504 – Program Income, 24 CFR Part 85
– Administrative Requirements for Grants and Cooperative Agreements to State,
Local and Federally Recognized Indian Tribal Governments, and OMB Circulars
A-87 and A-122 as applicable. These regulations include the requirement that
the Jurisdiction record the receipt and expenditure of PI as part of the financial
transactions of the grant activity(ies).
For activities generating PI that are only partially funded with CDBG funds, such
income is prorated to reflect the actual percentage of CDBG participation.
Exam les of P1 include but are not limited to: payments of principal and interest
on housing rehabilitation or business loans made using CDBG funds; interest
earned on P1 pending its disposition; interest earned on funds that have been
placed in a revolving loan account; net proceeds from the disposition by sale or
long-term lease of real property purchased or improved with CDBG funds; and,
income (net of costs that are incidental to the generation of the income) from the
use or rental of real property that has been acquired, constructed or improved
with CDBG funds and that is owned (in whole or in part) by the participating
jurisdiction or sub-recipient.
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3. Federal Nature of Program Income
City of Livingston certifies that per 24 CFR 570.489(e)(2)(i), as
amended in the CDBG Final Rule May 23, 2012, all PI received through a RLA,
will be counted as PI regardless of the amount, and all PI generated through an
open grant that is $35,000 or less may either be:
A. Counted and reported as PI, allowing the Jurisdiction to include that
amount in its PI GA (17%) calculation; or,
B. Not counted as Pl and reported as such, which "de-federalizes" the funds,
and allows them to be deposited into the Jurisdiction’s General Fund. Supporting accounting records and documentation must be in the Jurisdiction’s file to substantiate the calculations reported.
If PI is generated from a loan that is made partially from a RLA and partially from
another source, then the PI. accounting and reporting must reflect the correct
amounts and proportions of PI from the RLA (counted and reported as PI
Income) versus the amount generated from the other source, which may be
accounted for and reported using either of the methods above.
4. Definition of Excessive Program Income
City of Livingston certifies that if there is excessive PI ($500,000 or
more), which includes GA, at the end of the fiscal year they will be required to
submit a plan (included in the Reporting form) for expending the funds to the
Department for review and approval. The City of Livingston
understands that if no plan is submitted, or the plan is not approved by the
Department, it risks having to return the PI to the Department. The
City of Livingston agrees to use the Semi Annual PI Report forms to
describe the reason(s) for the excessive amount and the
method(s)/plan(s)/reason(s) the City of Livingston will use to reduce
the amount over the coming year.
Should the Jurisdiction choose to ‘accumulate’ PI to fund a project that will cost more than $500,000, the Jurisdiction must identify the project in their Semi Annual PI Report form with a detailed narrative about the project and the expected timing for the project to start and complete, with completion including the meeting of a national objective. Approval of a PI balance above $500,000 will be made on a case-by-case basis.
5. Reporting of Program Income
City of Livingston certifies that CDBG PI will be accounted for using
the Department’s fiscal year (July 1 to June 30). All receipts and expenditures of
PI in accordance with this PI Reuse Plan will be monitored and reported per the
Department’s fiscal year cycle. City of Livingston certifies that they
will report using the Department’s reports/forms and will submit them in a timely
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6. Duration of This Program Income Reuse Plan
Ci of Livingston and the Jurisdiction’s Governing Body understand
that this document is effective for five (5) years from the execution date by the
authorized CDBG representative listed in this Agreement unless otherwise
notified by the Department.. The Department has the Authority to void the Agreement with notice for cause.
7. Status of Program Income Upon Leaving State Non-Entitlement CDBG
Pro ram and Entering the CDBG Entitlement Program
City of Livingston certifies that the Jurisdiction’s Governing Body may
move the PI earned under the State program to the Entitlement Program if/when
the Jurisdiction is authorized and chooses to participate in the CDBG Entitlement
Program provided the Jurisdiction’s Governing Body certifies that the
City of Livingston has:
A. Officially elected to participate in the Entitlement Grant Program;
B. Agrees to use such PI in accordance with Entitlement Program
C. Sets up Integrated Disbursement Information System (IDIS) access and
agrees to enter receipt of PI into IDIS.
D. The City of Livingston submits the above to the State and
receives the Department’s approval to no longer report State CDBG P1 to the Department.
8. Status of Pro ram Income Upon Entering the State Non-Entitlement CDBG
Program from the Entitlement CDBG Program
City of Livingston certifies that the Jurisdiction’s Governing Body will
inform the Department in writing of the Jurisdiction’s decision to either:
A. Retain program income generated under Entitlement grants and continue
to comply with Entitlement program requirements for program income; or
B. Retain the program income and transfer it to the State CDBG program, in
which case the Jurisdiction will certify that it will comply with the state’s
rules for program income and the requirements of 24 CFR 570.489(e) and
9. Amendment of PI Reuse Plan
City of Livingston certifies that it will adopt and submit for Department
written approval a new version of this plan as updates are released by the
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SECTION THREE: DEPARTMENT TERMS, CONDITIONS AND
TERMS AND CONDITIONS: City of Livingston certifies that all terms and
conditions listed below have been read and understood, and will be implemented and followed:
1. Authority & Purpose
This Agreement provides official notification of the Jurisdiction’s P1 Reuse Plan’s
(hereinafter, "PI Reuse Plan") approval under the State’s administration of the
Federal Community Development Block Grant Program (hereinafter, "CDBG" or
"the Program") for Non-entitlement jurisdictions pursuant to the provisions of 42
U.S. Code (U.S.C.) 5301 et seq., 24 Code of Federal Regulations (CFR) Part
570, Subpart I, and 25 California Code of Regulations (CCR), Sections 7050 et
seq. The Program is listed in the Catalog of Federal Domestic Assistance as
14.228 – CDBG Community Development Block Grant Program.
In accepting the Pl Reuse Plan Approval, the Jurisdiction agrees to comply with
the terms and conditions of this Agreement, all exhibits hereto and the
representations contained in the Jurisdiction’s P1 Reuse Plan. Any changes
made to the P1 Reuse Plan after this Agreement is accepted must receive prior written approval from the Department of Housing and Community Development (Department).
2. Distribution for Reuse of P1
A. The Jurisdiction shall perform P1 funded activities as described in the
Distribution for Reuse in the P1 Reuse Plan. All written materials or
alterations submitted as addenda to the original PI Reuse Plan and which
are approved in writing by the Department are hereby incorporated as part
of the PI Reuse Plan.
The Department reserves the right to require the Jurisdiction to modify any
or all parts of the P1 Reuse Plan in order to comply with CDBG
requirements. The Department reserves the right to review and approve
all Work to be performed by the Jurisdiction in relation to this Agreement.
Any proposed revision to the Work must be submitted in writing for review
and approval by the Department and may require an amendment to this
Agreement. Approval shall not be presumed unless such approval is
made in writing by the Department.
B. The PI funded activities shall principally benefit Low/Mod-income persons
or households (Low/Mod) whose income is no more than 80 percent
(80%) of the median area income.
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3. Sufficiency of Funds and Termination
The Department may terminate this Agreement at any time for cause by giving at
least 14 days written notice to the Jurisdiction. Termination shall consist of
violations of ‘any terms and/or special conditions of this Agreement, upon the
request of HUD, or withdrawal of the Department’s expenditure authority.
4. Meetin National Obiectives
All activities performed under this Agreement must meet one of the National
Objectives determined by the HUD regulations as included in the Application
authorized under Title I of the Housing and Community Development Act of
1974, as amended.
A. Benefit to HUD defined Low/Mod-income person or household (LMI). The
term Low/Mod-income is defined under CDBG as no more than 80 percent
(80%) of the median area income, as determined by HUD, per Federal
Regulation 24 CFR, Part 570.483(b); and/or;
B. Prevention or elimination of slums or blight. In order for an activity to meet
the National Objective of elimination of slums and blight, the activity must take place in an area that meets the definition of a blighted area and the project must be shown to eliminate blight or prevent further blight per Federal Regulation 24 CFR, Part 570.483(c).
C. For Microenterprise Assistance activities, the Jurisdiction must only meet
the benefit to Low/Mod-income person or household (LMI) National
5. Inspections of Activities
A. The Department reserves the right to inspect any activity(ies) performed
hereunder to verify that the activity(ies) is in accordance with the
applicable federal, State and/or local requirements and this Agreement.
B. The Jurisdiction shall inspect any activity performed by contractors and
subrecipients hereunder to ensure that the activity(ies) is in accordance
with the applicable federal, State and/or local requirements and this
The Jurisdiction agrees to require that all activity(ies) found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to its contractor or subcontractor, respectively, until it is so corrected.
The Jurisdiction shall have and maintain in full force and effect during the term of
this Agreement such forms of insurance, at such levels as may be determined by the Jurisdiction and the Department to be necessary for specific components of the activity(ies) described in this Reuse Plan.
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7. Contractors and Subrecipients
A. The Jurisdiction shall not enter into any agreement, written or oral, with
any contractor or subrecipient without the prior determination that the contractor or subrecipient is eligible to receive CDBG funds and is not listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors.
1) Contractors are defined as program operators or construction
contractors who are procured competitively.
Subrecipients are defined as public or private non-profit agencies or
organizations and certain (limited) private for-profit entities who
receive CDBG funds from an awarded jurisdiction to undertake eligible activities.
B. An agreement between the Jurisdiction and any contractor or subrecipient
1) Compliance with the applicable State and federal requirements of
this Agreement, which pertain to, among other things, labor
standards, non-discrimination, Americans with Disabilities Act,
Equal Employment Opportunity, and Drug-Free Workplace; and,
Compliance with the applicable provisions relating to Labor
Standards/Prevailing Wages. In addition to these requirements, all
contractors and subcontractors shall comply with the applicable
provisions of the California Labor Code.
2) Maintenance of, at minimum, the State-required Workers’
Compensation Insurance for those employees who will perform the . activity(ies) or any part of it.
3) Maintenance of, if so required by law, unemployment insurance,
disability insurance and liability insurance, which is reasonable to compensate any person, firm, or corporation, who may be injured or damaged by the contractor, or any subcontractor in performing the activity(ies) or any part of it.
4) Compliance with the applicable Equal Opportunity Requirements
described in this Agreement.
C. Contractors shall:
1) Perform the activity(ies) in accordance with federal, State and local
housing and building codes, as are applicable.
2) Provide security to assure completion of the project by furnishing
the borrower and construction lenders with Performance and Payment Bonds, or other security approved in advance in writing by the Department.
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D. Subreciplents shall:
1) Retain all books, records, accounts, documentation, and all other
materials relevant to this Agreement for a period of five (6) years
from date of termination of this Agreement, or five (5) years from
the conclusion or resolution of any and all audits or litigation
relevant to this Agreement, and any amendments, whichever is
Permit the State, federal government, the Bureau of State Audits,
the Department and/or their representatives, upon reasonable
notice, unrestricted access to any or all books, records, accounts,
documentation, and all other materials relevant to the agreement
for the purpose of monitoring, auditing, or otherwise examining said
8. Obligations of the Jurisdiction with Respect to Certain Third Party
The Jurisdiction shall remain fully obligated under the provisions of this
Agreement notwithstanding its designation of any third party or parties for the
undertaking of all or any part of the Activities funded under this agreement with
respect to which assistance is being provided under this Agreement to the
The Jurisdiction shall comply with all lawful requirements of the Department
necessary to ensure that the Program, with respect to- which assistance is being
provided under this Agreement to the Jurisdiction, is carried out in accordance
with the Department’s Assurance and Certifications, including those with respect
to the assumption of environmental responsibilities of the Department under
Section 104(g) of the Housing and Community Development Act of 1974.
9. Periodic Reporting Re uirements
During the term of this Agreement, the Jurisdiction must submit the following
reports by the dates identified, respectively, or as otherwise required at the
discretion of the Department. The Jurisdiction’s performance under this
Agreement will be based, in part, on whether it has submitted the reports on a
A. Semi-Annual Pi Expenditure/Performance Report: Submit by January 31
and July 31 of each year regardless of whether or not the Jurisdiction has any unspent PI. PI Waivers or open Grants with no accomplishment are not excluded to the reporting requirement.
B. Annual Federal Overlay Reporting: Submit by July 31 starting from the
contract effective date to subsequent June 30, and for each State Fiscal
Year. Annual Reporting includes but is not limited to: Section 3, and Minority Owned Business/Women Owned Business (MBE/WBE).
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C. Wage Compliance Reports: Semi-annual Wage Compliance Reports are
to be submitted by October 7 and April 7 during the entire construction
period. The final Wage Compliance Report is to be submitted thirty (30)
days after construction is completed.
D. Any other reports that may be required as a Special Condition of this
10. Monitoring Re uirements
The Department shall perform a program and/or fiscal monitoring of the
activity(ies). The Jurisdiction shall be required to resolve any monitoring findings
to the Department’s satisfaction by the deadlines set by the Department. If
findings are not adequately resolved in a timely manner, the Department may
deduct points from the Jurisdiction’s performance score on future applications.
Additionally, the Department reserve the right to suspend a jurisdiction’s authority to expend PI (Waiver, RLA and/or PI attached to ‘an open grant) based on significant compliance issues, reporting concerns or serious lack of cooperation in clearing PI monitoring findings.
If the Jurisdiction places signs stating that the Department is providing financing,
it shall indicate in a typeface and size commensurate with the Department’s
funding portion of the project that the Department is a source of financing through
the CDBG Program.
12. Audit/Retention and Ins ection of Records
A. The Jurisdiction must have intact, auditable fiscal records at all times. If
the Jurisdiction is found to have missing audit reports from the SCO during
the term of this Agreement, the Jurisdiction will be required to submit a
plan to the State, with task deadlines, for submitting the audit to the SCO.
If the deadlines are not met, the Jurisdiction will be subject to termination
of this Agreement and disencumbrance of the funds awarded. The
Jurisdiction’s audit completion plan is subject to prior review and approval
by the Department.
B. The Jurisdiction agrees that the Department or its designee will have the
right to review, obtain, and copy all records pertaining to performance of
this Agreement. The Jurisdiction agrees to provide the Department or its
designee with any relevant information requested and shall permit the
Department or its designee access to its premis es, upon reasonable
notice, during normal business hours for the pur pose of interviewing
employees and inspecting and copying such book s, records, accounts,
and other material that may be relevant to a matter under investigation for
the purpose of determining compliance with Calif ornia Public Contract
Code (PCC) Section 10115 et seq., Government Code (GC)
Section 8546.7 and 2 CCR 1896.60 et seq. The Jurisdiction further
agrees to maintain such records for a period of five (5) years after final
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payment under this Agreement. The Jurisdiction shall comply with the
caveats and be aware of the penalties for violations of fraud and for
obstruction of investigation as set forth in PCC 10115.10.
C. An expenditure which is not authorized by this Agreement or which cannot
be adequately documented shall be disallowed and must be reimbursed to the Department or its designee by the Jurisdiction.
D. Absent’fraud or mistake on the part of the Department, the determination
by the Department of the allowability of any expenditure shall be final.
E. For the purposes of annual audits under OMB Circular A-133 (The United
States Office of Management and Budget Circular for Audits of States and Local Governments), Jurisdiction shall use the Federal Catalog Number 14.228 for the State CDBG Program.
F. Notwithstanding the foregoing, the Department will not reimburse the
Jurisdiction for any audit cost incurred after the expenditure deadline of
G. The jurisdiction understands that the expenditure of PI is covered under
the OMB A-133 Single Audit Requirements and will meet all these
requirements and report said PI Expenditure along with grant funds each
13. Conflict of Interest of Members, Officers, or Employees of Contractors,
Members of Local Governing Body, or other Public Officials
Pursuant to 24 CFR 570.611, no member, officer, or employee of the
Jurisdiction, or its designees or agents, no member of the Governing Body of the
locality in which the program is situated, and no other public official of such
locality or localities who exercise or have exercised any functions or
responsibilities with respect to CDBG activities assisted under this part, or who
are in a position to participate in a decision-making process or gain inside
information with regard to such activities, may obtain a financial interest or
benefit from a CDBG-assisted activity, or have a financial interest in any contract,
subcontract or agreement with respect to a CDBG-assisted activity or its
proceeds, either for themselves or those with whom they have business or
immediate family ties, during their tenure or for one (1) year thereafter. The
Jurisdiction shall incorporate, or cause to be incorporated, in all such contracts or
subcontracts a provision prohibiting such interest pursuant to the purposes of this
. 14. Waivers
No waiver of any breach of this Agreement shall be held to be a waiver of any
prior or subsequent breach. The failure of the Department to enforce at any time
the provisions of this Agreement or to require at any time performance by the
Jurisdiction of these provisions shall in no way be construed to be a waiver of
such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.
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A. If any provision of this Agreement, or an underlying obligation, is held
invalid by a court of competent jurisdiction, such invalidity, at the sole
discretion of the Department, shall not affect any other provisions of this
Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.
B. The Jurisdiction shall notify the Department immediately of any claim or
action undertaken by or against it which affects or may affect this
Agreement or the Department, and shall take such action with respect to
the claim or action as is consistent with the terms of this Agreement and the interests of the Department.
16. Lead-Based Paint Hazards
Activity(ies) performed with assistance provided under this Agreement are
subject to lead-based paint hazard regulations contained in Title 8 (Industrial
Relations) and Title 17 (Public Health) of the CCR and 24 CFR, Part 35 (Lead
Disclosure). Any grants or loans made by the Jurisdiction with assistance
provided under this Agreement shall be made subject to the provisions for the
elimination or mitigation of lead-based paint hazards under these Regulations.
The Jurisdiction. shall be responsible for the notifications, inspections, and
clearance certifications required under these Regulations.
17. Prevailing Wages
A. Where funds provided through this Agreement are used for construction
work, or in support of construction work, the Jurisdiction shall ensure that
the requirements of California Labor Code (LC), Chapter 1, commencing
with Section 1720, Part 7 (pertaining to the payment of prevailing wages
and administered by the California Department of Industrial Relations) are
B. For, the purposes of this requirement "construction work" includes, but is
not limited to rehabilitation, alteration, demolition, installation or repair
done under contract and paid for, in whole or in part, through this
Agreement. All construction work shall be done through the use of a
written contract with a properly licensed building contractor incorporating
these requirements (the "construction contract"). Where the construction
contract will be between the Jurisdiction and a licensed building
contractor, the Jurisdiction shall serve as the "awarding body" as that term
is defined in the LC. Where the Jurisdiction will provide funds to a third
party that will enter into the construction contract with a licensed building
contractor, the third party shall serve as the "awarding body." Prior to any
disbursement of funds, including but not limited to release of any final retention payment, the Department may require a certification from the awarding body that prevailing wages have been or will be paid.
18. Compliance with State and Federal Laws and Regulations
A. The Jurisdiction agrees to comply with all State laws and regulations that
pertain to construction, health and safety, labor, fair employment
practices, equal opportunity, and all other matters applicable to the
Jurisdiction, its subcontractors, contractors or subcontractors, and the
Reuse activity(ies), and any other State provisions as set forth in this
B. The Jurisdiction agrees to comply with all federal laws and regulations
applicable to the CDBG Program and to the activity(ies), and with any other federal provisions as set forth in this Agreement.
19. Anti-Lobbying Certification
The Jurisdiction shall require that the language of this certification be included in
all contracts or subcontracts entered into in connection with this activity(ies) and
that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this
certification is a prerequisite for making or entering into this transaction imposed
by 31 U.S.C. 1352. Any person who fails to file the required certification shall. be
subject to a civil penalty of not less than $10,000 and no more than $100,000 for
"The undersigned certifies, to the best of his or her knowledge or belief, that:
A. No federal appropriated funds have been paid or will be paid, by or on
behalf of it, to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any federal contract, the making of any
federal grant, the making of any federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any federal contract, grant, loan, or
cooperative agreement; and,
B. If any funds other than federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer
or employee of any agency, a. Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with this federal contract, grant, loan, or cooperative
agreement, it will complete and submit Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions."
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20. Bonus or Commission. Prohibition Against Payments of
The assistance provided under this Agreement shall not be used in the payment
of any bonus or commission for the purpose of,
A. Obtaining the Department’s approval of the Application for such
B. The Department’s approval of the Applications for additional assistance;
C. Any other approval or concurrence of the Department required under this
Agreement, Title I of the Housing and Community Development Act of
1974, or the State regulations with respect thereto; provided, however,
that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.
21. Citizen Partici ation
The Jurisdiction is subject to the requirements concerning citizen participation contained in Federal Regulations at 24 CFR, Part 570.486, Local Government Requirements, Part 91.105 and 91.115.
22. Clean Air and Water Acts
This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR, Part 15, as amended from time to time.
23. Conflict of Interest of Certain Federal Officials
No member of or delegate to the Congress of the United States, and no resident
commissioner, shall be admitted to any share or part of this Agreement or to any
benefit to arise from the same. The Jurisdiction shall report all perceived or
actual conflicts of interest cases to the State for review before financial benefits
24. Environmental Requirements
The Jurisdiction shall comply with the provisions of the National Environmental
Policy Act (NEPA) by following the procedures contained in 24 CFR, Part 58.
The Jurisdiction shall not undertake any activity that would have an adverse
environmental impact or limit the choice of reasonable alternatives under 24
CFR, Part 58.22 until HUD or the Department has issued an environmental
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25. Equal Opportunity
A. The Civil Rights, Housing and Community Development, and Age
Discrimination Acts Assurances
During the performance of this agreement, the Jurisdiction assures that no
otherwise qualified person shall be excluded from participation or
employment, denied program benefits, or be subjected to discrimination
based on race, color, national origin, sex, age, handicap, religion, familial
status, or religious preference, under any activity funded by this
Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of
the Housing and Community Development Act of 1974, as amended, the
Age Discrimination Act of 1975, the Fair Housing Amendment Act of 1988,
and all implementing regulations.
B. Rehabilitation Act of 1973 and the "504 Coordinator"
The Jurisdiction further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR, Part 8, including, but not limited to, for Jurisdiction’s with fifteen (15) or more permanent full or part time employees, the local designation of a specific person charged with local enforcement of this Act, as the "504 Coordinator."
C. The Training, Employment, and Contracting Opportunities for Business
and Lower-Income Persons Assurance of Compliance
1) The activity(ies) to be performed under this Agreement are subject
to the requirements of Section 3 of the HUD Act of 1968, as
amended, 12 U.S.C. 1701u. Recipients, contractors and
subcontractors shall direct their efforts to provide, to the greatest
extent feasible, training and employment opportunities generated
from the expenditure of Section 3 covered assistance to Section 3
residents in the order of priority provided in 24 CFR,
The parties to this Agreement will comply with the provisions of said
Section 3 and the regulations issued pursuant thereto by the
Secretary of HUD set forth in 24 CFR, Part 135, and, all applicable
rules and orders of the Department issued thereunder prior to the
execution of this Agreement. The parties to this Agreement certify
and agree that they are under no contractual or other disability
which would prevent them from complying with these requirements.
The Jurisdiction will include these Section 3 clauses in every
contract and subcontract for Work in connection with the
activity(ies) and will, at the direction of the Department, take
appropriate action pursuant to the contract or subcontract upon a
finding that the Jurisdiction or any contractor or subcontractor is in
violation of regulations issued by the Secretary of HUD, 24 CFR,
Part 135 and, will not let any contract unless the Jurisdiction or
contractor or subcontractor has first provided it with a preliminary
statement of ability to comply with the requirements of these
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4) Compliance with the provisions of Section 3, the regulations set
forth in 24 CFR, Part 135, and all applicable rules and orders of the
Department issued thereunder prior to the execution of this Agreement shall be a condition of the federal financial assistance provided to the activity(ies), binding upon the Jurisdiction, its successors, and assigns. Failure to fulfill these requirements shall subject the Jurisdiction, its contractors and subcontractors and its successors, to such sanctions as are specified by 24 CFR, Part 135 and those sanctions specified by this Agreement.
D. Assurance of Compliance with Requirements Placed on Construction
Contracts of $10,000 or More
The Jurisdiction hereby agrees to place in every contract and subcontract
for construction exceeding $10,000 the Notice of Requirement for
Affirmative Action to ensure Equal Employment Opportunity (Executive
Order 11246), the Standard Equal Employment Opportunity, and the
Construction Contract Specifications. The Jurisdiction furthermore agrees
to insert the appropriate Goals and Timetables issued by the U.S.
Department of Labor in such contracts and subcontracts.
26. Flood Disaster Protection
A. This Agreement is subject to the requirements of the Flood Disaster
Protection Act (FDPA) of 1973 (Public Law 93-234). No portion of the
assistance provided under this Agreement is approved for acquisition or
construction purposes as defined under FDPA, Section 3 (a) of said Act,
for use in an area identified by the Secretary of HUD as having special
flood hazards which is located in a community not then in compliance with
the requirements for participation in the national flood insurance program
pursuant to FDPA, Section 102(d) of said Act.
B. The use of any assistance provided under this Agreement for such
acquisition or construction in such identified areas in communities then
participating in the national flood insurance program shall be subject to the
mandatory purchase of flood insurance requirements of FDPA, Section
102(a) of said Act.
C. Any contract or agreement for the sale, lease, or other transfer of land
acquired, cleared or improved with assistance provided under this
Agreement shall contain certain provisions. These provisions will apply if
such land is located in an area identified by the Secretary of HUD as
having special flood hazards and in which’the sale of flood insurance has
been made available under the National Flood Insurance Act of 1968, as
amended, 42 U.S.C. 4001 et seq.
D. These provisions shall obligate the transferee and its successors or
assigns to obtain and maintain, during the ownership of such land, such
flood insurance as required with respect to financial assistance for
acquisition or construction purposes under FDPA, Section 102(s) of the
Flood Disaster Protection Act of 1973. Such provisions shall be required
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notwithstanding the fact that the construction on such land is not itself
funded with assistance provided under this Agreement.
27. Federal Labor Standards Provisions
The Jurisdiction shall cause or require to be inserted in full, in all such contracts
subject to such regulations, provisions meeting the requirements of:
A. Davis-Bacon Act (40 U.S.C. 3141-3148 requires that workers receive no
less than the prevailing wages being paid for similar work in their locality.
Prevailing wages are computed by the Federal Department of Labor and
are issued in the form of federal wage decisions for each classification of
work. The law applies to most construction, alteration, or repair contracts
B. "Anti-Kickback Act of 1986" (41 U.S.C. 51-58) prohibits any person from
(1) providing, attempting to provide, or offering to provide any kickback; (2)
soliciting, accepting, or attempting to accept any kickback; or (3) including
directly or indirectly, the amount of any kickback prohibited by clause (1)
or (2) in the contract price charged -by a subcontractor to a prime
contractor or a higher tier subcontractor or in the contract price charged by
a prime contractor to the United States.
C. Contract Work Hours and Safety Standards Act – CWHSSA (40 U.S.C.
3702) requires that workers receive "overtime" compensation at a rate of one to one-half (1-1/2) times their regular hourly wage after they have worked forty (40) hours in one week.
D. Title 29, Code of Federal Regulations CFR. Subtitle A. Parts I. 3 and 5)
are the regulations and procedures issued by the Secretary of Labor for
the administration and enforcement of the Davis-Bacon Act, as amended.
The Jurisdiction shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Department for review upon request.
The Jurisdiction shall comply with the procurement provisions in 24 CFR, Part
85.36: Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments.
The Department shall review the actual National Objective and/or Public Benefit
achievements of the Jurisdiction. In the event that the National Objective and/or
Public Benefit requirements are not met, the Department will require the
recapture of the entire PI expended on that project/activity. Additional remedies
may include suspending the Jurisdiction’s authority to use PI funds until the
Jurisdiction has developed capacity to ensure future PI funds will be used for eligible activities that will meet a National Objective.
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30. Relocation Displacement, and Acaullsition
The provisions of the Uniform Relocation Act, as amended, 49 CFR, Part 24, and Section 104(d) of the Housing and Community Development Act of 1974 shall be followed where any acquisition of real property is carried out by the Jurisdiction and assisted in whole or in part by funds allocated by CDBG.
31. Uniform Administrative Requirements
The Jurisdiction shall comply with applicable Uniform Administrative
Requirements as described in 24 CFR, Section 570.502, including cited Sections
of 24 CFR, Part 85.
32. Section 3
The Jurisdiction will comply with Section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u), and implementing Regulations at
24 CFR, Part 135.
33. Affirmatively Furthering Fair Housing
The Jurisdiction will affirmatively further fair, housing, which means that it will
conduct an analysis to identify impediments to fair housing choice within the
Jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard.
34. General Contract Conditions
The following conditions apply to all activities, including set aside activities. The
Jurisdiction must meet the conditions within ninety (90) days of this Agreement’s
execution. Failure to meet the following Special Conditions may result in
termination of this Agreement.
A. Environmental Compliance
The Jurisdiction shall have satisfied all National Environmental Policy Act
(NEPA) requirements and California Environmental Quality Act (CEQA)
requirements. CEQA shall be approved by the Jurisdiction. The level of
compliance varies by activity. NEPA review must be completed by the Jurisdiction for each activity and approved in writing by Department staff prior to incurring costs on the activity(ies).
B. Acguisition/Relocation Compliance
The Jurisdiction must document its compliance with the Uniform
Relocation Act, Section 104(d) before release of funds by the Department.
The Jurisdiction must submit a specific relocation assistance plan for each
activity which l result in temporary or permanent displacement. For
projects where there will be temporary or permanent displacement, the
Jurisdiction must submit signed General Information Notices (GINs) from
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each tenant who was residing in the project at the time of Application
submittal. If the Jurisdiction believes that there will be no displacement as
a result of their activities, they must submit a letter explaining why no displacement or relocation will occur, which will be subject to written approval by the Department.
C. Site Control
The Jurisdiction shall demonstrate site coritrol of the proposed project
property by submitting evidence of one or more of the following to the
1) Fee title;
2) A leasehold interest on the project property with provisions that
enable the lessee to make improvements on and encumber the
property provided that the terms and conditions of any proposed
lease shall permit compliance with all Program requirements;
3) An option to purchase or lease;
4) A disposition and development agreement with a public agency;
5) A land sale contract, or other enforceable agreement for the
acquisition of the property; or,
6) All easements and right-of-ways (required for completion of the
CDBG project) must be obtained.
D. Fundin Commitments and Proiect Cost Estimates
All funding required for project completion must be documented and
committed. If all funding is not committed, the Department shall terminate
this Agreement. If the Jurisdiction has applied for other funding prior to the
execution of this Agreement, the Jurisdiction must notify the Department
as soon as that application is approved or denied.. If the Jurisdiction must
apply for other funding after the execution date of this Agreement, the
Jurisdiction must apply at the earliest possible opportunity offered by the
other funding source(s) and notify the Department as soon as that
application is approved or denied.
A current third-party cost estimate must be provided by the engineer or architect for the project.
E. Activity Administration Documentation
There are four methods of administering and/or completing RLA activities:
1) Use of in-house staff, only;
2) Subrecipient agreement(s) with qualified non-profit(s);
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3) Consultants/contractors/others obtained through federal
procurement procedures; and,
4) Any combination of the above methods.
The Jurisdiction must provide the following documentation demonstrating that one or more of these methods were used for the GA of the RLA and for all activities carried out under this Agreement.
1) Use of in-house staff onl : If not previously provided in the
Application, submit staff resumes and duty statements that clearly
identify that Jurisdiction staff has capacity and experience to
complete administration of the proposed activities in the
2) Subrecipient agreement(s) with qualified non-profit(s): Sub-
recipients, and their respective agreements with the Jurisdiction
must adhere to all Program requirements. Submit the subrecipient
agreement that was executed between the non-profit and the
Ci of Livingston . (Submitting draft documents for review
prior to execution is recommended.) The scope of work in the
subrecipient agreement must match the description of activity in
this Agreement. Any parts of the activity description in this
Agreement not covered by the subrecipient agreement must have
separate procurement information. If the subrecipient is using
CDBG funds to hire other consultants or subrecipients to do part or
all of the Work then the procurement documentation or additional
subrecipient agreements must be provided to the Department for
review and approval.
3) Consultants: Submit procurement documentation that all third-party
consultants are procured in accordance with Federal Procurement Procedures and the Grant Management Manual, as follows:
A copy of the document used to notify prospective consultants, such as a Request for Proposal or similar document.
A list of all bid respondents, showing respondents’ contact information and the dollar amount of each proposal.
A brief description of the process used to select the consultant/
contractor/other, including the rationale for the selection.
Additional information may be found in the Grant Management Manual, Program Operators.
F. Compliance With All Loans and/or Grant Agreements
Pursuant to this Agreement, the Jurisdiction must comply with State and
Federal Laws and Regulations that pertain to matters applicable to the
Jurisdiction. Prior to disbursement of any funds under this Agreement, the
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Jurisdiction shall be in compliance with all loan and/or grant agreements to which it is a party, which are administered by the Department.
G. Easements and Rights-of-Way
if required for the completion of a CDBG project, the Jurisdiction must
obtain all easements and rights-of-ways required for completion of the
CDBG project within twelve (12) months of execution of this Agreement.
Failure to obtain these may result in termination of this Agreement.
H. Section 504 Accessibility Requirements
1) Section 504 Regulations apply when CDBG funds are used on a
new construction housing or public facility project or when an existing public facility or housing project with fifteen (15) or more units is being purchased and/or "substantially" rehabilitated. Qualified CDBG assisted housing projects are required to have a certain percentage of the units designed for and accessible to persons with mobility and sensory impairments.
2) For a federally assisted new construction housing project, Section
504 requires five percent (5%) of the dwelling units, or at least one
unit, whichever is greater, to meet Uniform Federal Accessibility
Standards or a standard that is equivalent or stricter, for persons
with mobility disabilities. An additional two percent (2%) of the
dwelling units, or at least one unit, whichever is greater, must be accessible for persons with hearing or visual disabilities.
3) Under Section 504, alterations are substantial (i.e. substantially
rehabilitated ) if they are undertaken to a housing project that has
15 or more units and the cost of the alterations is seventy-five
percent (75%) or more of the replacement cost of the completed
facility; and require that a minimum of five percent (5%) of the
dwelling units, or at least one unit, whichever is greater, shall be
made accessible to persons with mobility disabilities and an
additional two percent (2%) of the dwelling units, or at least one
unit, whichever is greater, shall be made accessible to persons with
hearing or visual disabilities.
4) The Jurisdiction shall provide documentation satisfactory to the
Department verifying that the required housing units or public
facility described in the project comply with the accessibility
standards. CDBG funds will not be released until the necessary
documentation is provided. All CDBG funded programs must, to
the greatest degree possible, be conducted in buildings which meet
Section 504 accessibility standards.
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1. Grantee’s Data Universal Numbering System DUNS
The jurisdiction shall provide the Department with a DUNS number for
any contractor or subcontractor prior to release of any funds under this
35. Community Development Activity Conditions
A. Homeownership Assistance
If the Work to be performed under this Agreement involves
Homeownership Assistance, the following additional special conditions
1) Program Guidelines: The Jurisdiction must submit a copy of its
Homeownership Assistance Program Guidelines and, its P1 Re-Use
Plan to the Department for review and approval within ninety (90) days of the execution date of this Agreement.
2) If the Jurisdiction proposed to assist homebuyers to purchase
newly constructed units in its CDBG application under the Homeownership Assistance activity, the following requirements must be met:
a) The units must have been available for sale to the general
b) Development of the new subdivision must not be dependent
upon the funding of the homebuyer loan;
c) CDBG funds shall not be used for construction; and,
d) Homeownership Assistance loans will not be approved prior
to the foundation of the housing being in place.
B. Housing Rehabilitation
It the Work to be performed under this Agreement involves Housing Rehabilitation, the following additional special conditions apply:
1) Program Guidelines: The Jurisdiction must submit a copy of its
Housing Rehabilitation Program Guidelines and its PI Re-Use Plan to the Department for review and approval.
Affordable Rent: If the Jurisdiction’s Housing Rehabilitation
Program provides for rehabilitating rental properties, the
Jurisdiction must submit to the Department its provisions for
assuring affordable rent for the, LMI occupants. Jurisdiction may
include this information as part of the Housing Rehabilitation
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36. Economic Development Activity- Specific Conditions
A. Restrictions on CDBG-Assisted Public Pro erty
CDBG funds can be used by the Jurisdiction to purchase or rehabilitate
public property. The change of use of real property provisions contained
in 24 CFR 570.489(i) apply to real property within the.unit of general local
governments control (including activities undertaken by subrecipients),
which was acquired or improved in whole or in part using CDBG funds in
excess of the threshold for small purchase procurement (currently
$100,000). The restrictions shall apply from the date CDBG funds are first
spent for the property until five (5) years after completion of the project.
See the Federal Regulations for the full text of this regulation. The
Jurisdiction must provide documentation of proper restriction on assisted
B. Business Assistance Activity
1) Jurisdictions implementing Business Assistance (BA) Loans, shall
submit program guidelines that ensure compliance with CDBG
underwriting requirements as described in 24 CFR 570, Appendix
A, "Guidelines and Objectives for Evaluating Project Costs and
Financial Requirements" and with public benefit requirements contained in 24 CFR 570.482(f).
2) Jurisdictions implementing a BA loan shall provide a written
Employment Agreement required to be executed between the
Jurisdiction and the business owner [requirements of the
Employment Agreement are described in 24 CFR 570.506 (b), (5),
and (6)]. The written Employment Agreement must include a
commitment by the business that the jobs are to be created or
retained by the termination date of this Agreement and that at least
fifty-one percent (51%) of all jobs created or retained (on a FTE
basis) will be held by LMI persons. The Employment Agreement
shall specify that, prior to receiving assistance, the business shall
a) Provide a listing, by job title, of the permanent jobs projected
to be created;
b) Identify which jobs, if any, are part-time and the annual
hours of work for each position;
c) Identify which jobs are projected to be filled by LMI; and,
d) Provide periodic reporting (semi-annual) not limited to: listing
jobs, by job title, of all the permanent jobs actually filled, and
which of those jobs are held by members of the LMI.
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C. Microenter rise Assistance Activities
1) Jurisdictions implementing a Microenterprise Assistance activity for
technical assistance and/or microenterprise loans, shall submit
program guidelines that ensure compliance with CDBG
requirements. Specifically, guidelines must ensure that all
beneficiaries of the program are eligible micro enterprises, per HUD definitions. A microenterprise must:
a) Have all owners of the business documented as meeting
HUD family income eligibility standards; and,
Have documentation that the business’s owners and employees are five (5) or fewer in number.
2) When implementing a Microenterprise Program, the program
guidelines shall include the proposed benefits, eligible activities and
ongoing evaluation of program services. The guidelines will include
a Beneficiary Tracking Plan, which defines the goals; identifies the
roles and responsibilities of the service providers; identifies the
market and focuses the outreach; defines the screening and
referral process; and, tracks the ‘beneficiaries through the
program’s level of service. The Beneficiary Tracking Plan shall also
describe the roles and responsibilities of the Jurisdiction and/or
program operator for meeting the reporting requirements of the
State CDBG Program.
When implementing. a Microenterprise Program that is part of an
integrally-related component of a larger project where non-LMI
persons will be extended training and supportive services, shall
submit guidelines including the methodology describing how CDBG
funds will only be used towards the assistance of LMI to LMI
persons under the Jurisdiction’s activity.
4) Jurisdictions implementing a Microenterprise activity for loans to
microenterprises made with Grant funds or PI funds, shall submit
guidelines that ensure compliance with CDBG underwriting
requirements as described in 24 CFR, Part 570, Appendix A,
"Guidelines and Objectives for Evaluating Project Costs and
5) If under this Agreement, a Microenterprise Facade Improvement
activity is being implemented, the Jurisdiction shall submit program
guidelines that ensure compliance with CDBG National Objective
requirements, as described . in 24 CFR 570, Appendix A,
"Guidelines and Objectives for Evaluating Project Costs and Financial Requirements."
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D. Required Agreements for Assisted Businesses
The Jurisdiction shall execute a written agreement between the
Jurisdiction and the business receiving CDBG funds (loans or grants)
under this Agreement to ensure compliance with CDBG State and federal regulations. The written agreement shall contain language to ensure each business complies with the terms of this Agreement, Exhibit A, as well as each of the criteria as set forth in 24 CFR 570.506 (b)(4) and (c).
1) Each agreement between the Jurisdiction and the business(es)
shall be submitted to the Department for review and written
approval, prior to execution by the business and
City of Livingston