2. Resolution Approving the Community Development Block Grant (CDBG) Program Income (PI) Reuse Plan

Meeting Date APRIL 02, 2013

Agenda Item #2. Resolution Approving the Community Development Block Grant (CDBG) Program Income (PI) Reuse Plan

Staff Report

Page 1-1

Resolution

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CDBG Program Income Reuse Plan With Jurisdictional Certifications

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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.

STAFF REPORT

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

RECOMMENDATION:

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.

BACKGROUND:

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).

DISCUSSION:

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.

FISCAL IMPACT:

None.

ATTACHMENTS:

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:

AYES:

NOES:

ABSENT:

Rodrigo Espinoza, Mayor

of the City of Livingston

ATTEST:

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

(CDBG)

PROGRAM INCOME (PI) REUSE PLAN

WITH

JURISDICTIONAL CERTIFICATIONS

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.

The

follows:

City of Livingston

1

certifies that PI will only be distributed, as

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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

Account (HA-RLA).

C. 0% (insert percentage, 0 to 100 percent (0%-100%)) of PI received

will be deposited into the Business Assistance Revolving Loan Account

(BA-RLA).

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

Department.

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

process.

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

Department.

ADMINISTRATIVE PROCESS FOR DISTRIBUTION OF

PROGRAM INCOME

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

activity.

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

of execution.

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

application.

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

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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

one time.

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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

Activities

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

P1 Account.

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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

planning studies.

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

manner.

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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

requirements; and,

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

(f).

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

Department.

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SECTION THREE: DEPARTMENT TERMS, CONDITIONS AND

AUTHORIZATION

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

Objective.

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

Agreement.

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.

6. Insurance

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

shall require:

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

later.

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

materials.

8. Obligations of the Jurisdiction with Respect to Certain Third Party

Relationships

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

Jurisdiction.

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

timely basis.

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

Agreement.

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.

11. Signs

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

this Agreement.

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

fiscal-year.

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

Section.

. 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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15. Litigation

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

met.

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

Agreement.

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

such failure.

"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

assistance; or,

B. The Department’s approval of the Applications for additional assistance;

or,

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

are given.

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

clearance.

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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,

Part 135.34(a)(2).

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

regulations.

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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

over $2,000.

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.

28. Procurement

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.

29. Non-Performance

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

Department:

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

Application.

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

Agreement.

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

apply:

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

public;

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

Program Guidelines.

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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

property.

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

agree to:

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

Financial Requirements."

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

2) Each agreement shall require the business to report employee

information periodically (semi-annual) to the Jurisdiction. The report

shall list each job position by job title and number of annual hours

worked and LMI status. The report shall list all the permanent jobs

actually created or retained, and identify which of those job

positions are held by members of the LMI. Additionally, the report

shall include the demographics of job holders (ethnicity/race, disability, status, gender, and head of household status).

3) Each agreement shall require the business(es) submit a Data Universal Numbering System (DUNS) number and be verified as not being on the current federal debarred list, prior to receiving any CDBG financial assistance. The agreement shall require proof of proper insurance for secured collateral and protecting the Jurisdiction. The agreement shall reference this Agreement between the Department and the Jurisdiction. The agreement shall contain all other special conditions as directed by the Department or local loan committee. The agreement shall include but is not limited to the following conditions:

a) Maintaining a specific annual debt service level; and,

b) Requiring a quarterly review of the businesses financial statements with the owner and accounting staff.

37. Community and Economic Development Planninn Activities

A. Non-Implementation Activity

In some cases, the Department may allow a Jurisdiction to first complete a Household Income Survey and/or a Market Study in order to document low-income benefit for the proposed study. In such cases, the Jurisdiction must conduct the survey according to CDBG standards and submit the survey for review and written approval by the Department, prior to initiating any further study activities. All Non-Implementing/Planning Activities ,pursuant to this Agreement must be funded with PI General Administration

(PI GA).

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B. Implementation Activity

Implementation Activities are not permitted under this Agreement using P1 GA funds.

0Certified Approving Resolution Is Attached

I certify that the foregoing is true and correct, and will follow all requirements of this agreement. I understand that my certification also acknowledges that serous compliance issue with the above requirements could result in the State suspending City of Livingston authority to expend PI or may require City of Livingston to return unused P1 to the State until the City of Livingston issues.

Signature of Authorized Representative

Jose Antonio Ramirez, City Manager

Name and Title of Authorized Representative

Signature of CDBG Section Chief

Name of CDBG Section Chief

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clears the serious compliance

04/02/2013

Date Signed

D

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