(Revised 11/13) INDIANA OFFICE OF COMMUNITY AND RURAL AFFAIRS STANDARD SUB-RECIPIENT AGREEMENT FOR CDBG-FUNDED PROJECTS (MODIFICATIONS TO THIS STANDARD AGREEMENT MUST BE APPROVED BY THE
OFFICE OF COMMUNITY AND RURAL AFFAIRS PRIOR TO FULL EXECUTION)
THIS AGREEMENT is entered into this _________ day of ______________________, ________ by and
between the City/Town/County of ___________________________________________, State of Indiana
(hereinafter referred to as the “Recipient”), by and through its ___________________________________
__________________________________, and _____________________________________________,
(hereinafter referred to as the “Subrecipient”), and approved by the Indiana Office of Community and Rural Affairs.
WHEREAS, the Recipient has received a grant under Title I of the Housing and Community Development Act of 1974, (P.L. 93-383), as amended, from the Indiana Office of Community and Rural Affairs (“IOCRA”) using federal Community Development Block Grant (“CDBG”) funds allocated by the United States Department of Housing and Urban Development, (“HUD”) bearing the grant-identifier number assigned by the IOCRA of _____________________; and,
WHEREAS, pursuant to this CDBG grant the Recipient is undertaking certain activities; and,
WHEREAS, the Recipient desires to engage the Subrecipient to give certain assistance in connection with such undertakings; and,
NOW, THEREFORE, the Recipient and the Subrecipient do mutually agree as follows:
1. DEFINITIONS: As used in this Contract:
A. “Subrecipient” means the entity, whether public, not-for-profit or private, which has the responsibility for administering the subject CDBG-assisted project or activity.
B. “Area” means the corporate boundaries of the Recipient, those being______________________, Indiana, or one or more sections of the ______________________________________ as specifically delineated in the Statement of Work, Appendix I of this Agreement.
C. “CDBG” means Community Development Block Grant.
D. “Contractor” means an entity other than the Subrecipient (except as noted in the Labor Standards Provisions), that furnishes to the Recipient and Subrecipient services or supplies (other than standard commercial supplies, office space or printing services).
“IOCRA” means Indiana Office of Community and Rural Affairs.
F. “HUD” means the Secretary of Housing and Urban Development or a person authorized to act on his behalf.
G. “Program” means the Community Development Program approved by IOCRA as the same may
be amended from time to time.
2. SCOPE OF SERVICES: The Subrecipient shall perform all services according to the Program Description and Statement of Work attached as Appendix I and made part of this Agreement.
3. TERM OF AGREEMENT: This Agreement shall commence on the _____ day of ________________,
20___, and end on the ______ day of ___________________, ________. The term of this Agreement may be extended by mutual consent of the Recipient and Subrecipient, subject to termination provisions set forth herein and the expiration date of the Recipient’s CDBG grant from the IOCRA. The Subrecipient agrees to comply with the minimum five-year real property usage requirements set forth under 24 CFR 570.503 (a)(8)(i) as well as usage requirements for CDBG-assisted facilities and other assets as set forth under 24 CFR 570.505.
4. AMENDMENTS: Any revision to this Agreement, including Appendices, shall only be made by written amendment to this Agreement.
5. COMPLIANCE WITH APPROVED PROGRAM: All activities authorized by this Agreement shall be performed in accordance with the approved Program Description, the approved Budget, the Grant Conditions, and the relevant Department of Housing and Urban Development regulations, as set forth in the initial grant agreement between the IOCRA and the Recipient. The Subrecipient may not use the CDBG-assisted facilities in any manner which does not meet the intent and requirements of such initial CDBG grant agreement and such CDBG-facilities must be used to meet the prescribed CDBG national objective under which the IOCRA awarded said CDBG grant to the Recipient.
6. SUBCONTRACTING: The performance covered by this Contract shall not be subcontracted, assigned or delegated without the prior written consent of the Recipient, and the prior written consent of the IOCRA.
7. LIMITATION ON FUNDING: It is expressly understood and agreed that in no event will the Recipient pay the Subrecipient more than $__________________ for full and complete satisfactory performance of this Agreement. The Recipient shall compensate the Subrecipient for fulfilling this Agreement as provided in accordance with the terms and conditions contained herein.
8. CDBG PROGRAM INCOME: Any gross income directly generated from the use of the CDBG grant funds shall be used only for those activities delineated in the Statement of Work and all relevant provisions of this Agreement shall apply to such activities. Disposition of CDBG Program Income received by the Subrecipient shall be governed by the requirements outlined in the Statement of Work, Appendix I, and in compliance with 24 CFR 570.504 (b) and (c).
9. FISCAL AND ADMINISTRATIVE RESPONSIBILITIES: The Subrecipient agrees to comply with the provisions of 24 CFR 570.502 (a) or (b), as applicable, and all requirements and standards which include but are not limited to the following:
Allowable and Allocable Costs. Costs must be necessary, reasonable and directly related to the scope of services of this Contract. In addition, costs must be legal and proper. The budget included in Appendix I shall control amounts of allowable expenditures within budget categories.
B. Documentation of Costs. All costs shall be supported by properly executed payrolls, time records, invoices, contracts, or vouchers or other official documentation evidencing in proper detail the nature and propriety of charges. All checks, payrolls, invoices, contracts, vouchers, orders, or other accounting documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible.
C. Restriction on Disbursements. No money under this Agreement shall be disbursed by the Subrecipient to any contractor except pursuant to a written contract which incorporates the applicable requirements of this Contract and IOCRA/HUD regulations and unless the contractor is in compliance with IOCRA/HUD requirements for applicable accounting and fiscal matters.
D. Records and Reports:
(1) Establishment and Maintenance of Records: Records shall be maintained in accordance with requirements prescribed by IOCRA or the Recipient with respect to all matters covered by this Contract. Except as otherwise authorized by IOCRA, such records shall be maintained for a period of five (5) years after final close-out of the grant by the Indiana Office of Community and Rural Affairs.
(2) Reports: (a) At such times and in such forms as IOCRA or the Recipient may require, there shall be furnished to IOCRA or the Recipient such statements, records, data and information as IOCRA or
the Recipient may request pertaining to matters covered by this Contract.
(b) The Subrecipient shall, at a minimum, submit the following reports to the Recipient:
(i) Quarterly progress reports due by the 15th day following the end of each calendar quarter, such reports outlining activities undertaken during such calendar quarter toward completion of the subject Program and the progress in meeting the prescribed CDBG national objective under the Recipient’s grant agreement with the IOCRA;
(ii) Quarterly financial statements due by the 15th day following the end of each calendar quarter, such reports detailing all revenues and expenses applicable to the CDBG-assisted facilities and activities undertaken during such calendar quarter;
(iii)The reports required in Section 9D(2)(b)(i) and Section 9D(2)(b)(ii) above shall be submitted by Subrecipient to Recipient for a period of five (5) years following Administrative Closeout for the subject Program by the IOCRA to the Recipient, or until _____________________, 20____, whichever period is longer.
(iv) A report at the conclusion of the project for which funds are provided under this
agreement which summarizes the successes or failures of the assisted activity, and the
level of attainment respective to the CDBG national objective prescribed under the CDBG
grant agreement between the IOCRA and the Recipient.
(3) Real and Non-expendable Property: (a) Inventory: The Subrecipient shall keep inventory records, acceptable to the Recipient, on all real and non-expendable property purchased under this Agreement. The Subrecipient shall submit an inventory record of all items at the end of the program year and resubmit it each program year with revisions as necessary.
(b) Insurance and Maintenance: For all real and non-expendable property occupied, operated and/or purchased under this Agreement, the Subrecipient shall maintain sufficient insurance to cover the cost of replacement due to loss by fire, theft, or accidental damage. The Recipient shall be named as loss payee under such policies of insurance. The Subrecipient shall also be responsible for the maintenance and upkeep of all such property.
(4) Cooperation with Subrecipient: The Recipient shall provide all available maps, reports, and
other data requested by the Subrecipient to accomplish the services which are the subject of this
Contract. The Subrecipient shall pay for all articles so supplied.
10. ASSIGNMENT OR LIENS AGAINST CDBG-ASSISTED FACILITIES AND ASSETS: The Subrecipient shall complete the form entitled “CDBG Lien and Restrictive Covenant Agreement”, found in Appendix II, for all real property improved with CDBG funds awarded under this agreement. Appendix II must be duly recorded with the County Recorder in the county in which the improved property is located.
The Subrecipient shall not assign, pledge, or otherwise encumber the Subrecipient’s or Recipient’s interest in the CDBG-assisted facilities or assets without the prior written consent of the Recipient and the IOCRA. The Subrecipient shall not pledge or mortgage the CDBG-assisted facilities or assets as collateral for loans without the prior written consent of the Recipient and the IOCRA. The Subrecipient shall cure and otherwise perfect all liens placed against the CDBG-assisted facilities or assets.
11. ACCESS TO RECORDS: At any time during normal business hours and as often as the Recipient, IOCRA and/or the Comptroller General of the United States may deem necessary, Subrecipient shall make available to the Recipient, IOCRA and/or representatives of the Comptroller General for examination all of its records with respect to all matters covered by this Agreement. Further, the Subrecipient shall permit the Recipient, IOCRA, and/or representatives of the Comptroller General to audit, examine and make excerpts of transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement.
12. MONITORING AND AUDITS OF SUBRECIPIENT: A. Subrecipient Monitoring: The recipient is required by federal Office of Management and Budget (OMB) Circular A-133 to ensure that federal CDBG program requirements are met, that the funds are used for the purpose of the program, and that the Subrecipient complies with reporting and auditing requirements. If the Subrecipient is required to have an A-133 audit (as discussed below), the Recipient must review the A-133 audit report and follow up on any audit findings that relate to the CDBG project. If there are findings relative to the CDBG project, the Recipient must issue a management decision within six months of receipt of the audit report and ensure that the Subrecipient takes appropriate and timely corrective action. The management decision shall clearly state whether or not the audit findings are sustained, the reasons for the decision, and the expected subrecipient action to repay disallowed costs, make financial adjustments, or take other action.
Recipient procedures to ensure that the Subrecipient is meeting program requirements may also include:
(1) Perform an analysis of financial status reports.
(2) Determine appropriateness of disbursements through review of supporting documentation.
(3) On-site visits by the Recipient to the Subrecipient’s CDBG-assisted facilities. At regular intervals during the term of this Agreement, the Recipient may conduct reviews of the content and progress of the Subrecipient services. If, as a result of such reviews, it is the opinion of the Recipient that revisions to the Scope of Services (paragraph 2) is necessary or the methods employed by the Subrecipient are inappropriate, the Recipient may require such revisions by notifying the Subrecipient in writing. Upon receipt of such notification of revision, the Subrecipient shall, within ten (10) days, propose the manner in which the Subrecipient will comply with the revisions.
(4) Review limited scope audit reports. If the Subrecipient expended less than $500,000 in federal awards the Recipient may require an agreed-upon procedures engagement. These engagements may address only one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; matching level of effort, earmarking; and reporting.
(5) Review any financial statement audits when other type audits are not required.
The Recipient will also review the Subrecipient’s fidelity bonding and fiscal and accounting procedures to determine if they meet the requirements of the Agreement.
B. Grant Information: The Recipient will provide the Subrecipient with the following information in compliance with OMB Circular A-133:
(1) Catalog of Federal Domestic Assistance (CDFA) Number for CDBG: 14.228
(2) CDFA Title for CDBG Project: “State Administered CDBG Program”
(3) Name of the Federal grantor agency: U.S. Department of Housing and Urban Development
(4) IOCRA’s Grant Number assigned to the Recipient’s CDBG Project
(5) Amount of any State or Local matching funds
(6) Advise the Subrecipient of requirements imposed upon the Subrecipient pursuant to applicable federal regulations and IOCRA policies.
C. Subrecipient Audit Requirements
(1) A Subrecipient that expends $500,000 or more in federal funds is required to have an audit
In compliance with OMB Circular A-133. The Subrecipient is responsible for submitting a data
collection form and reporting package to the federal clearinghouse within nine months of the end
of the audit period. The reporting package must also be submitted to the Recipient. Per Section
.505 of the OMB Circular A-133, the reporting package consists of:
(a) Financial Statements;
(b) Schedule of Expenditures of Federal Awards;
(c) Summary Schedule of Prior Audit Findings;
(d) Corrective Action Plan for current year audit findings; and,
(e) An Auditor’s Opinion
(2) Subrecipients that receive any public funds (federal, state, or local government funds) are also subject to the audit requirements of Indiana Code 5-11-1-9 and the Indiana State Board of Accounts’ Guidelines For Examination of Entities Receiving Financial Assistance From Governmental Sources. A Subrecipient that is not a governmental entity must annually file an Entity Annual Report (form E-1) with the State Board of Accounts. If the Subrecipient’s disbursements are less than fifty-percent (50%) from public funds they must request and receive a waiver from these audit requirements. If the Subrecipient is a not for profit corporation, and their disbursements are less than $100,000, they may also request a waiver. Contact the Indiana State Board of Accounts at 317-232-2525 for a copy of their Guidelines for Examination of Entities Receiving Financial Assistance From Governmental Sources and information on obtaining a waiver.
An audit in compliance with OMB Circular A-133 will meet the audit requirements of IC 5-11-1-9. However, a waiver from the State Board of Accounts from the audit requirements of IC 5-11-1-9 does not exempt the Subrecipient from audits required by OMB Circular A-133 or other audits provisions within this Agreement.
(3) All Subrecipient audits shall be completed within 180 days after the ending date of the Subrecipient’s fiscal year. Two (2) copies of each audit report shall be delivered by the Subrecipient to the Recipient. One (1) copy will be retained and reviewed by the Recipient, with the remaining copy to be submitted by the Recipient to IOCRA.
(4) If the Subrecipient is unable or unwilling to have an audit conducted in accordance with OMB
Circular A-133, the Recipient shall take one or more of the following actions:
(a) Withhold a percentage of federal CDBG funds until the applicable audit is completed
(b) Suspend further disbursements of federal CDBG funds until the audit is conducted; or
(c) Terminate this Agreement in accordance with Section 13 of this Agreement.
13. TERMINATION OF AGREEMENT: A. By giving thirty (30) days written notice specifying the effective date, the Recipient may terminate this Contract in whole or in part for cause, which shall include:
(1) Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement, including compliance with the approved program and Agreements conditions, and such statutes, executive orders, and HUD directives as may become applicable at any time;
(2) Submission by the Subrecipient to the Recipient of reports that are incorrect or incomplete in
any material respect;
(3) Ineffective or improper use of funds provided under this Agreement;
(4) Failure of the Subrecipient to supply the Recipient with quarterly reports and annual audits as required by the Recipient herein;
(5) Failure of the Subrecipient to comply with the Recipient’s corrective action plan respective to
annual independent audits required by the Recipient herein;
(6) Suspension or termination by IOCRA of the grant to the Recipient under which this Contract is
made, or the portion of it delegated by this Agreement; provided, however, that if the grant is
merely reduced and in the absence of any contrary IOCRA directive, the Subrecipient may
adjust its budget and recommend Contract amendments to the Recipient.
(7) The Recipient may also terminate, assign or transfer this Agreement when required by IOCRA
B. The Subrecipient may propose to terminate this Agreement in whole or in part, for good cause only by giving at least thirty (30) days written notice specifically stating the cause for such requested termination. Any such request for termination shall be subject to the written approval of the Recipient, acted upon by the Recipient within ten (10) days of receipt of the notice of request to terminate. The decision of the Recipient shall be final and conclusive, provided that such approval shall not be unreasonably withheld.
C. This Agreement may also be terminated by either the Recipient or the Subrecipient in whole or in part, by mutual agreement setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Recipient determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Recipient may terminate the award in its entirety.
14. PROGRAM CLOSE-OUT: In the event the Subrecipient does not expend the amount allocated under this Agreement or the project is canceled, expired, assigned or terminated for any reason, any funds not claimed by the Subrecipient and approved by the Recipient for allowable costs by the end of the term or by the date of cancellation, expiration, or termination of this Agreement, as the case may be, shall no longer be payable to the Subrecipient under this Agreement.
15. USE AND REVERSION OF ASSETS: The Subrecipient shall use all CDBG-assisted property acquired under this Agreement in accordance with 24 CFR 570.505 for a period of five (5) years following the date the IOCRA issued a “Certificate of Completion” to the Recipient respective to the Recipient’s CDBG Program. Unless specified otherwise within this Agreement, at the conclusion, cancellation, assignment or termination of this Agreement, the disposition of assets under this Agreement shall be in compliance with 24 CFR 570.503, 24 CFR 570.504, and 24 CFR 570.505, as applicable, which include but are not limited to the following:
(1) Personal property and equipment acquired under this Agreement shall revert to the Recipient or disposition in compliance with 24 CFR 570.503., unless Subrecipient continues to carry out the same Program for which said property and equipment was acquired.
(2) Where there is a residual inventory of unused supplies in excess of $5,000.00 in total
aggregate fair market value in which the Subrecipient has vested title through acquisitions under this Agreement, and where there is no need for said supplies for any other federally sponsored programs or projects, the Subrecipient shall compensate the Recipient for its share in compliance with 24 CFR 570.502.
(3) The Subrecipient shall transfer to the Recipient any funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination.
(4) Real property under the Subrecipient’s control that was acquired or improved in whole or in part with funds under this Contract in excess of $25,000.00, unless otherwise specified in Scope of Services, Appendix I, shall be (a) used to meet one of the national objectives pursuant to 24 CFR 570.208 until five (5) years after the IOCRA issues a “Certificate of Completion” respective to the approved CDBG Program to the Recipient, or (b) disposed of in a manner which results in the Recipient being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment to Recipient shall constitute CDBG Program Income and shall be subject to the provisions of 24 CFR 570.489(e).
(5) If so specified in Appendix I to this Agreement, the Subrecipient may retain CDBG-assisted real and personal property acquired under the Recipient’s CDBG Program after the expiration of the five-year period covered by 24 CFR 570.503 and 24 CFR 570.505.
16. COMMUNITY DEVELOPMENT IDENTIFICATION IN PROJECT ACTIVITIES:
A. All buildings, offices, vehicles and other such property purchased, rehabilitated, or supported in whole or in part with funds made available under this Agreement shall identify the Program as a sponsor of the activity.
B. All pamphlets, brochures or other printed material prepared and/or distributed by the Subrecipient in connection with activities for which Community Development funding is provided under this Agreement shall identify the Program and IOCRA as sponsors of the activity by the inclusion of the following statement of all such material:
“This (brochure, pamphlet, etc.) was produced (in whole or in part) with the assistance of the Recipient of ___________________________________________ through federal funds made available by the Indiana Office of Community and Rural Affairs under Title I of the federal Housing and Community Development Act, as amended.”
C. Failure to comply with A or B above shall result in a disallowance of all costs incurred for the activity.
17. COPYRIGHTS: If this Agreement results in a publication or other copyrightable material, the author may copyright the work, but the Recipient and IOCRA reserve royalty free, nonexclusive, and irrevocable licenses to reproduce, publish, or otherwise use, and to authorize others to use, all copyrighted material and all material which can be copyrighted.
18. PATENTS: Any discovery or invention arising out of or developed in the course of work aided by this Contract shall be promptly and fully reported to IOCRA for determination by IOCRA as to whether patent protection on such invention or discovery, including rights under any patent issued thereon, shall be disposed of and administered in order to protect the public interest.
19. EQUAL OPPORTUNITY AND NONDISCRIMINATION: The Subrecipient agrees to comply with equal opportunity requirements applicable to Community Development Block Grant activities. Specifically, the Subrecipient agrees to comply with:
A. TITLE VI. CIVIL RIGHTS ACT OF 1964: which provides that no person in the United States shall on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.
B. TITLE VIII, CIVIL RIGHTS ACT OF 1968: which provides for fair housing throughout the United States. Kinds of discrimination prohibited include refusal to sell, rent, or negotiate, or otherwise to make unavailable; discrimination in terms, conditions and privileges; discriminatory advertising; false representation; blockbusting; discrimination in financing; and discrimination in membership in multi-listing services and real estate broker organizations. Discrimination is prohibited on the grounds of race, color, religion, sex and national origin. The IOCRA (and grantees) shall administer programs and activities relating to housing and urban development in a manner affirmatively to further the policies of this Title.
C. SECTION 109, HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1977: which provides that no person in the United States shall on the grounds of race, color, national origin or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Title.
D. AGE DISCRIMINATION ACT OF 1975: which provides that no person shall on the basis of age, be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity receiving federal financial assistance.
E. SECTION 504 OF THE REHABILITATION ACT OF 1973: which provides that handicapped individuals may not be excluded from participation in, be denied benefits of or be subjected to discrimination under any program or activity receiving federal financial assistance.
F. EXECUTIVE ORDER 11063: as amended by Executive Order 12259, which requires equal opportunity in housing and related facilities provided by federal financial assistance.
G. EXECUTIVE ORDER 11246: as amended by Executive Orders 11375 and 12086, which prohibit discrimination on the grounds of race, creed, color, sex or national origin in employment under federally assisted construction contracts.
H. SECTION 3. HOUSING AND URBAN DEVELOPMENT ACT OF 1968, which provides that to the greatest extent feasible, opportunities for training and employment shall be given to lower income residents of HUD/IOCRA-assisted project areas, and that contracts for work in connection with such projects be awarded to business concerns which are located in or are owned in substantial part by project area residents. In connection with its compliance with Section 3 and the Section 3 Clause set forth below, the Subrecipient shall insert in full in all contracts and subcontracts for work financed in whole or in part with assistance provided under this Agreement the Section 3 Clause which follows:
“The work to be performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 (u). Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project.”
(1) The parties to this Agreement will comply with the provisions of Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in Title 24 Code of Federal Regulations (24 CFR), and all applicable rules and orders of the Department issued thereunder prior to the execution of this Agreement.
(2) The Contractor will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding if any, a notice advising the said labor organization or workers’ representative of his commitments under this Section 3 Clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
(3) The Contractor will include this Section 3 Clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development under 24 CFR. The Contractor will not subcontract with any subcontractor where Contractor has notice or knowledge that the latter has been found in violation of regulations under 24 CFR and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
(4) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR, and all applicable rules and orders of the Department contract, shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR.
I. AMERICANS WITH DISABILITIES ACT OF 1990: which provides that no person shall on the basis of handicap, be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity receiving federal financial assistance.
20. OTHER REQUIREMENTS: Notwithstanding the Recipient’s responsibilities with respect to the requirements listed below, the Subrecipient agrees to comply with the following requirements, when applicable:
A. NATIONAL PROGRAM FOR MINORITY BUSINESS ENTERPRISE. The Subrecipient agrees to comply with the provisions of Executive Order 11625.
B. RELOCATION AND ACQUISITION: The Subrecipient agrees to comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies of 1970 (42 U.S.C. 4601) and the regulations at 24 CFR 42, which may be amended from time to time.
C. ENVIRONMENT: The Subrecipient agrees to comply with the Clean Air Act (42 U.S.C. 1857, et seq.), the Federal Water Pollution Control Act (33 U.S.C. 1251, et seq.), and the provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.) and the regulations pursuant to these acts, when applicable.
D. HISTORIC PRESERVATION: The Subrecipient agrees to comply with the National Historic Preservation Act (16 U.S.C. 470 et seq.) and regulations pursuant to it. The Subrecipient agrees to take into account the effect of the project for which Community Development funding is provided under this Agreement on any district, site, building, structure, or object listed in or found by the Secretary of the Interior, pursuant to 36 CFR 60.6, to be eligible for inclusion in the National Register of Historic Places.
E. LABOR STANDARDS: When applicable, the Subrecipient agrees to comply with the provisions of 24 CFR 570.603 and related requirements which may be issued from time to time by the IOCRA. The Subrecipient shall include in all applicable construction contracts the provisions of federal law imposing labor standards on federally assisted construction, including, but not limited to residential projects for use by eight (8) or more families.
F. ARCHITECTURAL BARRIERS: The Subrecipient agrees to comply with the Architectural Barriers Act of 1968 (42 U.S.C. 4151) when applicable and with handicapped access requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218 and 225).
G. CULTURAL ENVIRONMENT: The Subrecipient agrees to comply with the provisions of the Flood Disaster Act of 1973 (42 U.S.C. 4001, et seq.) and regulations pursuant to it.
21.PROHIBITIONS: A. Prohibition Against Payments of Bonus or Commission: The assistance provided under this Agreement shall not be used in payment of any bonus or commission to obtain HUD or Recipient approval of the application for such assistance or for additional assistance, or any other approval or concurrence required under this Agreement, Title I of the Housing and Community Development Act of 1974, as amended, or IOCRA/HUD regulations with respect thereto; provided, however, that reasonable fees or bonafide technical, consultant, managerial or other such services, rather than solicitation, are not prohibited if otherwise eligible as program costs.
B. Prohibition Against Kickbacks: The Subrecipient agrees to comply with the Copeland “Anti-Kickback” Act (18 U.S.C. 874) which prohibits kickbacks from public works employees.
C. Conflict of Interest: (1) No member, officer, or employee of the Recipient, or its designees or agents, no member of the governing body of the Recipient of _________________________ or the Subrecipient (and no one with whom they have family or business ties) who exercises any functions or responsibilities with respect to the program during his or her tenure or for one year thereafter, shall have any personal or financial benefit, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the program assisted under the Contract.
(2) The Subrecipient agrees that it will incorporate into every written contract the following provision:
“INTEREST OF CONTRACTOR AND EMPLOYEES: The Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the Community Development Program, and no one with whom they have family or business ties, has any personal financial benefit, direct or indirect in this Contract.”
D. Political Activity Prohibited: None of the funds, materials, property or services provided directly or indirectly under this Agreement shall be used for any candidate for public office or for political activities.
E. Prohibition of, and Elimination of, Lead-Based Paint Hazard: Notwithstanding any other provision, the Subrecipient agrees to comply with the regulations set forth in 24 CFR 570.608 and all applicable rules and orders issued thereunder which prohibit the use of lead-based paint in residential structures undergoing federally assisted construction or rehabilitation and require the elimination of lead-based paint hazards. Every contract or subcontract including painting, pursuant to which such federally assisted construction or rehabilitation is performed, shall include appropriate provisions prohibiting the use of lead-based paint.
F. Prohibition of Assistance for Religious Activities and/or Organizations: None of the funds, materials, property or services provided under this Agreement may be used to promote religious activities or to assist religious organizations in promoting secular activities unless specifically allowed under 24 CFR 570.200(j).
G. Lobbying Prohibited: None of the funds provided under this Contract shall be used for publicity or propaganda purposes designed to defeat or support legislation pending before Congress.
22. CERTIFICATION REGARDING LOBBYING: The undersigned representative of the Subrecipient certifies, to the best of his or her knowledge and belief, that:
A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Subrecipient, 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 loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
B. 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 Subrecipient, 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, the undersigned representative of the Subrecipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
C. The undersigned representative of the Subrecipient shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, agreements) and that all subrecipients shall certify and disclose accordingly.
D. 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 not more than $100,000 for each such failure.
23. COMPLIANCE WITH FEDERAL RULES AND REGULATIONS: The Subrecipient agrees to abide by all applicable federal rules and regulations, as amended from time to time, including but not limited to those federal rules and regulations referred to in this Agreement. Unearned payments under this Agreement may be suspended or terminated upon refusal to accept any additional conditions that may be imposed by HUD at any time or if the grant to the Recipient under Title I of the Housing and Community Development Act of 1974, is suspended or terminated.
24. COMPLIANCE WITH FEDERAL CDBG THIRD-PARTY CONTRACT PROVISIONS: The Subrecipient agrees to abide by all federal and IOCRA contract provisions in carrying out the subject CDBG Program. The Subrecipient agrees to incorporate into all third-party contracts undertaken by the Subrecipient involving CDBG funds the provisions provided herein as Appendix II.
25. CLAIMS AGAINST THE RECIPIENT: The Subrecipient agrees to defend, indemnify and save harmless the Recipient and the IOCRA from any and all claims of any nature whatsoever which may arise from the Subrecipient’s performance of this Agreement; provided, however, that nothing contained in this Agreement shall be construed as rendering the Subrecipient liable for acts of the Recipient, its officers, agents or employees. Refer to Section 26 below for requirements respective to disallowances of costs by IOCRA or HUD. The Subrecipient further agrees to include the Recipient and the IOCRA as co-insured parties under all policies of liability insurance maintained by the Subrecipient respective to the subject CDBG-funded Program.
26. DISALLOWANCES OF PROGRAM COSTS BY IOCRA OR HUD: The Subrecipient agrees to indemnify and save harmless the Recipient from disallowances by the IOCRA or HUD of program costs incurred by the Subrecipient which arise from the Subrecipient’s performance of this Agreement due to the Subrecipient’s failure to meet a national objective of the Community Development Block Grant (CDBG) Program pursuant to 24 CFR 570.200(a)(2), 24 CFR 570.208, and 24 CFR 570.483, or for failure to comply with CDBG/HUD regulations or IOCRA regulatory requirements as determined by the IOCRA or HUD. The Subrecipient agrees to promptly repay the Recipient for all such disallowed costs incurred by the Subrecipient.
IN WITNESS WHEREOF, the Recipient and the Subrecipient have executed this Agreement as of the date first above written.
EXECUTION/SIGNATORIES TO AGREEMENT PROVIDED ON SUCCEEDING PAGE