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This selection has been approved by the Department of Housing and Urban Develop. ment (HUD) and this Authority.

Should you decide to proceed with this undertaking, you will be expected to complete the project, in a manner acceptable to this Authority and HUD, in compliance with: (a) the requirements of the Invitation for Proposals published by this Authority, the Developer's Packet, and your proposal; (b) all applicable State and local laws, codes, ordinances, and regulations as modified by any waivers obtained from the appropriate officials; and (c) the appropriate HUD Minimum Property Standards and the applicable HUD planning and design criteria.

If you accept this Notification, you should submit to this Authority, not later than _^, a certification by the registered architect responsible for the preparation of the working drawings and specifications that they meet the requirements of (a), (b), and (c) of the immediately preceding paragraph.

Upon submission of such certification, an Annual Contributions Contract will be executed by this Authority and HUD. Following such execution, an "Agreement to Enter into Housing Assistance Payments Contract" (Agreement) will be executed by you and this Authority, subject to approval of HUD, which Agreement shall be in accordance with the form of Agreement attached hereto.

[Insert the following if site occupants are to be displaced from the proposed site(s).]

The amount of relocation costs under the Uniform Relocation Assistance and Real Property Acquisition Policies Act calculated by this Authority, and approved by HUD, is $------. If you accept this Notification and as a condition to this Authority's entering into an Agreement with you, (1) you will be required to place this amount in an escrow account under the terms of which payments may be made only upon presentation of written authorization by the LHA for the purpose of meeting relocation costs or (2) HUD will have to be satisfied that other commitments have been made for the funding of such costs.

Failure to submit the documents required above within the specified time may result in the Authority's rescinding this Notification.

Your acceptance of this Notification constitutes a certification and agreement that (a) there will not be made any assignment, conveyance, or any other form of transfer of the property, or any interest therein, without the prior written consent of the Authority and HUD, except to a financial institution for the purpose of obtaining financing (an assignment to a limited partnership of which you are the general partner shall not be considered an assignment for this purpose), and (b) no developer or

Insert date by which the architect's certification is to be sent to the Housing Authority.

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ANNUAL CONTRIBUTIONS CONTRACT

This Annual Contributions (ACC) is entered into as of the

Contract day

of 19, by and between the United States of America (herein called the "Government"), pursuant to the United States Housing Act of 1937 (42 U.S.C. 1401, et seq., which Act as amended to the date of this Contract is herein called the "Act") and the Department of Housing and Urban Development Act (42 U.S.C. 3521), and

(herein called the "Local Authority"), which is organized and existing under the laws of the State of and is a "public housing agency" as defined in the Act. In consideration of the mutual convenants hereinafter set forth, the parties hereto agree as follows:

0.1. Project or Projects. The Local Authority is undertaking to provide decent, safe, and sanitary housing for families of low income (further defined as "Family" or "Families" in Section 2.2) in privately owned accommodations pursuant to Section 23 of the Act by means of Housing Assistance Payments Contracts ("Contracts") with the persons or entities having the legal right to lease or sublease such housing ("Owners"). Such undertaking may involve an agreement for the use of housing to be constructed ("New Construction”), an agreement for the use of existing housing to be substantially rehabilitated ("Substantial Rehabilitation"), or the use of existing housing without substantial rehabilitation ("Existing Housing"). In each instance, the type of housing and the number and sizes of dwelling units with respect to which a certain maximum Annual Contributions commitment is made shall constitute a Project hereunder and shall be identified by a stated Project number.

0.2. Part 1 and Part II of this Annual Contributions Contract. (a) Certain provisions of this ACC, principally those which are specifically applicable to a designated Project, are contained in Part I. Separate forms of Part I are used for different types of Projects (1.e., New Construction, Substantial Rehabilitation, and Existing Housing). A separate Part I, on the applicable form thereof, has been executed with respect to each Project hereunder, and each such Part I, so executed, constitutes a part of this Contract.

(b) The remaining provisions of this ACC, which are applicable to all Projects hereunder, are contained in Part II, which, although not separately executed, constitutes a part of this ACC.

0.3. Fiscal Year. Except for the first Fiscal Year of each Project, there shall be one Fiscal Year for all Projects hereunder. Such established Fiscal Year shall be the 12-month period ending of each calendar

year. The first Fiscal Year for each Project shall be as provided in the Part I applicable to such Project.

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The Local Authority shall, to the maximum extent feasible, enter into an Agreement and Contract in accordance with the numbers and sizes of units specified above, but the Local Authority shall not enter into any Agreement or Contract or take any other action which will result in a claim for a total Annual Contribution in respect to the Project in excess of the maximum amount stated in section 1.3(a).

1.2. Authorization of Actions by Local Authority. (a) In order to carry out the Project, the Local Authority is authorized to (i) enter into an Agreement, (11) enter into a Contract, (iii) make housing assistance payments on behalf of Families, and (iv) take all other necessary actions all in accordance with the forms, conditions and requirements prescribed or approved by the Government; Provided, however, that neither the Local Authority nor the Government shall assume any obligation beyond that provided in the form of Agreement, and in the Contract, approved by the Government.

(b) The Contract shall bear the written approval of the Government.

(c) The Contract shall be for an initial term of not more than five years with provision for renewal for subsequent terms of not more than five years each, but in no event shall the term of the Contract, with respect to any unit, exceed 20 years, subject to the maximum 22 year limitation in Section 1.5.

(d) The Contract may provide for periodic adjustments in the rents chargeable by the Owner; Provided, however, that any such provision shall specify that such adjustments are subject to the following clause:

Limitation. The LHA will make housing assistance payments in increased amounts commensurate with rent adjustments or renegotiations under this Section, but only to the extent possible within the limits of the maximum total amount of Annual Contributions payable under Section 1.3(b)(1) of Part I of the ACC. No commitment is made by the LHA or the Government that such maximum total amount of annual contributions will be increased by reason of any such rent adjustments or renegotiations. However, the Owner may select eligible Families in light of this limitation so that his total receipts (Family rents and housing assistance payments) would be commensurate with the adjusted or renegotiated rents.

1.3 Annual Contributions. (a) Notwithstanding any other provisions of this ACC (other than paragraph (c) of this Section) or any provisions of any other contract between the Government and the Local Authority, the Government shall not be obligated to make any Annual Contributions or any other payment in respect to the Project in excess of $------; Provided, however, that this amount shall be reduced commensurate with any reduction in the number of units under the Housing Assistance Payments Contract or pursuant to any other provision of this ACC.

(b) Subject to the maximum dollar limitation in paragraph (a) of this Section, the Government shall pay Annual Contributions to the Local Authority in respect to the Project in an amount equal to the sum of the following:

(1) The amount of housing assistance payments payable during the Fiscal Year (see Section 1.4) by the Local Authority pursuant to the Contract, as authorized in Section 1.2.

(2) The allowance, in the amount approved by the Government, for security and utility deposits.

(3) The allowance, in the amount approved by the Government, for preliminary costs of administration.

(4) The allowance, in the amount approved by the Government, for the regular costs of administration.

(c) Subject to the maximum amount stated in paragraph (a) of this Section, the Annual Contribution for any Fiscal Year may include such amount as the Government may determine to be necessary to assure that the low-rent character of the Project will be

maintained, which amount shall be credited to an account maintained by the Local Authority or the Government as determined by the Government. To the extent funds are available in said account, the Annual Contribution for any Fiscal Year may exceed the maximum amount stated in paragraph (a) of this Section by such amount, if any, as may be required for increases reflected in the estimates of required annual contributions applicable to such Fiscal Year as approved by the Government in accordance with Section 1.7 below. Any amount remaining in said account after payment of the last Annual Contribution with respect to the Project shall be applied by the Government as a receipt in accordance with Section 18 of the Act.

(d) The Government will make periodic payments on account of the Annual Contributions upon requisition therefor by the Local Authority in the form prescribed by the Government. Each requisition shall include certifications by the Local Authority that housing assistance payments have been or will be made only with respect to units which:

(1) are under lease by Families at the time such housing assistance payments are made except as otherwise provided in the Contract; and

(2) the Local Authority has inspected or caused to be inspected, pursuant to Section 2.7 of Part II of this ACC, within one year prior to the making of such housing assistance payments.

(e) Following the end of each Fiscal Year, the Local Authority shall promptly pay to the Government, unless other disposition is approved by the Government, the amount, if any, by which the total amount of periodic payments during the Fiscal Year exceeds the total amount of the Annual Contribution payable for such Fiscal Year in accordance with this Section.

1.4. Fiscal Year. The Fiscal Year for the Project shall be the Fiscal Year established by Section 0.3 of this Contract; Provided, however, that the first Fiscal Year for the Project shall be the period beginning with the commencement of leasing (1.e., the first day of the month in which the first unit is leased by an eligible Family) and ending on the last day of said established Fiscal Year which is not less than 12 months after commencement of such leasing. If the first Fiscal Year exceeds 12 months, the maximum Annual Contribution in Section 1.3(a) may be adjusted by the addition of the pro rata amount applicable to the period of operation in excess of 12 months.

1.5. Term of Annual Contributions Contract. This ACC shall remain in effect so long as the Housing Assistance Payments Contract is in effect; Provided, however, that in no case may this ACC exceed 22 years from the beginning of the first Fiscal Year.

1.6. Federal and Local Government Approvals. (a) The making of this ACC and the undertaking by the Government of the

for

Annual Contributions as herein provided has been duly approved on List No. Annual Contributions Contracts.

(b) The Governing Body of the locality in which the dwelling units are to be located has approved the application of Section 23 of the Act to the locality by resolution or ordinance duly adopted on ----, 19__.

1.7. Estimate of Required Annual Contributions. (a) At or about the date of execution of this Part I, the Local Authority shall submit an Initial Estimate of Required Annual Contributions (Preliminary Costs), covering preliminary costs other than security and utility deposits. This submission shall include estimates of costs of administration and nonexpendable equipment up to the beginning of the first Fiscal Year.

(b) Not earlier than 150 days and not later than 90 days prior to the estimated date of the beginning of the first Fiscal Year, the Local Authority shall submit an Initial Estimate of Required Annual Contributions with respect to security and utility deposits. Simultaneously, the Local Authority shall submit an Annual Estimate of Required Annual Contributions for the first Fiscal Year with respect to housing assistance payments and the allowance for the cost of administration.

(c) Not earlier than 150 days and not later than 90 days prior to the beginning of each subsequent Fiscal Year, the Local Authority shall submit an Annual Estimate of Required Annual Contributions with supporting documentation for any increases in the amount of housing assistance payments or the allowance for the cost of administration.

(d) Any of the above Estimates may be revised to reflect changes in circumstances and available data.

(e) All estimates of Required Annual Contributions and any revisions thereof submitted under this section shall be subject to Government approval.

1.8. Affirmative Fair Housing Marketing Regulation. The Local Authority shall require the Owner to comply with the Affirmative Fair Housing Marketing Regulation, including the submission for Government approval of an Affirmative Fair Housing Marketing Plan and compliance with such approved Plan, as if the Owner were expressly subject to said Regulation.

1.9 Equal Employment Opportunity. (a) The Local Authority shall incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR, Chapter 60, which is to be performed pursuant to this contract, the following Equal Opportunity clause:

"EQUAL EMPLOYMENT OPPORTUNITY "During the performance of this contract, the contractor agrees as follows:

"(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, creed, sex, or national origin. The contrac

tor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, creed, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Local Authority setting forth the provisions of this Equal Opportunity clause.

"(2) The contractor will include all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, creed, sex, or national origin.

"(3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Local Authority advising the said labor union or workers' representative of the contractor's commitments under this Section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

"(4) The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

"(5) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Government and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

"(6) In the event of the contractor's noncompliance with the Equal Opportunity clause of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor or as otherwise provided by law.

"(7) The contractor will include the portion of the sentence immediately preceding Paragraph (1) and the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by the rules, regulations, or orders of the Secretary

of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Government may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, That in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Government, the contractor may request the United States to enter into such litigation to protect the interests of the United States."

(b) The Local Authority agrees that it will assist and cooperate actively with the Government and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the Equal Opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the Government and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the Government in the discharge of the Government's primary responsibility for securing compliance.

(c) The Local Authority further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order No. 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the Equal Opportunity clause as may be imposed upon contractors and subcontractors by the Government or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order.

1.10. Expeditious Carrying Out of Project. The Local Authority shall proceed expeditiously with the Project. If the Local Authority fails to proceed expeditiously, and no Agreement with the Owner has yet been entered into, the Government by notice to the Local Authority, may terminate or reduce its obligation hereunder with respect to the Project. If an Agreement has been entered into, and the Local Authority or the Owner is not proceeding expeditiously with the Project, the Government will take appropriate action, including the Governmental action provided for in the Agreement.

1.11. Failure of Local Authority to Comply with Contract. (a) In the event of failure of the Local Authority to comply with the Contract with the Owner, or if such Contract is held to be void, voidable or ultra vires, or if the power or right of the Local Authority to enter into such Contract is drawn into question in any legal proceeding, or if the Local Authority asserts or claims that such Agreement or Contract is not binding upon the Local Authority for any such reason, the occurrence of any such event, if the Owner

is not in default, shall constitute a Substantial Default hereunder. In such case, the Government will assume the Local Authority's rights and obligations under such Contract, and the Government shall, for the duration of such Contract, continue to pay Annual Contributions for the purpose of making housing assistance payments with respect to dwelling units under such Contract, shall perform the obligations and enforce the rights of the Local Authority, and shall exercise such other powers as the Government may have to cure the Default.

(b) All rights and obligations of the Local Authority assumed by the Government will be returned as constituted at the time of such return (1) when the Government is satisfied that all defaults have been cured and that the Contract will thereafter be administered in accordance with its terms and the terms of this Annual Contributions Conract, or (ii) when the Housing Assistance Payments Contract is at an end, whichever

occurs sooner.

(c) The provisions of this Section 1.11 are made with, and for the benefit of, the Owner or his assignees who will have been specifically approved by the Government prior to such assignment. To enforce the perforinance of this provision the Owner and such assignees, as well as the Local Authority, shall have the right to proceed against the Government by suit at law or in equity.

Local Authority, by:

The Government, by: Date:

PART II

Terms and conditions Between Local Authority and the United States of America.

2.1. Low-Income Housing Use. The Local Authority shall use the Annual Contributions solely for the purpose of providing decent, safe, and sanitary dwellings for families of low income, hereinafter further defined as "Families."

Families; Elderly

2.2 Definitions—(a) Families; and Displaced Families. (1) The term "Families" means families of low income and includes Families consisting of a single person in the case of Elderly Families and Displaced Families, and includes the remaining member of a tenant Family.

(2) The term "Elderly Families" means Families whose heads (or their spouses), or whose sole members, have attained the age at which an individual may elect to receive an old-age benefit under Title II of the Social Security Act (42 U.S.C. 301, et seq.); or are under a disability as defined in section 223 of that Act; or are handicapped within the meaning of Section 202 (12 U.S.C. 1701q) of the Housing Act of 1959, as amended.

(3) The term "Displaced Families" means Families displaced by urban renewal or other governmental action, or Families whose pres

ent or former dwellings are situated in areas as determined by the Government to have been affected by a natural disaster, and which have been extensively damaged or destroyed as the result of such disaster.

(b) Project Receipts and Project Expenditures. (1) "Project Receipts" with respect to each Project shall mean the Annual Contributions payable hereunder and all other receipts, if any, accruing to the Local Authority from, out of, or in connection with such Project.

(2) "Project Expenditures" with respect to each Project shall mean all costs allowable under Section 1.3, Part I of this Contract with respect to such Project.

(c) Substantial Default. For the purpose of this ACC a Substantial Default is defined to be the occurrence of any of the following events:

(1) If the Local Authority defaults in the observance or performance of the provisions of Section 2.7; or

(2) If (a) the Local Authority violates or fails to comply with any provisions of the Housing Assistance Payments Contract or fails to perform any of its obligations under such Contract, or (b) such Contract at any time is held to be void, voidable, or ultra vires, or the power or right of the Local Authority to enter into such Contract is drawn into question in any legal proceeding, or (c) the Local Authority asserts or claims that such Contract is not binding upon it for any reason, or otherwise asserts or demonstrates that it does not intend to fulfill its obligations under such Contract; or

(3) If the Local Authority fails or refuses to honor any duly issued Certificate of Family Participation in accordance with its terms; or

(4) If the Local Authority fails to comply with the requirements of Sections 2.8, 2.9, 2.10, or 2.11; or

(5) If there is any default by the Local Authority in the performance or observance of any term, covenant, or condition of this ACC other than the defaults enumerated in subsections (1) through (4) of this paragraph (c) and if such default has not been remedied within a reasonable time, not to exceed thirty days, after the Government has notified the Local Authority thereof.

2.3. Maximum Income Limits and Rents. (a) Subject to the approval of the Government, the Local Authority shall fix income limits for eligibility and rents after taking into consideration:

(1) The Family size, composition, age, physical handicaps, and other factors which might affect the rent-paying ability of the family, and

(2) The economic factors which affect the financial stability and solvency of the Projects.

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(b) Income limits shall restrict eligibility to Families (as defined in Section 2.2) and shall assure the financial solvency of the Projects. Income limits and rents as fixed by

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