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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 Substan ent or former dwellings are situated in areas tial Default bereunder. In such case, the as determined by the Government to have Government will assume the Local Author been affected by a natural disaster, and Ity's rights and obligations under such Con which have been extensively damaged or detract, and the Government shall, for the stroyed as the result of such disaster. duration of such contract, continue to pay (b) Project Receipts and Project ExpendiAnnual Contributions for the purpose of tures. (1) "Project Receipts" with respect to making housing assistance payments with each Project shall mean the Annual Conrespect to dwelling units under such con tributions payable hereunder and all other tract, shall perform the obligations and en receipts, if any, accruing to the Local Auforce the rights of the Local Authority, and thority from, out of, or in connection with shall exercise such other powers as the Gov such Project. ernment may have to cure the Default.

(2) "Project Expenditures" with respect to (b) All rights and obligations of the Local each Project shall mean all costs allowable Authority assumed by the Government will under Section 1.3, Part I of this contract be returned as constituted at the time of with respect to such Project. such return (1) when the Government is

(c) Substantial Default. For the purpose satisfied that all defaults have been cured of this ACC & Substantial Default is defined and that the Contract will thereafter be ad to be the occurrence of any of the following ministered in accordance with its terms and

events: the terms of this Annual Contributions Con (1) If the Local Authority defaults in the ract, or (i) when the Housing Assistance

observance or performance of the provisions Payments Contract is at an end, whichever

of Section 2.7; or occurs sooner.

(2) If (a) the Local Authority violates or (c) The provisions of this Section 1.11 are fails to comply with any provisions of the made with, and for the benefit of, the Owner Housing Assistance Payments Contract or or his assignees who will have been specifi fails to perform any of its obligations under cally approved by the Government prior to

such Contract, or (b) such Contract at any such assignment. To enforce the perforin

time is held to be void, voidable, or ultra ance of this provision the Owner and such

vires, or the power or right of the Local Auassignees, as well as the Local Authority,

thority to enter into such Contract is drawn shall have the right to proceed against the

into question in any legal proceeding, or (c) Government by suit at law or in equity.

the Local Authority asserts or claims that Local Authority, by:

such Contract is not binding upon it for any

reason, or otherwise asserts or demonstrates The Government, by:

that it does not intend to fulfill its obliga

tions under such Contract; or Date:

(3) If the Local Authority falls or refuses to honor any duly issued Certificate of Fam

ily Participation in accordance with its PART 0

terms; or Terms and conditions Between Local Au.

(4) If the Local Authority falls to comply thority and the United States of America.

with the requirements of Sections 2.8, 2.9, 2.1. Low-income Housing Use. The Local

2.10, or 2.11; or Authority shall use the Annual Contribu

(5) If there is any default by the Local tions solely for the purpose of providing de

Authority in the performance or observance cent, safe, and sanitary dwellings for fami.

of any term, covenant, or condition of this lies of low income, hereinafter further de

ACC other than the defaults enumerated in fined as "Families."

subsections (1) through (4) of this para2.2 Definitions—(a) Families; Elderly

graph (c) and if such default has not been Families; and Displaced Families. (1) The

remedied within a reasonable time, not to exterm “Families" means families of low in

ceed thirty days, after the Government has come and includes Families consisting of a

notifled the Local Authority thereof,

2.3. Maximum Income Limits and Rents. single person in the case of Elderly Families and Displaced Families, and includes the re

(a) Subject to the approval of the Governmaining member of a tenant Family.

ment, the Local Authority shall fix income (2) The term "Elderly Families" means

limits for eligibility and rents after taking Families whose heads (or their spouses), or

into consideration: whose sole members, have attained the age

(1) The Family, size, composition, age, at which an individual may elect to receive physical handicaps, and other factors which an old-age benefit under Title II of the So might affect the rent-paying ability of the cial Security Act (42 U.S.C. 301, et seq.); or family, and are under a disability as defined in section (2) The economic factors which affect the 223 of that Act; or are handicapped within financial stability and solvency of the Projthe meaning of Section 202 (12 U.S.C. 17019) ects. of the Housing Act of 1959, as amended.

(b) Income limits shall restrict eligibility (3) The term "Displaced Families' means to Families (as defined in Section 2.2) and Families displaced by urban renewal or other shall assure the financial solvency of the governmental action, or Families whose pres Projects. Income limits and rents as fixed by

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the Local Authority shall meet the require Participation to each Family and thereafter ments of applicable local law.

on the date established by the Local Au(c) The Local Authority shall submit to thority for each reexamination of the status the Government for its approval & schedule of such Family, the Local Authority shall or schedules of income limits and rents, to obtain a written application, signed by a gether with such supporting data and docu responsible member of such Family, which ments as the Government may require.

application shall set forth all data and in(d) The Local Authority may at any time formation necessary to enable the Local Aureview and revise such schedules, and shall thority to determine whether the Family review and revise such schedules it the Gov meets the conditions of eligibility for housing ernment determines that changed conditions assistance payments. in the locality make such revisions necessary (b) The Local Authority shall establish in achieving the purposes of the Act.

policies governing the nature and extent of 2.4, Admission Policies. (a) The Local Au investigations to be made of applicants' and thority shall duly adopt and promulgate, by tenants' statements relating to their eligipublication or posting in a conspicuous place bility. for examination by prospective tenants, regu (c) A duly authorized official of the Local lations establishing its policies for the is Authority shall, at times prescribed by the suance of Certificates of Family Participation. Government, make written certifications to Such regulations must be reasonable and give the Government that each Certificate of full consideration to its public responsibility Family Participation issued during the period for rehousing Displaced Families, to the covered by the certification was issued in applicant's status as a serviceman or veteran accordance with its duly adopted regulations or relationship to a serviceman or veteran or and approved income limits. to a disabled serviceman or veteran and to 2.7. Maintenance and Inspections. (a) The the applicant's age or disability, housing con Local Authority shall require as a condition ditions, urgency of housing need, and source for the making of housing Assistance payof income, and shall accord to Families con ments, that the Owner at all times maintain sisting of two or more persons such priority the Project in decent, safe, and sanitary over Familles consisting of single persons condition. as the Local Authority deterniines to be nec (b) The Local Authority shall Inspect or essary to avoid undue hardship.

cause to be inspected dwelling units prior (b) The Local Authority shall promptly to commencement of occupancy by Families, notify any applicant determined to be in and of grounds, facilities, and areas for their eligible for housing assistance payments of benefit and use, and shall make or cause to be the basis for such determination and provide made subsequent Inspections at least anthe applicant upon request, within a reason nually, adequate to assure that decent, safe, able time after the determination is made, and sanitary housing accommodations are with an opportunity for an informal hearing being provided. on such determination. Any applicant deter 2.8 Nondiscrimination in Housing. (a) The mined to be eligible for housing assistance Local Authority shall comply with all repayments shall be given & Certificate of quirements imposed by Title VI of the Civil Family Participation or shall be notified of Rights Act of 1964, Public Law 88-352, 78 the date when such Certificate will be issued, Stat. 241; the regulations of the Department insofar as such date can be reasonably deter of Housing and Urban Development issued mined.

thereunder, 24 CFR, Subtitle A, Part 1, Seca 2.5 Continued Eligibility. (a) The Local tion 1.1, et seq.; the requirements of sald Authority shall periodically reexamine the Department pursuant to said regulations; incomes of Families for whom housing assist and Executive Order 11063 to the end that, ance payments are being made; Provided, in accordance with that Act and the regulahowever, that the length of time between the tions and requirements of said Department issuance of a Certificate of Family Participa

thereunder, and said Executive Order, no tion to a Family subject to yearly reexamina person in the United States shall, on the tion and the first reexamination of such ground of race, color, creed, religion, or naFamly may be extended by not more than tional origin, be excluded from participation six months if necessary to fit a reexamination

in, or be denied the benefits of, the Housing schedule established by the Local Authority.

Assistance Payments Program or be otherwise (b) If, upon such reexamination, it is

subjected to discrimination. The Local Aufound that Family income or composition

thority shall, by contractual requirement, has changed, the portion of rent payable by

covenant, or other binding commitment, as

sure the same compliance on the part of any the Family and the amount of housing assist

subgrantee, contractor, subcontractor, transance payment shall be adjusted accordingly. feree, successor in interest, or other partici

(c) If, upon such reexamination, it is pant in the program or activity, such comfound that the income of a Family increased mitment to include the following clause: beyond the approved income limits for the "This provision is included pursuant to the Project, housing assistance payments for such regulations of the Department of Housing Family shall terminate.

and Urban Development, 24 CFR, Subtitle A, 2.6. Applications and Certifications. (a) Part 1, Section 1.1, et seq., issued under Title Prior to the issuance of a Certificate of Family VI of the said Civil Rights Act of 1964, and

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the requirements of said Department pur plaint investigations pursuant to applicable suant to said regulations; and the obligation civil rights statutes, Executive Orders, and of the [contractor or other] to comply there rules and regulations pursuant thereto. with inures to the benefit of the United 2.12. Insurance and Fidelity Bond CoverStates, the said Department, and the Local age. (a) For purposes of protection against Authority any of which shall be entitled to hazards arising out of or in connection with invoke any remedies available by law to re the administrative activities of the Local dress any breach thereof or to compel compli Authority in carrying out the Project, the ance therewith by the (contractor or other)." Local Authority shall carry adequate (1)

(b) The Local Authority shall incorporate comprehensive general liability insurance, or cause to be incorporated into all Housing (2) workmen's compensation coverage Assistance Payments Contracts a provision (statutory or voluntary), and (3) automobile requiring compliance with all requirements liability insurance against property damage imposed by Title VIII of the Civil Rights and bodily injury (owned and non-owned). Act of 1968, Public Law 90-284, 82 Stat. 73, (b) The Local Authority shall obtain or and any rules and regulations issued pursu provide for the obtaining of adequate fidelity ant thereto.

bond coverage of its officers, agents, or em(c) The Local Authority shall not, on ac ployees handling cash or authorized to sign count of creed or sex, discriminate in the sale, checks or certify vouchers. leasing, rental, or other disposition of hous

(c) Each insurance policy or bond shall ing or related facilities (including land) in be written to become effective at the time cluded in any Project or in the use or occu the Local Authority becomes subject to the pancy thereof, nor deny to any family the

risk of hazard covered thereby, and shall opportunity to apply for such housing, nor

be continued in full force and effect for such deny to any eligible applicant the opportu

period as the Local authority is subject to nity to lease or rent any dwelling in any such such risk or hazard. Such insurance and housing suitable to its needs. No person shall

bonds shall (1) be payable in such manner, automatically be excluded from participation

(2) be in such form, and (3) be for such in or be denied the benefits of the Housing

amounts, all as may be determined by the Assistance Payments Program because of

Local Authority and approved by the Govmembership in a class such as unmarried

ernment, and shall be obtained from finanmothers, recipients of public assistance, etc.

cially sound and responsible insurance 2.9. Equal Employment Opportunity. The

companies. Local Authority shall not discriminate

(d) In connection with each policy, inagainst any employee or applicant for em

cluding renewals, for comprehensive general ployment because of

race, color, creed,

liability insurance the Local Authority shall religion, sex, or national origin. The Local

give full opportunity for open and competiAuthority shall take affirmative action to

tive bidding. The Local Authority shall give ensure that applicants are employed, and

such publicity to advertisements for bids that employees are treated during employ

as will assure adequate competition and shall ment, without regard to race, color, creed,

afford an opportunity to bid to all insurers religion, sex, or national origin. Such action

who have indicated in writing to the Local shall include, but not be limited to, the

Authority their desire to submit a bid and following: employment, upgrading,

de

who are licensed to do business in the State. motion or transfer; recruitment or recruit

Such insurance shall be awarded to the lowment advertising; layoff or termination; rates

est responsible bidder. The lowest bid shall of pay or other forms of compensation; and

be determined upon the basis of net cost selection for training, including apprentice

to the Local Authority. Net cost, for the ship.

purposes of this subsection (d), shall mean 2.10. Employment of Project Area Residents

the gross deposit premium, plus the cost and Contractors. The Local Authority shall

of insurance against the hazards, 11 any, comply and shall require each of its con

of assessments, less any anticipated dividend tractors and subcontractors employed in the

based on the dividend payment and assessperformance of this ACC to comply with

ment record of the insurer for the previous Section 3 of the Housing and Urban De

ten years. Nothing in this subsection (d) velopment Act of 1968 (12 U.S.C. 1701u) and

shall have the effect of requiring the Local the regulations and requirements of the

Authority to purchase insurance from any Government thereunder, requiring that to

insurer not licensed to do business in the the greatest extent feasible opportunities for

State or to purchase insurance which intraining and employment be given lower in

volves any házard of assessment unless income residents of the Project area and that contracts for work in connection with the

surance against such hazard is available.

(e) The Local Authority shall require that Project be awarded to business concerns which are located in or owned in substantial

each liability insurance policy prohibit the part by persons residing in the area of the

insurer from defending any tort claim on Project.

the ground of immunity of the Local Au2.11. Cooperation in Equal Opportunity thority from suit. Compliance Reviews. The Local Authority

(f) The Local Authority shall submit cershall cooperate with the Government in the tified duplicate copies of all Insurance pollconducting of compliance reviews and com cies and bonds to the Government not less

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than forty-five days before the effective date any audit with respect to any Project for any thereof for review to determine compliance Fiscal Year unless (1) the Government has with this ACC. Unless disapproved by the approved such audit, or (2) such audit is reGovernment within thirty days of the date quired by law, or (3) the Government has submitted, the policies and bonds submitted failed to furnish the Local Authority with shall be considered as approved by the a report of its fiscal audit of the Local AuGovernment.

thority's books of account for such Fiscal (g) If the Local Authority shall fall at any Year within six months after the end thereof time to obtain and maintain insurance as and, subsequent to a notice by the Local Aurequired by subsections (a), (b), (c), and thority of such failure, the Government has (d) of this Sec. 2.12, the Government may failed to submit its report of such audit obtain such insurance on behalf of the Local within three months after receipt of such Authority and the Local Authority shall notice. promptly reimburse the Government for the 2.14. General Depositary Agreement and cost thereof together with interest at the then General Fund. (a) Promptly after the execugoing Federal rate as determined pursuant to tion of this ACC, the Local Authority shall Section 2(10) of the Act.

enter into, and thereafter maintain, one or 2.13. Books of Account and Records; Re- more agreements, which are herein collecports; Audits. (a) The Local Authority shall tively called the "General Depositary Agreemaintain complete and accurate books of ment,” in form prescribed by the Governaccount and records, as may be prescribed ment, with one or moro banks (each of which from time to time by the Government, in shall be, and continue to be, a member of the connection with the Projects, including rec- Federal Deposit Insurance Corporation) seords which permit a speedy and effective lected as depositary by the Local Authority. audit, and will among other things fully dis- Immediately upon the execution of any close the amount and the disposition by the General Depositary Agreement, the Local AuLocal Authority of the Annual Contributions thority shall furnish to the Government and other Project Receipts, if any.

such executed or conformed copies thereof (b) The books of account and records of as the Government may require. No such the Local Authority shall be maintained for General Depositary Agreement shall be tereach Project as separate and distinct from minated except after thirty days notice to the all other Projects and undertakings of the Government. Local Authority, except as authorized or ap- (b) All monies received by or held for acproved by the Government.

count of the Local Authority in connection (c) The Local Authority shall furnish the

with the Projects shall constitute the GenGovernment such financial, operating, and eral Fund. statistical reports, records, statements, and (c) The Local Authority shall, except as documents at such times, in such form, and otherwise provided in this Contract, deposit accompanied by such supporting data, all as promptly with such bank or banks, under may reasonably be required from time to the terms of the General Depositary Agreetime by the Government.

ment, all monies constituting the General (d) The Government and the Comptroller Fund. General of the United States, or his duly au- (d) The Local Authority may withdraw thorized representatives, shall have full and monies from the General Fund only for (1) free access to the Projects and to all the the payment of Project Expenditures, and books, documents, papers, and records of the (2) other purposes specifically approved by local Authority that are pertinent to its op- the Government. No withdrawals shall be erations with respect to financial assistance made except in accordance with a voucher or under the Act, including the right to audit, vouchers then on file in the office of the and to make excerpts and transcripts from Local Authority stating in proper detail the such books and records.

purpose for which such withdrawal is made. (e) The Local Authority shall incorporate (e) If the Local Authority (1) in the deor cause to be incorporated in all Contracts termination of the Government, is in Subthe following clause:

stantial Default, or (2) makes or has made "LHA AND GOVERNMENT ACCESS TO PREMISES any fraudulent or willful misrepresentation AND OWNER'S RECORDS

of any material fact in any of the docu

ments or data submitted to the Government "The Owner shall permit the Local Au- pursuant to this ACC or in any document or thority and the Government or any of their data submitted to the Government as a basis duly authorized representatives, to have ac- for this Contract or as an inducement to the cess to the premises and, for the purpose of Government to enter into this Contract, the audit and examination, to have access to any Government shall have the right to require books, documents, papers and records of the

any bank or other depositary which holds Owner that are pertinent to compliance with

any monies of the General Fund, to refuse this Contract, including the verification of

to permit any withdrawals of such monies; information pertinent to the monthly re- Provided, however, that upon the curing of quests to the Local Authority for housing such Default the Government shall promptly assistance payments."

rescind such requirement. (1) The Local Authority shall not charge as 2.15. Pooling of Funds under Special ConProject Expenditure the cost or expense of ditions and Revolving Fund. (a) The Local

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