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2.10. Employment of project area residents the gross deposit premium, plus the cost of and contractors. The Local Authority shall insurance against the hazards, if any, of comply, and shall require each of its con 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 Devel ten years. Nothing in this subsection (d) opment Act of 1968 (12 U.S.C. 17010) 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 volves any hazard of assessment unless inincome residents of the Project area and that surance against such hazard is available. contracts for work in connection with the
(e) The Local Authority shall require that Project be awarded to business concerns each liability insurance policy prohibit the which are located in or owned in substan insurer from defending any tort claim on tial part by persons residing in the area of
the grounds of immunity of the Local Authe Project
thority from suit. 2.11. Cooperation in equal opportunity
(1) The Local Authority shall submit cercompliance reviews. The Local Authority
tified duplicate copies of all insurance polishall cooperate with the Government in the
cies and bonds to the Government not less conducting of compliance reviews and com
than forty-five days before the effective date plaint investigations pursuant to applicable thereof for review to determine compliance civil rights statutes, Executive Orders, and
with this ACC. Unless disapproved by the rules and regulations pursuant thereto.
Government within thirty days of the date 2.12. Insurance and fidelity bond coverage.
submitted, the policies and bonds submitted (a) For purposes of protection against haz
shall be considered as approved by the ards arising out of or in connection with the
Government. administrative activities of the Local Au
(g) If the Local Authority shall fall at thority in carrying out the Project, the Local
any time to obtain and maintain insurance Authority shall carry adquate (1) com
as required by subsections (a), (b), (c), and prehensive general liability insurance, (2)
(d) of this section 2.12, the Government may workmen's compensation coverage (statu
obtain such insurance on behalf of the Local tory or voluntary), and (3) automobile lia
Authority and the Local Authority shall bility insurance against property damage and
promptly reimburse the Government for the bodily injury (owned and non-owned).
cost thereof together with interest at the (b) The Local Authority shall obtain or
then going Federal rate as determined purprovide for the obtaining of adequate fidelity
suant to section 2(10) of the Act. bond coverage of its officers, agents, or em
2.13. Books of account and records; reports; ployees handling cash or authorized to sign
audits. (a) The Local Authority shall mainchecks or certify vouchers.
tain complete and accurate books of account (c) Each insurance policy or bond shall
and records, as may be prescribed from time be written to become effective at the time
to time by the Government, in connection the Local Authority becomes subject to the
with the Projects, including records which risk or hazard covered thereby, and shall
permit a speedy and effective audit, and will be continued in full force and effect for such
among other things fully disclose the amount period as the Local Authority is subject
and the disposition by the Local Authority of to such risk or hazard. Such insurance and
the Annual Contributions and other Project bonds shall (1) be payable in such manner,
Receipts, if any. (2) be in such form, and (3) be for such
(b) The books of account and records of amounts, all as may be determined by the
the Local Authority shall be maintained for Local Authority and approved by the Gov
each Project as separate and distinct from ernment, and shall be obtained from finan
all other Projects and undertakings of the cially sound and responsible insurance
Local Authority, except as authorized or apcompanies.
proved by the Government. (d) In connection with each policy, in
(C) The Local Authority shall furnish the cluding renewals, for comprehensive general
Government such financial, operating, and liability insurance the Local Authority shall
statistical reports, records, statements, and give full opportunity for open and competi
documents at such times, in such form, and tive bidding. The Local Authority shall give
accompanied by such supporting data, all as such publicity to advertisements for bids as
may reasonably be required from time to time will assure adequate competition and shall
by the Government. afford an opportunity to bid to all insurers
(3) The Government and the Comptroller who have indicated in writing to the Local
General of the United States, or his duly auAuthority their desire to submit a bid and
thorized representatives, shall have full and who are licensed to do business in the State. Such insurance shall be awarded to the low
free access to the Projects and to all the est responsible bidder. The lowest bid shall
books, documents, papers, and records of the be determined upon the basis of net cost Local Authority that are pertinent to, its to the Local Authority. Net cost, for the operations with respect to financial assistance purposes of this subsection (d), shall mean under the Act, including the right to audit,
and to make excerpts and transcripts from such books and records.
(e) The Local Authority shall incorporate or cause to be incorporated in all Contracts the following clause: LHA AND GOVERNMENT ACCESS TO
PREMISES AND OWNER'S RECORDS
The Owner shall permit the LHA and the Government, or any of their duly authorized representatives, to have access to the premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to the monthly requests to the LHA for housing assistance payments.
(1) The Local Authority shall not charge as a Project Expenditure the cost or expense of any audit with respect to any Project for any Fiscal Year unless (1) the Government has approved such audit, or (2) such audit is required by law, or (3) the Government has failed to furnish the Local Authority with a report of its fiscal audit of the Local Authority's books of account for such Fiscal Year within six months after the end thereof and, subsequent to a notice by the Local Authority of such failure, the Government has failed to submit its report of such audit within three months after receipt of such notice.
2.14. General depositary agreement and general fund. (a) Promptly after the execution of this ACC, the Local Authority shall enter into, and thereafter maintain, one or more agreements, which are herein collectively called the "General Depositary Agreement," in form prescribed by the Government, with one or more banks (each of which shall be, and continue to be, a member of the Federal Deposit Insurance Corporation) selected as depositary by the Local Authority. Immediately upon the execution of any General Depositary Agreement, the Local Authority shall furnish to the Government such executed or conformed copies thereof as the Government may require. No such General Depositary Agreement shall be terminated except after thirty days notice to the Government.
(b) All monies received by or held for account of the Local Authority in connection with the Projects shall constitute the General Fund.
(c) The Local Authority shall, except as otherwise provided in this ACC, deposit promptly with such bank or banks, under the terms of the General Depositary Agreement, all monies constituting the General Fund.
(d) The Local Authority may withdraw monies from the General Fund only for (1) the payment of Project Expenditures, and (2) other purposes specifically approved by the Government. No withdrawals shall be made except in accordance with a voucher or vouchers then on file in the office of the Local Authority stating in proper detall the purpose for which such withdrawal is made.
(e) If the Local Authority (1) in the determination of the Government, is in Substantial Default, or (2) makes or has made any fraudulent or willfui misrepresentation of any material fact in any of the documents or data submitted to the Government pursuant to this ACC or in any document or data submitted to the Government as a basis for this ACC or as an inducement to the Government to enter into this ACC, the Government shall have the right to require any bank or other depositary which holds any monies of the General Fund, to refuse to permit any withdrawals of such monies; Provided, however, that upon the curing of such Default the Government shall promptly rescind such requirement.
2.15. Pooling of funds under special conditions and revolving fund. (a) The Local Authority may deposit under the terms of the "General Depositary Agreement monies received or held by the Local Authority in connection with any other housing project developed or operated by the Local Authority pursuant to the provisions of any contract for annual contributions, administration, or lease between the Local Authority and the Government.
(b) The Local Authority may also deposit under the terms of the General Depositary Agreement amounts necessary for current expenditures of any other project or enterprise of the Local Authority, including any project or enterprise in which the Government has no financial interest; Provided, however, that such deposits shall be lump-sum transfers from the depositaries of such other projects or enterprises, and shall in no event be deposits of the direct revenues or receipts of such other projects or enterprises.
(c) If the Local Authority operates other projects or enterprises in which the Government has no financial interest, it may from time to time, withdraw such amounts as the Government may approve from monies on deposit under the General Depositary Agreement for deposit in and disbursement from & revolving fund provided for the payment of items chargeable in part to the Projects and in part to other projects or enterprises of the Local Authority; Provided, however, that all deposits in such revolving fund shall be lump sum transfers from the depositaries of the related projects or enterprises and shall in no event be deposits of the direct revenues or receipts.
(d) The Local Authority may establish petty cash or change funds in reasonable amounts, from monies on deposit under the General Depositary Agreement.
(e) In no event shall the Local Authority withdraw from any of the funds or accounts authorized under this Section 2.15 amounts for the Projects or for any other project or enterprise in excess of the amount then on deposit in respect thereto.
2.16. Assignment oj Interest in project to government; continuance of annual contributions. Upon the occurrence of a Substantial Default (as herein defined) with respect
to any Project the Local Authority shall, if by the Local Authority relating to such conthe Government so requires, assign to the tract, subcontract, or arrangement. Government all of its rights and interests (b) The Local Authority shall insert in in and to the Project, or such part thereof all contracts entered into in connection with as the Government may specify, and the any Project or any property included or Government shall continue to pay Annual planned to be included in any Project, and Contributions with respect to dwelling units shall require its contractors to insert in each covered by Housing Assistance Payments of its subcontracts, the following provisions: Contracts in accordance with the terms of No member, officer, or employee of the this ACC until reassigned to the Local Au Local Authority, no member of the governing thority. After the Government shall be sat body of the locality in which the Project is isfied that all defaults with respect to the situated, no member of the governing body Project have been cured and that the Proj of the locality in which the Local Authority ect will thereafter be operated in accordance was activated, and no other public official with the terms of this ACC, the Government of such locality or localities who exercises shall reassign to the Local Authority all of any functions or responsibilities with respect the rights and interests of the Government to the Project, during his tenure or for one in and to the Project as such rights and in year thereafter, shall have any interest, direct terests exist at the time of such or indirect, in this contract or the proceeds reassignment.
thereof. 2.17. Remedies not exclusive and non (c) The provisions of the foregoing subwaivers of remedies. Any remedy provided sections (a) and (b) of this section 2.18 for herein shall not be exclusive or preclude shall not be applicable to the General Dethe Owner, LHA and/or the Government from positary Agreement, or utility service the exercising any other remedy available under rates for which are fixed or controlled by a this ACC or under any provisions of law, nor governmental agency. shall any action taken in the exercise of any 2.19. Interest of member of or delegate to remedy be deemed a waiver of any other congress. No member of or delegate to the rights or remedies available to such parties. Congress of the United States of America Failure on the part of any such party to ex or resident commissioner shall be admitted ercise any right or remedy shall not consti to any share or part of this ACC or to any tute a waiver of that or any other right or benefits which may arise therefrom. remedy, nor operate to deprive the party of
APPENDIX XI-AGREEMENT TO ENTER INTO the right thereafter to take any remedial
HOUSING ASSISTANCE PAYMENTS CONTRACT action for the same or any subsequent
SUBSTANTIAL REHABILITATION default.
2.18. Interest of members, officers, or em This Agreement to Enter into Housing ployees of local authority, members of local Assistance Payments Contract ("Agreegoverning body, or other public officials. ment") is made and entered into this (a) Neither the Local Authority nor any day of
19.-, by and between of its contractors or their subcontractors the
(“LHA"), a body, corporate shall enter into any contract, subcontract, or and politic, organized and existing under and arrangement, in connection with any Proj by virtue of the laws of the State of ect, in which any member, officer, or em
("Owner"). ployee of the Local Authority, or any mem Whereas, the Owner proposes to complete ber of the governing body of the locality in the substantial rehabilitation of certain which the Project is situated, or any mem housing_(as described in the Owner's apber of the governing body of the locality in proved Final Proposal, including any apwhich the Authority was activated, or any proved modifications, attached hereto other public official of such locality or locali Exhibit "A"); and ties who exercises any responsibilities or Whereas, the Owner and the LHA propose functions with respect to the Project during to enter into a Housing Assistance Payments his tenure or for one year thereafter has Contract ("Contract”) which is attached any interest, direct or indirect. If any such hereto as Exhibit “B”, upon the completion present or former member, officer, or em of said rehabilitation, for the purpose of ployee of the Local Authority, or any such making housing assistance payments to engoverning body member or such other public able eligible low-income families ("Famiofficial of such locality or localities involun lies") to occupy said housing, which units tarily acquires or had acquired prior to the are described in Exhibit "C”, attached hereto; beginning of his tenure any such interest, and and if such interest is immediately disclosed Whereas, the LHA has entered into an to the Local Authority and such disclosure Annual Contribution Contract dated is entered upon the minutes of the Local
with the United States of America Authority, the Local Authority, with the (hereinafter called the “Government"), with prior approval of the Government may waive respect to Project No. ("ACC”), under the prohibition contained in this subsection; which the Government will provide financial Provided, however, that any such present assistance to the LHA pursuant to section member, officer, or employee of the Local 23 of the United States Housing Act of 1937 Authority shall not participate in any action for the purpose of making housing assistance
payments, which ACC is attached hereto as Exhibit "D"; and
Whereas, the Owner is also the rehabili. tator, or, if the rehabilitator is other than the Owner, the rehabilitator's name is
Now therefore, the parties hereto agree as follows:
1.1. The rehabilitation. The rehabilitated housing shall be in accordance with Exhibit "A". The Owner shall be solely responsible for completion of the rehabilitation and nothing contained in this Agreement shall create or affect any relationship between the LHA and the lender or any contractors or subcontractors employed by the Owner in the completion thereof.
1.2. Time for completion. a. The rehabilltation shall be completed in accordance with section 1.4 no later than
days after the date of this Agreement or in stages as provided for in Exhibit "E", which identifies the units comprising each stage and the dates for commencement and completion of each stage. Where completion in stages is provided for, all references to completion shall be deemed to refer to completion of all the units and/or completion of any stage, as appropriate. The Owner agrees that no later than
19.-, the work will be commenced and diligently continued. The LHA reserves the right to cancel this Agreement, subject to Government approval, in the event the work is not commenced and/or diligently continued as aforesaid.
b. In the event that there is delay in the completion due to strikes, lockouts, labor union disputes, fire, unusual delay in transportation, unavoidable casualties, weather, acts of God, or any other causes beyond the Owner's control, or by delay authorized by the LHA, the time for completion shall be extended to the extent that completion is delayed due to one or more of these causes.
1.3. Changes during rehabilitation. The LHA, with Government approval, may reduce the rents payable to the Owner if deviations from Exhibit "A" alter the design or quality or other basis for approval of the Final Proposal. Accordingly, the Owner shall obtain prior written approval for any such changes from the LHA and the Government.
1.4 Completion of rehabilitation.-a. Notification of completion. Upon completion of the rehabilitation, the Owner shall notify the LHA and the Government that the work is completed and shall submit to the LHA the evidence of completion described in paragraph b, below.
b. Evidence of completion. The completion of the rehabilitation shall be evidenced by furnishing the LHA with the following:
(1) a certificate of occupancy and/or other official approvals necessary for occupancy; and
(2) a certificate by the owner, supported by the Owner's warranty in the Contract, and
& separate certification by the registered architect (if working drawings and specifications for the work were prepared and certified to by a registered architect), that:
(a) all work has been completed in accordance with the terms and conditions of this Agreement;
(b) the rehabilitated housing is in good and tenantable condition; and
(c) there are no defects or deficiencies except for ordinary punchlist items. If there are punchlist items, the Owner shall (as agreed to by the owner, the LHA and the Government) make a deposit in escrow to cover such items. In such case, if the Owner fails to complete the punchlist items within a reasonable time to the satisfaction of the LHA, the LHA may, upon 30 days notice and with the approval of the Government, terminate the Housing Assistance Payments Contract.
c. Inspection. (1) Within ten working days of the receipt of the Owner's notification of completion, the LHA representative, accompanied by a Government representative, shall inspect the property and review the evidence of completion listed in paragraph b, above. The Government shall, as promptly as possible, advise the LHA in writing as to whether or not the rehabilitation has been satisfactorily completed and whether the requirements of Section 1.5a have been complied with.
(2) If it is determined that the rehabilitation has not been satisfactorily completed, the Government shall notify the LHA and advise it of the corrective action needed. In the event the Owner disputes such a determination he may submit the controversy to third-party arbitration at his expense, provided that the arbitration is advisory only. Prior to authorizing execution of the Contract, the Government shall verify that appropriate corrective action has been taken.
1.5 Housing assistance payments contract. a. Prior to the Government's authorization of execution of the Contract, the Owner must certify in writing that there has been no change in the evidence of management capability, or in the proposed management program (if one was required), as specified in his proposal, other than changes approved in writing by the LHA and the Government in accordance with section 1.3 of this Agreement.
b. If the Government determines that the rehabilitation has been satisfactorily completed in accordance with the provisions of section 1.4 and approves such certification and the changes, if any, as to the evidence of management capability and management program, the Government shall authorize execution of the Contract.
c. Upon receipt by the LHA of the Govern. ment's authorization, the Owner and the LHA shall execute the Contract. If completion is in stages, pursuant to section 1.2a, the Contract shall be executed upon completion of the first stage, and the number and types of completed units and their contract rents
shall be shown in Schedule A-1 of the Con (3) The Owner hereby voluntarily under. tract. Thereafter, upon completion of each takes liability for all relocation payments and successive stage, the signature block pro ågrees that if the funds in the escrow acvided in the Contract for that stage shall be count shall prove to be insufficient to meet executed by the Owner and the LHA and all such relocation payments, he will deposit approved by the Government, and Schedule such additional amounts as the LHA deterA-2, A-3, etc., covering the additional units, mines to be necessary for such purpose. shall become part of the Contract, effective (4) When the LHA determines, with Govas of the date of such execution.
ernment approval, that there is no longer d. The rents to the Owner, by unit size, any potential liability for relocation payamounts of housing assistance payments, and ments, any balance in the escrow account all other applicable terms and conditions shall be paid to the Owner. shall be as specified in the proposed Housing (5) The Owner agrees to hold harmless and Assistance Payments Contract, except that in to indemnify the LHA for any costs incurred no case may rents for units in rehabilitated under sections 202, 203, and 204 of the Uni. housing inanced with mortgages insured form Relocation Assistance and Real Property under the National Housing Act exceed the Acquisition Policies Act of 1970 in connection rent formula or other rents established by with the relocation of site occupants, and the the Government in connection with the Owner further agrees that the LHA shall have mortgage insurance for such units.
the right to be reimbursed for any such costs e. Each party has read or is presumed to by withholding from housing assistance payhave read the proposed Contract. It is ex ments payable to the Owner. pressly agreed that there shall be no change 1.8. Entire agreement. This Agreement, inin the terms and conditions of the Contract cluding Part II and all Exhibits hereof, conother than in accordance with section 1.3 tains the entire agreement between the parand paragraph d of this section.
ties hereto, and neither party is bound by 1.6. Commencement of marketing. Market any representations or agreements of any ing by the Owner and determination of Fam kind except as contained herein. ily eligibility and approval of Owner-Family 1.9. Authority of the LHA. The LHA warLeases by the LHA shall begin no later than rants that it is a duly organized body, cor60 days prior to completion of rehabilitation porate and politic, authorized by law to enand be accomplished to achieve rapid occu gage in the development or administration pancy. These actions shall be taken in ac of low-rent housing or slum clearance, and cordance with the provision of Sections 1.9 that it is in fact and in law authorized to and 2.1 of the Contract.
execute this Agreement. 1.7 Relocation requirements. a. The In witness whereof, the parties hereto have Owner, by checking "yes" below, hereby certi executed this Agreement in four original fies that the l.ousing to be rehabilitated was counterparts as of the day and year first without occupants as of the date of the LHA's above written. written notification to the Owner requesting
LHA the Owner to submit a Final Proposal. 0 Yes
By O NO
Owner b. If the answer to paragraph a above is “no”, paragraph c or d below shall be appli
Ву cable. c. The Government has determined that
WARNING: 18 U.S.C. 1001 provides, among satisfactory commitments have been made other things, that whoever knowingly or willfor the funding of relocation payments pur
fully makes or uses a document or writing suant to sections 202, 203 and 204 of the Uni
containing any false, fictitious, or fraudulent form Relocation Assistance and Real Prop
statement or entry, in any matter within the erty Acquisition Policies Act of 1970, as
jurisdiction of any department or agency of follows:
the United States, shall be fined not more d. If paragraph c is inapplicable, the Owner $10,000 or imprisoned for not more than five hereby agrees to comply with the provisions years, or both. of sections 202, 203 and 204 of the Uniform
PART II Relocation Assistance and Real Property AC
2.1 Employment of project area residents quisition Policies Act of 1970 and applicable and contractors. The Owner shall comply and Government regulations and requirements is
shall require each of his contractors and subsued pursuant thereto, and the following contractors employed in the performance of shall apply:
this Agreement to comply (including compli(1) The maximum potential amount of all
ance with the Government-approved affirmarelocation payments as calculated by the LHA
tive action plan for utilization of project and approved by the Government is $-.
area businesses) with section 3 of the Hous(2) The Owner has deposited this amount in an escrow account under the terms of
ing and Urban Development Act of 1968 (12 which payments may be made only upon
U.S.C. 1701u) and the regulations and representation of written authorization by the quirements of the Government thereunder, LHA for the purpose of meeting relocation requiring that, to the greatest extent feasipayments.
ble, opportunities for training and employ