1160
1 4. COMPLETION SCHEDULE. CITY shall proceed consistent with the completion schedule 2 set forth in Exhibit{ s) A, B, and C, attached hereto and incorporated herein. 3 5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the 4 time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40 5 below), the COUNTY may consider extending the schedule for the completion ofthe project(s). Times 6 ofperformance for other activities may also be extended in writing by COUNTY. Ifsubstantial progress 7 toward completion in conformance with the completion schedule, as determined by COUNTY in its 8 discretion, ofthe project(s) not made during the term ofthis Supplemental Agreement, COUNTY may 9 suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in 10 the section titled " Termination," and the entitlement funds associated with the Project(s) may be 11 reprogrammed by the COUNTY after appropriate notice is provided to the City. 12 6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBG13 funded Projects or activities covered under the terms of this Supplemental Agreement as set forth in 14 Exhibit(s) A, B, and C, attached hereto, prior to receiving written authorization from COUNTY to 15 proceed.
16 7. NOTICES. Each notice, request, demand, consent, approval or other communication 17 ( hereinafter in this Section referred to collectively as "notices" and referred to singly as a "notice") which 18 the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement 19 shall be in writing and shall be deemed to have been duly and sufficiently given if: (a) personally 20 delivered with proof ofdelivery thereof (any notice so delivered shall be deemed to have been received 21 at the time so delivered); or (b) sent by Federal Express ( or other similar national overnight courier) 22 designating early morning delivery ( any notice so delivered shall be deemed to have been received on 23 the next Business Day following receipt by the courier); or ( c) sent by United States registered or certified 24 mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States 25 Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the 26 United States), addressed to the respective parties as follows:
27 28
1161
1 2
3 4
5 6
COUNTY
Heidi Marshall, Director
Riverside County HWS
P.O. Box 1528
Riverside, CA 92502
8. DISBURSEMENT OF FUNDS.
CITY
Ralph Wright, Parks and Recreation Director
City ofBanning
PO Box 998
Banning, CA 92220
7 A. COUNTY's Board of Supervisors shall determine the final disposition and 8 distribution of all funds received by COUNTY under the ,:\ct consistent with Sections 2 and 3 ofthis 9 Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions, 10 shall make payment ofthe CDBG funds to CITY as set forth in the attached Exhibit(s) A, B, and C. It 11 is the CITY's responsibility to monitor all project activities set forth in the attached Exhibit(s) A, B, 12 and C, and to ensure compliance with applicable federal regulations and the tenns ofthis Supplemental 13 Agreement.
14 B. CITY shall comply with timely drawdown of CDBG Entitlement funding by 15 expeditiously implementing and completing the COUNTY-approved, CDBG-funded Projects. CITY 16 acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall program 17 drawdown rate. If the CITY's unobligated CDBG fund balance, as of January 31, 2025, exceeds one 18 hundred and seventy-five percent ( 175%) of the CITY's 2024-2025 CDBG allocation, the COUNTY 19 may, in its sole discretion, take the necessary administrative actions to reduce the CITY' s CDBG fund 20 balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund 21 balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute 22 discretion, authorize CITY in writing, prior to January 31, 2025, to exceed the CDBG fund balance 23 requirement.
24 C. CITY shall comply with timely drawdown ofCDBG funds by submitting monthly 25 requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements 26 ofCDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY 27 has received the CITY's reimbursement request including documentation supporting expenditures. 28 D. All authorized obligations incurred in the performance of the Supplemental Agreement for projects eligible under the following CDBG regulations must be reported in writing to
1162
1 COUNTY no later than June 1. 2025:
2 1. Acquisition [ 24 Code of Federal Regulations ( CFR) 570. 201 ( a)] 3 4
5 6
7 8
9 10
11 2.
3. Clearance Activities [ 24 CFR 570. 201 ( d)]
Interim Assistance [ 24 CFR 570. 201 ( f))
4. Code Enforcement [ 24 CFR 570. 202 ( c)]
All public service activities [ 24 CFR 570. 201 ( e)] and other eligible activities under this Supplemental Agreement must be implemented, completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this Supplemental Agreement. " CFR" as used herein refers to the Code of Federal Regulations.
9. RECORDS AND INSPECTIONS.
A. CITY shall establish and maintain financial, programmatic, statistical, and other 12 supporting records of its operations and financial activities in accordance with the Uniform 13 Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 14 200), and 24 CFR Section 570. 502 ( a), as they relate to the acceptance and use of federal funds under 15 this Agreement. Said records shall be retained for a period of four ( 4) years from the date that the activity 16 or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the 17 Comprehensive Annual Performance and Evaluation Report ( CAPER). Exceptions to the four ( 4) year 18 retention period requirement, pursuant to 2 CFR 200. 333 include, but not limited to, the following:
19 20
21 22
23 24
25 26
27 28
i. if any litigation, claim, or audit is started prior to the expiration of the four 4) year period;
11. when the CITY is notified in writing by the COUNTY, HUD, or other Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG funds must be retained for four ( 4) years after final disposition; iv. when the records are transferred by the CITY to the COUNTY, HUD, or other Federal agency, the four ( 4) year period is not applicable.
B. CITY shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR
1163
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Section 200. 500). Audits shall usually be performed annually but not less frequently than every two years. Nonprofit institutions and government agencies that expend less than $ 750, 000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end of the COUNTY' S fiscal year.
C. CITY shall maintain a separate account for the CITY' S CDBG Entitlement funds received as set forth in Exhibit( s) A, B, and C attached hereto.
D. Pursuant to 2 CPR 200. 336, CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development ( HUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement and provide reasonable access to CITY staff for the purpose of interview and discussion related to the records and documents.
E. CITY shall not retain any program income as defined in 24 CFR 570. 500. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities.
F. The CITY shall ensure that at least fifty- one percent ( 51 % ) of the persons benefiting from all CDBG- funded activities or projects designated as serving limited clientele ( 24 CFR 570. 208( a)( 2)( i)] are oflow and moderate- income and meet the applicable household income guidelines.
The CITY shall provide the required income certification and direct benefit documentation, in writing, to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit( s) A, B, and C, attached hereto. In the event that CITY engages the services of a sub- contractor to implement CDBG- funded activities, the CITY must collect, in writing, all required income certification and direct benefit documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit( s) A, B, and C, attached hereto.
10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit
1164
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Requirements for Federal Awards ( 2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above- mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the Housing & Urban Development Act of 1968 ( 12 U.S.C.A. Section 1701 u), as amended, a copy of which is attached hereto as Exhibit " S", and incorporated herein by this reference. CITY shall adhere to the regulations as set forth in Exhibit " R", attached hereto and incorporated herein by this reference, pertaining to inherently religious activities. CITY shall comply with the Additional Federal Requirements, ifapplicable, attached hereto as Exhibit " AFR", and incorporated herein by this reference. 1I. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, specifically urban renewal and public assistance housing, and shall assist COUNTY in implementing and undertaking the goals and strategies identified in the 2024- 2029 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant Program.
12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT { CEOA). Pursuant to Title 14 CCR Section 150l( d), the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement.
13. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of Section 895. 2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895. 4 and 895. 6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys' fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence.
The hold harmless and indemnification obligations set forth herein shall survive the termination
1165
1 and expiration of this Agreement. In the event there is conflict between this clause and California Civil 2 Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation 3 shall not relieve the CITY from indemnifying the Indemnitees to the fullest extent allowed by law. 4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 14. INSURANCE. Without limiting or diminishing the CITY' s obligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage' s during the term of this Agreement. As respects to the insurance section only, the COUNTY herein refers to the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of COUNTY OF RIVERSIDE Supervisors, employees, elected or appointed officials, agents, or representatives as Additional Insureds
a. Workers' Compensation:
If the CITY has employees as defined by the State of California, the CITY shall maintain statutory Workers' Compensation Insurance ( Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers' Liability ( Coverage B) including Occupational Disease with limits not less than $ 1,000, 000 per person per accident. The policy shall be endorsed to waive subrogation in favor of the County of Riverside.
b. Commercial General Liability:
Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY' S performance of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy' s limit of liability shall not be less than $ 2,000, 000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two ( 2) times the occurrence limit. b. l Sexual Abuse or Molestation ( SAM) Liability:
Ifthe work will include contact with minors, and the Commercial General Liability policy is not endorsed to include affirmative coverage for sexual abuse or molestation, Vendor/ Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $ 2,000, 000
1166
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
per occurrence or claim.
c. Vehicle Liability:
If vehicles or mobile equipment are used in the performance of the obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non- owned or hired vehicles so used in an amount not less than $ 1,000, 000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two ( 2) times the occurrence limit. Policy shall name the County of Riverside as Additional Insured. d. General Insurance Provisions - All lines:
i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII ( A:8) unless such requirements are waived, in writing, by the County Risk Manager. Ifthe County' s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term.
ii). The CITY must declare its insurance self- insured retentions. If such selfinsured retentions exceed $ 500, 000 per occurrence such retentions shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon notification of self- insured retention unacceptable to the COUNTY, and at the election of the Country' s Risk Manager, CITY' S carriers shall either; 1) reduce or eliminate such self- insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment oflosses and related investigations, claims administration, and defense costs and expenses. iii). CITY shall cause CITY' S insurance carrier( s) to furnish the County of Riverside with either 1) a properly executed original Certificate( s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate( s) and policies of insurance shall contain the covenant of the insurance carrier( s) that thirty ( 30) days written notice shall be given to the County of Riverside prior to any material
1167
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County ofRiverside receives, priorto such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage's set forth herein and the insurance required herein is in full force and effect. CITY shall not commence operations until the COUNTY has been furnished original Certificate ( s) of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of Insurance.
iv). It is understood and agreed to by the parties hereto that the CITY'S insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or deductibles and/or self-insured retention's or self-insured programs shall not be construed as contributory. v). If, during the term ofthis Agreement or any extension thereof, there is a material change in the scope ofservices; or, there is a material change in the equipment tq,be used in the performance ofthe scope of or, the term ofthis Agreement, including any extensions thereof, exceeds five ( 5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetazy limits ofliability for the insurance coverage's currently required herein, if; in the County Risk Manager's reasonable judgment, the amount or type ofinsurance carried by the CITY has become inadequate.
vi). CITY shall pass down the insurance obligations contained herein to all 24 tiers ofsubcontractors working under this Agreement. 25 ( vii). The insurance requirements contained in this Agreement may be met with 26 a program(s) ofself-insurance acceptable to the COUNTY. 27 ( viii). CITY agrees to notify COUNTY of any claim by a third party or any 28 incident or event that may give rise to a claim arising from the performance ofthis Agreement.
15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this
1168
1 Supplemental Agreement, an independent contractor and shall not be deemed an employee of the 2 COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and 3 subcontractor' s) shall in no event be entitled to any benefits to which the COUNTY employees are 4 entitled, including but not limited to overtime, any retirement benefits, worker's compensation benefits, 5 and injury leave or other leave benefits. There shall be no employer- employee relationship between the 6 parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made 7 against the COUNTY based upon any contention by a third party that an employer- employee relationship 8 exists by reason ofthis Supplemental Agreement. It is further understood and agreed by the parties that 9 the CITY in the perfonnance ofthis Supplemental Agreement is subject to the control or direction ofthe 10 COUNTY merely as to the results to be accomplished and not as to the means and methods for 11 accomplishing the results.
12 16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570.601 and 570.602 13 of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall 14 on the grounds ofrace, color, national origin, sex, sexual orientation, gender identity, or veterans status 15 be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any 16 program or activity funded in whole or in part with Community Development funds. 17 CITY shall abide by and include in any subcontracts to perfonn work under this Supplemental 18 Agreement, the following clause:
19 " During the performance ofthis Supplemental Agreement, CITY and its subcontractors shall not 20 unlawfully discriminate against any employee or applicant for employment because of race, 21 religion, color, national origin, ancestry, physical disability, medical condition, marital status, 22 veterans status, sexual orientation, gender identity, age ( over 40) or sex. CITY and 23 subcontractors shall insure that the evaluation and treatment of their employees and applicants 24 for employment are free of such discrimination. CITY and subcontractors shall comply with the 25 provisions of the Fair Employment and Housing Act ( California Government Code Section 26 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission 27 are implementing California Government Code Section 12990 et seq., set forth in Chapter 1 of 28 Division 4.1 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as ifset forth in full. CITY and its subcontractors
1169
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement."
17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200) and the CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570. 611.
B. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.
C. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
D. No covered persons who exercise or have exercised any functions or responsibilities with respect to COBO- assisted activities, or who are in a position to participate in a decision- making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have afinancial interest in any contract, subcontract, or agreement with respect to the COBO- assisted activity, or with respect to the proceeds from the COBO- assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one ( 1) year thereafter. For purposes of this paragraph, a " covered person" includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Subrecipient, or any designated public agency.
E. CITY understands and agrees that no waiver of exception can be granted to the prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570. 61 l(d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY' S sole and absolute discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570. 61 l(d)( 2).
F. Prior to the distribution of any CDBG funding under this Supplemental
1170
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including even the appearance of conflict that may arise with respect to the CDBG activities funded under this Supplemental Agreement.
G. Any violation of this Section 17 shall be deemed a material breach of this Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by the COUNTY.
18. LOBBYING. CITY certifies to the best ofits knowledge and belief, that:
a. No federally-appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding ofany federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification ofany federal contract, grant, loan, or cooperative 17 agreement.
18 b. Ifany funds otherthan federally-appropriated funds have been paid or will be paid 19 to any person for influencing or attempting to influence an officer or employee ofany agency, a member 20 ofCongress, an officer or employee ofCongress, or an employee ofa member ofCongress in connection 21 with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit 22 Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 23 c. CITY shall require that the language ofthis certification be included in the award 24 documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, 25 loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. 26 This certification is a material representation of fact upon which reliance was placed when this 27 transaction was made or entered into.
28 19. TERMINATION.
A. CITY. CITY may not terminate this Agreement except upon express written
1171
1 consent of COUNTY, pursuant to 2 CFR 200. 339 ( a)( 3). 2 B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY 3 may suspend or terminate this Supplemental Agreement upon a ten ( 10) day written notice to CITY of 4 action being taken and the reason for such action including. but not limited to , the following reasons:
5 ( 1) In the event CITY fails to perform the covenants herein contained at such 6 times and in such manner as provided in this Supplemental Agreement; and 7 ( 2) In the event there is a conflict with any federal, state or local law, 8 ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement invalid or 9 untenable; or
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.
C. This Agreement may be terminated and/ or funding suspended, in whole or in part, for cause in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR 200. 339). Cause shall be based on the failure of the CITY to materially comply with either the terms or conditions of this Agreement. Upon suspension of funding, the CITY agrees not to incur any costs related thereto, or connected with, any area of conflict from which the COUNTY has determined that suspension of funds is necessary. CITY acknowledges that failure to comply with Federal statutes, regulations , or the terms and conditions of this Agreement may be considered by the COUNTY in evaluating future CDBG and non- CD BG funding applications submitted by CITY .
D. Upon suspension or termination of this Supplemental Agreement, CITY shall return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Supplemental Agreement.
E. Reversion of Assets
1. Upon expiration or termination of this Supplemental Agreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Supplemental Agreement as well as any accounts receivable held by CITY which are attributable to the use of CDBG funds awarded pursuant to this Supplemental Agreement.
1172
1 2. Any real property under the CITY' S control that was acquired or improved 2 in whole or in part with CDBG funds ( including CDBG funds provided to the CITY in the form of a 3 loan) in excess of $25, 000 is either:
4 ( i) Used to meet one of the National Objectives pursuant to 24 CFR 5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
570. 208 until five years after expiration of this agreement, or for such longer period of time as determined to be appropriate by the CO TY; or
ii) Not used in accordance with Clause ( i) above, in which event the CITY shall pay the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non- CDBG funds for the acquisition of, or improvement to, the property.
20. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of Housing, and Workforce Solutions, and the Community Development Block Grant Program in making the project possible.
21. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Supplemental Agreement and the effective and efficient achievement of the COBO National Objectives as set forth in Exhibit( s)A, B , and C, attached hereto. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly ritten reports shall include , but shall not be limited to, the following data elements:
A. Title of program, listing of components, description of activities/ operations.
B. The projected goals, indicated numerically , and also the goals achieved ( for each report period). In addition, identify by percentage and description the progress achieved towards meeting the specified goals and identify any problems encountered in meeting goals.
C. If the CDBG- funded activity meets a National Objective under 24 CFR 570. 208 a)( 2)( i), CITY will report the following:
1) Total number of direct beneficiaries ( clientele served) with median household incomes ( MHI) at:
Above 80% MHI
1173
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Between 50% and 80% MHI ( Low- Income)
Between 30% and 50% MHI ( Very Low- Income)
Less than 30% MHI ( Extremely Low- Income)
2) Total number and percent(%) of the clientele served that have household incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female- Headed Households
D. CITY shall report, in writing, and cause its subcontractors to report, in writing, beneficiary statistics monthly to Housing and Workforce Solutions ( HWS) on the pre- approved Direct Benefit Form and Self- Certification Form ( certifying income, family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes during the term of this Supplemental Agreement. CITY and subcontractors will collect and provide all necessary data required by HUD pertaining to the Specific Outcome Indicators as identified in HUD' s Community Planning and Development ( CPD) Outcome Performance Measurement System.
22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY' s written approval from HWS prior to implementing the following " high risk" activities funded with CDBG assistance:
A. Construction of public facilities ( project plans and specifications); B. Acquisition of real property;
C. Historic Preservation;
D. Relocation; and
F. Economic Development
23. PRIOR COUNTY APPROVAL ( CONSTRUCTION ACTIVITIES). CITY shall obtain COUNTY' s written approval, through its HWS, of the project plans, specifications, and construction documents prior to CITY' S construction of same for all projects consisting of CDBG- funded construction activities . The COUNTY neither undertakes nor assumes nor will have any responsibility or duty to CITY or to any third party to review, inspect, supervise, pass judgment upon or inform CITY or any third party of any matter in connection with the development or construction of the improvements, whether regarding the quality, adequacy or suitability of the plans, any labor, service,
1174
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY and all third parties shall rely upon its or their own judgment regard ing such matters , and any review, inspection, supervision, exercise ofjudgment or information supplied to CITY or to any third party by the COUNTY in connection with such matter is for the public purpose of assisting with a community development and housing activity pursuant to the Act, and neither CITY ( except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be responsible for any of the work of construction, improvement, or development of the property.
It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local jurisdiction land use requirements will permit development of the property and construction of the improvements and the use , operation, and maintenance of such Improvements in accordance with the provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any local jurisdiction or County permit or other local jurisdiction or County approval necessary for the development of the Property , or waive any applicable local jurisdiction or County requirements relating thereto. This Agreement does not ( a) grant any land use entitlement to CITY, ( b) supersede, nulli fy, or amend any condition which may be imposed by the local jurisdiction in connection with approval of the development described herein , ( c) guarantee to CITY or any other party any profits from the development of the Property , or ( d) amend any local jurisdiction or County laws , codes or rules.
City agrees and acknowledges that it is the responsibility of City to obtain a legal determination at City' s sole cost and expense, as to whether prevailing wages must be paid during construction of the Project. If the Project is subject to prevailing wages , then City shall be solely responsible to pay its contractors and subcontractors the required prevailing wage rate . City agrees to indemnify , defend, and hold County harmless from and against any liability arising out of and related to City' s failure to comply with any and all Davis Bacon and or prevailing wage requirements.
24. PRIOR COUNTY APPROVAL { AOUISITION ACTIVITIES). CITY shall obtain COUNTY' s written approval and authorization to proceed, through HWS , of all CDBG- funded real
1175
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
property acquisition activities.
25. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Section 200. 311); National Environmental Policy Act of 1969 ( 42 U.S.C.A. §4321, et seq.); the California Environmental Quality Act ( Cal. Pub. Resources Code § 21000, et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended ( 42 U.S.C .A. §4630, et seq.); and the COUNTY' s Five Year Consolidated Plan. In addition, the following is to occur:
a. Title to the real property shall vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be maintained by the CITY, for a minimum period of five ( 5) years from the date the CDBG- funded activity is closed- out and reported as complete by the COUNTY through the Comprehensive Annual Performance and Evaluation Report ( CAPER);
c. While held by CITY, the real property or the constructed facility is to be used exclusively for the purposes for which acquisition or construction was originally approved by COUNTY;
d. Written approval from COUNTY must be secured ifthe property or the facility is to be put to an alternate use that is consistent with the COUNTY' S Five- Year Consolidated Plan or the applicable federal regulations governing CDBG funds;
e. Should CITY desire to use the real property or the constructed facility, prior to the completion of the mandatory five- year period, for a purpose not consistent with applicable federal regulations governing CDBG funds or to sell the real property or facility, then:
1) If CITY desires to retain title, CITY will reimburse COUNTY the amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility; or 2) If CITY sells the property or facility or is required to sell the property or
1176
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.
26. ENTIRE AGREEMENT . This Supplemental Agreement , including any attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing. No oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto . Each of the attachments and exhibits attached hereto is incorporated herein by this reference.
27. SEVERABILITY. Each section, paragraph and provision of this Supplemental Agreement is severable from each other provision, and ifany provision or part thereof is declared invalid, the remaining provisions shall remain in full force and effect.
28. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing COBO- funded Projects to notify, in writing, the Riverside County Workforce Development Center of any and all job openings that are caused by the CDBG- funded Projects under this Supplemental Agreement.
29. MINISTERIAL ACTS. The Director of Housing and Workforce Solutions or designee( s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Supplemental Agreement as it may be amended from time- to- time by COUNTY.
30. PROJECT ELIGIBILITY . As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the U.S. Department of Housing and Urban Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY .
31. SOURCE OF FUNDING. CITY acknowledges that the source of funding pursuant to this Supplemental Agreement is Community Development Block Grant funds ( CFDA 14. 218), and the Grant Award Number is B-24- UC- 06- 0506.
1177
1 32. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form with 2 respect to this Supplemental Agreement, without prior written approval ofthe COUNTY. 3 33. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any 4 dispute arising hereunder shall be governed by and interpreted in accordance with the laws ofthe State 5 ofCalifornia. This Supplemental Agreement shall be construed as a whole according to its fair language 6 and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of 7 construction to the effect that ambiguities are to be resolved against the drafting party shall not be 8 employed in interpreting this Supplemental Agreement, all parties having been represented by counsel 9 in the negotiation and preparation hereof.
10 34. WAIVER. Failure by a party to insist upon the strict performance of any of the 11 provisions of this Supplemental Agreement by the other party, or the failure by a party to exercise its 12 rights upon the default ofthe other party, shall not constitute a waiver ofsuch party's rights to insist and 13 demand strict compliance by the other party with the terms ofthis Supplemental Agreement thereafter. 14 35. JURISDICTION AND VENUE: Any action at law or in equity arising under this 15 Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or 16 determining the validity of any provision of this Supplemental Agreement shall be filed only in the 17 Superior Court of the State ofCalifornia, located in Riverside, California, and the parties hereto waive 18 all provisions oflaw providing for the filing, removal or change ofvenue to any other court orjurisdiction 19 36. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in 20 whole or in part, for the purchase ofequipment or personal property, the property shall not be transferred 21 from its originally funded use, by CITY or the CITY'S subcontractor implementing the CDBG-funded 22 activity, for a period offive (5) years from the close-out date ofthe grant from which CDBG assistance 23 was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review. 24 37. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or 25 exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant and 26 represent that they have the authority to execute this Supplemental Agreement and warrant and represent 27 that they have the authority to bind the respective parties to this Supplemental Agreement to the 28 performance ofits obligations hereunder.
38. EFFECTIVE DATE. The effective date ofthis Supplemental Agreement is the date the
1178
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
parties sign the Supplemental Agreement. If the parties sign the Supplemental Agreement on more than one date, then the last date the Supplemental Agreement is signed by a party shall be the effective date.
39. COUNTERPARTS. This Supplemental Agreement may be signed by the different parties hereto in counterparts, each of which shall be an original but all of which together shall constitute one and the same agreement.
40. FORCE MAJEURE.
A. Performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lock- outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, pandemic, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, sub- contractor or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or any causes beyond the control or without the fault of the party claiming an extension of time to perform.
B. An extension of time for any such cause ( a " Force Majeure Delay") shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty ( 30) calendar days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty ( 30) calendar days after it obtains knowledge of the event.
41. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modified or amended only by a writing signed by the duly authorized and empowered representative of COUNTY and CITY respectively.
42. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((" CUETA") Cal. Civ. Code§§ 1633. 1 to 1633. 17). The parties further agree that the
1179
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to CUET A as amended from time to time. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision ( i) of Section 1633. 2 of the Civil Code.
Remainder of Page Intentionally Blank]
Signatures on Following Page]
1180
1 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the 2 dates set forth below.
3 4
5 6
7 8
9 IO
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
COUNTY OF RIVERSIDE,
a political subdivision of the
State of California
BY: -----------
Juan Garcia,
Deputy Director
Date:
APPROVED AS TO FORM:
MINHC. TRAN
COUNTY COUNSEL
By: _________ _
Paula S. Salcido,
Deputy County Counsel
CITY OF BANNING,
A general law city
BY: ----------
Name:
Title:
Date: ---------
ATTEST:
BY: ----------
City Clerk
APPROVED AS TO FORM:
BY: ----------
City Attorney
1181
EXHIBIT A
File No.: 5.BN. 61- 24
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
NON- PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: City ofBanning UBI #: F996EVLCRCG3
ADDRESS: PO Box 998
Banning, CA 92220
PROGRAM CONTACTS: Ralph Wright, Parks and Recreation Director PHONE: 951-922-3242 FAX:
E-MAIL: rwright@banningca. gov
PROJECT NAME: Banning Senior Center ADA Improvements Project PROJECT LOCATION: 769 North San Gorgonio, Banning, CA 92220 LEVEL OF ENVIRONMENTAL CLEARANCE: § 58.35(a)(2)
CDBG ELIGIBILITY CODE: 570.201 ( c) ---..:...:.------------------ PROJECT FUNDING SUMMARY: $ 43,144
Project to be administered by County (HWS) on behalf ofCity: YES D NO [81 II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2024-2025 Community Development Block Grant for the Banning Senior Center ADA Improvements Project in a manner satisfactory to the County ofRiverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #1 The City ofBanning will use CDBGfunding for costs associated with ADA improvements to the Senior Center, outlined in a CASP Report. Improvements include but are not limited to rehabilitating existing restrooms for ADA compliance. CDBG funds will be usedfor design, construction, project management, compliance monitoring, inspection, and other related costs. Banning Senior Center ADA Improvements Project B. National Objective
1182
EXHIBIT A
File No.: 5.BN.61-24
All activities funded with CDBG funds must comply with one of more of the CDBG program' s National Objective Criteria as required under 24 CFR 570. 200( a)( 2). City certifies that the activity( ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: _ 5_7_0 ___ . 2_08_..._(a""")(= 2...,)(._.i)_...(A.;;.).__ ____________ _ CFR Reference: Low Mod Limited Clientele Presumed
C. Levels ofAccomplishment - Goals and Performance Measures The City agrees to implement and complete the following activity( ies):
Activity # 1: Complete ADA improvements
Activity # 2: Design, construction, project management, compliance monitoring, inspection, and other related expenses.
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives ( select one): 181 Creating Suitable Living Environments D Providing Decent Affordable Housing
D Creating Economic Opportunities
Outcome ( select one): 181 Availability/ Accessibility
D Affordability
D Sustainability ( promoting livable or viable communities) D. City Capacity
By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and pennitting, and sufficient amount of financial resources necessary to implement and cany out the activities funded with CDBGfunds.
City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient' s performance under this Agreement.
Any changes in the above items are subject to the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as detennined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated.
F. Program Budget
1183
EXHIBIT A
File No.: 5.BN. 61- 24
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 43,144 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient' s financial management system in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.
Line Item
Design/Engineering Costs
Project Administration Costs
Construction Costs
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Clearance
Interim Assistance
CDBG Granted
Funds
X
X
X
Total ofNonCDBG Funds
G. Total Amount ofNon- CDBG Leveraging
Page3 of6
Total Activity/Project
Budget
Notes
1184
EXHIBIT A
File No.: 5.BN. 61- 24
TYPE spURCE AMOUNT r SOURCE AMOUNT SOURCE AMOUNT I TOTALFEDERAL ~---~~~~~----------~'- STATE/ LOCAL --~~~-___ ----~-~~'----
PRIVATE ---~~~----!,--__
OTHER -------- I
TOTAL: _______ s __ o ___ _
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards ( 2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein , utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in confonnance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
These principles shall be applied for all costs incurred whether charged on a direct or indirect basis .
C. Documentation and Record Keeping
l . Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
I Records providing a full description of each activity undertaken ;
11. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program ;
111. Records required to determine the eligibility of activities ; 1v. Records required to document the acquisition , improvement, use or disposition of real property acquired or improved with CDBG assistance ;
v. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program ;
vi . Financial records as required by 24 CFR 570.502 , and 2 CFR 200 ; and vii. Other records necessary to document compliance with Subpart K of24 CFR Part 570 . 2 . Records Retention
1185
EXHIBIT A
File No.: 5.BN. 61- 24
The City shall retain all CDBG-related financial records , supporting documents, contracts, and agreements for a period of four ( 4) years. The retention period begins on the date of the submission of the County 's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the final time. The City will retain all National Objective documentation, including low-moderate income certification, ethnicity, and other pertinent data for a period of four (4) years after submission of the County' s annual performance and evaluation report to HUD .
Notwithstanding the above , ifthere is litigation, claims, audits , negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period , then such records must be retained until completion ofthe actions and resolution of all issues.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided . Such data shall include , but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County' s or City' s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent" is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.
5. Close-outs
The City' s obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include , but are not limited to: making final payments, disposing of program assets ( including the return of all unused materials, equipment, unspent cash advances , program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing , the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds , including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General ofthe United States or any oftheir authorized representatives, at any time during normal business hours , as often as deemed necessary , to audit, examine, and make excerpts or transcripts ofall relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits the Single Audit Act, and the Office of Management and Budget ( 0MB) Title 2 U.S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
1186
EXHIBIT A
File No.: 5.BN.61-24
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, City will perfonn and complete the activities described in Section II in conformance with the schedule oftasks and milestones listed below:
Tasks / Milestone
Complete CDBG Training
Implement Project Activities
Execute Supplemental Agreement & Notice to Incur Cost
Tasks / Milestone
Submit Quarterly Performance Reports to County
County Monitoring of City Program/ Performance
Specific Proiect Activities
Start Date
September 2024
Completion Date
September 2024
Upon Notification from HWS
September 2024
Start Date
January 2025
Completion 'Date
October 2024 Through June 202S
To be detennined by Program Manager
1. City executes Supplemental Agreement; receives Authorization to Incur Cost letter
2. City prepares final construction documents ( incorporating Special Federal Provisions) for HWS review and approval
3. HWS authorizes City to advertise for bids
4. HWS reviews and approves bidding process
5. City awards construction contract
6. City and HWS conduct " pre- construction meeting"
7. HWS authorizes City to issue " Notice to Proceed"
City Submits Reimbursement Requests Monthly Submittal D Other Schedule ~ To be determined by CDBG- funded Project Complete
V. SPECIAL CONDITIONS / PERFORMANCE REQUIREMENTS
CDBG Program manager
June 30, 2025
The City must follow proper procurement and construction policies and procedures ofthe City and CDBG regulations. Construction shall commence using CDBG funding with a Notice to Proceed. A pre-bid and pre- construction meeting are required. The City must contact the CDBG Program Manager for review before submitting RFP, construction activity, or cost without prior written approval. The County must be contacted IO (ten) days in advance for attendance ofthe Pre- Construction meeting. Original signed Certified payrolls are to be submitted on a weekly basis to the HWS-CDBG program manager once construction starts.
1187
EXHIBITB
File No.: 5.BN. 62- 24
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
NON- PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: City ofBanning UEI #: F996EVLCRCG3
ADDRESS: PO Box 998
Banning, CA 92220
PROGRAM CONTACTS: Ralph Wright, Parks and Recreation Director PHONE: 951-922-3242 FAX:
E-MAIL: rwright@banningca. gov
PROJECT NAME: Dysart Park Improvement Project
PROJECT LOCATION: 210 l West Victory Avenue, Banning, CA 92220 LEVEL OF ENVIRONMENTAL CLEARANCE: § 58.35(3)(iii)(A) ____ _, a_ ____ ..;;..:.....:;.... ________ _ CDBG ELIGIBILITY CODE: _5_70_.2_0_1 ~(c..:..) _______________ _ PROJECT FUNDING SUMMARY: $ 105,000
Project to be administered by County (HWS) on behalf ofCity: YES D NO [ZI II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2024-2025 Community Development Block Grant for the Dysart Park Improvement Project in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #1 The City ofBanning will use CDBG funding for design and construction ofimprovements at Dysart Park. Improvements will include, restrooms but are not limited to replacing temporary bleachers with permanent bleachers and constructing meeting rooms, restrooms, and concessions. CDBG funds will be used for design, construction, project management, compliance monitoring, inspection, and other related costs.
1188
B. National Objective
EXHIBITB
File No.: 5.BN.62- 24
All activities funded with CDBG funds must comply with one of more of the CDBG program' s National Objective Criteria as required under 24 CFR 570.200(a)( 2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: _5_7_0_.2_0"""8_...(a""").,_(l'-'-)(,_i),___ ______________ _ CFR Reference: Low Mod Area
C. Levels ofAccomplishment - Goals and Performance Measures The City agrees to implement and complete the following activity(ies):
Activity# I: Complete park improvements
Activity #2: Design, construction, project management, compliance monitoring, inspection, and other related expenses.
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives ( select one):
Outcome ( select one):
D. City Capacity
g'.I Creating Suitable Living Environments
D Providing Decent Affordable Housing
D Creating Economic Opportunities
0 Availability/ Accessibility
0 Affordability
g'.I Sustainability ( promoting livable or viable communities) By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds.
City will immediately notify County ofany significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient' s performance under this Agreement.
Any changes in the above items are subject to the prior approval ofthe County.
E. Performance Monitoring
The County of Riverside will monitor the performance ofthe City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period oftime after being notified by the County, contract suspension or termination procedures will be initiated.
1189
F. Program Budget
EXHIBITB
File No.: 5.BN. 62- 24
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 105,000 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient' s financial management system in accordance with the Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards ( 2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County . Any amendments to the budget must be approved in writing by both the County and City.
Line Item
Design/Engineering Costs
Project Administration Costs
Construction Costs
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Clearance
Interim Assistance
CDBG Granted Total of NonFunds CDBG Funds
X
X
X
0
Total Activity/ Project
Budget
Notes
1190
G. Total Amount ofNon-CDBG Leveraging
EXHIBITB
File No.: 5.BN. 62- 24
TYPE
FEDERAL
SOURCE AMOUNT I SOURCE AMOUNT SOURCE AMOUNT jTo~Z
PRIVATE
OTHER
I
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
I ,---- I
TOTAL: ____ $ __ 0 ____ _
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with the Uniform Administrative Requirements , Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C . Documentation and Record Keeping
1 . Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to :
Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program:
iii. Records required to determine the eligibility ofactivities ; 1v. Records required to document the acquisition. improvement, use or disposition of real property acquired or improved with CDBG assistance ; •
v . Records documenting compliance with the fair housing and equal opportunity components ofthe CDBG program ;
v1. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and v11. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
2. Records Retention
1191
EXHIBITB
File No.: 5.BN. 62- 24
The City shall retain all CDBG-related financial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date ofthe submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the final time. The City will retain all National Objective documentation, including low-moderate income certification, ethnicity, and other pertinent data for a period offour (4) years after submission of the County's annual performance and evaluation report to HUD.
Notwithstanding the above, ifthere is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion ofthe actions and resolution ofall issues.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and the use or disclosure of such infonnation, when not directly connected with the administration ofthe County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.
5. Close-outs
The City's obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets ( including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General ofthe United States or any oftheir authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure ofthe City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits the Single Audit Act, and the Office ofManagement and Budget ( 0MB) Title 2 U.S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
1192
EXHIBITB
File No.: 5.BN. 62- 24
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, City will perform and complete the activities described in Section II in conformance with the schedule oftasks and milestones listed below:
Tasks / Milestone
Complete CDBG Training
Implement Project Activities
Execute Supplemental Agreement & Notice to Incur Cost
Tasks / Milestone
Submit Quarterly Performance Reports to County
County Monitoring ofCity Program/Performance
Specific Proiect Activities
Start Date
September 2024
Completion Date
September 2024
Upon Notification from HWS
September 2024
Start Date
January 2025
Completion Date
October 2024 Through June 2025
To be determined by Program Manager
I. City executes Supplemental Agreement; receives Authorization to Incur Cost letter
2. City prepares final construction documents (incorporating Special Federal Provisions) for HWS review and approval
3. HWS authorizes City to advertise for bids
4. HWS reviews and approves bidding process
5. City awards construction contract
6. City and HWS conduct " pre-construction meeting"
7. HWS authorizes City to issue " Notice to Proceed"
City Submits Reimbursement Requests Monthly Submittal D Other Schedule t8] To be determined by CDBG-funded Project Complete
V. SPECIAL CONDITIONS / PERFORMANCE REQUIREMENTS
CDBG Program manager
June 30, 2025
The City must follow proper procurement and construction policies and procedures ofthe City and CDBG regulations. Construction shall commence using CDBG funding with a Notice to Proceed. A pre-bid and pre-construction meeting are required. The City must contact the CDBG Program Manager for review before submitting RFP, construction activity, or cost without prior written approval. The County must be contacted 10 (ten) days in advance for attendance ofthe Pre-Construction meeting. Original signed Certified payrolls are to be submitted on a weekly basis to the HWS-CDBG program manager once construction starts.
1193
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
PUBLIC SERVICE)
I. GENERAL INFORMATION
EXHIBITC
File No.: 5.BN. 63- 24
CITY NAME: City ofBanning UEI#: F996EVLCRCG3 --------------------------- ADDRESS: PO Box 998
Banning, CA 92220
CITY PROGRAM CONTACTS: Mike Story, Executive Director ---------------------- SUBRECIPIENT NAME: Sunrise Life Development ______ _.__ _______________ _ ADDRESS: PO Box 998 , Banning, CA 92220
PHONE: 909-875-5566 FAX:
E-MAIL : mstory@sunrisechurch. org
PROJECT NAME : Banning Peace Center Food Program
PROJECT LOCATION: 4024 West Wilson Street, Banning, CA 92220 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [ 24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 ( e) Public Services PROJECT FUNDING SUMMARY: $11 ,264
Project to be administered by County (HWS) on behalf of CITY: YES D NO IZI II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2024-2025 Community Development Block Grant for the Banning Peace Center Food Program in a manner satisfactory to the County ofRiverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #1 Banning Peace Food Center provides emergency assistance to low to moderate-income clients . Clients are assisted with emergency relieffood boxes, baby items, and senior products . CDBG funds will be used to purchase food, supplies, and other program-related expenses.
1194
EXHIBITC
File No.: 5.BN.63-24
B. National Objective
All activities funded with CDBG funds must comply with one of more ofthe CDBG program' s National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 (a)(2Xi)(B)
CFR Reference: Low Mod Limited Clientele Income Certification C. Levels ofAccomplishment - Goals and Performance Measures The City agrees to provide the following levels ofprogram services:
Activity Units
per Month
Total
Units/Year
Total
Unduplicated Persons
600
Unit ofService is defined as: Persons Served
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives ( select one): ~ Creating Suitable Living Environments D Providing Decent Affordable Housing
D Creating Economic Opportunities
Outcome ( select one): ~ Availability/Accessibility
D Affordability
600
D Sustainability (promoting livable or viable communities) D. City Capacity
By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and pennitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds.
City will immediately notify County ofany significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval ofthe County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period oftime after being notified by the County, contract suspension or termination procedures will be initiated.
1195
F. Program Budget
EXHIBITC
File No.: 5.BN. 63- 24
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 11,264. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient' s financial management system in accordance with the standards specified in Unifonn Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.
Line Item
Total Direct Program
Expenses
Salaries
Fringe
Office Space ( Program Only)
Utilities
Communications
Reproduction/ Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other:
Total Indirect Program
Expenses
Indirect Costs (Specify)*
CDBGGranted
Funds
11,264
Total NonCDBG FundsTotal
Activity/Project
Bud et
11, 264
Notes
All indirect costs must be pre-approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share ofgeneral and administrative costs.
1196
G. Total Amount of Non- CDBG Leveraging
EXHIBITC
File No .: 5.BN. 63- 24
TYPE
FEDERAL
STATFJLOCAL
PRIVATE
OTHER
SOURCE AMOUNT SOURCE AMOUNT SOURCE r AMOUNT I
TOTAL
I
1 TOTAL: ____ $._. 0 ___ _
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards (2 CFR Part 200), and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls , and maintain necessary source documentation for all costs incurred .
B. Cost Principles
The City shall administer its program in conformance with the Uniform Administrative Requirements , Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
These principles shall be applied for all costs incurred whether charged on a direct or indirect basis .
C. Documentation and Record Keeping
1. Records to be aintained .
The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506 , that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to :
Records providing a full description of each activity undertaken ;
11. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program ;
iii . Records required to determine the eligibility ofactivities ; iv . Records required to document the acquisition , improvement, use or disposition of real property acquired or improved with CDBG assistance; v. Records documenting compliance with the fair housing and equal opportunity components ofthe CDBG program ;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200 ; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570 .
1197
2. Records Retention:
EXHIBITC
File No.: 5.BN.63- 24
The City shall retain all CDBG-related financial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County' s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the final time. The City will retain all National Objective documentation, including lowmoderate income certification, ethnicity, and other pertinent data for a period of four ( 4) years after submission ofthe County' s annual performance and evaluation report to HUD. Notwithstanding the above, ifthere is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion ofthe actions and resolution of all issues.
3. Client Data:
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description ofservice provided. Such information shall be made available to County monitors or their designees for review upon request.
4. Disclosure:
The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case ofa minor, that of a responsible parent/guardian.
5. Close-outs:
The City's obligation to the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets ( including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records.
Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.
6. Audits & Inspections:
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General ofthe United States or any oftheir authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts ofall relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation ofthis contract and may result in the withholding offuture payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits, the Single Audit Act, and the Office of Management and Budget ( 0MB) Title 2 U.S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
1198
IV. PROJECT IMPLEMENTATION AND SCHEDULE
EXHIBITC
File No.: 5.BN.63-24
Unless pre-approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule oftasks and milestones listed below:
Tasks / Milestone Start Date Completion Date
Complete Sponsor Training September 2024 September 2024 Implement Program Activities August I, 2024 March 28, 2025 Execute Sponsor' s Agreement September 2024 December 2024 Notice to Incur Cost 1
Sponsor Submits Quarterly October 2024 March 28, 20252
Performance Reports to County
Sponsor Submits Monthly October 2024 March 28, 2025 3
Direct Benefit Reports
Sponsor Submits Reimbursement October 2024 March 28, 20254 Requests
The Notice to Incur Cost Letter will provide the specific program implementation date for this CDBG-funded activity.
2, 3, 4
Submittal ofrequired documentation is determined by the specific benefit period ofthe CDBG-funded activity. Confirm performance requirements with CDBG Program Manager.
CDBG Program Services Complete March 28, 2025
V. SPECIAL CONDITIONS / PERFORMANCE REQUIREMENTS
Sponsor must collect Self-Certifications with supporting income documents and demographic information from EVERY individual or family participating in CDBG-funded activities or the parent/legal guardian ofevery child participating in CDBG-fuoded activities. This includes family income, family size, and race. Sponsor is required to submit the I
st 200 Self- Certifications forms with supporting
documentation, and 25% thereafter to HWS along with the Direct Benefit Reports on a monthly basis unless otherwise authorized in writing by CDBG program staff.
Once the Notice to Incur Cost letter is received, sponsor must submit monthly reimbursement requests unless another schedule is approved, in writing, by HWS. Further, at least 75% ofall 2024-25 CDBG funds must be drawn down by January IO, 2025, and JOO% of all 2024-25 CDBG funds must be drawn down by March 28, 2025.
1199
EXHIBIT " S"
Economic Opportunities for Low- and Very Low-Income Persons
CONTRACT REQUIREMENTS
24 CFR Part 75
RIVERSIDE COUNTY
Section 75.1 Purpose
This part establishes the requirements to be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 ( 12 U.S .C. 1701u) ( Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low- income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.
Section 75.3 Applicability
a) General applicability. Section 3 applies to public housing financial assistance and Section 3 projects, as follows:
1) Public housing financial assistance . Public housing financial assistance means:
i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 ( the 1937 Act);
ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act; iii) Development, modernization, and management assistance provided pursuant to section 9( d) of the 193 7 Act; and
iv) The entirety of a mixed- finance development project as described in 24 CFR 905. 604 , regardless of whether the project is fully or partially assisted with public housing financial assistance as defined in paragraphs ( a)( l)(i) through ( iii) of this section. 2) Section 3 projects. ( i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200, 000. The threshold is $100, 000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 ( 12 U.S.C. 1701z- 1 or 1701z- 2), the Lead- Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead- Based Paint Hazard Reduction Act of 1992 ( 42 U.S.C. 4851 et seq.). The project is the site or sites together with any building( s) and improvements located on the site( s) that are under common ownership, management, and financing. 1200
ii) The Secretary must update the thresholds provided in paragraph ( a)( 2)( i) of this section not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment. When the Secretary finds it is warranted to ensure compliance with Section 3, the Secretary may adjust, regardless of the national construction cost factor, such thresholds through Federal Register notice, subject to public comment. iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance.
b) Contracts for materials. Section 3 requirements do not apply to material supply contracts. c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section 7( b) of the Indian Self- Determination and Education Assistance Act ( 25 U.S.C. 5307( b)) or subject to tribal preference requirements as authorized under lOl( k) of the Native American Housing Assistance and Self- Determination Act ( 25 U.S~C. 411 l(k)) must provide preferences in employment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to the requirements of this part. d) Other HUD assistance and other Federal assistance. Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.
Section 75. 5 Definitions.
The terms HUD, Public housing, and Public Housing Agency ( PHA) are defined in 24 CFR part
5. The following definitions also apply to this part:
1937Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.
Contractor means any entity entering into a contract with:
1) A recipient to perform work in connection with the expenditure of public housing financial assistance or for work in connection with a Section 3 project; or 2) A subrecipient for work in connection with a Section 3 project.
Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance.
Low-income person means a person as defined in Section 3( b )(2) of the 193 7 Act.
Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.
Professional services means non- construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, financial 1201
consulting, accounting services, environmental assessment, architectural services, and civil engineering services.
Public housingflnancial assistance means assistance as defined in §75. 3( a)( l).
Public housing project is defined in 24 CFR 905. 108.
Recipient means any entity that receives directly from HUD public housing financial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonprofit organization.
Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended ( 12 U.S. C. 170lu).
Section 3 business concern means:
1) A business concern meeting at least one of the following criteria, documented within the last six- month period:
i) It is at least 51 percent owned and controlled by low- or very low- income persons; ii) Over 75 percent of the labor hours performed for the business over the prior threemonth period are performed by Section 3 workers; or iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing. 2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner( s) or employees.
3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications of the contract.
Section 3 project means a project defined in §75. 3(a)( 2).
Section 3 worker means:
1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:
i) The worker' s income for the previous or annualized calendar year is below the income limit established by HUD.
ii) The worker is employed by a Section 3 business concern. iii) The worker is a YouthBuild participant.
1202
2) The status ofa Section 3worker shall not be negatively affected by a prior arrest or conviction. 3) Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications ofthe position to be filled.
Section 8-assisted housing refers to housing receiving project-based rental assistance or tenantbased assistance under Section 8 ofthe 1937 Act.
Service area or the neighborhood ofthe project means an area within one mile ofthe Section 3 project or, iffewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.
Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.
Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor' s obligation to perform work in connection with the expenditure ofpublic housing financial assistance or for a Section 3 project.
Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.
Targeted Section 3 worker has the meanings provided in §§75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.
Very low-incomeperson means the definition for this term set forth in section 3(b )(2) ofthe 1937 Act.
YouthBuildprograms refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).
Subpart C-Additional Provisions for Housing and Community Development Financial Assistance
75.19 Requirements.
a) Employment and training. ( 1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area ( or nonmetropolitan county) in which the project is located.
2) Where feasible, priority for opportunities and training described in paragraph ( a)( l) ofthis section should be given to:
1203
i) Section 3 workers residing within the service area or the neighborhood of the project, and ii) Participants in YouthBuild programs.
b) Contracting. ( 1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area ( or nonmetropolitan county) in which the project is located.
2) Where feasible, priority for contracting opportunities described in paragraph ( b)( l) of this section should be given to:
i) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project, and ii) YouthBuild programs.
75.21 Targeted Section 3 worker for housing and community development financial assistance. a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker who is:
I) A worker employed by a Section 3 business concern; or 2) A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
i) Living within the service area or the neighborhood of the project, as defined in § 75. S; or ii) A YouthBuild participant.
b) [ Reserved]
75. 23 Section 3 safe harbor.
a) General. Recipients will be considered to have complied with requirements in this part, in the absence of evidence to the contrary if they:
1) Certify that they have followed the prioritization of effort in § 75. 19; and 2) Meet or exceed the applicable Section 3 benchmark as described in paragraph ( b) of this section.
b) Establishing benchmarks. ( 1) HUD will establish Section 3 benchmarks for Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERAL REGISTER. HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide 1204
benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography, the nature ofthe Section 3 project, or other variables. HUD will update the benchmarks through a document published in the FEDERAL REGISTER, subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. 2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by specific categories of workers or in different localities or regions; averages for labor hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number oflabor hours as such hours are excluded from the total number oflabor hours to be reported per §75.25(a)(4). 3) Section 3 benchmarks will consist ofthe following two ratios:
i) The number of labor hours worked by Section 3 workers divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year. ii) The number oflabor hours worked by Targeted Section 3 workers as defined in §75.21(a), divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient' s program year.
75.25 Reporting.
a) Reporting oflabor hours. ( 1) For Section 3 projects, recipients must report in a manner prescribed by HUD:
i) The total number oflabor hours worked;
ii) The total number oflabor hours worked by Section 3 workers; and iii) The total number of labor hours worked by Targeted Section 3 workers. 2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to
75.31. 3) The labor hours reported under paragraph ( a)( l) of this section must include the total number oflabor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph ( a)(4) of this section, to report.
4) Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph a)( l)(ii) ofthis section, and labor hours by Targeted Section 3 workers, under paragraph ( a)( l)(iii) of this section, from professional services without including labor hours from professional services in the 1205
total number of labor hours worked under paragraph ( a)( l )(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services , the labor hours under the contract that are not from professional services must still be reported.
5) Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer' s good faith assessment of the labor hours of a full -time or parttime employee informed by the employer' s existing salary or time and attendance based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
b) Additional reporting ifSection 3 benchmarks are not met. If the recipient' s reporting under paragraph ( a) of this section indicates that the recipient has not met the Section 3 benchmarks described in §75 .23, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued . Such qualitative efforts may , for example, include but are not limited to the following:
1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers . 2) Provided training or apprenticeship opportunities.
3) Pro vided technical assistance to help Section 3 workers compete for jobs ( e.g., resume assistance , coaching).
4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes , preparing for interviews, and finding job opportunities connecting residents to job placement services.
5 ) Held one or more job fairs .
6) Provided or referred Section 3 workers to services supporting work readiness and retention e. g., work readiness activities , interview clothing, test fees , transportation, child care). 7) Provided assistance to apply for/ or attend community college, a four- year educational institution , or vocational/ technical training. .
8) Assisted Section 3 workers to obtain financial literacy training and/ or coaching. 9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. 10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. 12 ) Provided bonding assistance , guaranties, or other efforts to support viable bids from Section 3 business concerns .
1206
13) Promoted use of business registries designed to create opportunities for disadvantaged and small businesses.
14) Outreach, ~ ngagement, or referrals with the state one- stop system as defined in Section 12l( e)( 2) of the Workforce Innovation and Opportunity Act. c) Reporting. frequency. Unless otherwise provided, recipients must report annually to HUD under paragraph ( a) of this section, and, where required, under paragraph ( b) of this section, on all projects completed within the reporting year in a manner consistent with·reporting requirements for the applicable HUD program.
75.27 Contract provisions.
a) Recipients must include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project.
b) Recipients of Section 3 funding must require subrecipients, contractors, and subcontractors to meet the requirements of §75. 19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.
Subpart D- Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
75.29 Multiple funding sources.
a) If a housing rehabilitation, housing construction or other public construction project is subject to Section 3 pursuant to § 75. 3{ a)( l) and ( 2), the recipient must follow subpart B of this part for the public housing financial assistance and may follow either subpart B or C of this part for the housing and cQrnrnunity development : financial assistance. For such a project, the following applies:
1) For housing and community development financial assistance, a Targeted Section 3 worker is any worker who meets the definition of a Targeted Section 3 worker in either subpart B or C of this part; and
2) The recipients of both sources of funding shall report on the housing rehabilitation, housing construction, or other public construction project as a whole and shall identify the multiple associated recipients. PHAs and other recipients must report the following information:
i) The total number of labor hours worked on the project; ii) The total number of labor hours worked by Section 3 workers on the project; and iii) The total number of labor hours worked by Targeted Section 3 workers on the project. b) If a housing rehabilitation, housing construction, or other public construction project is subject to Section 3 because the project is assisted with funding from multiple sources of housing and community development assistance that exceed the thresholds in §75.3(a)( 2), the recipient or recipients 1207
must follow subpart C of this part, and must report to the applicable HUD program office, as prescribed by HUD.
75.31 Recordkeeping.
a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed, or the public housing financial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the definition ofa Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period, as follows:
1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
i) A worker' s self-certification that their income is below the income limit from the prior calendar year;
ii) A worker' s self-certification ofparticipation in a means- tested program such as public housing or Section 8-assisted housing;
iii) Certification from a PHA, or the owner or property manager ofproject- based Section 8- assisted housing, or the administrator of tenant- based Section 8-assisted housing that the worker is a participant in one of their programs;
iv) An employer' s certification that the worker' s income from that employer is below the income limit when based on an employer' s calculation of what the worker' s wage rate would translate to if annualized on a full-time basis; or
v) An employer' s certification that the worker is employed by a Section 3 business concern. 2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
A) A worker' s self-certification ofparticipation in public housing or Section 8-assisted housing programs;
B) Certification from a PHA, or the owner or property manager of project- based Section 8- assisted housing, or the administrator of tenant- based Section 8-assisted housing that the worker is a participant in one of their programs;
C) An employer' s certification that the worker is employed by a Section 3 business concern; or 1208
D) A worker's certification that the worker is a YouthBuild participant. ii) For a worker to qualify as a Targeted Section 3 worker under subpart C ofthis part:
A) An employer' s confirmation that a worker's residence is within one mile ofthe work site or, if fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site that is sufficient to encompass a population of5,000 people according to the most recent U.S. Census; B) An employer' s certification that the worker is employed by a Section 3 business concern; or C) A worker's self-certification that the worker is a YouthBuild participant. c) The documentation described in paragraph ( b) ofthis section must be maintained for the time period required for record retentions in accordance with applicable program regulations or, in the absence ofapplicable program regulations, in accordance with 2 CFR part 200. d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five years from when their certification as a Section 3 worker or Targeted Section 3 worker is established.
75.33 Compliance.
a) Records ofcompliance. Each recipient shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200. b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program office responsible for the public housing financial assistance or the Section 3 project, or to the local HUD field office.
c) Monitoring. HUD will monitor compliance with the requirements ofthis part. The applicable HUD program office will determine appropriate methods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the violation was found
1209
EXHIBIT "R"
24 C.F.R. § 5.109
Equal participation of faith- based organizations in
HUD programs and activities.
Effective: May 4, 2016
a) Purpose.
Consistent with Executive Order 13279 (issued on December 12, 2002, 67 FR 77141 ), entitled "Equal Protection of the Laws for Faith-Based and Community Organizations," as amended by Executive Order 13559 ( issued on November 17, 2010, 75 FR 71319 ), entitled " Fundamental Principles and Policymaking Criteria for Partnerships With Faith-Based and Other Neighborhood Organizations,", and further amended by Executive Order 13831 issued on May 3, 2018 , 83 FR 20715) entitled " Establishment ofa White House Faith and Opportunity Initiative," this section describes requirements for ensuring the equal participation of faith-based organizations in HUD programs and activities. These requirements apply to all HUD programs and activities, including all of HUD' s Native American Programs, except as may be otherwise noted in the respective program regulations in title 24 of the Code of Federal Regulations ( CFR), or unless inconsistent with certain HUD program authorizing statutes . b) Definitions . The following definitions apply to this section:
Direct Federal financial assistance means Federal financial assistance provided when a Federal Government agency or an intermediary, as defined in this section, selects the provider and either purchases services from that provider (i.e ., via a contract) or awards funds to that provider to carry out an activity (e.g., via grant, sub-grant. sub-award, or cooperative agreement). The recipients of sub-grants or sub-awards that receive Federal financial assistance through State-administered programs ( e.g., flow-through programs) are considered recipients of direct Federal financial assistance. In general, Federal financial assistance shall be treated as direct, unless it meets the definition of indirect Federal financial assistance .
Federal financial assistance means assistance that non-Federal entities receive or administer in the fonns ofgrants, contracts, loans, loan guarantees , property, cooperative agreements, food commodities, direct appropriati ons, or other assistance, but does not include a tax credit, deduction, or exemption.
Indirect Federal financial assistance means Federal financial assistance provided when the choice ofthe provider is placed in the hands ofthe beneficiary, and the cost ofthat service is paid through a voucher, certificate, or other similar means of Government- funded payment. Federal financial assistance provided to an organization is considered indirect when the Government program through which the beneficiary receives the voucher, certificate, or other similar means of Government-funded payment is neutral toward religion meaning that it is available to providers without regard to the religious or non-religious nature of the institution and there are no program incentives that deliberately skew for or against religious or secular providers; and the organization receives the assistance as a result of a genuine, independent choice ofthe beneficiary.
Intermediary means an entity, including a nongovernmental organization , acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that accepts Federal financial assistance and distributes that assistance to other entities that, in turn , carry out activities under HUD programs. c) Equal participation of faith-based organizations in HUD programs and activities. 1210
Faith-based organizations are eligible, on the same basis as any other organization, to participate in any HUD program or activity, considering any permissible accommodations, particulary under the Religious Freedome Restoration Act. Neither the Federal Government, nor a State, tribal or local government, nor any other entity that administers any HUD program or activity , shall discriminate against an organization on the basis of the organization 's religious character, affiliation , or lack thereof, or on the basis of the organization' s religious exercise. For purposes of this part, to discriminate against an organization on the basis of the organization' s religious exercise means to disfavor an organization, including by failing to select an organization, disqualifying an organization, or imposing any cond ition or selection criterion that otherwise disfavors or penalizes an organization in the selection process or has such an effect:
l) Because of conduct that would not be considered grounds to disfavor a secular organization ; 2) Because ofconduct that must or could be granted an appropriate accommodation in a manner consistent with RFRA ( 42 U .S.C. 2000bb through 2000bb-4 ) or the Religion Clauses ofthe First Amendment to the Constitution; or
3) Because ofthe actual or suspected religious motivation ofthe organization' s religious exercise . 4) In addition, decisions about awards of Federal financial assistance must be free from political interference or even the appearance ofsuch interference and must be made on the basis ofmerit, not based on the organization' s religious character, affiliation , or lack thereof, or based on the organization' s religious exercise. Notices offunding availability , grant agreements, and cooperative agreements shall include language substantially similar to that in appendix A to this subpart, where faith -based organizations are eligible for such opportunities. d) Independence and identity of faith-based organizations. 1) A faith-based organization that applies for, or participates in, a HUD program or activity supported with Federal financial assistance retains its autonomy, right of expression, religious character, authority over its governance , and independence, and may continue to carry out its mission , including the definition , development, practice, and expression of its religious beliefs. A faith-based organization that receives Federal financial assistance from HUD does not lose the protections of law. 2) A faith-based organization that receives direct Federal financial assistance may use space ( including a sanctuary, chapel , prayer hall, or other space) in its facilities ( including a temple, synagogue, church, mosque , or other place of worship) to carry out activities under a HUD program without concealing, altering, or removing religious art, icons, scriptures, or other religious symbols . In addition, a faith-based organization participating in a HUD program or activity retains its authority over its internal governance , and may retain religious terms in its organization 's name, select its board members and employees on the basis of their acceptance of or adherence to the religious tenets of the organizat ion consistent with paragraph ( i) of this section), and include religious references in its organization 's mission statements and other governing documents. e) Explicitly religious activities.
Ifan organization engages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location , from the programs or activities supported by direct Federal financial assistance and participation must be voluntary for the beneficiaries of the programs or activities that receive direct Federal financial assistance . The use of indirect Federal financial assistance is not subject to this restriction. Nothing in this part restricts HUD's authority under applicable Federal law to fund activities, that can be directly funded by the Government consistent with the Establishment Clause ofthe U.S . Constitution. f) Intermediary responsibilities to ensure equal participation of faith-based organizations in HUD programs.
If an intermediary - acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that is administering a program supported by Federal financial assistance - is 1211
given the authority to select a nongovernmental organization to receive Federal financial assistance under a contract, grant, sub-grant, sub-award , or cooperative agreement, the intermediary must ensure that such organization complies with the requirements of this section . If the intermediary is a nongovernmental organization , it retains all other rights of a nongovernmental organization under the program's statutory and regulatory provisions.
g) Nondiscrimination requirements.
Any organization that receives Federal financial assistance under a HUD program or activity shall not, in providing services with such assistance or carrying out activities with such assistance, discriminate against a beneficiary or prospective beneficiary on the basis ofreligion , religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice . However, an organization that participates in a program funded by indirect Federal financial assistance need not modify its program or activities to accommodate a beneficiary who chooses to expend the indirect aid on the organization' s program and may require attendance at all activities that are fundamental to the program. h) No additional assurances from faith-based organizations .
A faith-based organization is not rendered ineligible by its religious nature to access and part1c1pate in HUD programs . Absent regulatory or statutory authority , no notice of funding availability , grant agreement, cooperative agreement , covenant, memorandum of understanding, policy, or regulation that is used by HUD or a recipient or intermediary in administering Federal financial assistance from HUD shall require otherwise eligible faith-based organizations to provide assurances or notices where they are not required ofsimilarly situated secular organizations. All organizations that participate in HUD programs or activities , including organizations with religious character or affiliations, must carry out eligible activities in accordance with all program requirements , subject to any required or appropriate accommodation , particularly under the Religious Freedom Restoration Act, and other applicable requirements governing the conduct of HUD-funded activities , including those prohibiting the use ofdirect financial assistance to engage in explicitly religious activities. No notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy , or regulation that is used by HUD or a recipient or intennediary in administering financial assistance from HUD shall disqualify otherwise eligible faith-based organizations from participating in HUD's programs or activities because such organization is motivated or influenced by religious faith to provide such programs and activities, or because of its religious character or affiliation, or on grounds that discriminate against an organization on the basis of the organization' s religious exercise , as defined in this part. i) Exemption from Title VII employment discrimination requirements .
A religious organization 's exemption from the Federal prohibition on employment discrimination on the basis of religion. set forth in section 702(a) ofthe Civil Rights Act of 1964 ( 42 U .S .C. 2000e- l ), is not forfeited when the organization participates in a 1-flJD program. Some 1-flJD programs, however, contain independent statutory provisions that impose certain nondiscrimination requirements on all grantees . Accordingly , grantees should consult with the appropriate HUD program office to determine the scope ofapplicable requirements .
G) Acquisition , construction , and rehabilitation of structures .
Direct Federal financial assistance may be used for the acquisition, construction , or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under a 1-flJD program or activity .
Where a structure is used for both eligible and explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction , or proselytization), direct Federal financial assistance may not exceed the cost of the share of acquisition , construction , or rehabilitation attributable to eligible activities in accordance with the cost accounting requirements applicable to the 1-flJD program or activity. However, 1212
acquisition, construction , or rehabilitation of sanctuaries, chapels, or other rooms that a HUD-funded faith-based organization uses as its principal place of worship, may not be paid with direct Federal financial assistance.
Disposition ofreal property by a faith-based organization after its use for an authorized purpose, or any change in use ofthe property from an authorized purpose , is subject to Government- wide regulations governing real property disposition ( 2 CFR part 200, subpart D) and the HUD program regulations, as directed by HUD . k) Commingling of Federal and State, tribal , and local funds.
If a State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal financial assistance for an activity, the tate. tribal or local government has the option to segregate those funds or commingle them with the direct Federal financial assistance. However, if the funds are commingled, the requirements ofthis section apply to all of the commingled funds. Further, if a State, tribal , or local government is required to contribute matching funds to supplement direct Federal financial assistance for an activity, the matching funds are considered commingled with the direct Federal financial assistance and , therefore , subject to the requirements of this section . Some HUD programs ' requirements govern any activity assisted under those programs. Accordingly, recipients should consult with the appropriate HUD program office to detennine the scope of applicable requirements.
I) Tax exempt organizations.
In general , HUD does not require that a recipient, including a faith-based organization, obtain tax-exempt status under section 501(c)(3) ofthe Internal Revenue Code to be eligible for funding under HUD programs . Many grant programs, however, do require an organization to be a nonprofit organization in order to be eligible for funding.
Notices of funding availability that require organizations to have nonprofit status will specifically so indicate in the eligibility section ofthe notice offunding availability . In addition , ifany notice offunding availability requires an organization to maintain tax-exempt status, it will expressly state the statutory authority for requiring such status . Applicants should consult with the appropriate HUD program office to determine the scope of any applicable requirements . In HUD programs in which an applicant must show that it is a nonprofit organization but this is not statutorily defined , the applicant may do so by any ofthe following means :
1) Proof that the Internal Revenue Service currently recognizes the applicant as an organization to which contributions are tax deduct ible under section 501(c)(3) of the Internal Revenue Code ; 2) A statement from a State or other governmental taxing body or the State secretary ofState certifying that - i) The organization is a nonprofit organization operating within the State; and ii) No part of its net earnings may benefit any private shareholder or individual ; 3) A certified copy ofthe applicant 's certificate of incorporation or similar document that clearly establishes the nonprofit status ofthe applicant ;
4) Any item described in paragraphs ( 1)( 1) through ( 3) of this section, ifthat item applies to a State of national parents organization, together with a statement by the State of parent organization that the applicant is a local nonprofit affiliate ; or
5) For an entity that holds a sincerely held religious belief that it cannot apply for a detennination as an entity that is tax-exempt under section 501(c)(3) ofthe Internal Revenue Code, evidence sufficient to establish that the entity would otherwise qualify as a nonprofit organization under paragraphs ( 1)(1) through ( 4) ofthis section. m) Rule of construction.
Neither HUD nor any recipient or other intermediary rece iving funds under any HUD program or activity shall construe these provisions in such a way as to advantage or disadvantage faith -based organizations affiliated with historic or well-established religions or sects in comparison with other religions or sects.
Credits
1213
69 FR 41717 , July 9 , 2004; 80 FR 75934 . Dec. 7,2015; 81 FR 19416, April 4, 2016; 85 FR 82315 , Dec 17, 2020] SOURCE: 61 FR 5202 , Feb . 9, 1996; 61 FR 9041 , March 6, 1996; 61 FR 9537, March 8, 1996; 61 FR 11113, March 18, 1996; 61 FR 13616, March 27, 1996; 61 FR 54498 , Oct. 18, 1996; 70 FR 77743 , Dec. 30, 2005; 73 FR 72340, Nov. 28, 2008; 75 FR 66258 , Oct. 27, 2010; 77 FR 5674. Feb. 3, 2012; 80 FR 42352 , July 16. 2015; .U FR 19416, April 4, 2016; 81 FR 80798, Nov. 16, 2016; 81 FR 90657 , Dec. 14, 2016, unless otherwise noted.
AUTHORITY: 12 U.S.C. l 701x ; 42 U.S.C. 1437a, 1437c, 1437d, 1437f. 1437n, 3535(d); Sec. 327, Pub.L. 109- 115. 119 Stat. 2936 ; Sec. 607 , Pub .L. 109-162. 119 Stat. 3051 ( 42 U.S .C. 14043e et seq.); E.O. 13279. 67 FR 77141. 3 CFR, 2002 Comp., p. 258; and E.O. 13559. 75 FR 71319, 3 CFR, 2010 Comp., p. 273 .; 29 U.S.C. 794, 42 U.S.C . 1437a, 1437c, 1437c-l(d), 1437d, 1437f, 1437n, 3535(d), and Sec . 327, Pub.L. 109-115, 119 Stat. 2936 ; 42 U.S.C. 3600-3620; 42 U.S.C. 5304(b); 42 U.S.C. 12101 et seq .; 42 U.S.C. 12704-12708 ; E.O. 11063. 27 FR 11527, 3 CFR, 1958-1963 Comp., p . 652; E.O . 12892, 59 FR 2939, 3 CFR, 1994 Comp., p . 849. 1214
Additional Federal Requirements
Whereas the work under this Agreement is subject to applicable Federal, State, and local laws and regulations, including but not limited to the regulations pertaining to the Community Development Block Grant program 24 CFR Part 570) and the Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200). Contractor, sub- contractors, Consultants, and sub- consultants agree to comply with, and are subject to, all applicable requirements as follows:
1. Equal Employment Opportunity- Compliance with Executive Order 11246 of September 24, 1965, entitled " Equal Employment Opportunity", as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations ( 41 CFR Part 60). The Contractor/ Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, general identity, or national origin . Contractor/ Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex sexual orientation, general identity , or national origin. The Contractor/ Consultant will take affirmative action to ensure that applicants are employed, and the employees are treated during employment, without regard to their race color, religion, sex, sexual orientation, general identity, or national origin. Such actions shall include, but are not limited to, the following : employment, up- grading, demotion, or transfer; recruitment or recruitment advertising; rates of pay or other forms of compensation; and selection for training, including apprenticeship .
The Contractor/ Consultant agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions of this non- discriminating clause.
2. Copeland " Anti- Kickback" Act ( 18 V.S.C. 874 and 40 U.S.C.A . Section 3145): All contracts and subgrants in excess of $2,000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland " Anti- Kickback" Act ( 18 U.S.C . 874), as supplemented by Department of Labor regulations ( 29 CFR Part 3, " Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to HUD . 3 . Davis- Bacon Act, as amended ( 40 U.S.C.A . Section 3141- 3148): When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than 2000 shall include a provision for compliance with the Davis- Bacon Act (40 U.S .C. A. Section 3141- 3148) and as supplemented by Department of Labor regulations ( 29 CFR Part 5, " Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under the Davis Bacon Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the U.S. Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the U.S. Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to HUD.
4 . Contract Work Hours and Safety Standards Act ( 40 V.S.CA .. 32701 through 3708): Where applicable, all contracts awarded by recipients in excess of $2,000 for construction contracts and in excess of $2,500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with the Contract Work Hours and Safety Standards ( 40 U.S.C.A. 32701- 3708), as supplemented by Department of Labor Regulations ( 29 CFR Part 5). Under Section 40 U.S.C.A . 3702, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. 40 U.S.C.A. 3704ofthe Act is applicable to construction work and provides that no laborer or mechan ic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or 1215
materials or articles ordinarily available on the open market, or contracts for transportation or transmission ofintelligence.
5. Rights to Inventions Made Under a Contract or Agreement- Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, " Rights to Inventions Made by Nonprofit Organizations and Small Business Finns Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by HUD.
6. Rights to Deta and Copyrights - Contractors and consultants agree to comply with all applicable provisions pertaining to the use ofdata and copyrights pursuant to 48 CFR Part 27.404-3, Federal Acquisition Regulations (FAR).
1. Air Pollution Prevention and Control ( formally known as the Clean Air Act) ( 42 U.S.C.A. 7401 et seq,) and the Federal Water Pollution Control Act ( 33 U.S.CA. Section 1251 et seq.), as amended:- Contracts and subgrants ofamounts in excess of$ I00,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act 42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C.A. 1251 et seq.).
Violations shall be reported to HUD and the Regional Office ofthe Environmental Protection Agency (EPA).
8. Byrd Anti-Lobbying Amendment ( 3I U.S. C.A. I352)- Contractors who apply or bid for an award ofSI00,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee ofany agency, a member ofCongress, officer or employee ofCongress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.
9. Debarment and Suspension ( Executive Orders (E.O. s) 12549 and 12689)- No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, " Debannent and Suspension," as set forth at 24 CFR part 2424. This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory orregulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees.
IO. Drug-Free Workplace Requirements- The Anti-Drug Abuse Act of 1988 (41 U.S.C.A. Section 8101-8103) requires grantees ( including individuals) of federal agencies, as a prior condition of being awarded a grant, to certify that they will provide drug-free workplaces. Each potential recipient must certify that it will comply with drug-free workplace requirements in accordance with the Act and with HUD's rules at 24 CFR part 2425.
11. Access to Records and Records Retention: The Consultant or Contractor, and any sub-consultants or sub-contractors, shall allow all duly authorized Federal, State, and/or County officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records ofthe Consultant or Contractor, and any sub-consultants or sub-contractors, that are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Consultant or Contractor, and any sub-consultants or sub-contractors, further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods ofretention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration ofthe term ofthis Agreement. 1216
12. Federal Employee Benefit Clause: No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise from the same.
13 . Energy Efficiency: Mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub . L . 94A 163, Dec . 22, 1975; 42 U .S.C .A . Section 6201, et. seq., 89 Stat. 871). 14 . Procurement ofRecovered Materials (2 CFR 200. 322.) A non- Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with 42 U.S.C. Section 6962 of the Solid Waste Disposal Act ( 42 U.S .C.A. Section 6901, et seq.), as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency ( EPA) at 40 CFR part 247 that contain the highest percentage ofrecovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price ofthe item exceeds $ 10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $ 10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affinnative procurement program for procurement of recovered materials identified in the EPA guidelines.
15 . BuildAmerica, Buy America (BABA) Act: The Grantee must comply with the requirements ofthe Build America, Buy America ( BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee' s infrastructure project. Pursuant to HUD' s Notice, " Public Interest Phased Implementation Waiver for FY 2022 and 2023 ofBuild America, Buy America Provisions as Applied to Recipients ofHUD Federal Financial Assistance" ( 88 FR 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.
16. Violence Against Women Act (VA WA): VAWA provides housing protections for survivors ofdomestic and dating violence, sexual assault and stalking (' domestic violence"). VAWA 2022 reauthorizes, amends, and strengthens the VAWA of 1994, as amended ( Pub . L. 103- 322, tit. IV, sec. 40001- 40703; 34 U.S.C. 12291 et seq.) HUD' s implementing regulations for VAWA'S protections, rights, and responsibilities are codified in 24 CFR part 5, subpart L, and related provisions in HUD' s program regulations ( HUD' s VAWA regulations). VAWA 2022 amendments took effect on October 1, 2022, and 2022 VAWA' s reauthorization includes new implementation requirements. Grantees, subrecipients and developers shall ensure compliance with all requirements of VAWA including but not limited to : (a) Assure domestic violence survivors are not denied assistance as an applicant, or evicted, or have assistance terminated as a tenant because applicant or tenant is or has been a victim of domestic violence; ( b) Implement an emergency transfer plan allowing domestic violence survivor to move to another safe and available unit; ( c) Provide protections against denial, terminations, and evictions that directly result from being a victim of domestic violence; ( d) Implement a low barrier certification process and allow self- certification of domestic violence. 1217
RESOLUTION 2025- 142
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,
ACCEPTING COMMUNITY DEVELOPMENT BLOCK GRANT ( CDBG) FUNDS FOR FISCAL YEAR 2025/ 2026 IN THE AMOUNT OF $ 156, 678 FOR THE BANNING SENIOR CENTER PROJECT # 2 (5BN. 64- 25) IN THE AMOUNT OF $ 141, 828; BANNING PEACE CENTER FOOD PROGRAM ( 5.BN. 65- 25) IN THE AMOUNT OF $ 5,000; THE COURT APPOINTED SPECIAL ADVOCATE ( CASA) PROGRAM ( 0.282- 25) IN THE AMOUNT OF $ 5,000; AND THE TEENS CONTINUE TO LEAD PROGRAM ( 0.284- 25) IN THE AMOUNT OF $ 3,850.
WHEREAS, the City of Banning has been submitting applications for projects/ activities under the Community Development Block Grant ( CDBG) program to the Riverside County Housing and Workforce Solutions ( HWS) Department annually; and WHEREAS, the submittal of the approved project applications for CDBG 2025/ 2026 program funding was initially approved by the City Council on October 8, 2024 under Resolution 2024- 159; and
WHEREAS, Resolution 2024- 159 was rescinded to correct a clerical error and the approved project applications were re-approved by the City Council under Resolution 2024- 176; and
WHEREAS, the projects submitted herein meet the CDBG program guidelines and/ or requirements; and
WHEREAS, it is necessary that the supplemental agreement be approved by the City Council through resolution order for the City and its residents to obtain and utilize the federally funded CDBG grant funds; and
WHEREAS, final whereas statement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:
SECTION 1. The City Council approves the Supplemental Agreement with Riverside County Housing and Workforce Solutions for the Community Development Block Grant FY 2025/ 2026 for a two- year term in an amount of $155, 678, attached hereto as Exhibit A SECTION 2. The City Council authorizes the mayor to execute the Supplemental Agreement with Riverside County Housing and Workforce Solutions on behalf of the City Council and the City Manager to make non- substantive changes to the Community Development Block Grant FY 2025/ 2026 if necessary in the future.
SECTION 3. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.
SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.
PASSED, APPROVED AND ADOPTED this 14th day of October, 2025.
Resolution 2025- 142
ATTEST:
Sandra Calderon, Acting Administrative
City Clerk
City of Banning
APPROVED AS TO FORM:
Resolution 2025- 142
SL dJ~
Sheri Flynn, Mayor · 7
City of Banning
1219
CERTIFICATION:
I, Sandra Calderon, Acting Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2025- 142, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 14th day of October, 2025 by the following vote, to wit:
AYES: Barrington, Flynn, Miller, Royce, Wallace
NOES: None
ABSENT: None
ABSTAIN: None
Resolution 2025- 142
Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
1220
Resolution 2025- 142
EXHIBIT A
Supplemental Agreement for the Use of 2025/ 2026
Community Development Block Grant Funds
1221
2 3
4 File No.: 5.BN.64-25, 5.BN.65-25, 0.282-25, 0.284-25
SUPPLEMENTAL AGREEMENT FOR THE USE OF
2025- 2026 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
5 This Supplemental Agreement ("'Agreement") is entered into by and between the COUNTY OF 6 RIVERSIDE, a political subdivision ofthe State ofCalifornia, herein called, 11COUNTY," and the CITY 7 OF BANNING, herein called "CITY." COUNTY and CITY are collectively referred to as "Parties" and 8 individually as "Party:·
9 The COUNTY and CITY mutually agree as follows:
10 GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated August 11 4, 2023 (" Cooperation Agreement"), whereby CITY elected to participate with COUNTY, which has 12 qualified as an " Urban County" for purposes of receiving Community Development Block Grant 13 ( CDBG) funds (" CDBG"), and to assist and undertake essential community development and housing 14 assistance activities pursuant to the Housing and Community Development Act of 1974, Title I, as 15 amended, Public Law 93-383 hereinafter referred to as uAct." Said Cooperation Agreement, is 16 incorporated herein by reference and made a part ofthis Agreement as if each and every provision was 17 set forth herein.
18 2. PURPOSE. CITY has been al1ocated $155,678 in CDBG Entitlement funds for the 2025- 19 2026 CDBG program year. CITY promises and agrees to undertake and assist with the community 20 development activities (Public Service Activities), within its jurisdiction, by utilizing the sum of$S,000 21 CDBG Entitlement Funds, as specifically identified in Exhibit(s) A, B, C, and D, attached hereto, and 22 are incorporated herein by this reference, for the foUowing project(s) (collectively, the "Projects"):
23 A) 5.BN.65-25 Banning Peace Center Food Program $ 5,000 24 CITY has allocated $ 8,850 from its 2025-2026 CDBG allocation to certain activities 25 identified below, hereinafter referred to as " County-wide Activities/' (Public Service Activities) that 26 will be directly administered by COUNTY:
27 28
B) 0.282- 25 Court Appointed Special Advocate ( CASA) Program, $ 5,000.
C) 0.284- 25 Teens Continue to Lead, $ 3,850.
CITY promises and agrees to undertake and assist with the community development
1222
l activities (Public Facility Activities) with the remaining $141,828 from its 2025-2026 CDBG allocation 2 to activities identified below, hereinafter referred to as Public Facility Activities, specifically identified 3 in Exhibit(s) A, B, C, and D, attached hereto, and are incorporated herein by this reference, for the 4 following project(s):
5 D) S.BN. 64- 25 Banning Senior Center ADA Improvements Phase II, $141, 828. 6 3. TERMS OF AGREEMENT. The term ofthis Agreement for the implementation ofthe 7 ( Public Service Activities) Project(s) shall be for a period of one ( 1) year from July 1, 2025, to 8 termination on June 30, 2026. The term ofthis Agreement for the implementation ofthe (Public Facility 9 Activities) Project(s) shall be for a period oftwo (2) years from July I, 2025, to June 30, 2027.
IO 4. COMPLETION SCHEDULE. CITY shall proceed consistent with the completion 11 schedule set forth in Exhibit(s) A, B, C, and D, attached hereto and incorporated herein. 12 5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the 13 time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40 14 below), the COUNTY may consider extending the schedule for the completion ofthe project(s). Times 15 ofperformance for other activities may also be extended in writing by COUNTY. Ifsubstantial progress 16 toward completion in conformance with the completion schedule, as determined by COUNTY in its 17 discretion, ofthe project(s) not made during the term ofthis Supplemental Agreement, COUNTY may 18 suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in 19 the section titled " Termination," and the entitlement funds associated with the Project(s) may be 20 reprogrammed by the COUNTY after appropriate notice is provided to the City. 21 6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBG22 funded Projects or activities covered under the tenns of this Supplemental Agreement as set forth in 23 Exhibit(s) A, B, C, and D, attached hereto, prior to receiving written authorization from COUNTY to 24 proceed.
25 7. NOTICES. Each notice, request, demand, consent, approval or other communication 26 ( hereinafter in this Section referred to collectively as " notices'' and referred to singly as a "noticen) which 27 the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement 28 shall be in writing and shall be deemed to have been duly and sufficiently given if: (a) personally delivered with proof ofdelivery thereof (any notice so delivered shall be deemed to have been received
1223
I at the time so delivered); or (b) sent by Federal Express ( or other similar national overnight courier) 2 designating early morning delivery ( any notice so delivered shall be deemed to have been received on 3 the next Business Day following receipt by the courier); or (c) sent by United States registered or certified 4 mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States 5 Postal Service ( any notice so sent shall be deemed to have been received two days after mailing in the 6 United States), addressed to the respective parties as follows:
7 8
9 lO
11 12
13 COUNTY
Heidi Marshall, Director
Riverside County HWS
P.O. Box 1528
Riverside, CA 92502
8. DISBURSEMENT OF FUNDS.
CITY
Ralph Wright, Parks and Recreation Director
City ofBanning
PO Box 998
Banning, CA 92220
14 A. COUNTY's Board of Supervisors shall determine the final disposition and 15 distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 ofthis 16 Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions, 17 shall make payment ofthe CDBG funds to CITY as set forth in the attached Exhibit(s) A, B, C, and D. 18 It is the CITY's responsibility to monitor all project activities set forth in the attached Exhibit(s) A, B, 19 C, and D, and to ensure compliance with applicable federal regulations and the terms of this 20 Supplemental Agreement.
21 8. CITY shall comply with timely drawdown of CDBG Entitlement funding by 22 expeditiously implementing and completing the COUNTY-approved, CDBG-funded Projects. CITY 23 acknowledges that CITY's drawdown performance directly impacts the COlJNTY's overall program 24 drawdown rate. Ifthe CITY's unobligated CDBG fund balance, as of January 3L 2026, exceeds one 25 hundred and seventy-five percent ( 175%) of the CITY's 2025-2026 CDBG allocation, the COUNTY 26 may, in its sole discretion, take the necessary administrative actions to reduce the CITY's CDBG fund 27 balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund 28 balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute discretion, authorize CITY in writing, prior to January 31, 2026, to exceed the CDBG fund balance
1224
1 requirement.
2 C. CITY shall comply with timely drawdown ofCDBG funds by submitting monthly 3 requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements 4 ofCDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY 5 has received the CITY's reimbursement request including documentation supporting expenditures. 6 D. All authorized obligations incurred in the performance of the Supplemental 7 Agreement for projects eligible under the following CDBG regulations must be reported in writing to 8 COUNTY no later than June l, 2027:
9 1. Acquisition [24 Code ofFederal Regulations (CFR) 570.201 ( a)] 10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 2.
3. 4.
Clearance Activities [24 CFR 570.201 ( d)]
Interim Assistance [ 24 CFR 570.201 ( i)]
Code Enforcement (24 CFR 570.202 (c)]
All public service activities [ 24 CFR 570.201 ( e)] and other eligible activities under this Supplemental Agreement must be implemented, completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this Supplemental Agreement. " CFR" as used herein refers to the Code of Federal Regulations.
9. RECORDS AND INSPECTIONS.
A. CITY shall establish and maintain financial, programmatic, statistical, and other supporting records of its operations and financial activities in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Section 570.502 (a), as they relate to the acceptance and use of federal funds under this Agreement. Said records shall be retained for a period offour ( 4) years from the date that the activity or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the Comprehensive Annual Perfonnance and Evaluation Report (CAPER). Exceptions to the four (4) year retention period requirement, pursuant to 2 CFR 200.333 include, but not limited to, the following:
i. ifany litigation, claim, or audit is started prior to the expiration ofthe four 27 ( 4) year period;
28 ii. when the CITY is notified in writing by the COUNTY, HUD, or other Federal agency to extend the retention period;
Page4of24
1225
1 2
3 4
5 6
7 8
9 IO
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
iii. records for real property and equipment acquired with CDBG funds must be retained for four (4) years after final disposition; 1v. when the records are transferred by the CITY to the COUNTY. HUD, or other Federal agency, the four (4) year period is not applicable.
B. CITY shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Section 200.500). Audits shall usually be performed annuaHy but not less frequently than every two years. Nonprofit institutions and government agencies that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end ofthe COUNTY'S fiscal year.
C. CITY shall maintain a separate account for the CITY'S CDBG Entitlement funds received as set forth in Exhibit(s) A, B, C, and D attached hereto.
D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours, make available to COUNTY. the U.S. Department of Housing and Urban Development ( HUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement and provide reasonable access to CITY stafffor the purpose ofinterview and discussion related to the records and documents.
E. CITY shall not retain any program income as defined in 24 CPR 570.500. Said program income shall be used only for the activities that are the subject ofthis Agreement. Further, all provisions ofthis Agreement shall apply to such activities.
F. The CITY shall ensure that at least fifty-one percent ( 51%) of the persons benefiting from all COBO-funded activities or projects designated as serving limited clientele [24 CFR 570.208(a)(2)(i)] are oflow and moderate-income and meet the applicable household income guidelines.
The CITY shall provide the required income certification and direct benefit documentation, in writing, to the COUNTY pursuant to the reporting requirement ofeach activity as set forth in Exhibit(s) A, B, C, and D, attached hereto. In the event that CITY engages the services of a sub-contractor to implement COBO-funded activities, the CITY must collect, in writing, all required income certification and direct
1226
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 benefit documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement ofeach activity as set forth in Exhibit(s) A, B, C, and D, attached hereto.
10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws. regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the provisions ofthe Community Development Block Grant Manual, prepared by COUNTY and cited in the above-mentioned Cooperation Agreement. CITY shall comply, if applicable. with Section 3 of the Housing & Urban Development Act of 1968 (12 U.S.C.A. Section 1701u), as amended, a copy ofwhich is attached hereto as Exhibit "S", and incorporated herein by this reference. CITY shall adhere to the regulations as set forth in Exhibit " R", attached hereto and incorporated herein by this reference, pertaining to inherently religious activities. CITY shall comply with the Additional Federal Requirements, ifapplicable, attached hereto as Exhibit "AFR", and incorporated herein by this reference.
11. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential commllllity development and housing assistance activities, specifically urban renewal and public assistance housing, and shall assist COUNTY in implementing and undertaking the goals and strategies identified in the 2024-2029 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant Program.
12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEOA). Pursuant to Title 14 CCR Section 150l{ d), the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement.
13. HOLD HARMLESS AND INDEMNIFICATION. In contemplation ofthe provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 ofthe Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 ofthe Code, Page6of24
1227
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys· fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance ofthis Agreement, and each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands. damages, losses or liabilities for their negligence.
The hold harmless and indemnification obligations set forth herein shall survive the termination and expiration ofthis Agreement. In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation shall not relieve the CITY from indemnifying the Indemnitees to the fullest extent allowed by law.
14. INSURANCE. Without limiting or diminishing the CITY's obligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage's during the term ofthis Agreement. As respects to the insurance section only, the COUNTY herein refers to the County ofRiverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of COUNTY OF RIVERSIDE Supervisors, employees, elected or appointed officials, agents, or representatives as Additional Insureds
a. Workers' Compensation:
Ifthe CITY has employees as defined by the State ofCalifornia, the CITY shall maintain statutory Workers' Compensation Insurance ( Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers' Liability (Coverage B) including Occupational Disease with limits not less than $ 1,000, 000 per person per accident. The policy shall be endorsed to waive subrogation in favor ofthe County ofRiverside.
b. Commercial General Liabilicy:
Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY'S perfonnance ofits obligations hereunder. Policy shall name the County ofRiverside as Additional Insured. Policy's limit of liability shall not be less than $2,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply
1228
I
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 separately to this agreement or be no less than two ( 2) times the occurrence limit.b. l Sexual Abuse or Molestation (SAM) Liability:
Ifthe work will include contact with minors, and the Commercial General Liability policy is not endorsed to include affirmative coverage for sexual abuse or molestation, CITY shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $ 2,000,000 per occurrence or claim.
C. Vehicle Liability:
Ifvehicles or mobile equipment are used in the perfonnance ofthe obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non-owned or hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Policy shall name the County ofRiverside as Additional Insured. d. General Insurd.Ilce Provisions - All lines:
i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A:8) unless such requirements are waived, in writing, by the County Risk Manager. Ifthe County's Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term.
ii). The CITY must declare its insurance self-insured retentions. Ifsuch selfinsured retentions exceed $500,000 per occUITence such retentions shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon notification ofself-insured retention unacceptable to the COUNTY, and at the election ofthe Country's Risk Manager, CITY"S carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment oflosses and related investigations, claims administration, and defense costs and expenses. iii). CITY shall cause CITY'S insurance carrier(s) to furnish the County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) ifrequested to do so orally or in
1229
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate( s) and policies of insurance shall contain the covenant of the insurance carrier( s) that thirty ( 30) days written notice shall be given to the County of Riverside prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County ofRiverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage' s set forth herein and the insurance required herein is in full force and effect. CITY shall not commence operations until the COUNTY has been furnished original Certificate ( s) of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of Insurance.
iv). It is understood and agreed to by the parties hereto that the CITY' S insurance shall be construed as primary insurance, and the COUNTY' S insurance and/ or deductibles and/ or self- insured retention' s or self- insured programs shall not be construed as contributory. v). If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds five ( 5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the moneta: iy limits of liability for the insurance coverage' s currently required herein. if; in the County Risk Manager' s reasonable judgment, the amount or type of insurance carried by the CITY has become inadequate.
vi). CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement.
1230
I
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 vii). The insurance requirements contained in this Agreement may be met with a program( s) of self- insurance acceptable to the COUNTY. viii). CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement.
15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this Supplemental Agreement, an independent contractor and shall not be deemed an employee of the COUNTY. It is expressly understood and agreed that the CITY ( including its employees, agents and subcontractor' s) shall in no event be entitled to any benefits to which the COUNTY employees are entitled, including but not limited to overtime, any retirement benefits, worker' s compensation benefits, and injury leave or other leave benefits. There shall be no employer- employee relationship between the parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made against the COUNTY based upon any contention by a third party that an employer- employee relationship exists by reason of this Supplemental Agreement. It is further understood and agreed by the parties that the CITY in the performance of this Supplemental Agreement is subject to the control or direction of the COUNTY merely as to the results to be accomplished and not as to the means and methods for accomplishing the results.
16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570. 601 and 570. 602 of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, sex, sexual orientation, gender identity, or veterans status 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 Community Development funds.
CITY shall abide by and include in any subcontracts to perfonn work under this Supplemental Agreement, the following clause:
During the perfonnance of this Supplemental Agreement, CITY and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical disability, medical condition, marital status, veterans status, sexual orientation, gender identity, age ( over 40) or sex. CITY and subcontractors shall insure that the evaluation and treatment of their employees and applicants
1231
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
for employment are free ofsuch discrimination. CITY and subcontractors shall comply with the provisions of the Fair Employment and Housing Act ( California Government Code Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission are implementing California Government Code Section 12990 et seq., set forth in Chapter 1 of Division 4.1 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereofas ifset forth in full. CITY and its subcontractors shall give written notice oftheir obligations under this clause to labor organizations with which they have a collective bargaining or other agreement."
17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the CDBG regulations prohibiting conflicts ofinterest contained in 24 CFR 570.611.
B. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.
C. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award. or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent. would be involved.
D. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes ofthis paragraph, a "covered person" includes any person who is an employee, agent, consultant, officer, or elected or appointed official ofthe Grantee, the Subrecipient, or any designated public agency.
E. CITY understands and agrees that no waiver of exception can be granted to the
1232
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570.61 l(d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY'S sole and absolute discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570.61 l(d)(2).
F. Prior to the distribution of any CDBG funding under this Supplemental Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside infonnation with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including even the appearance of conflict that may arise with respect to the CDBG activities funded under this Supplemental Agreement.
G. Any violation of this Section 17 shall be deemed a material breach of this Supplemental Agreement, and the Supplemental Agreement shall be immediately tenninated by the COUNTY.
18. LOBBYING. CITY certifies to the best ofits knowledge and belief, that:
a. No federally-appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation. renewal, amendment, or modification of any federal contract, grant loan, or cooperative agreement.
b. Ifany funds other than federally-appropriated fW1ds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee ofany agency, a member of Congress, an officer or employee ofCongress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit Standard Form-LLL. "Disclosure Fonn to Report Lobbying," in accordance with its instructions. c. CITY shall require that the language ofthis certification be included in the award
1233
I
2 3
4 5
6 7
8 9
10 11
documents for all subawards at all tiers { including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
19. TERMINATION.
A. CITY. CITY may not terminate this Agreement except upon express written consent of COUNTY, pursuant to 2 CFR 200.339 (a)(3).
B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to CITY of action being taken and the reason for such action including, but not limited to, the following reasons:
l) In the event CITY fails to perform the covenants herein contained at such 12 times and in such manner as provided in this Supplemental Agreement; and 13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
2) In the event there is a conflict with any federal, state or local law, ordinance, regulation or rule rendering any ofthe provisions ofthis Supplemental Agreement invalid or untenable; or
3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.
C. This Agreement may be terminated and/or funding suspended, in whole or in part, for cause in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200.339). Cause shall be based on the failure ofthe CITY to materially comply with either the terms or conditions ofthis Agreement. Upon suspension offunding, the CITY agrees not to incur any costs related thereto, or connected with, any area ofconflict from which the COUNTY has determined that suspension offunds is necessary. CITY acknowledges that failure to comply with Federal statutes, regulations, or the terms and conditions of this Agreement may be considered by the COUNTY in evaluating future CDBG and non-CDBG funding applications submitted by CITY.
D. Upon suspension or tennination of this Supplemental Agreement, CITY shall return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this
1234
1 Supplemental Agreement.
2 E. Reversion ofAssets
3 I. Upon expiration or termination of this Supplemental Agreement, the 4 CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the 5 Supplemental Agreement as well as any accounts receivable held by CITY which are attributable to the 6 use ofCDBG funds awarded pursuant to this Supplemental Agreement. 7 2. Any real property under the CITY'S control that was acquired or improved 8 in whole or in part with CDBG funds ( including CDBG funds provided to the CITY in the form of a 9 loan) in excess of $25,000 is either:
10 ( i) Used to meet one of the National Objectives pursuant to 24 CFR 11 570.208 until five years after expiration ofthis agreement, or for such longer period oftime as determined 12 to be appropriate by the COUNTY; or
13 ( ii) Not used in accordance with Clause (i) above, in which event the 14 CITY shall pay the COUNTY an amount equal to the current market value of the property less any 15 portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or 16 improvement to, the property.
17 20. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this 18 Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of 19 Housing, and Workforce Solutions, and the Community Development Block Grant Program in making 20 the project possible.
21 21. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall 22 be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of 23 this Supplemental Agreement and the effective and efficient achievement of the CDBG National 24 Objectives as set forth in Exhibit(s) A, B. C, and D. attached hereto. Quarterly reports shall be due on 25 the last day of the month immediately following the end of the quarter being reported. The quarterly 26 written reports shall include, but shall not be limited to, the following data elements:
27 A. Title of progran1, listing ofcomponents, description ofactivities/operations. 28 B. The projected goals, indicated numerically. and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards
1235
1 meeting the specified goals and identify any problems encountered in meeting goals. 2 C. Ifthe CDBG-funded activity meets a National Objective under 24 CFR 570.208 3 ( a)(2)(i), CITY will report the following:
4 1) Total number of direct beneficiaries ( clientele served) with household 5 incomes at:
6 • Above 80% MHI
7 • Between 50% and 80% MHI (Low-Income)
8 • Between 30% and 50% MHI (Very Low-Income)
9 • Less than 30% MHI (Extremely Low-Income)
2) Total number and percent(%) ofthe clientele served that have household 11 incomes at or below 80% MHI
12 3) Racial ethnicity ofclientele
13 4) Number ofFemale-Headed Households
14 D. CITY shall report, in writing, and cause its subcontractors to report, in writing, 15 beneficiary statistics monthly to Housing and Workforce Solutions ( HWS) on the pre-approved Direct 16 Benefit Form and Self- Certification Form ( certifying income, family size. and racial ethnicity) as 17 required by HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes 18 during the term ofthis Supplemental Agreement. CITY and subcontractors will collect and provide all 19 necessary data required by HUD pertaining to the Specific Outcome Indicators as identified in HUD's 20 Community Planning and Development ( CPD) Outcome Performance Measurement System. 21 22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval from 22 HWS prior to implementing the following " high risk" activities funded with CDBG assistance:
23 A. Construction of public facilities ( project plans and specifications); 24 25
26 27
28 B.
C.
D.
F.
Acquisition ofreal property;
Historic Preservation;
Relocation; and
Economic Development
1236
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
23. PRIOR COUNTY APPROVAL ( CONSTRUCTION ACTIVITIES). CITY shall obtain COUNTY1s written approval, through its HWS, ofthe project plans, specifications, and construction documents prior to CITY'S construction of same for all projects consisting of CDBG-funded construction activities. The COUNTY neither undertakes nor assumes nor will have any responsibility or duty to CITY or to any third party to review, inspect, supervise, pass judgment upon or inform CITY or any third party of any matter in connection with the development or construction of the improvements, whether regarding the quality, adequacy or suitability of the plans, any labor, service, equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY and all third parties shall rely upon its or their own judgment regarding such matters, and any review; inspection, supervision, exercise ofjudgment or information supplied to CITY or to any third party by the COUNTY in connection with such matter is for the public purpose of assisting with a community development and housing activity pursuant to the Act, and neither CITY (except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be responsible for any ofthe work ofconstruction, improvement, or development ofthe property.
It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local jurisdiction land use requirements will permit development of the property and construction of the improvements and the use, operation, and maintenance of such Improvements in accordance with the provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any local jurisdiction or County permit or other local jurisdiction or County approval necessary for the development of the Property, or waive any applicable local jurisdiction or County requirements relating thereto. This Agreement does not (a) grant any land use entitlement to CITY, (b) supersede, nullify, or amend any condition which may be imposed by the local jurisdiction in connection with approval of the development described herein, ( c) guarantee to CITY or any other party any profits from the development of the Property, or ( d) amend any local jurisdiction or County laws, codes or rules.
City agrees and acknowledges that it is the responsibility ofCity to obtain a legal determination at City's sole cost and expense, as to whether prevailing wages must be paid during construction ofthe
1237
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Project. If the Project is subject to prevailing wages. then City shall be solely responsible to pay its contractors and subcontractors the required prevailing wage rate. City agrees to indemnify, defend, and hold County harmless from and against any liability arising out ofand related to City's failure to comply with any and all Davis Bacon and or prevailing wage requirements.
24. PRIOR COUNTY APPROVAL ( AOUISITION ACTIVITIES). CITY shall obtain COUNTY's written approval and authorization to proceed, through HWS, of all CDBG-funded real property acquisition activities.
25. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG funds are used. in whole orin part, by CITY to acquire real property or to construct a public facility, CITY will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Section 200.311); National Environmental Policy Act of 1969 (42 U.S.C.A. §4321, et seq.); the California Environmental Quality Act (Cal. Pub. Resources Code §21000, et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C.A. §4630, et seq.); and the COUNTY's Five Year Consolidated Plan. In addition, the following is to occur:
a. Title to the real property shall vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be maintained by the CITY, for a minimum period of five ( 5) years from the date the CDBG-funded activity is closed-out and reported as complete by the COUNTY through the Comprehensive Annual Performance and Evaluation Report (CAPER);
c. While held by CITY, the real property or the constructed facility is to be used exclusively for the purposes for which acquisition or construction was originally approved by COUNTY;
d. Written approval from COUNTY must be secured ifthe property or the facility is to be put to an alternate use that is consistent with the COUNTY'S Five Year Consolidated Plan or the applicable federal regulations governing CDBG funds;
1238
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
e. Should CITY desire to use the real property or the constructed facility, prior to the completion ofthe mandatory five-year period, for a purpose not consistent with applicable federal regulations goveming CDBG funds or to sell the real property or facility, then:
1) IfCITY desires to retain title, CITY will reimburse COUNTY the amount that represents the percentage ofcurrent fair market value that is identical to the percentage that CDBG funds initiaJly comprised of morues paid to acquire the property or construct the facility; or 2) IfCITY sells the property or facility or is required to sell the property or facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds initially comprised ofmonies paid to acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.
26. PURCHASE, USE AND REVERSION OF PERSONAL PROPERTY ASSETS For organizations using CDBG funds for equipment. the following principles apply:
Acquisition (2 CFR 200. 313( a)): Title to equipment acquired with CDBG funds is vested in your organization, subject to the conditions described in the following section.
Use ( 2 CFR 200.313(c)): Your organization must use equipment purchased with CDBG funds for the CDBG program or project as long as needed, whether or not the program or project continues to be supported by Federal funds.
During the time that your organization or its designee is using equipment for the CDBG funded program, you must also make the equipment available for use on other Federally funded projects or programs, provided that such use does not interfere with work on the CDBG funded program (2 CFR 200. 313( c)( 2)).
When no longer needed for the CDBG funded program, other Federally~ supported agencies may use the equipment, in the following order of priority: (i) Activities under a Federal award from HUD, then ( ii) Activities under Federal awards from other Federal agencies. This includes consolidated equipment for information technology systems (2 CFR 200.313(c)(i)(ii)).
HUD prohibits your organization from using CDBG-acquired equipment to provide services for a fee that competes unfairly with private companies that provide equivalent services unless specifically
1239
1 authorized by Federal statute (2 CFR 200.313(c)(3)).
2 With the approval of the grantee, you may trade in equipment acquired with CDBG funds for 3 updated equipment (2 CFR200.313(c)(4)).
4 Disposition (2 CFR 200.313(e)): When original or replacement equipment acquired with CDBG 5 funds is no longer needed for the original program or other activities currently or previously assisted 6 with Federal funds, the following rules ofdisposition will apply:
7 ( 1) Equipment with a current fair market value of $10,000 or less ( per unit) may be retained, 8 sold, or otherwise disposed ofwith no further responsibility to the Federal agency or pass-through entity. 9 ( 2) Except as provided in§ 200.312(b), or ifthe Federal agency or pass-through entity fails to 10 provide requested disposition instructions within 120 days, items ofequipment with a current fair market 11 value in excess of $10,000 (per unit) may be retained or sold by the recipient or subrecipient. However, 12 the Federal agency is entitled to an amount calculated by multiplying the percentage of the Federal 13 agency's contribution towards the original purchase by the current market value or proceeds from the 14 sale. If the equipment is sold, the Federal agency or pass-through entity may permit the recipient or 15 subrecipient to retain, from the Federal share. $1,000 ofthe proceeds to cover expenses associated with 16 the selling and handling ofthe equipment.
17 ( 3) The recipient or subrecipient may transfer title to the property to the Federal Government or 18 to an eligible third party provided that the recipient or subrecipient must be entitled to compensation for 19 its attributable percentage ofthe current fair market value ofthe property. 20 ( 4) In cases where a recipient or subrecipicnt fails to take appropriate disposition actions, the 21 Federal agency or pass-through entity may direct the recipient or subrecipient to take disposition actions. 22 PERSONAL PROPERTY - SUPPLIES.
23 ( 2 CFR 200.3.14) Title to supplies will vest in your organization upon acquisition, subject to the 24 following conditions:
25 If there is a residual inventory of unused supplies exceeding $ 10,000 upon completion of the 26 program and the supplies are not needed for any other Federal award, you may keep the supplies for use 27 in other activities or sell them when the CDBG award or agreement ends. But in either case, you must 28 compensate the grantee for its share. The amount ofcompensation must be computed in the same manner as for equipment (see 2 CFR 200.313(e)(2)).
1240
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
As long as the Federal Government retains an interest in the supplies, you must not use supplies acquired under a Federal award to provide services to other organizations for a fee that is less than private companies charge for equivalent services (2 CFR 200.3 l4(b )).
In all cases in which the residual inventory ofsupplies is sold, the proceeds are considered program income.
27. ENTIRE AGREEMENT. This Supplemental Agreement, including any attachments or exhibits hereto constitutes the entire Supplemental Agreement ofthe parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing. No oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. Each of the attachments and exhibits attached hereto is incorporated herein by this reference.
28. SEVERABILITY. Each section, paragraph and provision of this Supplemental Agreement is severable from each other provision, and ifany provision orpart thereofis declared invalid. the remaining provisions shall remain in full force and effect.
29. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing CDBG-funded Projects to notify, in writing, the Riverside County Workforce Development Center ofany and all job openings that are caused by the COBO-funded Projects under this Supplemental Agreement.
30. MINISTERIAL ACTS. The Director ofHousing and Workforce Solutions or dcsignee(s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions ofthis Supplemental Agreement as it may be amended from time-to-time by COUNTY.
31. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability 25 for any later determination by the United States Government, the U.S. Department ofHousing and Urban 26 Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to 27 receive CDBG entitlement funds from the COUNTY.
28
1241
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
32. SOURCE OF FUNDING. CITY acknowledges that the source offunding pursuant to this Supplemental Agreement is Community Development BJock Grant funds (CFDA 14.218), and the Grant Award Number is B-25-UC-06-0506.
33. ASSIGNMENT. The CITY shall not make any assignment or transfer in any fonn with respect to this Supplemental Agreement, without prior written approval ofthe COUNTY.
34. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws ofthe State ofCalifornia. This Supplemental Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Supplemental Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.
35. WAIVER. Failure by a party to insist upon the strict performance of any of the provisions of this Supplemental Agreement by the other party, or the failure by a party to exercise its rights upon the default ofthe other party, shall not constitute a waiver ofsuch party's rights to insist and demand strict compliance by the other party with the terms ofthis Supplemental Agreement thereafter.
36. JURISDICTION AND VENUE: Any action at law or in equity arising under this Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Supplemental Agreement shall be filed only in the Superior Court of the State of California, located in Riverside, California, and the parties hereto waive all provisions oflaw providing for the filing, removal or change ofvenue to any other court orjurisdiction
37. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase ofequipment or personal property, the property shall not be transferred from its originally funded use, by CITY or the CITY'S subcontractor implementing the COBO-funded activity, for a period offive (5) years from the close•out date ofthe grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review.
38. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant and represent that they have the authority to execute this Supplemental Agreement and warrant and represent Page21 of24
1242
1 that they have the authority to bind the respective parties to this Supplemental Agreement to the 2 performance ofits obligations hereunder.
3 39. EFFECTIVE DATE. The effective date ofthis Supplemental Agreement is the date the 4 parties sign the Supplemental Agreement. Ifthe parties sign the Supplemental Agreement on more than 5 one date, then the last date the Supplemental Agreement is signed by a party shall be the effective date. 6 40. COUNTERPARTS. This Supplemental Agreement may be signed by the different 7 parties hereto in counterparts, each ofwhich shall be an original but all ofwhich together shall constitute 8 one and the same agreement.
9 10
41. FORCE MAJEURE.
A. Performance by either party hereunder shall not be deemed to be in default where 11 delays or defaults are due to war, insurrection, strikes, lock-outs, riots, floods, earthquakes, fires, 12 casualties, acts of God, acts ofthe public enemy, epidemics, pandemic, quarantine restrictions, freight 13 embargoes, lack of transportation, governmental restrictions or priority. litigation, unusually severe 14 weather. inability to secure necessary labor, material or tools, delays of any contractor, sub-contractor 15 or supplier. acts ofthe other party, acts or failure to act of a public or governmental agency or entity. or 16 any causes beyond the control or without the fault ofthe party claiming an extension oftime to perform. 17 B. An extension ohime for any such cause ( a " Force Majeure Delay") shall be for 18 the period ofthe enforced delay and shall commence to run from the time ofthe commencement ofthe 19 cause, ifnotice by the party claiming such extension is sent to the other party within thirty (30) calendar 20 days of knowledge of the commencement of lhe cause. Notwithstanding the foregoing, none of the 21 foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay 22 and interference delivers to the other party written notice describing the event, its cause, when and how 23 such party obtained knowledge, the date the event commenced, and the estimated delay resulting 24 therefrom. Any party claiming a Force Majellre Delay shall deliver such written notice within thirty (30) 25 calendar days after it obtains knowledge ofthe event. 26 42. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modified 27 or amended only by a writi11g signed by the duly authorized and empowered representative ofCOUNTY 28 and CITY respectively.
1243
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
43. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use ofelectronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act (("CUETA") Cal. Civ. Code§§ 1633.1 to 1633.17). The parties further agree that the electronic signatures ofthe parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound. symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to CUETA as amended from time to time. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use ofa manual signature, and shall be reasonably relied upon by the parties. For purposes ofthis se<.,'1ion, a digital signature is a type of "electronic signature" as defined in subdivision (i) ofSection 1633.2 ofthe Civil Code.
Remainder ofPage Intentionally Blank]
Signatures on Following Page]
1244
1 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the 2 dates set forth below.
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
COUNTY OF RIVERSIDE,
a political subdivision of the
State of California
BY: -----------
Juan Garcia,
Deputy Director
Date:
APPROVED AS TO FORM:
MINHC. TRAN
COUNTY COUNSEL
By: __________ _
Paula S. Salcido,
Deputy County Counsel
CITY OF BANNING,
a general law city.
BY: ----------
Name:
Title:
Date: ---------
ATTEST:
BY: ----------
City Clerk
APPROVED AS TO FORM:
BY: ----------
City Attorney
1245
ADDITIONAL FEDERAL REQUIREMENTS
PAGE 1 OF 6
EXHIBIT " R"
24 C.F.R. § 5.109
Equal participation of faith- based organizations in
HUD programs and activities.
Effective: March 4, 2024
a) Purpose. Consistent with Executive Order 13279, entitled "Equal Protection ofthe Laws for Faith-Based and Community Organizations," as amended by Executive Order 13559, entitled Fundamental Principles and Policymaking Criteria for Partnerships With Faith-Based and Other Neighborhood Organizations," and as amended by Executive Order 14015, entitled Establishment ofthe White House Office ofFaith-Based and Neighborhood Partnershipst this section describes requirements for ensuring the equal participation offaith-based organizations in HUD programs and activities. These requirements apply to all HUD programs and activities, including all ofHUD's Native American Programs. except as may be otherwise noted in the respective program regulations in title 24 ofthe Code ofFederal Regulations ( CFR), or unless inconsistent with certain HUD program authorizing statutes. b) Definitions. The following definitions apply to this section:
Direct Federal financial assistance means Federal financial assistance provided when a Federal Government agency or an intermediary, as defined in this section, selects the provider and either purchases services from that provider (i.e., via a contract) or awards funds to that provider to carry out an activity (e.g., via grant, sub-grant, sub-award, or cooperative agreement). The recipients ofsub-grants or sub-awards that receive Federal financial assistance through Stateadministered programs (e.g., flow-through programs) are considered recipients ofdirect Federal financial assistance. In general, Federal financial assistance shall be treated as direct, unless it meets the definition of indirect Federal financial assistance.
Federal. financial assistance means assistance that non-Federal entities receive or administer in the fonns ofgrants, contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or other assistance, but does not include a tax credit, deduction, or exemption.
Indirect Federal. financial assistance means Federal financial assistance provided when the choice ofthe provider is placed in the hands ofthe beneficiary, and the cost ofthal service is paid through a voucher, certificate, or other similar means ofGovernment-funded payment. Federal financial assistance provided to an organization is considered indirect when the Government program through which the beneficiary receives the voucher, certificate, or other 1246
similar means ofGovernment-funded payment is neutral toward religion meaning that it is available to providers without regard to the religious or non-religious nature ofthe institution and there are no program incentives that deliberately skew for or against religious or secular providers; and the organization receives the assistance wholly as a result of a genuine and independent private choice ofthe beneficiary, not a choice ofthe Government. The availability ofadequate secular alternatives is a significant factor in determining whether a program affords true private choice.
Intermediary means an entity, including a nongovernmental organization, acting ooder a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that accepts Federal financial assistance and distributes that assistance to other entities that, in tum, carry out activities under HUD programs.
Religious exercise has the meaning given to the term in 42 U.S.C. 2000cc-5(7)(A). c) Equal participation offaith-based organizations in HUD programs and activiJies. 1) Faith-based organizations are eligible, on the same basis as any other organization, to participate in any HUD program or activity for which they are otherwise eligible. Neither the Federal Government, nor a State, Tribal, or local government, nor any other entity that administers any HUD program or activity, shall discriminate for or against an organization on the basis ofthe organization's religious character, motives, or affiJiation, or lack thereof, or on the basis ofconduct that would not be considered grounds to favor or disfavor a similarly situated secular organization.
2) Nothing in this section sha11 be construed to preclude HUD from making an accommodation, including for religious exercise, with respect to one or more program requirements on a case-bycase basis in accordance with the Constitution and laws ofthe United States. 3) HUD shall not disqualify an orgaruzation from participating in any HUD program for which it is eligible on the basis ofthe organization's indication that it may request an accommodation with respect to one or more program requirements, unless the organization has made clear that the accommodation is necessary to its participation and, in accordance with the Constitution and laws ofthe United States, HUD has determined that it would deny the accommodation. 4) In addition, decisions about awards of Federal financial assistance must be free from political interference or even the appearance ofsuch interference and must be made on the basis ofmerit, not based on the organization's religious character, affiliation, or lack thereof. or based on the organization's religious exercise. Notices offunding opportunity. grant agreements, and cooperative agreements shaJI include language substantially similar to that in appendix Ato this subpart, where faith-based organizations are eligible for such opportunities. d) Independence and identity offaith-ba.ied organizatwns. 1) A faith-based organization that applies for, or participates in, a HUD program or activity supported with Federal financial assistance retains its autonomy, right ofexpression, religious character, authority over its governance, and independence, and may continue to carry out its mission, including the definition, development, practice, and expression ofits religious beliefs; provided that, it does not use direct Federal financial assistance, whether received through a prime award or sub-award, to support or engage in any explicitly religious activities. including 1247
activities that involve overt religious content such as worship, religious instruction, or proselytization.
2) A faith-based organization that receives direct Federal financial assistance may use space including a sanctuazy, chapel, prayer hall, or other space) in its facilities ( including a temple, synagogue, church, mosque, or other place of worship) to carry out activities under a HUD program without concealing, altering, or removing religious art, icons, scriptures, or other religious symbols. In addition, a faith-based organization participating in a HUD program or activity retains its authority over its internal governance, and may retain religious tenns in its organization' s name, select its board members on the basis oftheir acceptance of or adherence to the religious tenets ofthe organization consistent with paragraph ( i) ofthis section, and include religious references in its organization' s mission statements and other governing documents. e) Explicitly religious activities. Ifan organization engages in explicitly religious activities including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location~ from the programs or activities supported by direct Federal financial assistance and participation must be voluntazy for the beneficiaries ofthe programs or activities that receive direct Federal financial assistance. The use of indirect Federal financial assistance is not subject to this restriction. Nothing in this part restricts HUD1s authority under applicable Federal law to ftmd activities, that can be directly funded by the Government consistent with the Establishment Clause ofthe U.S. Constitution.
f) Intermediary responsibilities to ensure equal participation offaith-based orga11izations in HUD programs. Ifan intermediary- acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that is administering a program supported by Federal financial assistance- is given the authority to select a nongovernmental organization to receive Federal financial assistance under a contract, grant, sub-grant, sub-award, or cooperative agreement, the intermediary must ensure that such organization complies with the requirements ofthis section. Ifthe intermediary is a nongovernmental organization, it retains all other rights ofa nongovernmental organization under the program' s statutory and regulatory provisions.
g) Nondiscriminati, m and beneficiary notice requirements •>•( l) Nondiscrimination. Any organization that receives Federal financial assistance under a HUD program or activity shall not, in providing services supported in whole or in part with Federal financial assistance, or in their outreach activities related to such services, discriminate against a beneficiary or prospective beneficiary on the basis ofreligion, a religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice. However, an organization that participates in a program funded by indirect Federal financial assistance need not modify its program or activities to accommodate a beneficiary who chooses to expend the indirect aid on the organization' s program.
2) Beneficiary notice.
i) An organization providing services under a program supported by direct Federal financial assistance from HUD, or an entity that administers indirect Federal financial assistance from HUD, must give written notice to beneficiaries and prospective beneficiaries of certain protections in a manner and form prescribed by HUD, including by incorporating 1248
the notice into materials that are otherwise provided to beneficiaries. The required language for this written notice to beneficiaries is set forth in appendix C to this subpart. ii) For the Housing Choice Voucher (HCV), Project-Based Voucher (PBV), and Section 8 Moderate Rehabilitation programs, the respective recipient (i.e., Public Housing Agency) is required to provide the written beneficiary notice. For the Housing Opportunities for Persons with AIDS (HOPWA) program, the grantee or project sponsor that is responsible for making eligibility determinations is required to provide the written beneficiary notice. For the Continuum ofCare (CoC) and Emergency Solutions Grants { ESG) programs, the recipient or subrecipient that is responsible for detennining the eligibility ofeach family or individual is required to provide the written beneficiary notice. The participating or prospective providers landlords) are not responsible for providing the written beneficiary notice for indirect aid recipients. The notice must include the following infonnation:
A) Nondiscrimination requirements ofparagraph (g}( l) ofthis section; B) Notification that a beneficiary or prospective beneficiary may report an organization's violation ofthese protections, including any denials ofservices or benefits by an organization, by contacting or filing a written complaint with the Center for Faith-Based and Neighborhood Partnerships or the intennediary that awarded fimds to the organization; and
C) For direct Federal financial assistance only, prohibitions with respect to explicitly religious activities as set forth in paragraph ( c) ofthis section. 3) Notice timing. The written notice described in paragraph ( g,)(2) ofthis section must be given to a prospective beneficiary prior to the time the prospective beneficiary enrolls in the program or receives services from 1he program. When the nature ofthe service provided or exigent circumstances make it impracticable to provide such written notice in advance ofthe actual service, an organization must advise beneficiaries oftheir protections at the earliest available opportunity.
4) Alternative option informatio11. HUD may determine that the notice described in paragra:12h g}ffi ofthis section must infonn each beneficiary or prospective beneficiary about how to obtain information from HUD, or a State agency or other entity administering the applicable program, about other federally funded service providers in their area that provide the services available under the applicable program.
h) No additional assurances from faith- based organizations. A faith-based organization is not rendered ineligible by its religious nature to access and participate in HUD programs. Absent regulatory or statutory authority, no notice offunding opportunity, grant agreement, cooperative agreement, covenant, memorandum ofunderstanding. policy, or regulation that is used by HUD or a recipient or intennediary in administering Federal financial assistance from HUD shall require otherwise eligible faith-based organizations to provide assw-ances or notices where they are not required of similarly situated secular organizations. All organizations that participate in HUD programs or activities, including organizations with religious character, motives, or affiliation, must carry out eligible activities in accordance with all program requirements, including those prohibiting the use ofdirect financial assistance to engage in explicitly religious activities, subject to any accommodations that are granted to organizations on a case-by-case basis in accordance with the Constitution and Jaws ofthe United 1249
States. No notice offunding opportunity, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by HUD or a recipient or intennediary in administering financial assistance from HUD shall disqualify otherwise eligible faith-based organizations from participating in HUD's programs or activities on the basis ofthe organization's religious character, motives, or affiliation, or lack thereof, or 011 the basis of conduct that would not be considered groW1ds to disqualify a similarly situated secular organization.
i) Exemptionfrom Title Vil employment discrimination requirements. Areligious organization's exemption from the Federal prohibition on employment discrimination on the basis ofreligion, set forth in section 702(a) ofthe Civil Rights Act of 1964 (42 U.S.C. 2000e-1 ). is not forfeited when the organization participates in a HUD program. Some HUD programs, however, contain independent statutocy provisions that impose certain nondiscrimination requirements on all grantees. Accordingly, grantees should consult with the appropriate HUD program office to detennine the scope ofapplicable requirements. j)Acquisition, construction, and rehabilitation ofstructures. Direct Federal financial assistance may be used for the acquisition, construction, or rehabilitation ofstructures only to the extent that those structures are used for conducting eligible activities under a HUD program or activity. Where a structure is used for both eligible and explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), direct Federal financial assistance may not exceed the cost ofthe share ofacquisition, construction, or rehabilitation attributable to eligible activities in accordance with the cost accounting requirements applicable to the HUD program or activity.
However, acquisition, construction, or rehabilitation of sanctuaries, chapels, or other rooms that a HUD-funded faith-based organization uses as its principal place ofworship, may not be paid with direct Federal financial assistance. Disposition ofreal property by a faith-based organization after its use for an authorized purpose, or any change in use ofthe property from an authorized purpose, is subject to Government-wide regulations governing real property disposition (2 CFR part 200, subpart D) and the HUD program regulations. as directed by HUD. k) Commingling ofFederal and State, tribal, and localfunds. Ifa State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal financial assistance for an activity, the State, tribal or local government has the option to segregate those funds or commingle them with the direct Federal financial assistance. However, ifthe funds are commingled, the requirements ofthis section apply to all ofthe commingled funds. Further, if a State, tribal, or local government is required to contribute matching funds to supplement direct Federal financial assistance for an activity. the matching funds are considered commingled with the direct Federal financial assistance and, therefore, subject to the requirements ofthis section. Some HUD programs• requirements govern any activity assisted under those programs.
Accordingly, recipients should consult with the appropriate HUD program office to determine the scope ofapplicable requirements.
I) Tax exempt organizations. In general, HUD does not require that a recipient, including a faith-based organization, obtain tax-exempt status under section 501(c)(3) ofthe Internal Revenue Code to be eligible for funding under HUD prognuns. Many grant programs, however, do require an organization to be a nonprofit organization in order to be eligible for funding.
Notices offunding availability that require organizations to have nonprofit status will 1250
specifically so indicate in the eligibility section ofthe notice of funding availability. In addition, ifany notice offunding availability requires an organization to maintain tax-ex.empt status, it will expressly state the statutory authority for requiring such status. Applicants should consult with the appropriate HUD program office to determine the scope ofany applicable requirements.
In HUD programs in which an applicant must show that it is a nonprofit organization but this is not statutorily defined. the applicant may do so by any ofthe following means:
1} Proofthat the Internal Revenue Service currently recognizes the applicant as an organization to which contributions are tax deductible under section 50l(c)(3) ofthe Internal Revenue Code; 2) A statement from a State or other governmental taxing body or the State secretary ofState certifying tbati) The organization is a nonprofit organization operating within the State; and ii) No part ofits net earnings may benefit any private shareholder or individual; 3) A certified copy ofthe applicant's certificate ofincorporation or similar document that clearly establishes the nonprofit status ofthe applicant; or 4) Any item described in paragraphs ( l)(l) through (3) ofthis section, ifthat item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit af1iliate. m) Rule ofconstruction. Neither HUD nor any recipient or other intermediary receiving funds ooder any HUD program or activity shall construe these provisions in such a way as to advantage or disadvantage faith-based organizations affiliated with historic or welJ-established religions or sects in comparison with other religions or sects.
69 FR 41717, July 9, 2004, as amended at 80 FR 75934, Dec. 7, 2015; 81 FR 19416, Apr. 4, 2016; 85 FR 823 I5, Dec. 17. 2020; 89 FR 15711, Mar. 4, 2024] 1251
EXHIBIT " S"
Economic Opportunities for Low-and Very Low-Income Persons
CONTRACT REQUIREMENTS
24 CFR Part 75
RIVERSIDE COUNTY
Section 75.l Purpose
This part establishes the requirements to be followed to ensure the objectives ofSection 3 ofthe Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701u) ( Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD :financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents ofthe community in which the Federal assistance is spent.
Section 75.3 Applicability
a) General applicability. Section 3 applies to public housing financial assistance and Section 3 projects, as follows:
1) Public housing financial assistance. Public housing financial assistance means:
i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 ( the 1937 Act);
ii) Operations and management assistance provided pursuant to section 9(e) ofthe 1937 Act; iii) Development, modernization, and management assistance provided pursuant to section 9( d) ofthe 1937 Act; and
iv) The entirety of a mixed-finance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing financial assistance as defined in paragraphs ( a)( l )(i) through (iii) ofthis section. 2) Section 3 projects. ( i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount ofassistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban De,•elopmeot Act of 1970 (12 U.S.C. 1701z-1 or 1701z-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead-Based Paint Hazard Reduction Act of 1992 ( 42 U.S.C. 4851 ct seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. 1252
ii) The Secretary must update the thresholds provided in paragraph ( a)(2)(i) ofthis section not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment. When the Secretary finds it is warranted to ensure compliance with Section 3, the Secretary may adjust, regardless ofthe national construction cost factor, such thresholds through Federal Register notice, subject to public comment. iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance.
b) Contracts for materials. Section 3 requirements do not apply to material supply contracts. c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5307(b)) or subject to tribal preference requirements as authorized under l0l(k) of the Native American Housing Assistance and Self-Detennination Act (25 U.S.C. 411 l(k)) must provide preferences in emp]oyment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to the requirements ofthis part.
d) Other HUD assistance and other Federal assistance. Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose ofSection 3.
Section 75. 5 Definitions.
The terms HUD, Public housing, and Public Housing Agency (PHA) are defined in 24 CFR part
5. The following definitions also apply to this part:
1937 Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.
Contractor means any entity entering into a contract with:
1) A recipient to perform work in connection with the expenditure of public housing financial assistance or for work in connection with a Section 3 project; or 2) A subrecipient for work in connection with a Section 3 project.
Labor /, ours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance.
Low- income person means a person as defined in Section 3(b)(2) of the 1937 Act.
Material supply contracts means contracts for the purchase ofproducts and materials. including. but not limited to. lwnber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.
Professional services means non-constmction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services. financial 1253
consulting, accounting services, environmental assessment, architectural services, and civil engineering services.
Public housing. financial assista11ce means assistance as defined in §75.3(a)(l).
Public l,ousing project is defined in 24 CFR 905.108.
Recipient means any entity that receives directly from HUD public housing financial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonprofit organization.
Section 3 means Section 3 ofthe Housing and Urban Development Act of 1968, as amended (12 U.S.C. l701u).
Section 3 business concern means:
1) A business concern meeting at least one ofthe following criteria, documented within the last six-month period:
i) It is at least 51 percent owned and controlled by low- or very low-income persons; ii) Over 75 percent of the labor hours performed for the business over the prior threemonth period are performed by Section 3 workers; or iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing. 2) The status ofa Section 3 business concern shall not be negatively affected by a prior arrest or conviction ofits owner(s) or employees.
3) Nothing in this part shall be construed to require the contracting or subcontracting ofa Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications ofthe contract.
Sectio11 3 project means a project defined in §75.3(a)( 2).
Section 3 worker means:
1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:
i) The worker1s income for the previous or annualized calendar year is below the income limit established by HUD.
ii) The worker is employed by a Section 3 business concern. iii) The worker is a YouthBuild participant.
1254
2) The status ofa Section 3 worker shall not be negatively affected by a prior arrest or conviction. 3) Nothing in this part shall be construed to require the employment ofsomeone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications ofthe position to be filled.
Section 8-assisted lwusing refers to housing receiving project-based rental assistance or tenantbased assistance under Section 8 ofthe 1937 Act.
Service area or the neighborhood ofthe project means an area within one mile ofthe Section 3 project or, iffewer than 5.000 people live within one mile ofa Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.
Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.
Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure ofpublic housing financial assistance or for a Section 3 project.
Subrecipie11t has the meaning provided in the applicable program regulations or in 2 CFR 200. 93.
Targeted Section 3 worker has the meanings provided in §§75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.
Very low-income person means the definition for this term set forth in section 3(b)(2) ofthe 1937 Act.
YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).
Subpart C- Additional Provisions for Housing and Community Development Financial Assistance
75.19 Requirements.
a) Employment and training. ( 1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the pr~ject is located.
2) Where feasible. priority for opportunities and training described in paragraph ( a)( l) ofthis section should be given to:
1255
i) Section 3 workers residing within the service area or the neighborhood ofthe project, and ii) Participants in YouthBuild programs.
b) Contracting. ( 1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
2) Where feasible, priority for contracting opportunities described in paragraph ( b)(l) ofthis section should be given to:
i) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood ofthe project, and ii) YouthBuild programs.
75.21 Targeted Section 3 worker for housing and community development financial assistance. a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker who is:
1) A worker employed by a Section 3 business concern; or 2) A worker who currently fits or when hired fit at least one ofthe following categories, as docwnented within the past five years:
i) Living within the service area or the neighborhood ofthe project, as defined in §75.5; or ii) A YouthBuild participant.
b) [ ReservedJ
75. 23 Section 3 safe harbor.
a) General. Recipients will be considered to have complied with requirements in this part, in the absence ofevidence to the contrary ifthey:
1) Certify that they have followed the prioritization ofeffort in §75.19; and 2) Meet or exceed the applicable Section 3 benchmark as described in paragraph (b) ofthis section.
b) Establishing benchmarks. ( 1) HUD will establish Section 3 benchmarks for Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERAL REGISTER. HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide 1256
benchmark for Targeted Section 3 workers. or may establish multiple benchmarks based on geography, the nature ofthe Section 3 project, or other variables. HUD will update the benchmarks through a document published in the FEDERAL REGISTER, subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. 2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by specific categories ofworkers or in different localities or regions; averages for labor hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number oflabor hours as such hours are excluded from the total number oflabor hours to be reported per §75.25(a)(4). 3) Section 3 benchmarks will consist ofthe following two ratios:
i) The number oflabor hours worked by Section 3 workers divided by the total number oflabor hours worked by all workers on a Section 3 project in the recipient's program year. ii) The number oflabor hours worked by Targeted Section 3 workers as defined in §75.21(a), divided by the total number oflabor hours worked by all workers on a Section 3 project in the recipient's program year.
75.25 Reporting.
a) Reporting oflabor hours. ( 1) For Section 3 projects, recipients must report in a manner prescribed by HUD:
i) The total number oflabor hours worked;
ii) The total number oflabor hours worked by Section 3 workers; and iii) The total number of labor hours worked by Targeted Section 3 workers. 2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to
75. 31.
3) The labor hours reported under paragraph (a)( 1) ofthis section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)( 4) of this section, to report.
4) Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph a)( l)(ii) ofthis section, and labor hours by Targeted Section 3 workers, under paragraph ( a)(l)(iii) of this section. from professional services without including labor hours from professional services in the 1257
total number oflabor hours worked under paragraph ( a)( l)(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported.
5) Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer' s good faith assessment of the labor hours of a full-time or parttime employee informed by the employer' s existing salary or time and attendance- based payroll systems. unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
b) Additional reporting ifSection 3 benchmarks are not met. If the recipient' s reporting under paragraph ( a) of this section indicates that the recipient has not met the Section 3 benchmarks described in § 75. 23, the recipient must report in a fonn prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following:
1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. 2) Provided training or apprenticeship opportunities.
3) Provided technical assistance to help Section 3 workers compete for jobs ( e.g., resume assistance, coaching).
4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job placement services.
5) Held one or more job fairs.
6) Provided or referred Section 3 workers to services supporting work readiness and retention e. g .. work readiness activities, interview clothing, test fees, transportation, child care). 7) Provided assistance to apply for/or attend community college, a four- year educational institution, or vocational/ technical training.
8) Assisted Section 3 workers to obtain financial literacy training and/ or coaching. 9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. 10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. 12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.
1258
13) Promoted use of business registries designed to create opportunities for disadvantaged and small businesses.
14) Outreach, engagement, or referrals with the state one-stop system as defined in Section 12l(e)( 2) ofthe Workforce Innovation and Opportunity Act. c) Reportingfrequency. Unless otherwise provided, recipients must report annually to HUD under paragraph (a) ofthis section, and, where required, under paragraph (b) ofthis section, on all projects completed within the reporting year in a manner consistent with reporting requirements for the applicable HUD program.
75.27 Contract provisions.
a) Recipients must include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project.
b) Recipients ofSection 3 funding must require subrecipients, contractors, and subcontractors to meet the requirements of §75.19, regardless ofwhether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.
Subpart D-Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
75.29 Multiple funding sources.
a) If a housing rehabilitation, housing construction or other public construction project is subject to Section 3 pursuant to §75.3(a)(l) and (2), the recipient must follow subpart B ofthis part for the public housing financial assistance and may follow either subpart B or C ofthis part for the housing and community development financial assistance. For such a project. the following applies:
1) For housing and community development financial assistance, a Targeted Section 3 worker is any worker who meets the definition ofa Targeted Section 3 worker in either subpart Bor C ofthis part; and
2) The recipients of both sources offunding shall report on the housing rehabilitation, housing construction, or other public construction project as a whole and shall identify the multiple associated recipients. PHAs and other recipients must report the following information:
i) The total number oflabor hours worked on the project; ii) The total number oflabor hours worked by Section 3 workers on the project; and iii) The total nwnber oflabor hours worked by Targeted Section 3 workers on the project. b) Ifa housing rehabilitation, housing construction, or other public construction project is subject to Section 3 because the project is assisted with funding from multiple sources ofhousing and community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or recipients 1259
must follow subpart C ofthis part, and must report to the applicable HUD program office, as prescribed by HUD.
75.31 Recordkeeping.
a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements ofthis part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed, or the public housing financial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the definition ofa Section 3 worker or Targeted Section 3 worker, at the time ofhire or the first reporting period, as follows:
1) For a worker to qualify as a Section 3 worker, one ofthe following must be maintained:
i) A worker's self-certification that their income is below the income limit from the prior calendar year;
ii) A worker's self-certification of participation in a means-tested program such as public housing or Section 8-assisted housing:
iii) Certification from a PHA, or the owner or property m;mager of project-based Section 8- assisted housing, or the administrator oftenant- based Section 8-assisted housh1g that the worker is a participant in one oftheir programs;
iv) An employer1s certification that the worker's income from that employer is below the income limit when based on an employer' s calculation of what the worker's wage rate would translate to if annualized on a full-time basis; or
v) An employer' s certification that the worker is employed by a Section 3 business concern. 2) For a worker to qualify as a Targeted Section 3 worker, one ofthe following must be maintained:
i) For a worker to qualify as a Targeted Section 3 worker under subpart B ofthis part:
A) A worker's self-certification of participation in public housing or Section 8-assisted housing programs;
B) Certification from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator oftenant- based Section 8-assisted housing that the worker is a participant in one oftheir programs;
C) An employer' s certification that the worker is employed by a Section 3 business concern; or 1260
D) A worker's certification that the worker is a YouthBuild participant. ii) For a worker to qualify as a Targeted Section 3 worker under subpart C ofthis part:
A) An employer's confinnation that a worker's residence is within one mile ofthe work site or, if fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census; B) An employer's certification that the worker is employed by a Section 3 business concern; or C) A worker's self-certification that the worker is a YouthBuild participant. c) The documentation described in paragraph (b) ofthis section must be maintained for the time period required for record retentions in accordance with applicable program regulations or, in the absence ofapplicable program regulations, in accordance with 2 CPR part 200. d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five years from when their certification as a Section 3 worker or Targeted Section 3 worker is established.
75.33 Compliance.
a) Records of compliance. Each recipient shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200. b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program office responsible for the public housing financial assistance or the Section 3 project, or to the local HUD field office.
c) Monitoring. HUD will monitor compliance with the requirements ofthis part. The applicable HUD program office will determine appropriate methods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the violation was found.
1261
Additional Federal Requirements ( AFR)
Whereas, the work under this Agreement is subject to applicable Federal, State, and local laws and regulations, including but not limited to the regulations pertaining to the Community Development Block Grant program ( 24 CFR Part 570) and the Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). Contractor, sub-contractors, Consultants, and sub-consultants agree to comply with, and are subject to, all applicable requirements as follows:
1. Equal Employment Opportu11ity - Compliance with Executive Order 11246 of September 24, 1965, entitled " Equal Employment Opportunity", as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations ( 41 CFR Part 60). The Contractor/ Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, general identity or national origin. Contractor/ Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex sexual orientation, general identity or national origin. The Contractor/Consultant will take affinnative action to ensure that applicants are employed and the employees are treated during employment, without regard to their race color, religion, sex, sexual orientation, general identity or national origin. Such actions shall include, but are not limited to, the following: employment, up-grading, demotion, or transfer; recruitment or recruitment advertising; rates ofpay or other forms of compensation; and selection for training, including apprenticeship. The Contractor/ Consultant agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions ofthis non-discriminating clause.
2. Copeland " Anti-Kickback" Act ( 18 U.S.C. 874 and 40 US. CA. Section 3145): All contracts and subgrants in excess of $2,000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland " Anti-Kickback" Act ( 18 U.S.C. 874), as supplemented by Department ofLabor regulations ( 29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient shalt be prohibited from inducing, by any means, any person employed in the construction, completion, or repair ofpublic work, to give up any part ofthe compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to HUD.
3. Davis- Bacon Act, as amended ( 40 U.S.C.A. Section 3141- 3148): When required by Federal program legislation, all constmction contracts awarded by the recipients and subrecipients ofmore than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. A. Section 3141-3148) and as supplemented by Department ofLabor regulations (29 CFR Part 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under the Davis Bacon Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the U.S. Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy ofthe current prevailing wage determination issued by the U.S. Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to HUD.
4. Contract Work Hours and Safety Standards Act (40 US.CA .. 32701 through 3708): Where applicable, all contracts awarded by rccipie11ts in excess of $2,000 for construction contracts and in excess of $2,500 for other contracts that involve the employment ofmechanics or laborers shall include a provision for compliance with the Contract Work Hours and Safety Standards ( 40 U.S.C.A. 32701-3708), as supplemented by DepartmentofLabor Regulations ( 29 CFR Part 5). Under Section 40 U.S.C.A. 3702, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the 1262
standard workweek is pennissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of40 hours in the workweek. 40 U .S.C.A. 3704of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of inteUigence.
5. Riglzts to Inventions Made Under a Contract or Agreement---- Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 40 I, "Rights to Inventions Made by Nonprofit Organizations and Small Business Finns Under Government Grants, Contracts and Cooperative Agreements." and any implementing regulations issued by HUD.
6. Rights to Dala and Copyrights - Contractors and consultants agree to comply with all applicable provisions pertaining to the use of data and copyrights pursuant to 48 CFR Part 27.404-3, Federal Acquisition Regulations { FAR).
7. AirPollution Prevention and Control (formally known as the Clean AirAct) (42 U.S.CA. 7401 et seq,) and the Federal Water Pollution Control Act (33 U.S.C.A. Sectlo11 1251 et seq.), as amended:- Contracts and subgrants ofamounts in excess of $100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended ( 33 U.S.C.A. 1251 et seq.). Violations shall be reported to HUD and the Regional Office ofthe Environmental Protection Agency (EPA).
8. Byrd Anti- Lobbying Amendment ( 31 U.S.C.A. 1352)- Contractors who apply or bid for an award of 100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract. grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up lo the recipient.
9. Debarment andSuspension ( Executive Orders ( E. a s) 12549 and 12689)-No contract shall be made to parties listed on the General Services Administration' s List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, " Debarment and Suspension.'' as set forth at 24 CFR part 2424. This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under slatulory or regulatory authority other than E.O. 12549, Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees.
10. Drug- Free Workplace Requirements- The Anti-Drug Abuse Act of 1988 (41 U.S.C.A. Section 8101- 8t03 )requires grantees ( including individuals) offederal agencies, as a prior condition of being awarded a grant, to certify that they will provide drug-free workplaces. Each potential recipient must certify that it will comply with drug- free workplace requirements in accordance with the Act and with HUD's rules at 24 CFR part 2425.
11. Access to Records and Records Retention: The Consultant or Contractor, and any sub- consultants or subcontractors, shall allow all duly authorized Federal, State, and/or County officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Consultant or Contractor, and any sub-consultants or sub-contractors, that are directly pertinent to a specific program for the purpose of making audits. examinations, excerpts, and transcriptions. The Consultant or Contractor, and any subconsultants or sub-contractors, further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a fonn in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods oftime 1263
as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four ( 4) years after the expiration of the term of this Agreement.
12. Federal Employee Benefit Clause: No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part ofthis agreement or to any benefit to arise from the same.
13. Energy Efficiency: Mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94A 163, Dec. 22, 1975; 42 U.S.C.A. Section 6201, et. seq., 89 Stat. 871).
14. Procurement of Recovered Materials ( 2 CFR 200. 322.) A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with 42 U.S.C. Section 6962 of the Solid Waste Disposal Act (42 U.S.C.A. Section 6901, et seq.), as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency ( EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level ofcompetition, where the purchase price of the item exceeds $ 10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $ 10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affinnative procurement program for procurement of recovered materials identified in the EPA guidelines.
15. Build America, Buy America ( BABA) Act: The Grantee must comply with the requirements ofthe Build America, Buy America ( BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee' s infrastructure project. Pursuant to HUD's Notice, " Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance'' ( 88 FR 1700 I), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.
16. Violence Against Women Act (VAWA): VAWA provides housing protections for survivors of domestic and dating violence, sexual assault and stalking (' domestic violence"). VAWA 2022 reauthorizes, amends, and strengthens the VAWA of 1994, as amended ( Pub. L. 103-322, tit. IV, sec. 40001- 40703; 34 U.S.C. 12291 et seq.) HUD' s implementing regulations for VAWA'S protections, rights, and responsibilities are codified in 24 CFR part 5, subpart L, and related provisions in HUD' s program regulations ( HUD' s VAWA regulations). VAWA 2022 amendments took effect on October l, 2022 and 2022 VAWA' s reauthorization includes new implementation requirements. Grantees, subrecipients and developers shall ensure compliance with all requirements of VAWA including but not limited to: ( a) Assure domestic violence survivors are not denied assistance as an applicant, or evicted, or have assistance tenninated as a tenant because applicant or tenant is or has been a victim of domestic violence; ( b) Implement an emergency transfer plan allowing domestic violence survivor to move to another safe and available unit; ( c) Provide protections against denial, tenninations, and evictions that directly result from being a victim of domestic violence; ( d) Implement a low barrier certification process and allow self-certification of domestic violence. 1264
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
PUBLIC SERVICE)
I. GENERAL INFORMATION
EXHIBIT A
File No.: 5.BN. 65- 25
CITY NAME: City of Banning UEI#: F996EVLCRCG3
ADDRESS: PO Box 998
Banning, CA 92220
CITY PROGRAM CONTACTS: Mike Stoiy, Executive Director
SUBRECIPIENT NAME: Sunrise Life Development ______ _,_ ______________ _ ADDRESS: PO Box 998, Banning, CA 92220
PHONE: 9098755556 FAX: ------------
E-MAIL: mstory@sunrisechurch. org
PROJECT NAME: Banning Peace Center Food Program
PROJECT LOCATION: 4024 W. Wilson Street, Banning. CA 92220 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT 124 CFR58. 34 ( a)( 4)) CDBG ELIGIBILITY CODE: 24 CFR 570. 201 ( e) Public Services PROJECT FUNDING SUMMARY: $ 5,000
Project to be administered by County (HWS) on behalf ofCITY: YES D NO D II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2025- 2026 Community Development Block Grant for the Banning Peace Center Food Program in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #I The Banning Peace Food Center provides emergency assistance to low- to moderateincome clients. Clients receive emergency relief food boxes, baby items, and senior products. CDBG funds will be used to purcha~· efood, supplies, and other program- related expenses.
1265
EXHIBIT A
File No.: 5.BN. 65- 25
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG pmgmm' s National Objective Criteria as required under 24 CFR 570.200( a)( 2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 ( a)( 2)(i)(B)
CFR Reference: Low Mod Limited Clientele Income Certification C. Levels ofAccomplishment - Goals and Performance Measures The City agrees to provide the following levels of program services:
Activity Units
per Month
Total
UnitsNear
Total
Undup/ icaJed Persons
Activity #I 80
Unit of Service is defined as: Clients Served
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives ( select one):
Outcome ( select one):
1:8'.l Creating Suitable Living Environments
D Providing Decent Affordable Housing
D Creating Economic Opportunities
lgJ Availability/ Accessibility
D Affordability
80 D Sustainability ( promoting livable or viable communities) D. City Capacity
By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds.
City will immediately notify County ofany significant changes in organizational management, assigned staff. change in facilities, loss or change in matching funds, or any other event that could potentially impact City's perfonnance under this Agreement. Any changes in the above items are subject to the prior approval ofthe County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement If action to correct such substandard perfonnance is not taken by the City within a reasonable period oftime after being notified by the County, contract suspension or tennination procedures will be initiated.
1266
EXHIBIT A
File No.: 5.BN.65- 25
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 5,000. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with perfonnance. Payments may be contingent upon certification of the Subrecipient' s financial management system in accordance with the standards specified in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget infonnation in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.
Line Item CDBG Granted
Funds
Total Direct Program $ $ 5,000
Expenses
Salaries
Fringe
Office Space ( Program Only)
Utilities
Communications
Reproduction/ Printing
Supplies and Materials
Mileage
Equipment ( Program Only)
Audit
Transportation
Other: program related
ex enscs
Total Indirect Program $
Expenses
Jndircct Costs ( Specify)*
X
X
Total NonCDBG Funds
0 Total
Activity/Project
Dud et
5,000
Notes
All indirect costs must be pre-approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs.
1267
File No.: 0.282-25
EXHIBIT B
G. Total Amount of Non- CDBG Leveraging
TYPE
FEDERAL
SOURCE AMOUNT SOURCE AMOUNT SOURCE AMOUNT TOTAL
STATE/LOCAL State/Local $ 1,500, 000 $ 1,500,000
PRIVATE
omER
Boca-Victims ofCrime Ac
Cooperation/Foundations $ 465,000 $ 465, 000
TOTAL: $ 1,965, 000
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The Sponsor agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The Sponsor shall administer its program in confonnance with the Unifonn Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C. Docwnentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement Such records shall include but not be limited to:
Records providing a fu) l description ofeach activity undertaken; ii. Records demonstrating that each activity undertaken meets one ofthe National Objectives ofthe CDBG program~
iii. Records required to determine the eligibility ofactivities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal opportunity components ofthe CDBG program;
vi. Financial records as required by 24 CFR 570.502. and 2 CFR 200; and vn. Other records necessary to document compliance with Subpart K of24 CFR Part 570.
1268
File No.: 0.282- 25
EXHIBIT B
2. Records Retention
The Sponsor shall retain all financial records. supporting documents, statistical records, and all other records pertinent to the Agreement for a period of four ( 4) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any ofthe records cited and that have started before the expiration ofthe four-year period. then such records must be retained until completion of the actions and resolution ofall issues, or the expiration ofthe four-year period, whichever occurs later.
3. Client Data
The Sponsor shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description ofservice provided. Such information shall be made available to County monitors or their designees for review upon request.
4. Disclosure
The Sponsor understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or Sponsor' s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.
5. Close- outs
The Sponsor's obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final payments, disposing ofprogram assets (including the return ofall unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing, the terms ofthis Agreement shall remain in effect during any period that the Sponsor has control over CDBG funds, including program income.
6. Audits & Inspections
All Sponsor records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General ofthe United States or any oftheir authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sponsor within 30 days after receipt by the Sponsor. Failure ofthe Sponsor to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sponsor hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits, the Single Audit Act, and the Office of Management and Budget ( 0MB) Title 2 U.S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
1269
EXHIBIT A
File No.: 5.BN. 65- 25
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule oftasks and milestones listed below:
Tasks I Milestone
Complete CDBG Training
Implement Program Activities
Execute Supplemental Agreement
Notice to Incur Cost
City Submits Quarterly
Performance Reports to County
County Monitoring ofCity
Performance
City Submits Monthly
Direct Benefit Reports
City Submits Reimbursement
Requests
Start Date
September 2025
July 1, 2025 1
September 2025
October 2025
TBD
October 2025
October 2025
Completion Date
September 2025
January 2026
March 27, 2026 2
TBD
March 27, 2026 3
March 27, 2026 4
The Notice to Incur Cost Letter will provide the specific program implementation date for this CDBG-funded activity.
2, 3. 4 Submittal of required documentation is detennined by the specific benefit period of the CDBGfunded activity. Confirm perfonnance requirements with CDBG Program Manager.
CDBG Program Services Complete June 30, 2026
V. SPE( IAL CONDITIONS / PEnFOIU1ANCE
Sponsor must collect Self-Certifications with supporting income documents and demographic infonnation from EVERY individual or family participating in CDBG-funded activities or the parent/ legal guardian of every child participating in CDBG-funded activities. This includes family income, family size, and race. Sponsor is required to submit the I
s1 200 Self- Certifications forms with supporting income documentation and 25% thereafter to HWS along with the Direct Benefit Reports on a monthly basis unless otherwise authorized in writing by CDBG program staff.
Once the Notice to Incur Cost letter is received, City must submit monthly reimbursement requests unless another schedule is approved, in writing, by HWS. Further, at least 75% ofall 2025-26 CDBG funds must be drawn down by January 12, 2026, and 100% ofall 2025-26 CDBG funds must be drawn down by March 27, 2026.
1270
EXHIBIT B
SPONSOR' S AGREEMENT
SCOPE OF WORK
PUBLIC SERVICE)
I. GENERAL INFORMATION
File No.: 0.282-25
I SPONSOR NAME: Voices for Children UEI #: ULFBHZQXYRT6 ADDRESS: 11870 Pierce Street, Ste. 260
Riverside, CA 92505
PROGRAM CONTACTS: Jessica Munoz, Executive Director
95 I) 472-930 I FAX: ( 858) 569-7151
L/ _E_-MAIL ___ : J_es_s_ic_a_M@--='-s.,,__pe_a_k_u..,,_p_n_ow_._o_,rg"--____________________ ,""·--·.= J I PROJECT NAME: CASA Program
I PROJECT LOCATION: 11870 Pierce Street, Suite 260, Riverside, CA 92505 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT ( 24 CFR 58.34 (a)(4)1 COBO ELIGIBILITY CODE: 24 CFR 570.201 ( e) Public Services PROJECT FUNDING SUMMARY: $90,050
2nd District $ 20,000
3rd District $ 20,000
4th District $ 20,000
City ofBeaumont $ 10,000
City ofBanning $ 5,000
City ofLake Elsinore $ 7,050
City ofMurrieta $ 8,000
II. SCOPE OF Sll:RVICE
A. Activities
Sponsor wiJI be responsible for administering a 2025- 2026 Community Development Block Grant for the CASA Program in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these fonds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity # 1 The Voices for Children CASA program assigns trained volunteers, appointed by a judge, to represent the best interests of an abused or neglected child in court. These 110/ unteers co11duct independent inve1uigations into the child' s circumstances, report their findings to the court, monitor the provision of services, and offer consistent support to the child throughout the legal process. CDBG funds will be used for staff salaries and benefits ( direct co.r;ls).
1271
File No.: 0.282-25
EXHIBIT B
B. National Objective
All activities funded with CDBG funds must comply with one or more ofthe CDBG program' s National Objective Criteria as required under 24 CFR 570.200( a)( 2). Sponsor certifies that the activity ( ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 ( a)( 2Xi)(A) --~-~-------------------- CFR Reference: Low Mod Limited Clientele Presumed
C. Levels ofAccomplishment - Goals and Performance Measures The Sponsor agrees to provide the foJlowing levels of program services:
Activity Units
per Month
Total
nits/Year
Total
Undup/ icated Persons
Activity #1 45
Unit of Service is defined as: Clients Served
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): ~ Creating Suitable Living Environments 0 Providing Decent Affordable Housing
D Creating Economic Opportunities
Outcome (select one): !: gj Availability/ Accessibility D Affordability
45 D Sustainability ( promoting livable or viable communities) D. Sponsor Capacity
By executing this Sponsor' s Agreement, the Sponsor certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and pennitting, and sufficient amount offinancial resources necessary to implement and carry out the activities funded with CDBG funds.
Sponsor will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact Sponsor' s perfonnance under this Agreement. Any changes in the above items are subject to the prior approval ofthe County.
E. Performance Monitoring
The County of Riverside Grantee will monitor the perfonnance of the Sponsor against goals and perfonnance standards as stated above. Substandard perfonnance as detennined by the County will constitute noncompliance with this Agreement. lf action to correct such substanda1- d perfonnance is not taken by the Sponsor within a reasonable period oftime after being notified by the County, contract suspension or tennination procedures wiJI be initiated.
1272
File No.: 0.282-25
EXHIBIT B
F. Program Budget
Jt is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 90,050. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with perfonnance. Payments may be contingent upon certification ofthe Subrecipient' s financial management system in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the Sponsor shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and Sponsor.
Line Item
CDBG Granted
Funds
Total Direct Program $ 90, 050
Expenses
Salaries X
Fringe X
Office Space (Program Only) X
Utilities
Communications
Reproduction/Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other:
Total Indirect Program $
Expenses
Indirect Costs (Specify)* X
Total NonCDBG Funds
1,965,000
Page3 of6
Total
Activity/ Project
Bud ct
2,055,050
Notes
1273
File No.: 0.282- 25
EXHIBIT B
G. Total Amount of Non- CDBG Leveraging
SOURCE AMOUNT SOURCE AMOUNT SOURCE AMOUNT TOTAL
81'.ATEIEOCAl.. State/Local $ 1,500,000 $ 1,500,000
Boca-Victims ofCrime Ac
Cooperation/ Foundations $ 465,000 $ 465, 000
TOT AL: $ 1,965, 000
Ill. ADMINISTRATIVE REQUIREMENTS
A Accounting Standards
The Sponsor agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The Sponsor shall administer its program in confonnance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one ofthe National Objectives ofthe CDBG program;
iii. Records required to determine the eligibility ofactivities; iv. Records required to document the acquisition. improvement, use or disposition of real property acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal opportunity components ofthe CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and vii. Other records necessary to document compliance with Subpart K of24 CFR Part 570.
1274
2. Records Retention:
EXHIBIT A
File No.: 5.BN.65- 25
The City shall retain alJ CDBG-related financial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County' s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the final time. The City will retain all National Objective documentation, including lowmoderate income certification, ethnicity, and other pertinent data for a period of four ( 4) years after submission ofthe County' s annual performance and evaluation report to HUD. Notwithstanding the above, ifthere is litigation, claims, audits, negotiations or other actions that involve any ofthe records cited and that have started before the expiration of the four-year period, then such records must be retained until completion ofthe actions and resolution ofall issues.
3. Client Data:
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.
4. Disclosure:
The City understands that client infonnation collected under this contract is private and the use or disclosure of such infonnation, when not directly connected with the administration of the County' s or City' s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and. in the case ofa minor, that ofa responsible parent/ guardian.
5. Close- outs:
The City' s obligation to the County shall not end until all close-out requirements are completed. Activities during this close- out period shall include, but are not limited to: making final payments, disposing of program assets ( including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and detennining the custodianship of records.
Notwithstanding the foregoing, the tenns of this Agreement shall remain in effect during any period that the City has contTol over CDBG funds, including program income.
6. Audits & Inspections:
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General ofthe United States or any oftheir authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts ofall relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits, the Single Audit Act, and the Office of Management and Budget ( 0MB) Title 2 U.S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards ( Uniform Guidance).
Pages of6
1275
EXHIBIT A
File No.: 5.BN.65~25
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre- approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule oftasks and milestones listed below:
Tasks / Milestone
Complete CDBG Training
Implement Program Activities
Execute Supplemental Agreement
Notice to Incur Cost
City Submits Quarterly
Perfonnance Reports to County
County Monitoring ofCity
Perfonnance
City Submits Monthly
Direct Benefit Reports
City Submits Reimbursement
Requests
Start Date
September 2025
July I, 2025 1
September 2025
October 2025
TBD
October 2025
October 2025
Completion Date
September 2025
January 2026
March 27, 2026 2
TBD
March 27, 2026 ~
March 27, 2026 4
The Notice to Incur Cost Letter will provide the specific program implementation date for this CDBG- funded activity.
2. 3, 4 Submittal of required documentation is detennined by the specific benefit period of the CDBGfunded activity. Confinn performance requirements with CDBG Program Manager.
CDBG Program Services Complete June 30, 2026
V. SPEf JAL CO:\ DffJONS /PERFOR1\ 1ANCE REQllHU: ME' JTS Sponsor must collect Self-Certifications with supporting income documents and demographic infonnation from EVERY individual or family participating in CDBG-funded activities or the parent/legal guardian ofevery child participating in CDBG-funded activities. This includes family income, family size, and race. Sponsor is required to submit the I
st 200 Self- Certifications fonns with supporting income documentation and 25% thereafter to HWS along with the Direct Benefit Reports on a monthly basis unless otherwise authorized in writing by CDBG program staff.
Once the Notice to Incur Cost letter is received, City must submit monthly reimbursement requests unless another schedule is approved, in writing, by HWS. Further, at least 75% of all 2025- 26 CDBG funds must be drawn down by January 12, 2026, and 100% of all 2025-26 CDBG funds must be drawn down by March 27, 2026.
1276
EXHIBITC
SPONSOR' S AGREEMENT
SCOPE OF WORK
PUBLIC SERVICE)
I. GENERAL INFORMATION
File No.: 0.284-25
I SPONSOR NAME: Boys & Girls Clubs ofthe San Gorgonio Pass UEI #: CM9MN3YNAKJ8 IADDRESS: PO Box 655
Beaumont, CA 92223
I PROGRAM CONTACTS: Megan Grisham, Program Manager
j PHONE: (951 )692-3259 FAX: ( 951) 922-0009
I E-MAIL: bgcmegan@yahoo. com
I PROJECT NAME: Teens Continue to Lead
IPROJECT LOCATION: 240 W. Ramsey Street, Banning, CA 92220 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT (24 CFR 58.34 (a)(4)J CDBG ELIGIBILITY CODE: 24 CFR 570.201 ( e) Public Services PROJECT FUNDING SUMMARY: $ 8,850
5th District $ 5,000
City ofBanning $ 3,850
II. SCOPE OF SERVICE
A. Activities
Sponsor will be responsible for administering a 2025-2026 Community Development Block Grant for the Teens Continue to Lead in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #1 The Boys and Girls Club ofSan Gorgonio Pass offers a teen program for ages 13-18 during summer and school breaks. The Teens Continue to Lead program offers mentorship and courses in character and leadership, the arts, health and life skills, education, technology, and sports and recreation. CDBG funds will be used for staff salaries ( direct cost), consumable supplies, and other program- related expenses.
Page I of6
1277
File No.: 0.284- 25
EXHIBITC
B. National Objective
All activities funded with CDBG funds must comply with one or more ofthe CDBG program' s National Objective Criteria as required under 24 CFR 570.200( a)( 2). Sponsor certifies that the activity ( ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 ( a)( 2)(i)(B) ----------------"------------------------ CFR Reference: Low Mod Limited Clientele Income Certification C. Levels ofAccomplishment- Goals and Performance Measures The Sponsor agrees to provide the following levels of program services:
Activity
Activity #1
Units
per Month
Unit of Service is defined as: Teens Served
Total
Units/Year
JO
CPD OUTCOME PERFORMANCE MEASUREMENT
Total
Unduplicated Persons
10 Objectives (select one): 1Z1 Creating Suitable Living Environments D Providing Decent Affordable Housing
D Creating Economic Opportunities
Outcome (select one): IZJ Availability/ Accessibility
0 Affordability
D Sustainability ( promoting livable or viable communities) D. Sponsor Capacity
By executing this Sponsor' s Agreement, the Sponsor certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds.
Sponsor will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact Sponsor' s performance under this Agreement. Any changes in the above items are subject to the prior approval ofthe County.
E. Performance Monitoring
The County of Riverside Grantee will monitor the performance of the Sponsor against goals and performance standards as stated above. Substandard perfonnance as detennined by the County will constitute noncompliance with this Agreement. If action to correct such substandard perfonnance is not taken by the Sponsor within a reasonable period oftime after being notified by the County, contract suspension or termination procedures will be initiated.
1278
File No.: 0.284-25
EXHIBITC
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $ 8,850. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification ofthe Subrecipient' s financial management system in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the Sponsor shall provide such supplemental)' budget infonnation in a timely fashion in the fonn and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and Sponsor.
Line Item
CDBG Granted
Funds
Total Direct Program $ 8,850
Expenses
Salaries X
Fringe X
Office Space ( Program Only)
Utilities
Communications
Reproduction/ Printing
Supplies and Materials X
Mileage
Equipment ( Program Only)
Audit
Transportation
Other: ro • ram related ex enscs X
Total Indirect Program $
Expenses
Indirect Costs ( Specify)*
Total NooCDBG Funds
37, 500
Total
Activity/ Project
Notes
Budget""" " ""-+···""""····•·""""·""·"·""···-••··- i
46, 350
1279
File No.: 0.284- 25
EXHIBITC
G. Total Amount of Non- CDBG Leveraging
TYPE
FEDERAL·
AMOUNT SOURCE
I0,000
AMOUNT SOURCE AMOUNT TOTAL
STATE/ LOCAL
SOURCE
OJP
ELOP $ 15,000
10,000
15,000
PRIVATE 5,000
OTHER
SCE
Spearman
Foundation
5,000
7,500 $ 7,500
TOTAL: $ 37, 500
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The Sponsor agrees to comply with the Unifonn Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The Sponsor shall administer its program in conformance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
I. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
Records providing a full description ofeach activity widertaken; ii. Records demonstrating that each activity undertaken meets one ofthe National Objectives ofthe CDBG program;
iii. Records required to determine the eligibility ofactivities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal opportunity components ofthe CDBG program~
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and vii. Other records necessary to document compliance with Subpart K of24 CFR Part 570.