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Agenda, second session

Crescent City City Council
April 8, 2024

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Agenda, second session
Meeting
April 8, 2024
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Crescent City City Council
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18
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Text extracted from the city's file for reading and search. Open the original on evogov.s3.us-west-2.amazonaws.com. That file is the official record.

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4/8/24 COUNCIL AGENDA

CITY OF CRESCENT CITY
Mayor Blake Inscore Mayor Pro Tem Ray Altman
Council Member Jason Greenough Council Member Kelly Schellong Council Member Isaiah Wright
MONDAY APRIL 8, 2024 5:30 P.M.

This meeting will be held in person at the location listed above. The City will broadcast the meeting on YouTube, however, if there is a technological issue with YouTube, the meeting will continue in person as scheduled. The public may access and participate in the public meeting by (1) attending the meeting in person and making public comment when called for by the Mayor or (2) by submitting a written comment via [email protected] or by filing it with the City Clerk at 377 J Street, Crescent City, California, 95531. All public comments (via email or mail) must be received by the City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and agenda item to which your comment pertains in the subject line. Public comments so received will be forwarded to the City Council and posted on the website next to the agenda. Written public comments will not be read aloud during the meeting.

Notice regarding Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-

35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website:
www.crescentcity.org

OPEN SESSION
Call to order
Roll call
Pledge of Allegiance

PUBLIC COMMENT PERIOD
Any member of the audience is invited to address the City Council on any matter that is within the jurisdiction of the City of Crescent City. Comments of public interest or on matters appearing on the agenda are accepted. Note, however, that the Council is not able to undertake extended discussion or act on non-agendized items. Such items can be referred to staff for appropriate action, which may include placement on a future agenda. All comments shall be directed toward the entire Council. Any comments that are not at the microphone are out of order and will not be a part of the public record. After receiving recognition from the Mayor, please state your name and city or county residency for the record. Public comment is limited to three (3) minutes. The public is additionally allotted three minutes each in which to speak on any item on the agenda prior to any action taken by the Council.

AGENDA

SPECIAL MEETING OF THE

CITY COUNCIL OF THE CITY OF CRESCENT CITY

WASTEWATER TREATMENT FACILITY CONFERENCE ROOM
210 BATTERY STREET
CRESCENT CITY, CA 95531
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4/8/24 COUNCIL AGENDA

NEW BUSINESS

1. Technical Assistance Planning Grant Amendment for the Design of WWTP Rotating Biological Contactor (RBC) Capital Upgrade, Membrane Bioreactor (MBR) Replacement and Biosolids/Digester Optimization Project
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2024-22, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY APPROVING AMENDMENT NO. 1

WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FOR THE PURPOSE OF PROJECT NUMBER C-06-8558-110 AND RBC CAPITAL

UPGRADE, MBR MEMBRANE REPLACEMENT, AND BIOSOLIDS/DIGESTER

OPTIMIZATION PROJECT
• Approve and adopt Resolution No. 2024-23, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2023-24 BUDGET OF THE CITY OF CRESCENT CITY

ADJOURN TO THE CRESCENT CITY HOUSING AUTHORITY
Call to order
Roll Call

CONSENT CALENDAR

2. Agreement to Enter into a Housing Assistance Payment Contract with SSF Battery Point LP for 70 PBV Units at Battery Point Apartments
• Recommendation: Approve and authorize the Housing Director to sign an Agreement to enter into a Housing Assistance Payments (AHAP) contract with SSF Battery Point LP for 70 Project Based Voucher (PBV) units at Battery Point Apartments

ADJOURNMENT

RECONVENE THE CITY COUNCIL MEETING

CITY COUNCIL ITEMS
➢ City Manager Report and City Council Directives – Pursuant to Crescent City Municipal Code § 2.08.200, the City Council may instruct the city manager on matters of importance to the administrative services of the City and provide direction with respect to subordinates of the City Manager. (Directives from individual Council Members that are not objected to by any member present shall be considered an order of the City Council.)

ADJOURNMENT
Adjourn to the regular meeting of the City Council of the City of Crescent City on Monday, April 15, 2024 at 6:00 p.m. in the Flynn Center, 981 H Street, Crescent City, CA 95531.

POSTED:

April 4, 2024
/s/ Robin Altman
City Clerk/Administrative Analyst
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4/8/24 COUNCIL AGENDA
Vision:

The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents, businesses and visitors through leadership, diversity, and teamwork.

Mission:

The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our diverse history, culture and unique natural resources.

Values:

Accountability
Honesty & Integrity
Excellent Customer Service
Effective & Active Communication
Teamwork
Fiscally Responsible

CITY COUNCIL AGENDA REPORT
TO: MAYOR INSCORE AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: DAVID YEAGER, PUBLIC WORKS DIRECTOR

ANDREW LEIGHTON, ENGINEERING PROJECT MANAGER
DATE: APRIL 8, 2024
SUBJECT: TECHNICAL ASSISTANCE PLANNING GRANT AMENDMENT NO. 1

FOR THE DESIGN OF WWTP ROTATING BIOLOGICAL CONTACTOR
(RBC) CAPITAL UPGRADE, MEMBRANE BIOREACTOR (MBR)

REPLACEMENT AND BIOSOLIDS/DIGESTER OPTIMIZATION

PROJECT
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2024-22, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY APPROVING AMENDMENT NO. 1 WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FOR THE PURPOSE OF PROJECT NUMBER C-06-8558-110 AND

RBC CAPITAL UPGRADE, MBR MEMBRANE REPLACEMENT, AND

BIOSOLIDS/DIGESTER OPTIMIZATION PROJECT
• Approve and adopt Resolution No. 2024-23, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2023-24 BUDGET OF THE CITY OF CRESCENT CITY

BACKGROUND
The Crescent City Wastewater Treatment Plant serves a disadvantaged community (DAC) and has struggled to meet the financial commitments of the SRF loan for a major plant renovation which was completed in 2011. Although the City was successful in completing a Proposition 218 process to address revenue deficiency with rates, a ballot referendum (Measure Q) rejected the proposed rate increases in November 2016. An updated financial pro forma analysis completed in 2018 indicated the Sewer Fund would deplete all reserves and go negative by fiscal year 2023-24 if budgeted operating costs and revenue remained unchanged. Over the past years the City has worked closely with the State Water Board Division of Financial Assistance, and Regional Water Quality Board to develop a strategic plan to address this shortfall. Key elements of the plan include the following:

SWRCB Agreement Amend. No. 1
APRIL 8, 2024
2 • Revenue – Increase revenue through addition of new customers and reduction in facility variable and fixed operating costs using Prop 1 and other grant processes.
• Relief – Seek relief of debt principal. The City has tried this approach and was unsuccessful in obtaining debt relief.
• Restructure – Restructuring debt to increase the period or restructure how the SRF loan is amortized. Staff has worked with the SWRCB over the past several years on this element. Great strides have been accomplished including extending the loan period from 20 to 30 years, reducing the interest rate from

2.4% to 0%, and financially shaping the loan amortization. These actions will save this community more than 14 million dollars over the life of the loan. • Rates – Continue to analyze rates to ensure an equitable rate structure and sustainable utility.
• Operations - Optimizing operations and stabilizing plant staffing by engaging Jacobs Engineering in 2019 as our WWTP operations team. • Grant funding – the City has actively been seeking grant funding for capital improvements.

The SWRCB Technical Assistance Grant was awarded to the City of Crescent City and presented to City Council for acceptance on May 17, 2021. The City Council approved Resolution No. 2021-29 authorizing the City Manager to execute the contract and approved Resolution No. 2021-30 adjusting the budget for the grant acceptance. The contract with SWRCB was fully executed on June 2, 2021 in the form of a $393,405.00 forgivable loan.

On April 18, 2022, the City Council authorized the City Manager to execute Amendment 4 with Operations Management, Inc. (Jacobs) in the amount of $370,002 for phase 1 of the design project to optimize the Rotating Biological Contactors and Digesters. These projects would be designed with a goal to optimize operations, decrease major maintenance, and increase efficiencies. These are all vital components to the goal of making the operating the WWTP and effectively and efficiently as possible so that we can to protect public safety and ensure ongoing environmental performance.

ITEM ANALYSIS
In addition to the overall plant optimization the below projects were identified for grant eligibility screening and potential further development beginning with a preliminary engineering evaluation/project initiation documents.

1. Rotating Biological Contactors (RBC) Capital Upgrade

2. Membrane BioReactors (MBR) Membrane Replacement

3. Biosolids/Digester Optimization

4. Primary Clarifiers

5. Thickener/Gas Holding Tank
SWRCB Agreement Amend. No. 1
APRIL 8, 2024
3 The existing MBR membrane project was completed in 2022. This replacement upgraded the membrane filters, configuration of piping, and optimized the scour blowers. This project was completed outside of this grant as it simply could not wait. The system was showing signs of inefficiency and risked damage / failure if not addressed. After completing the project, the MBR system is experiencing significantly reduced back pressure on the filters as well as the total run time needed for the scour blowers. With the MBR project complete, focus of this design project is now optimization of the Rotating Biological Contactors (RBC), Biosolids/Digester, primary clarifier, and gravity thickener projects.

The grant that the City obtained covered Phase 1 of the project development which was intended to take the project through preliminary design. The State recommended that the City request the additional funds needed to take the project through 100% design and also fund a construction grant application. Staff worked with Jacobs to develop a scope and fee to cover a 30% design project and a time extension to August 2025.

Amendment No. 1 to the SWRCB Agreement No. is summarized below as follows:
• Added Plantwide review of unit processes and equipment report • Removed MBR membrane replacement
• Added improvements to the valves and flow meters for the secondary clarifiers • Added improvements to the HVAC for the belt filter press room and the administration building
• Added replacement of the primary clarifier building(s) • Added installation of surveillance and security cameras • Added procurement of spare parts
• Added development of a raw wastewater influent sampling work plan • Added perform an onsite structural, corrosion and process/mechanical inspection • Removed 50% PS&E (kept 30% PS&E for selected projects) • Added various design management tasks
• Added a Fiscal Sustainability Plan and Debt Management Policy to the submittal • Extended the completion date from September 30, 2023 to August 31, 2025. • Added $557,838 to the forgivable loan amount for a total of $951,243.

Amendment No. 1 will complete the General, Technical, Environmental, and Financial packages required to apply for the SWRCB construction funding (Phase 3). 100% PS&E and Construction Management (Phase 2) will be a future SWRCB Amendment application.

FISCAL ANALYSIS
The amendment will have a net zero fiscal impact but will result in an additional $557,838 in State funds to be used toward the project as the total forgivable loan will increase from $393,405 to $951,243.

SWRCB Agreement Amend. No. 1
APRIL 8, 2024
4 Phase 1 - Preliminary Design
Original
Contract
Contract
Amendment
No. 1
Project Report $33,400 $291,844
Preliminary Plans, Specifications,
and Cost Estimate $250,000 $442,000
Environmental Compliance $50,005 $158,000
CWSRF Construction Funding
Application and Management $60,000 $59,399
FORGIVABLE LOAN AMOUNT $393,405 $951,243
NEXT STEPS:

Staff is anticipating two additional phases needed to complete this project that would run concurrently. After the completion of the scope of work within this amendment, the City could submit an application to the SWRCB for Phase 2 and Phase 3 as detailed below:

Phase 2 – Final Design & Construction Management Assistance Complete the final design and include Construction Management. Other than staff time it is anticipated the design portion of the project as well as technical assistance to apply for construction grant funding will be 100% funded by the State.

Project Cost Estimate
60%, 90%, and Final Design Submittal $1,412,272
Construction Management - 10% of
Estimated Construction Costs for
Phase 3 Construction
$1,714,000
Total $3,126,272*
Phase 3 – Construction
The below estimated actual project construction costs are based on Jacobs final Grant Amendment request. Staff is hopeful that the SWCRB will provide construction funding through another forgivable loan.

Facility Engineering Cost Estimate
Primary Clarifier $2,996,495
Digesters $3,866,291
Thickener/Gas Holding Tank $922,093
RBC Upgrade $9,354,393
Total $17,140,000*
*Please note the above stated costs are estimates only and will change when the 30% design is complete and the timing of construction is known.

SWRCB Agreement Amend. No. 1
APRIL 8, 2024
5 STRATEGIC PLAN ASSESSMENT
This action supports the following Strategic Plan goals… GOAL 1: Support quality services, community safety, and health to enhance the quality of life and experience of our residents and visitors.

D. Provide and maintain an efficient, adequate infrastructure to provide for both current and future community needs
GOAL 2: Promote a thriving local economy
A. Evaluate and optimize additional revenue sources
D. Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities
GOAL 3: Obtain the highest levels of organizational excellence B. Maintain responsible fiscal management and accountability

ATTACHMENTS

1. Resolution No. 2024-22

2. Resolution No. 2024-23

3. SWRCB Agreement Amendment No. 1
CITY OF CRESCENT CITY RESOLUTION NO. 2024-22 Page 1
RESOLUTION NO. 2024-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY APPROVING AMENDMENT NO.1 WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FOR THE PURPOSE OF PROJECT NUMBER C06-8558-110 AND RBC CAPITAL UPGRADE, MBR MEMBRANE REPLACEMENT,

AND BIOSOLIDS/DIGESTER OPTIMIZATION PROJECT
WHEREAS, the Crescent City Wastewater Treatment Plant serves a disadvantaged community and is struggling to meet the financial commitments of the existing SRF loan which funded a major plant renovation that was completed in 2011; and WHEREAS, the City was successful in completing a Proposition 218 process to address revenue deficiency with rates in 2016, a ballot referendum subsequently rejected the proposed rate increases; and
WHEREAS, an updated financial pro forma analysis completed in 2018 indicated the Sewer Fund would deplete all reserves and go negative by fiscal year 2023-24 if budgeted operating costs and revenue remained unchanged; and
WHEREAS, the City has been working closely with the State Water Resources Control Board Division of Financial Assistance and the Regional Water Quality Control Board to develop a strategic plan to address this shortfall; and WHEREAS, State funding is currently available in the form of a forgivable loan for technical assistance for projects that will enhance revenue by reducing operations and maintenance costs; and
WHEREAS, the City applied for a State Water Resources Control Board loan with 100% forgiveness and was awarded funding to develop RBC Capital Upgrade, MBR Membrane Replacement, and Biosolids/Digester Optimization Plan; and WHEREAS, the SWRCB has agreed to increase the funding from $393,405 to $951,243 to meet the $951,243 needed to complete the goals and objectives of this forgivable loan; and
WHEREAS, the City Council must authorize the nomination of SWRCB funds, accept eligibility determination and authorize an agent of the City of Crescent City to administer the program agreement.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRESCENT CITY, CALIFORNIA THAT:

1. The City Manager is authorized as agent of the City of Crescent City to execute State Water Resources Control Board Agreement Amendment No.1 for the Purpose of Project No. C-06-8558-110 and RBC Capital Upgrade, MBR Membrane Replacement, and Biosolids/Digester Optimization Project and to administer the agreement.

CITY OF CRESCENT CITY RESOLUTION NO. 2024-22 Page 2

2. The City Manager as the Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the grant funding application, including executing any required agreements with the State Water Resources Control Board and any amendments or changes thereto.

3. The City Manager as the Authorized Representative, or his/her designee, is designated to represent the City in carrying out the City’s responsibilities under the executed agreements, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws.

PASSED AND ADOPTED and made effective the same day by the City Council of the City of Crescent City on this 8
th day of April 2024, by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Blake Inscore, Mayor
ATTEST:
_____________________________
Robin Altman, City Clerk
CITY OF CRESCENT CITY RESOLUTION NO. 2024-23 Page 1
RESOLUTION NO. 2024-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2023-24 BUDGET OF THE CITY OF CRESCENT CITY WHEREAS, the budget for the fiscal year beginning July 1, 2023, as submitted by the City Manager, was reviewed by the City Council and a public hearing was held thereon the 5th day of June 2023; and WHEREAS, the City Council adopted said budget by way of Resolution 2023-39 and has the authority to amend said budget from time to time; and
WHEREAS, the City applied for and has been awarded a forgivable loan under agreement number SWRCB0000000000D2001037 with the California State Water Resources Control Board for the purpose of Project Number C-06-8558-110; and
WHEREAS, the City applied for and has been awarded an increase in the amount of the forgivable loan for the project that is memorialized in Amendment No. 1 to Agreement number SWRCB0000000000D2001037 with the California State Water Resources Control Board for the purpose of Project Number C-06-8558-110; and
WHEREAS, the increase in the forgivable loan was awarded after the budget was adopted; and WHEREAS, acceptance and expenditure of this forgivable loan requires an amendment to the City’s Fiscal Year 2023-24 budget.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRESCENT CITY, CALIFORNIA AS FOLLOWS:

1. That the Fiscal Year 2023-24 City of Crescent City Annual Budget is hereby amended and appropriated in the amounts identified below:

Fund
Revenue
Increase
Expense
Increase
Sewer Fund

$557,838

$557,838

2. That any unspent portion of this project will be rolled over to the subsequent fiscal year until the project is complete or until the expenditure deadline.

PASSED AND ADOPTED and made effective the same day by the City Council of the City of Crescent City on this 8
th day of April 2024, by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Blake Inscore, Mayor
ATTEST:
_____________________________
Robin Altman, City Clerk

CRESCENT CITY HOUSING AUTHORITY AGENDA REPORT
TO: CHAIR INSCORE AND MEMBERS OF THE BOARD
FROM: ERIC WIER, CITY MANAGER
BY: MEGAN MILLER, HOUSING DIRECTOR
DATE: APRIL 8, 2024
SUBJECT: AGREEMENT TO ENTER INTO A HOUSING ASSISTANCE PAYMENT CONTRACT WITH SSF BATTERY POINT LP FOR 70 PBV UNITS AT

BATTERY POINT APARTMENTS
______________________________________________________________________

RECOMMENDATION
• Approve and authorize the Housing Director to sign an Agreement to Enter into a Housing Assistance Payments (AHAP) contract with SSF Battery Point LP for 70 Project Based Voucher (PBV) units at Battery Point Apartments

BACKGROUND
On December 19, 2022, the Board approved a commitment of 70 PBV’s at SSF Battery Point LP’s proposed Battery Point senior and family housing project. The environmental review and subsidy layering analysis for the project have both received approval.

ITEM ANALYSIS
Before construction can commence, CCHA must enter into an AHAP contract with SSF Battery Point LP. The AHAP is needed for closing on the development, which is anticipated for April 11, 2024. Once construction is completed, the AHAP binds the CCHA to enter into the official Housing Assistance Payments (HAP) contract for the PBV units.

Since the AHAP binds CCHA to the HAP contract, approval of this agreement also constitutes approval to enter into the formal HAP contract upon completion of construction and approval of occupancy.

FISCAL ANALYSIS
There are no direct financial impacts to the recommended action, as the funds will be spent for HAP during the 20-year period regardless of location.

APRIL 8, 2023
2 STRATEGIC PLAN ANALYSIS
This action supports the following Strategic Plan Goals and Priorities:

GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO

ENHANCE THE QUALITY OF LIFE AND EXPERIENCE OF OUR RESIDENTS AND VISITORS; A. Enhance collaboration with other agencies and the community to better aid the public; E. Target economic development improvements that provide additional benefits by enhancing the quality of life for residents.

GOAL 2: PROMOTE A THRIVING LOCAL ECONOMY; B. Support community organizations that provide measurable services to the community; D. Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities; F. Supporting community partners whenever and wherever possible in their vitalization efforts.

ATTACHMENTS
• Agreement to Enter into a Housing Assistance Payments contract with SSF Battery Point LP
OMB Approval No. 2577–0169
(exp. 07/31/2022)
Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 1 of 18 ends

U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT-BASED VOUCHER PROGRAM

AGREEMENT TO ENTER INTO A

HOUSING ASSISTANCE PAYMENTS CONTRACT

NEW CONSTRUCTION OR REHABILITATION
PART I
Public reporting burden for this collection of information is estimated to average 0.5 hours. This includes the time for collecting, reviewing and reporting the data. The information is being collected as required by 24 CFR 983.152, which requires the PHA to enter into an Agreement with the owner prior to execution of a HAP contract for PBV assistance as provided in §983.153. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number. Assurances of confidentiality are not provided under this collection.

Privacy Act Statement. HUD is committed to protecting the privacy of individuals’ information stored electronically or in paper form, in accordance with federal privacy laws, guidance, and best practices. HUD expects its third-party business partners, including Public Housing Authorities, who collect, use maintain, or disseminate HUD information to protect the privacy of that information in Accordance with applicable law.

1.1 Parties
This Agreement to Enter into Housing Assistance Payments Contract (“Agreement”) is between:

City of Crescent City Housing Authority (“PHA”) and SSF Battery Point LP (“owner”).

1.2 Purpose
The owner agrees to develop the Housing Assistance Payments Contract (“HAP Contract”) units to in accordance with Exhibit B and to comply with Housing Quality Standards (“HQS”), and the PHA agrees that, upon timely completion of such development in accordance with the terms of the Agreement, the PHA will enter into a HAP Contract with the owner of the Contract units.

Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 2 of 18 ends

1.3 Contents of Agreement
This Agreement consists of Part I, Part II, and the following Exhibits:

EXHIBIT A: The approved owner’s PBV proposal. (Selection of proposals must be in accordance with 24 CFR 983.51.)
EXHIBIT B: Description of work to be performed under this Agreement, including:
 if the Agreement is for rehabilitation of units, this exhibit must include the rehabilitation work write-up and, where the PHA has determined necessary, specifications and plans.
 if the Agreement is for new construction of units, the work description must include the working drawings and specifications.
 any additional requirements beyond HQS relating to quality, design and architecture that the PHA requires.
 work items resulting from compliance with the design and construction requirements of the Fair Housing Act and implementing regulations at 24 CFR 100.205, the accessibility requirements under section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR 8.22 and 8.23, and accessibility requirements under Titles II and III of the Americans with Disabilities Act at 28 CFR parts 35 and 36, as applicable.

EXHIBIT C: Description of housing, including:
 project site.
 total number of units in project covered by this Agreement.  locations of contract units on site.
 number of contract units by area (size) and number of bedrooms and bathrooms.
 services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent to owner.
 utilities available to the contract units, including a specification of utility services to be paid by the owner (without charges in addition to rent) and utility services to be paid by the tenant.

Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 3 of 18 ends

 estimated initial rent to owner for the contract units.

EXHIBIT D: The HAP contract.

1.4 Significant Dates
A. Effective Date of the Agreement: The Agreement must be executed promptly after PHA notice of proposal selection to the owner has been given. The PHA may not enter this Agreement with the owner until a subsidy layering review has been performed and an environmental review has been satisfactorily completed in accordance with HUD requirements.

B. A project may either be a single-stage or multi-stage project. A singlestage project will have the same Agreement effective date for all contract units. A multi-stage project will separate effective dates for each stage. _____ Single-stage project
i. Effective Date for all contract units: ________________ ii. Date of Commencement of the Work: The date for
commencement of work is not later than _______________
calendar days after the effective date of this Agreement. iii. Time for Completion of Work: The date for completion of the work is not later than ______________ calendar days after the effective date of this Agreement.
__X_ Multi-Stage Project
Enter the information for each stage upon execution of the Agreement for the corresponding stage.

STAGE NUMBER

OF UNITS

EFFECTIVE
DATE

DATE OF

COMMENCEMENT

OF WORK

TIME FOR

COMPLETION

OF WORK
1 40
2 30
08/31/2025
12/31/2025
05/01/2024
05/01/2024
8/31/2025
12/31/2025
Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 4 of 18 ends

1.5 Nature of the Work
__X__ This Agreement is for New Construction of units to be assisted by the project-based Voucher program.
_____ This Agreement is for Rehabilitation of units to be assisted by the projectbased Voucher program.

1.6 Schedule of Completion
A. Timely Performance of Work: The owner agrees to begin work no later than the date for commencement of work as stated in Section 1.4. In the event the work is not commenced, diligently continued and completed as required under this Agreement, the PHA may terminate this Agreement or take other appropriate action. The owner agrees to report promptly to the PHA the date work is commenced and furnish the PHA with progress reports as required by the PHA.

B. Time for Completion: All work must be completed no later than the end of the period stated in Section 1.4. Where completion in stages is provided for, work related to units included in each stage shall be completed by the stage completion date and all work on all stages must be completed no later than the end of the period stated in Section 1.4.

C. Delays: If there is a delay in the completion due to unforeseen factors beyond the owner’s control as determined by the PHA, the PHA agrees to extend the time for completion for an appropriate period as determined by the PHA in accordance with HUD requirements.

1.7 Changes in Work
A. The owner must obtain prior PHA approval for any change from the work specific in Exhibit B which would alter the design or quality of the rehabilitation or construction. The PHA is not required to approve any changes requested by the owner. PHA approval of any change may be conditioned on establishment of a lower initial rent to owner at the amounts determined by PHA.

Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 5 of 18 ends

1.8 B. If the owner makes any changes in the work without prior PHA approval, the PHA may establish lower initial rents to owner at the amounts determined by PHA in accordance with HUD requirements.

C. The PHA (or HUD in the case of insured or coinsured mortgages) may inspect the work during rehabilitation or construction to ensure that work is proceeding on schedule, is being accomplished in accordance with the terms of the Agreement, meets the level of material described in Exhibit B and meets typical levels of workmanship for the area.

Work completion
A. Conformance with Exhibit B: The work must be completed in accordance with Exhibit B. The owner is solely responsible for completion of the work.

B. Evidence of Completion: When the work in completed, the owner must provide the PHA with the following:

1. A certification by the owner that the work has been completed in accordance with the HQS and all requirements of this Agreement.

2. A certification by the owner that the owner has complied with labor standards and equal opportunity requirements in the development of the housing. (See 24 CFR 983.155(b)(1)(ii).)

3. Additional Evidence of Completion: At the discretion of the PHA, or as required by HUD, this Agreement may specify additional documentation that must be submitted by owner as evidence of completion of the housing. Check the following that apply:
__X___ A certificate of occupancy or other evidence that the contract units comply with local requirements.
_____ An architect’s or developer’s certification that the housing complies with:
_____ the HQS;
_____ State, local, or other building codes;
_____ Zoning;
Agreement to Enter into a PBV HAP Contract
HUD 52531A, Part 1 of 2
Previous Editions are obsolete (07/2019)

Page 6 of 18 ends

_____ The rehabilitation work write-up for rehabilitated housing;
_____ The work description for newly constructed
housing; or
_____ Any additional design or quality requirements
pursuant to this Agreement.

1.9 Inspection and Acceptance by the PHA of Completed Contract Units
A. Completion of Contract Units: Upon receipt of owner notice of completion of Contract units, the PHA shall take the following steps:

1. Review all evidence of completion submitted by owner.

2. Inspect the units to determine if the housing has been completed in accordance with this Agreement, including compliance with the HQS and any additional requirements imposed by the PHA under this Agreement.

B. Non-Acceptance: If the PHA determines the work has not been completed in accordance with this Agreement, including non-compliance with the HQS, the PHA shall promptly notify the owner of this decision and the reasons for the non-acceptance. The parties must not enter into the HAP contract.

C. Acceptance: If the PHA determines housing has been completed in accordance with this Agreement, and that the owner has submitted all required evidence of completion, the PHA must submit the HAP contract for execution by the owner and must then execute the HAP contract.

1.10 Acceptance where defects or deficiencies are reported:

A. If other defects or deficiencies exist, the PHA shall determine whether and to what extent the defects or deficiencies are correctable, whether the units will be accepted after correction of defects or deficiencies, and the requirements and procedures for such correction and acceptance.

B. Completion in Stages: Where completion in stages is provided for, the procedures of this paragraph shall apply to each stage.

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1.11. Execution of HAP Contract
A. Time and Execution: Upon acceptance of the units by the PHA, the owner and the PHA execute the HAP contract.

B. Completion in Stages: Where completion in stages is provided for the number and types of units in each stage, and the initial rents to owner for such units, shall be separately shown in Exhibit C of the contract for each stage. Upon acceptance of the first stage, the owner shall execute the contract and the signature block provided in the contract for that stage.

Upon acceptance of each subsequent stage, the owner shall execute the signature block provided in the contract for such stage.

C. Form of Contract: The terms of the contract shall be provided in Exhibit D of this Agreement. There shall be no change in the terms of the contract unless such change is approved by HUD headquarters. Prior to execution by the owner, all blank spaces in the contract shall be completed by the PHA.

D. Survival of owner Obligations: Even after execution of the contract, the owner shall continue to be bound by all owner obligations under the Agreement.

1.12 Initial determination of rents
A. The estimated amount of initial rent to owner shall be established in Exhibit C of this Agreement.

B. The initial amount of rent to owner is established at the beginning of the HAP contract term.

C. The estimated and initial contract rent for each units may in no event exceed the amount authorized in accordance with HUD regulations and requirements. Where the estimated initial rent to owner exceeds the amount authorized in accordance with HUD regulations, the PHA shall establish a lower initial rent tow owner, in accordance with HUD regulations and requirements.

1.13 Uniform Relocation Act
A. A displaced person must be provided relocation assistance at the levels described in and in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Agreement to Enter into a PBV HAP Contract
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(URA) (42 U.S.C. 4201-4655) and implementing regulations at 49 CFR part 24.

B. The cost of required relocation assistance may be paid with funds provided by the owner, or with local public funds, or with funds available from other sources. Payment of relocation assistance must be paid in accordance with HUD requirements.

C. The acquisition of real property for a project to be assisted under the program is subject to the URA and 49 CFR part 24, subpart B.

D. The PHA must require the owner to comply with the URA and 49 CFR part 24.

E. In computing a replacement housing payment to a residential tenant displaced as a direct result of privately undertaken rehabilitation or demolition of the real property, the term “initiation of negotiations” means the execution of the Agreement between the owner and the PHA.

1.14 Protection of In-Place Families
A. In order to minimize displacement of in-place families, if a unit to be placed under Contract is occupied by an eligible family on the proposal selection date, the in-place family must be placed on the PHA’s waiting list (if they are not already on the list) and, once their continued eligibility is determined, given an absolute selection preference and referred to the project owner for an appropriately sized unit in the project.

B. This protection does not apply to families that are not eligible to participate in the program on the proposal selection date.

C. The term “in-place family” means an eligible family residing in a proposed contract unit on the proposal selection date.

D. Assistance to in-place families may only be provided in accordance with the program regulations and other HUD requirements.

1.15 Termination of Agreement and Contract
The Agreement or HAP contract may be terminated upon at least 30 days notice to the owner by the PHA or HUD if the PHA or HUD determines that the contract units were not eligible for selection in conformity with HUD requirements.

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1.16 Rights of HUD if PHA Defaults Under Agreement
If HUD determines that the PHA has failed to comply with this Agreement, or has failed to take appropriate action to HUD’s satisfaction or as directed by HUD, for enforcement of the PHA’s rights under this Agreement, HUD may assume the PHA’s rights and obligations under the Agreement, and may perform the obligations and enforce the rights of the PHA under the Agreement. HUD will, if it determines that the owner is not in default, pay Annual Contributions for the purpose of providing housing assistance payments with respect to the dwelling unit(s) under this Agreement for the duration of the HAP contract.

1.17 Owner Default and PHA Remedies
A. Owner Default
Any of the following is a default by the owner under the Agreement:

1. The owner has failed to comply with any obligation under the Agreement.

2. The owner has violated any obligation under any other housing assistance payments contract under Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).

3. The owner has committed any fraud or made any false statement to the PHA or HUD in connection with the Agreement.

4. The owner has committed fraud, bribery, or any other corrupt or criminal act in connection with any Federal housing assistance program.

5. If the property where the contract units are located is subject to a lien or security interest securing a HUD loan or mortgage insured by HUD and:
a. The owner has failed to comply with the regulations for the applicable HUD loan or mortgage insurance program, with the mortgage or mortgage note, or with the regulatory
agreement; or
b. The owner has committed fraud, bribery, or any other corrupt or criminal act in connection with the HUD loan or HUD-insured mortgage.

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6. The owner has engaged in any drug-related criminal activity or any violent criminal activity.

B. PHA Remedies

1. If the PHA determines that a breach has occurred, the PHA may exercise any of its rights or remedies under the Agreement.

2. The PHA must notify the owner in writing of such determination.

The notice by the PHA to the owner may require the owner to take corrective action (as verified by the PHA) by a time prescribed in the notice.

3. The PHA’s rights and remedies under the Agreement include, but are not limited to: (i) terminating the Agreement; and (ii) declining to execute the HAP contract for some or all of the units.

C. PHA Remedy is not Waived
The PHA’s exercise or non-exercise of any remedy for owner breach of the Agreement is not a waiver of the right to exercise that remedy or any other right or remedy at any time.

1.18 PHA and Owner Relation to Third Parties
A. Selection and Performance of Contractor

1. The PHA has not assumed any responsibility or liability to the owner, or any other party for performance of any contractor, subcontractor or supplier, whether or not listed by the PHA as a qualified contractor or supplier under the program. The selection of a contractor, subcontractor or supplier is the sole responsibility of the owner and the PHA is not involved in any relationship between the owner and any contractor, subcontractor or supplier.

2. The owner must select a competent contractor to undertake rehabilitation or construction. The owner agrees to require from each prospective contractor a certification that neither the contractor nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in contract by the Comptroller General or any federal Department or agency. The owner agrees not to award contracts to, otherwise engage in the service of, or fund any contractor that does not provide this certification.

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B. Injury Resulting from Work under the Agreement: The PHA has not assumed any responsibility for or liability to any person, including a worker or a resident of the unit undergoing work pursuant to this Agreement, injured as a result of the work or as a result of any other action or failure to act by the owner, or any contractor, subcontractor or supplier.

C. Legal Relationship: The owner is not the agent of the PHA and this Agreement does not create or affect any relationship between the PHA and any lender to the owner or any suppliers, employees, contractor or subcontractors used by the owner in the implementation of the Agreement.

D. Exclusion of Third Party Claims: Nothing in this Agreement shall be construed as creating any right of any third party (other than HUD) to enforce any provision of this Agreement or the Contract, or to assert any claim against HUD, the PHA or the owner under the Agreement or the Contract.

E. Exclusion of owner Claims against HUD: Nothing in this Agreement shall be construed as creating any right of the owner to assert any claim against HUD.

1.19 PHA-Owned Units
Notwithstanding Section 1.18 of this Agreement, a PHA may own units assisted under the project-based voucher program, subject to the special requirements in 24 CFR 983.59 regarding PHA-owned units.

1.20 Conflict of Interest
A. Interest of Members, Officers, or Employees of PHA, Members of Local Governing Body, or Other Public Officials

1. No present or former member or officer of the PHA (except tenantcommissioners), no employee of the PHA who formulates policy or influences decisions with respect to the housing choice voucher program or project-based voucher program, and no public official or member of a governing body or State or local legislator who exercises functions or responsibilities with respect to these programs, shall have any direct or indirect interest, during his or her tenure or for one year thereafter, in the Agreement or HAP contract.

2. HUD may waive this provision for good cause.

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B. Disclosure
The owner has disclosed to the PHA any interest that would be a violation of the Agreement or HAP contract. The owner must fully and promptly update such disclosures.

1.21 Interest of Member or Delegate to Congress
No member of or delegate to the Congress of the United States of America or resident-commissioner shall be admitted to any share or part of the Agreement or HAP contract or to any benefits arising from the Agreement of HAP contract.

1.22 Transfer of the Agreement, HAP Contract, or Property A. PHA Consent to Transfer
The owner agrees that the owner has not made and will not make any transfer in any form, including any sale or assignment, of the Agreement, HAP contract, or the property without the prior written consent of the PHA. A change in ownership in the owner, such as a stock transfer or transfer of the interest of a limited partner, is not subject to the provisions of this section. Transfer of the interest of a general partner is subject to the provisions of this section.

B. Procedure for PHA Acceptance of Transferee
Where the owner requests the consent of the PHA for a transfer in any form, including any sale or assignment, of the Agreement, the HAP contract, or the property, the PHA must consent to a transfer of the Agreement or HAP contract if the transferee agrees in writing (in a form acceptable to the PHA) to comply with all the terms of the Agreement and HAP contract, and if the transferee is acceptable to the PHA. The PHA’s criteria for acceptance of the transferee must be in accordance with HUD requirements.

C. When Transfer is Prohibited
The PHA will not consent to the transfer if any transferee, or any principal or interested party, is debarred, suspended, subject to a limited denial of participation, or otherwise excluded under 2 CFR part 2424, or is listed on the U.S. General Services Administration list of parties excluded from Federal procurement or nonprocurement programs.

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1.23 Exclusion from Federal Programs
A. Federal Requirements
The owner must comply with and is subject to requirements of 2 CFR part 2424.

B. Disclosure
The owner certifies that:

1. The owner has disclosed to the PHA the identity of the owner and any principal or interested party.

2. Neither the owner nor any principal or interested party is listed on the U.S. General Services Administration list of parties excluded from Federal procurement and nonprocurement programs; and none of such parties are debarred, suspended, subject to a limited denial of participation, or otherwise excluded under 2 CFR part 2424.

1.24 Lobbying Certifications
A. The owner certifies, to the best of the owner’s knowledge and belief, that:

1. No Federally appropriated funds have been paid or will be paid, by or on behalf of the owner, 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 the Agreement or HAP contract, or the extension, continuation, renewal, amendment, or modification of the HAP contract.

2. If any funds other than Federally appropriated funds have been paid or will be paid 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 Agreement or HAP contract, the owner must complete and submit Standard FormLLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

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B. This certification by the owner is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352.

1.25 Subsidy Layering
A. Owner Disclosure
The owner must disclose to the PHA, in accordance with HUD requirements, information regarding any related assistance from the Federal government, a State, or a unit of general local government, or any agency or instrumentality thereof, that is made available or is expected to be made available with respect to the contract units. Such related assistance includes, but is not limited to, any loan, grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance.

B. Limit of Payments
Housing assistance payments under the HAP contract must not be more than is necessary, as determined in accordance with HUD requirements, to provide affordable housing after taking account of such related assistance.

The PHA will adjust in accordance with HUD requirements the amount of the housing assistance payments to the owner to compensate in whole or in part for such related assistance.

1.26 Prohibition of Discrimination
A. The owner may not refuse to lease contract units to, or otherwise discriminate against, any person or family in leasing of a contract unit, because of race, color, religion, sex, national origin, disability, age, or familial status.

B. The owner must comply with the following requirements:

1. The Fair Housing Act (42 U.S.C. 3601–19) and implementing regulations at 24 CFR part 100 et seq.;

2. Executive Order 11063, as amended by Executive Order 12259 (3 CFR 1959–1963 Comp., p. 652, and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations at 24 CFR part 107;
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3. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d–2000d– 4) (Nondiscrimination in Federally Assisted Programs) and implementing regulations at 24 CFR part 1;

4. The Age Discrimination Act of 1975 (42 U.S.C. 6101–6107) and implementing regulations at 24 CFR part 146;

5. Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 of this title;

6. Title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et seq.;

7. 24 CFR part 8;

9. Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086, and 12107 (3 CFR, 1964–1965 Comp., p. 339; 3 CFR, 1966–1970 Comp., p. 684; 3 CFR, 1966–1970 Comp., p. 803; 3 CFR, 1978 Comp., p. 230; and 3 CFR, 1978 Comp., p. 264, respectively) (Equal Employment Opportunity Programs) and implementing regulations at 41 CFR chapter 60;

10. Executive Order 11625, as amended by Executive Order 12007 (3 CFR, 1971–1975 Comp.., p. 616 and 3 CFR, 1977 Comp., p. 139) (Minority Business Enterprise Development); and

11. Executive Order 12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp., p. 393, and 3 CFR, 1987 Comp., p. 245) (Women’s Business Enterprise).

12. HUD’s Equal Access Rule at 24 CFR 5.105. [OGCNonconcurrence: This section failed to reference protections with respect to actual or perceived sexual orientation, gender identity, or marital status in accordance with HUD’s Equal Access Rule at 24 CFR 5.105(a). Revising as indicated above is sufficient to resolve this concern.

C. The PHA and the owner must cooperate with HUD in the conducting of compliance reviews and complaint investigations pursuant to all applicable civil rights statutes, Executive Orders, and all related rules and regulations.

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1.27 Owner Duty to Provide Information and Access to HUD and PHA A. The owner must furnish any information pertinent to this Agreement as may be reasonably required from time to time by the PHA or HUD. The owner shall furnish such information in the form and manner required by the PHA or HUD.

B. The owner must permit the PHA or HUD or any of their authorized representatives to have access to the premises during normal business hours and, for the purpose of audit and examination, to have access to any books, documents, papers, and records of the owner to the extent necessary to determine compliance with this Agreement.

1.28 Notices and Owner Certifications
A. Where the owner is required to give any notice to the PHA pursuant to this Agreement, such notice shall be in writing and shall be given in the manner designated by the PHA.

B. Any certification or warranty by the owner pursuant to the Agreement shall be deemed a material representation of fact upon which reliance was placed when this transaction was entered into.

1.29 HUD Requirements
A. The Agreement and the HAP contract shall be interpreted and implemented in accordance with all statutory requirements, and will all HUD requirements, including amendments or changes in HUD requirements. The owner agrees to comply with all such laws and HUD requirements.

B. HUD requirements are requirements that apply to the project-based voucher program. HUD requirements are issued by HUD Headquarters as regulations, Federal Register notices, or other binding program directives.

1.30 Applicability of Part II Provisions — Check All that Apply __X_ Training, Employment, and Contracting Opportunities Section 2.1 applies if the total of the contract rents for all units under the proposed HAP contract, over the maximum term of the contract, is more than $200,000.
__X_ Equal Employment Opportunity
Section 2.2 applies only to construction contracts of more than $10,000.

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__X_ Labor Standards Requirements
Sections 2.4, 2.8, and 2.10 apply only when this Agreement covers nine or more units.

N/A Flood Insurance
Section 2.11 applies if units are located in areas having special flood hazards and in which flood insurance is available under the National Flood Insurance Program.

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EXECUTION OF THE AGREEMENT
Signature of authorized representative
Date
OWNER
Name of Owner (Print)
By:

Signature of authorized representative
Name and official title (Print)
Date
Step Forward Communities, MPG by Duane Henry, Managing Member SSF Battery Point LP

PUBLIC HOUSING AGENCY
City of Crescent City Housing
Authority
By: Megan Miller
Megan Miller, Executive Director
OMB Approval No. 2577–0169
(exp. 07/31/2022)
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U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT-BASED VOUCHER PROGRAM

AGREEMENT TO ENTER INTO A

HOUSING ASSISTANCE PAYMENTS CONTRACT

NEW CONSTRUCTION OR REHABILITATION

PART II
Public reporting burden for this collection of information is estimated to average 0.5 hours. This includes the time for collecting, reviewing and reporting the data. The information is being collected as required by 24 CFR 983.152, which requires the PHA to enter into an Agreement with the owner prior to execution of a HAP contract for PBV assistance as provided in §983.153. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number. Assurances of confidentiality are not provided under this collection.

Privacy Act Statement. HUD is committed to protecting the privacy of individuals’ information stored electronically or in paper form, in accordance with federal privacy laws, guidance, and best practices. HUD expects its third-party business partners, including Public Housing Authorities, who collect, use maintain, or disseminate HUD information to protect the privacy of that information in Accordance with applicable law.

2.1 Equal Employment Opportunity
A. The owner shall incorporate or cause to be incorporated into any contract in excess of $10,000 for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR chapter 60, which is to be performed pursuant to this Agreement, the following nondiscrimination clause:

During the performance of this contract, the contractor agrees as follows:

1. The contractor will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, creed, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; Agreement to Enter into a PBV HAP Contract
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layoffs or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship.

The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

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

3. The contractor will send to each labor union or representative of workers with which the contractor has a collective bargaining agreement or other contract or understanding, a notice to be provided by or at the direction of the Government advising the labor union or workers representative of the contractor’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

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

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

6. In the event of the contractor’s noncompliance with the nondiscrimination clauses of this contract or with any of the rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions as may be imported and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor or as otherwise provided by law.

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7. The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Government may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Government, the contractor may request the United States to enter into such litigation to protect the interest of the United States.

B. The owner agrees to be bound by the above nondiscrimination clause with respect to his or her own employment practices when participating in federally assisted construction work.

C. The owner agrees to assist and cooperate actively with HUD and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the nondiscrimination clause and the rules, regulations, and relevant orders of the Secretary of Labor, to furnish HUD and the Secretary of Labor such information as they may require for the supervision of such compliance, and to otherwise assist HUD in the discharge of HUD’s primary responsibility for securing compliance.

D. The owner further agrees to refrain from entering into any contract or contract modification subject to Executive Order No. 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the nondiscrimination clause as may be imposed upon contractors and subcontractors by HUD or the Secretary of Labor pursuant to the Executive Order. In addition, if the owner fails or refuses to comply with these undertakings, HUD may take any or all of the following actions; cancel, terminate, or suspend in whole or in part this Agreement; refrain from extending any further assistance to the owner under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from the owner, and refer the case to the Department of Justice for appropriate legal proceedings.

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2.2 Reserved

2.3 HUD—Federal Labor Standards Provisions
The owner is responsible for inserting the entire text of section 2.4 of this Agreement in all construction contracts and, if the owner performs any rehabilitation work on the project, the owner must comply with all provisions of section 2.4. (Note: Sections 2.4(b) and (c) apply only when the amount of the prime contract exceeds $100,000.)
(a)(1) Minimum Wages. (i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project) will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made part hereof regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics.

Contributions made or costs reasonably anticipated for bona fide fringe benefits under section l(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR

5.5(a)(1)(iv); also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs, which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period.

Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be
compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed Agreement to Enter into a PBV HAP Contract
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under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH1321)) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. (ii)(A) Any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination; (2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and HUD or its designee agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, D. C. 20210. The
Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary.
(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and HUD or its designee do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the views of all interested parties and the
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HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(B) or (C) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determinations or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program: Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
(2) Withholding. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractors under this contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of Agreement to Enter into a PBV HAP Contract
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any further payment, advance, or guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the contractor, disburse such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due.
(3)(i) Payrolls and Basic Records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section l(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section l(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs.
(ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to HUD the PHA. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included in weekly transmittals.

Instead the payrolls shall only need to include an individually identifying number for each employee (e.g. the last four digits of the employee’s social security number). The required weekly Agreement to Enter into a PBV HAP Contract
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payroll information may be submitted in any form desired.

Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at:
http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit them to the applicant, sponsor, or owner, as the case may be, for transmission to HUD, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, sponsor, or owner).
(B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR 5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR 5.5 (a)(3)(i) and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy Agreement to Enter into a PBV HAP Contract
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the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section.
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of Title 18 and section 231 of Title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and Trainees.(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship
Training,Employer and Labor Services, or with a State
Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess Agreement to Enter into a PBV HAP Contract
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of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the contractor’s or subcontractor’s registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training,Employee and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S.

Department of Labor, Employment and Training Administration.

The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the
Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the
corresponding journeyman wage rate on the wage determination Agreement to Enter into a PBV HAP Contract
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which provides for less than full fringe benefits for apprentices.

Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal Employment Opportunity. The utilization of
apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
(5) Compliance with Copeland Act Requirements. The contractor shall comply with the requirements of 29 CFR part 3 which are incorporated by reference in this Agreement.
(6) Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in section 2.4(a)(1) through (11) and such other clauses as HUD or its designee may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this section 2.4(a).
(7) Contract Terminations; Debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
(8) Compliance with Davis-Bacon and Related Act Requirements.

All rulings and interpretations of the Davis-Bacon and related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract.
(9) Disputes Concerning Labor Standards. Disputes arising out of the labor standards provisions of this contract shall not be subject Agreement to Enter into a PBV HAP Contract
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to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the PHA, HUD, the U. S.

Department of Labor, or the employees or their representatives. (10) Certification of Eligibility. (i) By entering into this Agreement, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR part 24.
(ii) No part of this Agreement shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR part 24.
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally, U.S. Criminal Code, section 1010, Title 18, U.S.C., “Federal Housing
Administration transactions, provides in part: “Whoever, for the purpose of ...influencing in any way the action of such Administration...makes, utters or publishes any statement, knowing the same to be false... shall be fined not more than $5,000 or imprisoned not more than two years, or both.”

11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor standards provisions of this Agreement are applicable shall be discharged or in any other manner discriminated against by the Contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Agreement to his employer.
(b) Contract Work Hours and Safety Standards Act. The provisions of this paragraph (b) are applicable only where the amount of the prime contract exceeds $100,000. As used in this paragraph, the terms “laborers” and “mechanics” include watchmen and guards.

Agreement to Enter into a PBV HAP Contract
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(1) Overtime Requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the sum of $25 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in subparagraph (1) of this paragraph. (3) Withholding for Unpaid Wages and Liquidated Damages. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any monies payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in subparagraph (2) of this paragraph.
(4) Subcontractors. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in subparagraph (1) through (4) of this paragraph and also a clause requiring the
subcontractors to include these clauses in any lower tier Agreement to Enter into a PBV HAP Contract
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subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs (1) through (4) of this paragraph.
(c) Health and Safety. The provisions of this paragraph (c) are applicable only where the amount of the prime contract exceeds $100,000.
(1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are
unsanitary, hazardous or dangerous to his health and safety as established under construction safety and health standards promulgated by the Secretary of Labor by regulation.
(2) The contractor shall comply with all regulations issue by the Secretary of Labor pursuant to Title 29 part 1926 and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act, 40 USC 3701 et seq.
(3) The contractor shall include the provisions of this paragraph in every subcontract so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions.

2.4 Reserved

2.5 Reserved

2.6 Reserved

2.7 Wage and Claims Adjustments
The owner shall be responsible for the correction of all violations under section

2.4, including violations committed by other contractors. In cases where there is evidence of underpayment of salaries or wages to any laborers or mechanics (including apprentices and trainees) by the owner or other contractor or a failure by the owner or other contractor to submit payrolls and related reports, the owner shall be required to place an amount in escrow, as determined by HUD sufficient to pay persons employed on the work covered by the Agreement the difference between the salaries or wages actually paid such employees for the total number Agreement to Enter into a PBV HAP Contract
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of hours worked and the full amount of wages required under this Agreement, as well as an amount determined by HUD to be sufficient to satisfy any liability of the owner or other contractor for liquidated damages pursuant to section 2.4. The amounts withheld may be disbursed by HUD for and on account of the owner or other contractor to the respective employees to whom they are due, and to the Federal Government in satisfaction of liquidated damages under section 2.4.

2.8 Reserved

2.9 Evidence of Unit(s) Completion; Escrow
A. The owner shall evidence the completion of the unit(s) by furnishing the PHA, in addition to the requirements listed in Part I of this Agreement, a certification of compliance with the provisions of sections 2.4 and 2.8 of this Agreement, and that to the best of the owner’s knowledge and belief there are no claims of underpayment to laborers or mechanics in alleged violation of these provisions of the Agreement. In the event there are any such pending claims to the knowledge of the owner, the PHA, or HUD, the owner will place a sufficient amount in escrow, as directed by the PHA or HUD, to assure such payments.

B. The escrows required under this section and section 2.8 of shall be paid to HUD, as escrowee, or to an escrowee designated by HUD, and the conditions and manner of releasing such escrows shall be designated and approved by HUD.

2.10 Flood Insurance
If the project is located in an area that has been identified by the Federal Emergency Management Agency as an area having special flood hazards and if the sale of flood insurance has been made available under the National Flood Insurance Program, the owner agrees that: (1) the project will be covered, during the life of the property, by flood insurance in an amount at least equal to its development or project cost (less estimated land cost) or to the limit of coverage made available with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is less; and (2) that it will advise any prospective purchaser or transferee of the property in writing of the continuing statutory requirement to maintain such flood insurance during the life of the property.

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