1 COMMUNITY DEVELOPMENT BLOCK GRANT
SUBRECIPIENT AGREEMENT
By and Between the
CITY OF SAN BERNARDINO
and
EL SOL NEIGHBORHOOD EDUCATIONAL CENTER
(A California Nonprofit Public Benefit Corporation)
1 COMMUNITY DEVELOPMENT BLOCK GRANT
SUBRECIPIENT AGREEMENT
THIS COMMUNITY DEVELOPMENT BLOCK GRANT SUBRECIPIENT
AGREEMENT (this “Agreement”), dated for purposes of identification as of August 6, 2025 (the “Date of Agreement”), is made and entered into by and between the CITY OF SAN BERNARDINO, a municipal corporation and charter city (the “City”), and EL SOL NEIGHBORHOOD EDUCATIONAL CENTER, a California nonprofit public benefit corporation (the “Subrecipient”).
RECITALS
A. The City is the recipient of funds (the “CDBG Funds”) from the United States Department of Housing and Urban Development (“HUD”) under the Community Development Block Grant (“CDBG”) Program for Fiscal Year 2024-2025.
B. Subrecipient is eligible to receive, and has submitted an application to receive, a subgrant of CDBG F unds for Fiscal Year 2024 -2025 to reimburse Subrecipient for certain costs of its services related to the acquisition, construction, reconstruction, rehabilitation, or installation of public facilities and improvements to provide services to the community (hereinafter defined as “Subrecipient’s Services” or the “Services”).
C. Subrecipient’s application for a subgrant of CDBG Funds in an amount not to exceed $250,000.00 (the “Subgrant ”) was approved by the City Council of the City, subject to and contingent upon (i) approval by HUD of the City’s CDBG Application for Fiscal Year 2024- 2025, and (ii) the allocation and receipt by City of such funds and HUD’s issuance of Authority to Use Grant Funds.
D. Subsequent to the City’s approval of Subrecipient’s application, HUD approved the City’s CDBG Application for Fiscal Year 2024-2025.
E. The City and the Subrecipient (each, a “Party” and jointly, the “Parties”) desire to enter into this Agreement so that Subrecipient may receive a grant of a portion of the CDBG Funds in consideration for the provision of Subrecipient’s Services to the City and the community.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS CONTAINED HEREIN, THE CITY AND THE SUBRECIPIENT AGREE AS FOLLOWS:
2 CONTACT INFORMATION
City of San Bernardino:
Community Development and Housing
Department
Cassandra Searcy
Title: Deputy Director of Housing and
Homelessness Division
Address: 201 North E Street
City: San Bernardino
State, CA Zip: 92401
Telephone: 909-384-7270
Subrecipient Organization:
El Sol Neighborhood Educational Center
Alex Fajardo
Title: Director
Address: 1535 S D St
City: San Bernardino
State: CA Zip: 92408
Telephone: 909-714-5003
CFDA Number and Name: 14.218 Community Development Block Grant (CDBG) Federal Award Identification Number (FAIN): B-24-MC-06-0539
Federal Award Date: August 6, 2025
(The date when the federal award is signed by the authorized official of the federal awarding agency.)
CDBG Funds Obligated IDIS Activity: #____
Program Year: 2024-2025
Amount: $250,000.00
Total Amount of CDBG Funds Obligated: $250,000.00
3 Definitions.
The following capitalized terms used in this Agreement shall have the following meanings:
“Agreement” means this Community Development Block Grant Subrecipient Agreement by and between the City and the Subrecipient.
“Budget” means the budget supplied by Subrecipient which (i) specifies how Subrecipient proposes that the Subgrant Proceeds be allocated among the following permitted uses , as applicable: Rehabilitation Construction Costs, Construction Soft Costs and Administrative Costs, and (ii) is attached hereto as Exhibit B and incorporated herein by this reference. “CDBG” is defined in Recital A hereof.
“CDBG Funds” is defined in Recital A hereof.
“CFR” means the Code of Federal Regulations.
“City” is defined in the initial paragraph of this Agreement and includes any assignee of or successor to the rights, powers and responsibilities of the City. The Director of the Department of Community and Economic Development of the City of San Bernardino, or such person’s designee (hereinafter defined as the “City’s Representative”) shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City’s Representative is authorized to act on behalf of the City unless this Agreement specifically provides otherwise or the context should otherwise require. “City’s Representative ” means the Director of the City’s Community Development Department, or such person’s designee.
“Costs” means the supplies and materials necessary to provide Subrecipient’s Services, including, without limitation, mileage and telephone costs. “Covenants Re: Use of Federal Funds” means those additional covenants of Subrecipient required due to the federal source of the Subgrant proceeds which are attached hereto as Exhibit C and incorporated herein by this reference.
“Default” is defined in Section 6.1 hereof.
“HUD” is defined in Recital A hereof.
“Maximum Amount of Subgrant” means $250,000.00.
“Parties” is defined in Recital E hereof.
“Program Income” means gross income received by Subrecipient directly generated from the use of CDBG Funds. When such income is generated by an activity that is only partially assisted with CDBG Funds, the income shall be prorated to reflect the percentage of CDBG Funds 4 used. See Exhibit D attached hereto and 24 CFR § 570.500(a) for a more detailed description of Program Income.
“Scope of Services” means the description of the Subrecipient’s Services that is attached hereto as Exhibit A and incorporated herein by this reference. “Staff” means each of the persons, individually, and all of the persons, collectively, hired by the Subrecipient to provide Subrecipient’s Services under this Agreement. “Subrecipient” is defined in the initial paragraph of this Agreement. The Subrecipient’s Representative shall represent Subrecipient in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by Subrecipie nt, the Subrecipient’s Representative is authorized to act on behalf of Subrecipient unless this Agreement specifically provides otherwise or the context should otherwise require. “Subrecipient’s Representative” means {Entity Representative} “Subrecipient’s Services ” or “ Services” means the services provided by Subrecipient pursuant to this Agreement and includes, but is not limited to, the provision of the services set forth in the Scope of Services.
“Term” is defined in Section 3 hereof.
“Term Expiration Date” means June 30, 2026
Section 1. Section 1. HUD Award.
1.1 Maximum Award Amount. It is expressly agreed and understood that the total amount to be paid by the City under this agreement shall not exceed $250,000. The dollar amount stated in the preceding sentence may be increased or modified, at the sole discretion of the City’s Representative, by written amendment of the Agreement, signed by an authorized representative of Subrecipient and the City’s Representative.
1.2 Budget. Subrecipient has submitted a budget (based upon estimated costs per Section 1.3 hereof) to the City for approval which sets forth the estimated use of the Subgrant contributed by the City pursuant to this agreement. The Budget is attached hereto as Exhibit B.
Any amendments to an approved budget for the Services must be approved by the City’s Representative or his authorized designee. The City may require a more detailed line -item breakdown of the Budget than the one contained herein, and the Subrecipient shall provide su ch supplementary information about the Budget in a timely fashion in the form and content prescribed by the City.
1.3 Method of Payment. City shall reimburse Subrecipient for Costs actually incurred pursuant to this Agreement and in accordance with the approved Scope of Services and the approved Budget. City’s payment obligations are subject to the receipt by and approval of City of requests for payment.
5 1.4 Requests for Payment . To receive each payment under this A greement, Subrecipient shall submit to the City, not more frequently than quarterly, a written reimbursement request or invoice in a form specified and approved by the City, along with such supporting documentation as may be requested by the City to verify Subrecipient’s performance of the Services for which payment is requested. Failure to provide any of the required or requested documentation may cause the City to withhold all or a portion of a request for payment until such documentation has been received and approved by the City. Payments will be adjusted by the City in accordance with fund advances, if any, and Program Income balances available in Subrecipient accounts.
1.5 Fiscal Limitations. The United States of America, through HUD, may in the future place programmatic or fiscal limitations on CDBG Funds not presently anticipated. Accordingly, the City reserves the right to revise this Agreement in order to take account of such actions. In the event of funding reduction, the City may reduce the budget for this Agreement as a whole or may limit the rate by which Subrecipient receives the Subgrant for providing Subrecipient’s Services.
If HUD directs the City to implement a reduction in funding, the City’s Representative may act for the City in implementing and effecting such a reduction and in revising the Agreement for such purpose. The Subrecipient acknowledges that the obligation of the City to provide the Subgrant is contingent upon the availability of CDBG Funds, which are appropriated or allocated for the payment of such an obligation. If funding levels are significantly affected by federal budgeting or if funds are not allocated and available for the continuance of the function performed by the Subrecipient, this A greement may be terminated by the C ity at the end of the period for which funds are available. Where the City’s Representative has reasonable grounds to question the fiscal accountability, financial soundness, or compliance with this Agreement of Subrecipient, the City’s Representative may act for the City in suspending the operation of this Agreement upon three (3) days’ notice to Subrecipient of the City’s intention to so act for the longer of (i) sixty (60) days or (ii) pending an audit or other resolution of such questions.
1.6 Programs Utilizing Multiple Funding Sources . If there are sources of funds in addition to the Subgrant, Subrecipient shall provide proof satisfactory to City of such funding. The City shall not pay for any services provided by Subrecipient which are funded by other sources.
All restrictions and/or requirements provided for in this Agreement relative to accounting, budgeting and reporting apply to the total program regardless of funding sources.
1.7 Use of Federal Funds. Subrecipient acknowledges and agrees the funding for the Subgrant is provided as a pass-through of CDBG Funds allocated to the City by the United States Department of Housing and U rban Development. Accordingly, Subrecipient hereby provides to the City those covenants set forth in the Covenants Re: Use of Federal Funds and comply with all requirements for a subrecipient of CDBG Funds in accordance with the terms and conditions of the CDBG award from HUD to the City and all applicable federal regulations, including 24 CFR Part 570 and 2 CFR Part 200 (as modified by 24 CFR 570.502) ( collectively, the “CDBG Requirements”). Subrecipient agrees to use the Subgrant in compliance with all CDBG Requirements and only for eligible activities to meet the national objective of benefitting benefiting low- and moderate-income persons in accordance with 24 CFR Part 570, Subpart C, as described in Exhibit A. Only costs allowable under 24 CFR 570.200(a)(5) and 2 CFR Part 200, Subpart E, and incurred in accordance with the terms of this Agreement, including the Budget and Scope of Services, will be eligible for payment or reimbursement from the Subgrant. 6 Section 2. Subrecipient’s Services.
2.1 Scope of Services . In compliance with all of the terms and conditions of this Agreement, Subrecipient shall provide the Subrecipient’s Services, as more fully set forth in the Scope of Services, attached hereto as Exhibit A , in compliance with all applicable CDBG Requirements. Subrecipient represents and warrants that all Subrecipient’s Services to be provided hereunder shall be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
2.2 Agreement and Provision of Services Nonexclusive. Subrecipient acknowledges and agrees that this Agreement and the provision of services hereunder are nonexclusive and that the City may enter into similar agreements with other entities for the provision of similar services.
2.3 Time for Performance. Time is of the essence in the performance of this Agreement. Subrecipient shall perform and complete all of Subrecipient’s Services in a timely and expeditious manner. Subrecipient shall not be responsible for delays caused by circumstances beyond its reasonable control, provided that Subrecipient has delivered to the City written notice of the cause of any such delay as soon as practicable, but in any event within ten (10) days of the occurrence of such cause, and Subrecipient immediately resumes performance as soon as possible.
Notwithstanding anything to the contrary in this Agreement, in the event such delay in Subrecipient’s performance continues for more than one hundred twenty (120) days, City shall have no further obligation to make further disbursements and shall have the right to terminate this Agreement with no liability to City or further obligation to Subrecipient, in addition to any other rights and remedies of City under this Agreement, at law, or in equity.
2.4 Subrecipient’s Proposal. The Scope of Services shall include the Subrecipient’s proposal, if any, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.
2.5 Compliance with Law . Subrecipient’s Services shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City and any Federal, State or local governmental agency of competent jurisdiction.
2.6 Licenses, Permits, Fees and Assessments . Subrecipient shall obtain, at Subrecipient’s sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of Subrecipient’s Services. Subrecipient shall have the sole obligation to pay for any fees, assessment s and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services required by this Agreement.
2.7 Nondiscrimination. Subrecipient agrees not to discriminate against any person or class of persons by reason of sex, color, race, creed, religion, marital status, handicap, ancestry or national origin in its provision of Subrecipient’s Services in compliance with 24 CFR 570.602. To the extent this Agreement provides that Subrecipient offer accommodations or services to the public, such accommodations or services shall be offered by Subrecipient to the public on fair and reasonable terms.
7 2.8 Familiarity with Work. By executing this Agreement, Subrecipient represents and warrants that Subrecipient (i) has thoroughly investigated and considered Subrecipient’s Services to be performed, (ii) has carefully considered how Subrecipient’s Services should be provided and (iii) fully understands the facilities, difficulties and restrictions attending the provision of Subrecipient’s Services under this Agreement. Should the Subrecipient discover any latent or unknown conditions materially differing from those anticipated in the provision of Subrecipient’s Services, Subrecipient shall immediately inform the City of such fact and shall not proceed except at Subrecipient’s risk until written instructions are received from the City.
2.9 Inspection. The City and HUD and their agents and representatives shall have the right at any reasonable time to observe the provision of and inspect facilities related to Subrecipient’s Services. The City is under no duty to supervise the provision of Subrecipient’s Services. Any inspection or examination by the City is for the sole purpose of protecting and preserving the City’s rights under this Agreement. No default of Subrecipient shall be waived by any inspection by the City. In no event shall any inspection by the City be a representation that there has been or will be compliance by Subrecipient with this Agreement or that Subrecipient is in compliance with any federal, state and local laws, ordinances, regulations and directives applicable to the performance of this Agreement or the provision of Subrecipient’s Services.
Subrecipient shall make or cause to be made such other independent inspections as Subrecipient may desire for Subrecipient’s own protection.
Section 3. Term.
3.1 This Agreement shall be for a term (the “Term”) commencing on August 6, 2025 and terminating on June 30, 2026, subject to earlier termination as expressly provided in this Agreement.
Section 4. Coordination of Services.
4.1 City’s Representative. The City’s Representative shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City’s Representative is authorized to act unless this Agreement specifically provides otherwise or the context should otherwise require.
4.2 Subrecipient’s Representative. Subrecipient’s Representative shall represent the Subrecipient in all matters pertaining to this Agreement. Subrecipient’s Representative is authorized to act on Subrecipient’s behalf with respect to the services and work to be provided hereunder and mak e all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principal are a substantial inducement for the City to enter into this Agreement . Therefore, the foregoing principal shall be responsible during the Term of this Agreement for directing all activities of Subrecipient and devoting sufficient time to personally supervise the provision of Subrecipient’s Services hereunder. The foregoing pr incipal may not be changed by Subrecipient and no other personnel may be assigned to supervise the Subrecipient’s Services to be provided hereunder without the express written consent of the City.
8 4.3 Independent Contractor. Subrecipient and any agent or employee of Subrecipient shall act in an independent capacity and not as officers or employees of City. City assumes no liability for Subrecipient’s actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied, or explicit, by or for Subrecipient. Subrecipient shall not have authority to act as an agent on behalf of City unless specifically authorized to do so in writing. Subrecipient acknowledges that it is aware that because it is an independent contractor, City is making no deduction from any amount paid to Subrecipient and is not contributing to any fund on its behalf. Subrecipient disclaims the right to any fee or benefits except as expressly provided for in this Agreement.
(a) As respects all acts or omissions of Subrecipient relating to Subrecipient’s responsibility for taxes, bonds, payments, or other commitments, implied, or explicit, by or for Subrecipient, the Subrecipient agrees to indemnify, defend (at the City’s option), and hold harmless the City, its officers, officials, managers, consultants, contractors, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential damages of any kind or nature arising out of or in connection with the Subrecipient’s performance or failure to perform under this Section.
Sections 5. Insurance and Indemnification.
5.1 Insurance. Without limiting City’s right to indemnification, it is agreed that Subrecipient shall secure prior to commencing any activities under this Agreement, and maintain during the Term of this Agreement while also naming City as an additional insured, insurance coverage as set forth in this Section 5.1.
5.1.1 Required Insurance Coverage. Subrecipient shall secure and maintain the following insurance coverage and minimum insurance limits:
(i) Workers’ Compensation Insurance as required by California statutes; (ii) Comprehensive General Liability Insurance, or Commercial General Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products/Completed Operations Liability, Broad -Form Property Damage, Ind ependent Contractor’s Liability and Fire Damage Legal Liability, in an amount of not less than Two Million Dollars ($2,000,000.00) per occurrence, combined single limit, written on an occurrence form and Four Million Dollars ($4,000,000.00) aggregate for bodily injury, personal injury and property damage; and
(iii) Comprehensive Automobile Liability coverage, including - as applicable - owned, non-owned and hired autos, in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form for bodily injury and property damage; and
(iv) Comprehensive Employer’s Liability coverage, in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form; and
9 (v) Comprehensive Professional Liability coverage, in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form, and Two Million Dollars ($2,000,000.00) aggregate, for errors and omissions.
The City’s Representative, with the consent of the City’s Risk Manager, is hereby authorized to reduce the requirements set forth above in the event they determine that such reduction is in City’s best interest.
5.1.2 Required Clauses in Policies . Each policy of general liability and automobile insurance required by this Agreement shall contain the following clauses:
“Written notice of cancellation shall be delivered to the Economic and Housing Development Department of the City of San Bernardino, 290 North D Street, San Bernardino, CA 92401- 1734 in accordance with the policy provisions.”
“It is agreed that any insurance maintained by the City of San Bernardino shall apply in excess of and not contribute with insurance provided by this policy.”
“The City of San Bernardino, its officials, agents,
employees, representative, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of San Bernardino.”
Subrecipient hereby agrees to waive subrogation which any insurer of the Subrecipient may acquire from the Subrecipient by virtue of the payment of any loss. If requested by City, Subrecipient agrees to obtain and deliver to City an endorsement from Subrec ipient’s general liability and automobile insurance insurer(s) to effect this waiver of subrogation.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the subrecipient, its employees and subcontractors.
5.1.2 Required Certificates and Endorsements. Prior to commencement of any work under this Agreement, the Subrecipient shall deliver to City (i) insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above and (ii) endorsements to the above -required policies, which add to these policies the applicable clauses referenced above. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory’s company affiliation and title. Should it be deemed necessary by City, it shall be the Subrecipient’s responsibility to see that City receives documentation, acceptable to City, which evidences that the individual signing such endorsements is indeed authorized to do so by the insurance company. Also, City reserves the right at any time to demand, and to receive within a reasonable time period, certified copies of any 10 insurance policies required under this Agreement, including endorsements effecting the coverage required by these specifications.
5.1.3 Subconsultant Insurance Requirements . Subconsultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by subconsultant , City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.
5.1.4 Remedies for Defaults Re: Insurance. In addition to any other remedies City may have if the Subrecipient fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option:
(i) Obtain such insurance and deduct and retain the amount of the premium for such insurance from any sums due under this Agreement;
(ii) Order the Subrecipient to stop work under this Agreement and/or withhold any payment(s) which become due to the Subrecipient hereunder until the Subrecipient demonstrates compliance with the requirements hereof; or
(iii) Terminate this Agreement.
Exercise of any of the above remedies, however, is cumulative with other remedies City may have and is not the exclusive remedy for the Subrecipient’s failure to maintain insurance or secure appropriate endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to which the Subrecipient may be held responsible for payment of damages to persons or property resulting from the Subrecipient’s or its contractor’s or subcontractor’s performance of Subrecipient’s Services under this Agreement.
5.2 Indemnification. As respects acts, errors or omissions in the performance of Subrecipient’s Services under this Agreement, the Subrecipient agrees to indemnify and hold harmless the City, its officers, officials, managers, consultants, contractors , agents, employees, representatives and volunteers from and against any and all claims, demands, defense costs, liability or consequential damages of any kind or nature arising directly or indirectly out of the Subrecipient’s acts, errors or omissions in the performance of Subre cipient’s Services under the terms of this Agreement.
Section 6 Enforcement of Agreement.
6.1 Events of Default. For purposes of this Section 6, the word “Default” shall mean the failure of Subrecipient to perform any of Subrecipient’s duties or obligations or the breach by Subrecipient of any of the terms and conditions set forth in this Agreement. In addition, Subrecipient shall be deemed to be in Default upon Subrecipient’s (i) application for, consent to, 11 or suffering of, the appointment of a receiver, trustee or liquidator for all or a substantial portion of its assets, (ii) making a general assignment for the benefit of creditors, (iii) being adjudged bankrupt, (iv) filing a voluntary petition or suffering an involuntary petition under any bankruptcy, arrangement, reorganization or insolvency law (unless in the case of an involuntary petition, the same is dismissed within thirty (30) days of such filing), or (v) suffering or permitting to continue unstayed and in effect for fifteen (15) consecutive days any attachment, levy, execution, or seizure of all or a substantial portion of Subrecipient’s assets or of Subrecipient’s interests hereunder.
City shall not be deemed to be in Default in the performance of any obligation required to be performed by City hereunder unless and until City has failed to perform such obligation for a period of forty -five (45) days after receipt of written notice from Subrecipient specifying in reasonable detail the nature and extent of any such failure; provided, however, that if the nature of City’s obligation is such that more than forty-five (45) days are required for its performance, then City shall not be deemed to be in Default if City shall commence to cure such performance within such forty-five (45) day period and thereafter diligently prosecute the same to completion.
6.2 Termination and Remedies.
The City, in addition to any other rights and remedies it may have under this Agreement, at law, or in equity, may terminate this Agreement at any time after the occurrence of a Default by Subrecipient immediately upon written notice of such termination to Subrecipient. Additionally, as per HUD regulation 2 CFR 200.340, the Federal award may be terminated in whole or in part as follows:
(a) By the Federal awarding agency or pass-through entity, if a non-Federal (Subrecipient) entity fails to comply with the terms and conditions of a Federal award; (b) By the Federal awarding agency or pass-through entity, to the greatest extent authorized by law, if an award no longer effectuates the program goals or agency priorities; (c) By the Federal awarding agency or pass -through entity with the consent of the non- Federal entity, in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated; (d) By the non-Federal entity upon sending to the Federal awarding agency or pass-through entity written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal awarding agency or pass -through entity determines in the case of partial termination that the reduced or modified portion of the Federal award or subaward will not accomplish the purposes for which the Federal award was made, the F ederal awarding agency or pass -through entity may terminate the Federal award in its entirety;
(e) By the Federal awarding agency or pass -through entity pursuant to termination provisions included in the Federal award
In accordance with 2 CFR 200.339, in addition to any remedies for a Default provided by this Agreement, at law, or in equity, City may elect to pursue the following:
12 (a) Repayment from Subrecipient to City of any amount which the State or Federal government determines to have been misused or are subject to repayment; (b) Modify any plans, budget, compensation terms, schedules, manner of providing services or other activities in connection with this Agreement, or take other actions directed or recommended by the State or Federal government;
(c) Elect to have Subrecipient re-perform or cause to be re-performed, at Subrecipient’s sole expense, any work which failed to meet the requirements of this Agreement; (d) In the case of goods, reject the goods and require Subrecipient to provide replacement goods that meet the needs of City and the terms of this Agreement; or (e) Hire another contractor, subcontractor, or vendor to perform the work and deduct any additional costs incurred by City as a result of substituting contractors, subcontractors, or vendors from any amounts due to Subrecipient.
6.2.1 Reversion of Assets. Upon the expiration or termination of this Agreement, Subrecipient shall transfer to City any amounts of the Subgrant on hand and any accounts receivable attributable to the use of the Subgrant. If at the time of the expiration or termination of this Agreement there is under the control of Subrecipient any real property that was acquired or improved in whole or in part with the Subgrant in excess of Twenty-Five Thousand Dollars ($25,000), then, in accordance with 24 CFR 570.505, s uch real property shall , at the election of the City, either be:
(A) used to meet one (1) or more of the national objectives set forth in 24 CFR 570.208 for not less than five (5) years after the date of expiration or termination of this Agreement, or such longer period of time as determined appropriate by City; or
(B) disposed of, within five (5) years after the date of expiration or termination of this Agreement, in a manner which results in City being reimbursed in the amount of the then current fair market value of said real property less any portion thereof attribu table to expenditure of non- CDBG funds for said acquisition or improvement.
6.3 Attorneys’ Fees . City and Subrecipient agree that in the event of litigation to enforce this Agreement or terms, provisions and conditions contained herein, to terminate this Agreement, or to collect damages for a Default hereunder, the prevailing party shall be entitled to all costs and expenses, including reasonable attorneys’ fees, incurred in connection with such litigation.
Section 7. Use and Ownership of Documents and Data
7.1 Documents and Data . City may use all reports, records, plans, and other documents related to this Agreement and the Services for any purpose, including but not limited to inspections and completion of the Services. City shall furnish to Subrecipient such documents 13 and materials as City may determine to be relevant and pertinent to the provision of services hereunder as City may possess or acquire.
Section 8. Records, Reports and Audits.
8.1 Records. Each Subrecipient shall establish and maintain sufficient records , including, without limitation, financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to the Subgrant, to enable the City to determine whether the Subrecipient has met the requirements of this Agreement and the CDBG Requirements .
Subrecipient shall establish, and maintain on a current basis, an adequate accrual and accounting system in accordance with generally accepted accounting principles and standards in compliance with 2 CFR Part 200.
At a minimum, records shall be retained as follows:
(a) The retention period for individual CDBG activities shall be the longer of 3 years after the expiration or termination of this Agreement under 24 CFR 570.503, or 3 years after the submission of the annual performance and evaluation report, as prescribed in 24 CFR 91.520, in which the specific activity is reported on for the final time; (b) Records for individual activities subject to the reversion of assets provisions at 24 CFR 570.503(b)(7) or change of use provisions at 24 CFR 570.505 must be maintained for as long as those provisions continue to apply to the activity; and (c) Records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities must be retained until such receivables or liabilities have been satisfied.
8.2 Reports. Subrecipient shall prepare and submit financial, program progress, monitoring, evaluation, personnel, property and financial records and other reports as required by City and in the format acceptable to City to assure proper accounting of all Federal and non-Federal project funds. Subrecipient shall furnish such informati on which, in the judgment of City’s Representative, may be relevant to questions of compliance with contractual conditions hereunder or granting agency directives, or with the effectiveness, legality and goals of the program.
Subrecipient will establish a record keeping system which is consistent with the requirements for the City under 24 CFR 570.506. Such records shall be maintained and available to City for at least three (3) years following the completion of the Services , at a minimum, and in the event of litigation, claim, or audit, the records shall be retained until all litigation, claims, and audit findings involving the records have been fully resolved.
Subrecipient will submit monthly reports to City specifying Program Income earned and expenses incurred . Each report shall contain, or be accompanied by, an itemized statement showing all information required by City, including, without limitation:
(a) The amount expended or incurred by Subrecipient and due and payable for the Subrecipient’s Services for such reporting quarter including any and all supporting documentation. (b) A statement showing for each reporting month:
14 (i) a description of each of the Clients serviced,
(ii) the number of the Clients receiving shelter at the Shelters, (iii) the type of counseling session conducted, the number of each type of counseling sessions conducted, and the number of the Clients attending each such counseling session,
(iv) the type of educational sessions conducted, the number of each type of educational session conducted, and the number of the Clients attending each such educational session, and
(v) a quarterly narrative which specifies any additional services provided.
The quarterly report for the last quarter of the fiscal year ending June 30 shall also include Subrecipient’s financial statement for the immediately preceding year, accompanied by an annual audit report of Subrecipient’s financial statement for the immediately preceding year.
Each report shall be certified as complete and correct by the executive director, or similar officer, of Subrecipient.
8.3 Monitoring. City will conduct periodic CDBG program monitoring reviews. These reviews will focus on the Services and the extent to which the planned program has been implemented and measurable goals achieved, effectiveness of program management, and impact of the program. Authorized representatives of City and HUD shall have the right of access to all activities of and facilities operated by Subrecipient under this Agreement. Facilities include all files, records, and other documents related to the performance of the Services and this Agreement.
Activities include attendance at S taff, officers, board of directors, advisory committee, and advisory board meetings and inspection by City and HUD representatives. Subrecipient shall ensure that its employees , managers. officers, or board members furnish such information as, in the judgment of City and HUD representatives, may be relevant to the question of compliance with contractual conditions and HUD directives, or the effectiveness, legality, and achievements of the CDBG program.
8.4 Audits. Subrecipient is required to arrange for an independent financial and compliance audit annually for each fiscal year Federal funds are received under this Agreement where federal award is $750,000 or more in a year. Audits must be in compliance with 2 CFR Part 200. An audit may be conducted by Federal, State, or local funding source agencies as part of City’s audit responsibilities. The results of the independent audit must be submitted to City within thirty (30) da ys of completion. Within thirty (30) days of the submittal of said audit report, Subrecipient shall provide a written response to all conditions of findings reported in said audit report. The response must examine each condition or finding and explain a proposed resolution, including a schedule for correcting any deficiency. All conditions or finding corrective actions shall take place within six (6) months after receipt of the audit report. City and its authorized representatives shall at all times have access for the purpose of audit o r inspection to any and all books, documents, papers, records, property, and premises of Subrecipient. Subrecipient Staff will cooperate fully with authorized auditors when they conduct audits and examinations of Subrecipient’s program.
15 If indications of misappropriation or misapplication of the funds granted under this Agreement cause City to require a special audit, the cost of the audit will be encumbered and deducted from the Subgrant. Should City subsequently determine that the speci al audit was not warranted, the amount encumbered will be restored to the Subgrant. Should the special audit confirm misappropriation or misapplication of funds, Subrecipient shall promptly reimburse City the amount of misappropriation or misapplication. I n the event City uses the judicial system to recover misappropriated or misapplied funds, Subrecipient shall reimburse City for legal fees and court costs incurred in obtaining the recovery.
Subrecipient agrees that in the event its performance hereunder is subjected to audit exceptions by appropriate federal audit agencies, it shall be responsible for complying with such exceptions and paying City the full amount of City’s liability to the funding agency resulting from such audit exceptions.
8.5 Confidentiality of Records . Subrecipient shall adhere to the requirement of the National Affordable Housing Act (Pub. L.101- 625, November 28, 1990) contained in Section 832(e)(2)(c) that grantees of federal funds (i) develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted” under the CDBG Program and (ii) that the address or location of any family violence shelter project as sisted under the CDBG Program will, except with written authorization of the person or persons responsible for the operation of such shelter, not be made public.
Section 9. Miscellaneous Provisions.
9.1 Waiver. Inaction by City or Subrecipient with respect to a Default hereunder shall not be deemed to be a waiver of such Default. The waiver by either City or Subrecipient of any Default hereunder shall not be deemed to be a waiver of any subsequent Default.
9.2 Notices. All notices, demands or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either City or Subrecipient to the other shall be deemed to have been given when in writing and personally delivered or if mailed on the third (3rd) day after being deposited in the United States mail, certified or registered, postage prepaid, and addressed to the respective Parties at the following addresses:
If to City: Community Development and Housing Department City of San Bernardino
290 North D Street
San Bernardino, California 92401
Attention: Cassandra Searcy, Deputy Director of Housing & Homelessness
To Subrecipient: El Sol Neighborhood Educational Center 1535 S D St
San Bernardino, CA 92408
Attn: Alexander Fajardo, Director
16 9.3 Relationship of Parties . Nothing contained herein shall be deemed or construed by the Parties, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the Parties, it being understood and agreed that Subrecipient is and will be at all times an independent contractor pursuant to this Agreement and shall not, in any way, be considered to be an officer, representative, agent or employee of the City.
9.4 No Third Party Rights. The Parties intend that no rights nor remedies be granted to any third party as a beneficiary of this Agreement or of any covenant, duty, obligation or undertaking established herein.
9.5 Non-Liability of Members, Officials and Employees of the City . No member, official, officer, agent, representative, or employee of the City shall be personally liable to Subrecipient, or any successor in interest or assigns, in the event of any Default or breach by the City or for any amount which may become due to Subrecipient or Subrecipient’s successors or assigns, or on any obligation under the terms of this Agreement. Subrecipient hereby waives and releases any claim Subrecipient may have against t he members, officials , officers, agents, representatives, or employees of the City with respect to any Default or breach by City or for any amount which may become due to Subrecipient or Subrecipient’s successors or assigns, or any obligations under the terms of this Agreement. Subrecipient makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEM ENT WITH THE
DEBTOR OR RELEASED PARTY.”
__________
Subrecipient
9.6 Controlling Law . This Agreement shall be governed by and construed in accordance with the laws of the State of California.
9.7 Time of the Essence. Time is hereby expressly declared to be the essence of this Agreement and of each covenant and condition hereof which relates to a date or a period of time.
9.8 Remedies Cumulative. The remedies given to City and Subrecipient herein shall be cumulative and are given without impairing any other rights given City or Subrecipient by statute or law now existing or hereafter enacted and the exercise of any one (1) remedy by City or Subrecipient shall not exclude the exercise of any other remedy.
9.9 Effect of Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be 17 affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
9.10 Entire Agreement . This Agreement and the exhibits hereto, which are incorporated herein for all purposes by this reference, contain the entire agreement of the City and the Subrecipient with respect to the matters covered hereby, and no agreement, statement or promise made by either City or Subrecipient which is not contained herein, shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended, modified or added except by an agreement in writing signed by City and Subrecipient. In the event of a conflict between the terms of the exhibits and this Agreement, the terms of this Agreement shall control unless otherwise required by federal law.
9.11 Authority. Each individual executing this Agreement on behalf of a corporation, nonprofit corporation, partnership or other entity or organization, represents and warrants he or she is duly authorized to execute and deliver this Agreement on behalf of such entity or organization and that this Agreement is binding upon the same in accordance with its terms.
Subrecipient shall, at City’s request, deliver a certified copy of its governing body’s resolution or certificate authorizing or evidencing such execution.
9.12 Conflicts of Interest. No employee, agent, consultant, officer, or elected or appointed official of the City, Subrecipient or of its subrecipients that are receiving funds under this paragraph who exercise or have exercised any functions or responsibilities with respect to the CDBG Funds, or who are in a position to participate in a decision- making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from an activity assisted with the CDBG Funds, or have a financial interest in any contract, subcontract, or agreement with respect to an activity assisted with the CDBG Funds, or with respect to the proceeds of the activity assisted with the CDBG Funds, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter, except pursuant to an exception granted by HUD in accordance with 24 CFR 570.611(d). In connection with any procurement of goods or services related to the Services or under this Agreement, Subrecipient shall comply with the conflict of interest provisions of 2 CFR 200.317-.318.
9.13 Time for Acceptance of Agreement by City. This Agreement, when executed by Subrecipient and delivered to City, must be authorized, executed and delivered by the City on or before forty-five (45) days after the execution and delivery by Subrecipient or this Agreement shall be void, except to the extent that Subrecipient and City shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement.
Section 10. Construction Articles
10.1 SCOPE OF WORK. Subrecipient shall procure a general contractor (the “Contractor”) for performance of the Services (the “Work ”). Subrecipient shall establish procurement procedures to ensure that materials and services are obtained in a cost -effective manner. When procuring property or services to be provided under this Agreement, Subrecipient shall comply at a minimum with the proc urement standards at 2 CFR 200.318 through 2 CFR 200.327.
18 The Subrecipient shall cause Contractor to perform all Work within the time stipulated in the construction c ontract to be entered into by Subrecipient and Contractor , and Contractor shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified below, for the following project (the “Project”):
El Sol Neighborhood Educational Center First Phase: Building Rehabilitation.
Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with the Contract Documents . The requirements of this Section 10 and the applicable requirements of the CDBG Requirements must be included in any Construction Contract.
10.2 TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 260 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
10.3 CONTRACT PRICE . The Subrecipient shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum, not to exceed, of two-hundred and fifty thousand dollars and zero cents ($250,000.00). Payment shall be made as set forth in the General Conditions. The Subrecipient will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.
10.4 LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every day completion of the Project is delayed beyond the time specified in the Contract. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,500 for each and every calendar day of delay beyond the time prescrib ed in the Contract Documents for finishing the Work, as liquidated damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the Subrecipient or City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damage s shall not prevent the Subrecipient or City, in case s of Contractor’s default, from terminating the Construction Contract.
10.5 COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:
• Notice Inviting Bids
• Instructions to Bidders
19 • Bid Forms
• Bid Acknowledgement
• Bid Schedule
• Bid Guarantee
• Designation of Subcontractors
• Information Required of Bidders
• Non-Collusion Declaration Form
• Iran Contracting Act Certification
• Public Works Contractor DIR Registration Certification • Performance Bond
• Payment (Labor and Materials) Bond
• Contract for Construction
• General Conditions
• Special Conditions
• Specifications
• Addenda Construction Plans and Drawings and Addenda
• Applicable Local Agency Standards and Specifications, as last revised • Reference Specifications
• Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. The Construction Contract shall supersede any prior agreement of the parties , except that in the event of conflict between the Contract Documents and this Agreement, this Agreement shall control.
10.6 PROVISIONS REQUIRED BY LAW AND CONTRACTOR
COMPLIANCE. Every provision of law required to be included in the Contract Documents shall be deemed to be included in the Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to the Work.
10.7 INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions.
10.8 PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.
10.9 FALSE CLAIMS AND MANDATORY DISCLOSURES . Contractor acknowledges and agrees all information and documentation submitted to Subrecipient may be relied upon by City. Contractor acknowledges that if a false claim is submitted to the Subrecipient 20 or City, it may be considered fraud and Contractor may be subject to civil or criminal prosecution, including, without limitation, under 31 U.S.C. Chapter 38 (Administrative Remedies for False Claims and Statements) , 18 U.S.C. § 287, 18 U.S.C. § 1001, and 31 U.S.C. § 3729. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity.
These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may subject the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.
Subrecipient must disclose, in a timely manner, in writing to the City and HUD all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting this Agreement as provided in 2 CFR 200.113. Failure to make required disclosures constitutes a Default of this Agreement.
(Remainder of page intentionally left bank; signatures on next page)
SIGNATURE PAGE TO COMMUNITY DEVELOPMENT BLOCK GRANT
SUBRECIPIENT AGREEMENT
IN WITNESS WHEREOF, THE CITY AND THE SUBRECIPIENT HAVE
EXECUTED THIS AGREEMENT AS OF THE RESPECTIVE DATES SET FORTH BELOW.
“CITY”
CITY OF SAN BERNARDINO,
a municipal corporation and charter city
Dated: By:
Eric Levitt, City Manager
APPROVED AS TO FORM:
By:
City Attorney
“SUBRECIPIENT”
EL SOL NEIGHBORHOOD EDUCATIONAL
CENTER
Dated: By:
Alexander Fajardo, Director
07/17/2025
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EXHIBIT A
SCOPE OF SERVICES
Subrecipient: El Sol Neighborhood Educational Center
CDBG Activity: Public Facility Project
Description of activity to be undertaken:
The project spearheaded by El Sol aims to significantly enhance community engagement and well- being. The following outcomes are expected to be achieved through this initiative, providing measurable and tangible benefits to the community. Importantly, the project is included in the San Bernardino Investment Playbook (see
https://www.sbinvestmentplaybook.com/home ). Outcomes of the El Sol Neighborhood Recreational and Wellness Center include: 1) Daily Usage:
Approximately 100 residents using the center daily, totaling around 36,500 visits annually. 2) Youth Engagement: Engage at least 500 unique youths per year in after -school programs and activities. 3) Recreational Activities: Offer five different recreational activities weekly, attracting diverse age groups. 4) Referral Center Utilization: Serve as a referral center with at least 2000 referrals per year for various community services. 5) Prevention Programs: Implement 5 different prevention programs annually, focusing on health, safety, and social issues. 6) Increase in Physical Activity: Achieve a 25% increase in reported physical activity levels among center participants. 7) Arts and Cultural Programs: Host at least 10 arts and cultural events each year, drawing in additional community members.
Eligible activity citation and regulatory language: 24 CFR 570.201(c) – Public Facilities and Improvements. Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements, except as provided in § 570.207(a), carried out by the recipient or other public or private nonprofit entities. (However, activities under this paragraph may be directed to the removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severel y disabled persons to public facilities and improvements, including those provided for in § 570.207(a)(1).) In undertaking such activities, design features and improvements which promote energy efficiency may be included. Such activities may also include the execution of architectural design features, and similar treatments intended to enhance the aesthetic quality of facilities and improvements receiving CDBG assistance, such as decorative pavements, railings, sculptures, pools of water and fountains, and other works of art. Facilities designed for use in providing shelter for persons having special needs are considered public facilities and not subject to the prohibition of new housing construction described in § 570.207(b)(3). Such facilities include shelters for the homeless; convalescent homes; hospitals, nursing homes; battered spouse shelters; halfway houses for run- away children, drug offenders or parolees; group homes for mentally retarded persons and temporary housing f or disaster victims. In certain cases, nonprofit entities and subrecipients including those specified in § 570.204 may acquire title to public facilities. When such facilities are owned by nonprofit entities or subrecipients, they shall be operated so as to be open for use by the general public during all normal hours of operation. Public facilities and improvements eligible for assistance under this paragraph are subject to the policies in § 570.200(b).
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National Objective: Activities benefiting low-moderate-income persons (24 CFR 570.208(a)). [Area benefit activities / Citation: § 570.208 (a)(1); Low-Mod Limited Clientele (LMC) / Citation:
§ 570.208 (a)(2)]
Performance Goal: To provide community engagement through various resources to ultimately benefit low to moderate-income persons.
Timeframe for Completion of Performance Goal: June 30, 2025 CDBG-funded Improvements Depicted on Following Page.
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CDBG FUNDED IMPROVEMENTS
Recipient: _______________
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EXHIBIT B
BUDGET
[attached]
Budget
Phase One -
Construction 250,000
Total
$ 250,000
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EXHIBIT C
COVENANTS RE: USE OF FEDERAL FUNDS
Subrecipient acknowledges and agrees that the Subgrant described in the agreement to which this exhibit is attached (“Agreement”) is funded from CDBG Funds allocated to City by the United States of America. Accordingly, Subrecipient covenants and agrees as follows:
Section 1. Compliance With Law . Subrecipient hereby covenants and agrees that it has complied and will continue to comply with the Housing and Community Development Act of 1974 (the “Housing and Community Development Act”), and all applicable Federal, state and local laws, ordinances, regulations, policies, guidelines, and requirements as they relate to acceptance and use of Federal funds for this federally- assisted program. It is Subrecipient’s responsibility to keep itself fully informed of and in complia nce with all such requirements and to provide all notices as required by law. This Agreement is subject to all such laws, ordinances, regulations, policies, and guidelines, including, without limitation, the Housing and Community Development Act; 24 CFR Part 85; 24 CFR Part 570; and 2 CFR Part 200.
Subrecipient agrees to comply with the requirements of 24 CFR Part 570, subpart K, except that (1) Subrecipient does not assume the City’s environmental responsibilities described in 24 CFR 570.604 and (2) Subrecipient does not assume the City’s responsibility for initiating the review process under the provisions of 24 CFR Part 52. Subrecipient also agrees to comply with all other applicable Federal, state, and local laws, regulations, and policies governing the funds provided under the Agreement and to utilize funds available under the Agreement to supplement rather than supplant funds otherwise available.
Subrecipient agrees to cause its contractors and subcontractors to comply, to the extent applicable, with the requirements of 24 CFR Part 570 and 2 CFR Part 200. Subrecipient further agrees to insert in any contracts and subcontracts, to the extent applicable, the indicated provisions set forth in this exhibit or required to be included in contractors or subcontracts under 24 CFR Part 570 and 2 CFR Part 200 and a clause requiring the contractors (and subcontractors when indicated) to include these provisions in any lower tier contracts or subcontracts. Failure to comply by Subrecipient or by any contractor or subcontractor may be grounds for termination of the applicable contract and for debarment as a contractor or subcontractor.
Subrecipient acknowledges that the Federal Government is not a party to the Agreement and is not subject to any obligations or liabilities to the City, Subrecipient , or any other party pertaining to any matter resulting from the Agreement.
Section 2. Civil Rights Act. Subrecipient shall comply with the Civil Rights Act of 1964, as amended, and all regulations applicable thereto, which provides that no person shall be excluded from participation, denied program benefits, or subject to discrimination based on race, color, and/or national origin under any program or activity receiving federal financial assistance.
Section 3. Non-Discrimination and Equal Opportunity. Subrecipient shall not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, sexual orientation, gender identity, age, national origin, or ancestry. Subrecipient shall comply with the following:
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(A) The requirements of the Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 CFR Part 100; Executive Order 11063 and implementing regulations at 24 CFR Part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and implementing regulations issued at 24 CFR Part 1, which prohibit discrimination on the basis of race, color, religion, sex, handicap, familial status, or national origin and require actions which affirmatively promote fair housing. Subrecipient shall also comply with the requirements for Equal Access in Accordance with Gender Identity (24 CFR 5.106) an d any other requirements set forth in 24 CFR Part 5.
(B) The prohibitions against discrimination on the basis of age under the Age discrimination Act of 1975 (42 U.S.C. 6101et seq.) and implementing regulations at 24 CFR Part 146.
(C) The prohibitions against discrimination against otherwise qualified individuals with disabilities under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR Part 8. For purposes of the CDBG program, the term “ dwelling units” in 24 CFR Part 8 shall include sleeping accommodations.
(D) The Equal Employment Opportunity Act of 1972; the requirements of Executive Order 11246; and the regulations issued under the Order at 41 CFR chapter 60, for the equal opportunity for all persons, without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin, employed or seeking employment with government contractors or with contractors.
(E) The requirements of Executive Orders 11625, 12432, and 12138 and the requirements of 2 CFR 200.321 and 2 CFR 200.509. Consistent with HUD’s responsibilities under these requirements , Subrecipient must make efforts to encourage minority and women’s business enterprises in connection with activities funded under this Agreement.
(F) The requirement that Subrecipient make known that use of the facilities and services is available to all on a nondiscriminatory basis. Where the procedures that Subrecipient intends to use to make known the availability of such facilities and services are unlikely to reach persons with disabilities or persons of any particular race, color, religion, sex, age or national origin within Subrecipient’s service area who may qualify for them, Subrecipient must establish additional procedures that will ensure that these persons are made aware of the facilities and services. Subrecipient must also adopt and implement procedures designed to make available to interested persons information concerning the existence and location of services and facilities that are accessible to persons with a disability.
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Section 4. Americans with Disabilities . Subrecipient shall not discriminate against handicapped persons in the provision of the Services and shall provide accessibility for handicapped persons to the Services provided under this Agreement. Subrecipient shall comply with all applicable requirements of the Americans with Disabilities Act of 1990 and implementing regulations (28 CFR Parts 35- 36), in order to provide handicapped accessibility to the extent readily achievable.
Section 6. Conflicts of Interest. In addition to the conflict of interest requirements in 2 CFR Part 200, under 24 CFR 570.611
1 no person:
(A) who (i) is an employee, agent, consultant, officer, or elected or appointed official of City, Subrecipient, a State recipient, or a nonprofit recipient (or of any designated public agency) that receives CDBG Subgrant amounts and (ii) exercises or has exercised any functions or responsibilities with respect to assisted activities, or
(B) who is in a position to participate in a decision making process or gain inside information with regard to such activities,
shall obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for him or herself or for those with whom he or she has family or business ties, during his or her tenure, or for one year thereafter. HUD may grant an exception to this exclusion as provided in 24 CFR Section 570.611(d).
Subrecipient also agrees to abide by the provisions of 24 CFR 570.611, which include but are not limited to the following:
Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees, or agents engaged in the award and administration of contracts supported by Federal funds.
No employee, officer, or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision - making process or gain inside information with regard to such activities, ma y obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG -assisted activity, or with respect to the proceeds from the CDBG -assisted activity, either for themselves or tho se with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is
1 24 CFR 570.611 requires compliance with 2 CFR 200.317-.318 for recipients and subrecipients and compliance with 24 CFR 570.611 otherwise.
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an employee, agent, consultant, officer, or elected or appointed official of the City, Subrecipient, or any designated public agency.
Section 7. Certification Regarding Lobbying. Subrecipient shall comply with the requirements of 31 U.S.C. § 1352, 2 CFR § 200.450, and 24 CFR 87. Subrecipient certifies, to the best of its knowledge and belief, that:
(A) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 any employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence any officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or any employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, Subrecipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(C) Subrecipient shall require that the language of this certification be included in the award documents for all subawards and contracts at all tiers (including subcontractors, subgrants, and contracts under grants, loans, and cooperative agreements), and that all s ubrecipients, contractors, and subcontractors shall certify and disclose accordingly.
Section 8. Drug Free Workplace.
8.1 Certification. Subrecipient hereby certifies to City that Subrecipient will comply with the applicable provisions of the Drug- Free Work Place Act of 1988 (Public Law 100-690, title v, subtitle D; 41 U.S.C. 701 et seq.) and implementing regulations at 2 CFR part 2429 and 2 CFR part 182 (incorporated herein by reference) and provide a drug- free workplace by:
(A) publishing a statement notifying its employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in Subrecipient’s workplace and specifying the actions that will be taken against employee s for violations of such prohibition;
(B) establishing a drug-free awareness program to inform employees about:
(i) the dangers of drug abuse in the workplace;
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(ii) Subrecipient’s policy of maintaining a drug-free workplace; (iii) any available drug counseling, rehabilitation, and employee assistance program; and
(iv) the penalties that may be imposed upon employees for drug abuse violations;
(C) making it a requirement that each employee to be engaged in the performance of Services under this Agreement be given a copy of the statement required by subparagraph (A);
(D) notifying the employee in the statement required by subparagraph (A), that as a condition of employment, the employee will:
(i) abide by the terms of this statement; and
(ii) notify Subrecipient of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction;
(E) notifying City within ten (10) days after receiving notice of a conviction under subparagraph (D)(ii) from an employee or otherwise receiving actual notice of such conviction;
(F) imposing a sanction on, or requiring the satisfactory participation in a drug abuse assistance or rehabilitation program by, any employee who is so convicted, as required by 41 U.S.C. 703; and
(G) making a good faith effort to continue to maintain a drug- free workplace through implementation of subparagraphs (A), (B), (C), (D), (E), and (F).
8.2 Suspension. Subrecipient acknowledges and agrees that th e Agreement shall be subject to suspension of payment or termination, or both, and Subrecipient shall be subject to suspension or debarment if the Director of City or her /his official designee determines, in writing, that:
(A) Subrecipient has made false certification under Section 8.1; (B) Subrecipient violates such certification by failing to carry out the requirements of subparagraphs ( A), (B), (C), (D), (E), (F) OR (G ) of Section 8.1, or
(C) such a number of Subrecipient’s employees have been convicted of violations of criminal drug statutes for violations occurring in the workplace as to indicate that Subrecipient has failed to make a good faith effort to provide a drug-free workplace as required by Section 8.
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Section 9. Use of Debarred, Suspended or Ineligible Contractors . Subrecipient shall comply with the provisions of 24 CFR Part 2424 and 2 CFR Part 180 relating to the prohibition on employment, engagement of services, awarding of contracts, or funding of any contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status. (i) The Agreement is a covered transaction for purposes of 2 CFR Part 180. As such Subrecipient is required to verify that none of the Subrecipient ’s principals (defined at 2 CFR 180.995) or its affiliates (defined at 2 CFR 180.905) are excluded (defined at 2 CFR 180.940) or disqualified (defined at 2 CFR 180.935).
(ii) Subrecipient must comply with 2 CFR Part 180, Subpart C and 2 CFR Part 2424 and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.
(iii) Subrecipient certifies and warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs. Subrecipient also agrees to verify that all contractors and subcontractors performing work under the Agreement are not debarred, disqualified, or otherwise prohibited from participation in accordance with the requirements above. Subrecipient further agrees to notify the City in writing immediately if Subrecipient or its contractors or subcontractor s are not in compliance during the term of the Agreement. This certification is a material representation of fact relied upon by City. If it is later determined that Subrecipient did not comply with 2 CFR Part 180, Subpart C and 2 CFR Part 2424, in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.
Section 10. Lead-Based Paint. Subrecipient shall comply with the requirements, as applicable, of the Lead -Based Paint Poisoning Prevention Act (43 U.S.C. 4821- 4846) and implementing regulations at 24 CFR Part 35. In addition, Subrecipient must also meet the following requirements relating to inspection and abatement of defective lead-based paint surfaces:
(A) Treatment of defective paint surfaces must be performed before final inspection and approval of the renovation, rehabilitation or conversion activity under this Agreement.
(B) Appropriate action must be taken to protect shelter occupants from the hazards associated with lead-based paint abatement procedures.
Section 11. Beneficiary Qualification. Subrecipient covenants and agrees the purpose of the Subgrant is to meet one or more of the “National Objectives” and other requirements set forth in 24 CFR 570.208 and certifies all activities carried out under the Agreement shall be in furtherance of at least one such National Objective. Subrecipient further covenants and agrees that one hundred percent (100%) of the beneficiaries of the Services (as defined in the Agreement) will be low income (or moderate income, i f applicable and permitted under the Agreement) persons or households. Under CDBG regulations, the following clientele categories are presumed to be low income persons and can qualify for service regardless of income: abused children, battered spouses, elderly persons, adults meeting the Bureau of the Census ’ Current Population Reports
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definition of “severely disabled,” homeless persons , illiterate adults, persons living with AIDS , and migrant farm workers. Beneficiaries qualifying on the basis of income shall have an annual income equal to or less than HUD Section 8 (of the United States Housing Act of 1937) Income Limits. HUD Section 8 Income Limits for the City PMSA define the maximum family income for low income households. Subrecipient is responsible for obtaining from City current applicable HUD Section 8 Income Limits for the Term of this Agreement.
Section 12. Flood Insurance. No site proposed on which renovation, major rehabilitation, or conversion of a building is to be assisted under the Agreement shall be located in an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless:
(A) either (i) the community in which the area is situated is participating in the National Flood Insurance Program and the regulations thereunder (44 CFR parts 59 through 79) or (ii) less than a year has passed since FEMA notification regarding such hazards.
(B) Subrecipient will ensure that flood insurance on the structure is obtained in compliance with Section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.).
Section 13. Coastal Barriers. Subrecipient shall comply with the Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq., which provides that no financial assistance under this Agreement may be made available within the Coastal Barrier Resources System.
Section 14. Religious and Political Activities. Subrecipient agrees that funds provided under this agreement shall be used exclusively for performance of the services or work required under this Agreement, and that no funds made available under this Agreement shall be used to promote religious or political activities , lobbying, political patronage, and nepotism activities . Further, Subrecipient agrees that it will not perform, nor permit to be performed, any religious or political activities in connection with the performance of this Agreement in accordance with 24 CFR 570.200(j), 570.207, and 570.607 and 24 CFR 5.109.
Subrecipient shall perform under the Agreement in a manner that does not discriminate against an organization on the basis of the organization’s religious character, affiliation, or lack thereof, or on the basis of the organization’s religious exercise and, to the extent applicable, shall comply with Executive Order 13279 (Equal Protection of Laws for Faith-Based and Community Organizations) and the implementing regulations at 41 CFR chapter 60.
Section 15. Reversion of Assets . Upon the expiration or termination of the Agreement, Subrecipient shall transfer to City any CDBG Funds on hand and any accounts receivable attributable to the use of CDBG Funds. If at the time of the expiration or termination of th e Agreement there is under the control of Subrecipient any real property that was acquired or improved in whole or in part with CDBG Funds in excess of Twenty- Five Thousand Dollars ($25,000), then, in accordance with 24 CFR 570.505, such real property shall either be:
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(A) used to meet one (1) or more of the national objectives set forth in 24 CFR §570.208 for not less than five (5) years after the date of expiration or termination of the Agreement, or such longer period of time as determined appropriate by City; or
(B) disposed of, within five (5) years after the date of expiration or termination of this Agreement, in a manner which results in City being reimbursed in the amount of the then current fair market value of said real property less any portion thereof attributable to expenditure of non-CDBG funds for said acquisition or improvement.
Section 16. Program Income . Any Program Income received by Subrecipient shall be promptly remitted to City. Any Program Income on hand when this Agreement expires or received after the expiration of this Agreement shall be paid to City as required by 24 CFR 570.503(b)(3).
Section 17. No Disability. Subrecipient certifies and agrees that it is under no contractual or other disability which would prevent it from complying with all pertinent laws and regulations.
Section 18. Patents and Copyrights (2 CFR 200.315). Subrecipient acknowledges and agrees that HUD reserves a royalty -free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes:
(A) The copyright in any work developed under the Agreement; (B) Any rights of copyright to which Subrecipient purchases ownership with Subgrant proceeds;
(C) The patent for any invention developed under the Agreement; and (D) Any rights in any patent to which Subrecipient purchases ownership with Subgrant proceeds.
Section 19. Procurement and Disposition During Term .
Subrecipient shall procure and
dispose of all materials, property, and services in accordance with the requirements of 2 CFR Part 200 (including particularly 2 CFR 200.318- .327) and 24 CFR 570.502, 570.503, and 570.504.
During the term of the Agreement, Subrecipient may not change the use or planned use of any real property acquired or improved in whole or in part using funds provided under the Agreement without written approval from the City. The requirements of 24 CFR 5.109 apply to the Agreement, including the requirements regarding disposition and change in use of real property by a faith- based organization.
19.1 Non-Expendable Property. A record shall be maintained by Subrecipient for each item of non- expendable property acquired for this program with Subgrant Proceeds. This record shall be provided to City as well as being available for inspection and audit upon the request of City. Non- expendable property means tangible personal property having a useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars ($300.00) or more per unit. Subrecipient shall not purchase or agree to purchase non -expendable property without the prior written approval of City. Upon
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completion or early termination of this Agreement, City reserves the right to determine the final disposition of such non-expendable property in compliance with applicable laws and regulations. Such disposition may include, but is not limited to, City taki ng possession of such non- expendable property in compliance with applicable laws and regulations, including, without limitation, 2 CFR 200.311-316.
19.2 Expendable Property. Expendable property refers to all tangible personal property other than non-expendable personal property. Subrecipient shall not purchase or agree to purchase expendable personal property at a cost of Three Hundred Dollars ($300.00) or more per unit without the prior written approval of City.
19.3 Purchase or Lease of Non -Expendable Property or Equipment .
Subrecipient shall obtain three documented bids prior to purchasing or leasing any non- expendable property or equipment over Three Hundred Dollars ($300.00) in unit value.
Subrecipient shall purchase or lease from the lowest responsive and responsible bidder. All equipment that has a purchase or lease price of over Fifty Dollars ($50.00) in unit -value and life expectancy of more than one (1) year shall be properly identified and inventoried and shall be charged at its actual price. Such inventory shall be provided to City as well as being available for inspection and audit upon the request of City.
19.4 Procurement of Recovered Materials (2 CFR 200.323). (i) Subrecipient shall comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement.
(ii) In the performance of the Agreement, Subrecipient shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired:
(1) Competitively within a timeframe providing for compliance with the Agreement performance schedule;
(2) Meeting Agreement performance requirements; or
(3) At a reasonable price.
(iii) Information about this requirement, along with the list of EPA - designated items, is available at EPA’s Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive -procurement-guideline-cpg- program.
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(iv) Subrecipient also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.
19.5 Domestic Preferences for Procurement (2 CFR 200.322). (i) Subrecipient shall, to the greatest extent practicable, purchase, acquire, or use goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subcontracts. (ii) For purposes of this section:
(1) “Produced in the United States’’ means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(2) ‘‘Manufactured products’’ means items and construction materials composed in whole or in part of nonferrous metals such as aluminum; plastics and polymer -based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber
Section 20. Travel and Conference Restrictions . Subrecipient covenants and agrees that travel and conference will adhere to 2 CFR 200.404 and 2 CFR 200.407. Reimbursement is at the sole discretion of the City as an allowable expense.
Section 21. Privacy. Subrecipient agrees and shall ensure that no information about or obtained from any person receiving services hereunder shall be voluntarily disclosed in any form identifiable with such person without first obtaining the written consent of such person.
Subrecipient shall take reasonable measures to safeguard protected personally identifiable information and other information considered to be sensitive consistent with applicable Federal, State, and local laws regarding privacy and responsibility over confi dentiality. Subrecipient shall provide citizens with reasonable access to records regarding the use of CDBG funds in connection with the Agreement, consistent with applicable State and local laws regarding privacy and obligations of confidentiality and with 24 CFR 570.508 and 2 CFR 200.303.
Section 22. Eligibility restrictions for certain resident aliens and noncitizens.
Subrecipient shall comply with the restrictions on the provision of benefits to newly legalized aliens if applicable under 24 CFR 570.613 and to noncitizens under 24 CFR Part 5, Subpart E.
Section 23. Displacement, Relocation, Acquisition, and Replacement of Housing (24 CFR 570.606). If any work provided in accordance with the Agreement will result in the displacement of persons, Subrecipient covenants and agrees to comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§ 4601-4655) and implementing regulations at 49 CFR Part 24.
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Section 24. Protections for Whistleblowers. Subrecipient may not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing, in accordance with 41 U.S.C. § 4712, information that the employee reasonably believes is evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant, as provided in 2 CFR 200.300(b).
Section 25. Section 3 of the Housing and Urban Development Act of 1968.
Subrecipient acknowledges that the services or work to be performed under the Agreement is on a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. § 1701u (“Section 3”), 24 C.F.R. §§ 135.3(a)(2) and (a)(3). Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given to lower income residents and that contracts for work in connection with the project be awarded to business concerns that are located in, or owned in substantial part by, persons residing in the area of the project. Subrecipient shall comply with the provisions of Section 3 and the implementing regulations at 24 CFR Part 75.
Subrecipient shall include a Section 3 clause in every contract and subcontract for services or work in connection with the Agreement and shall, at the direction of the City, take appropriate action pursuant to the contract or subcontract upon a finding that the contractor or subcontractor is in violation of regulations issued at 24 CFR Part 75. Subrecipient shall not contract or subcontract with any party where Subrecipient has notice or knowledge that such party has been found in violation of regulations under 24 CFR Part 75 and shall not let any contract or subcontract unless the contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of said regulations.
Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 75, and all applicable rules and orders of HUD issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the Project, binding upon the Subrecipient, its successors, and assigns. Failure to fulfill these requirements shall subject Subrecipient, its contractors and subcontractors, successors, and assigns to those sanctions as are specified by 24 CFR Part 75.
2 Section 26. Environmental Laws . Subrecipient must comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) not ification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988 as interpreted in HUD regulations at 24 C.F.R. Part 55; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity to State (Clean Air) implementation Plans under Section 176(c) of the Clean Air Act of 1955, as a mended (42 U.S.C.
2 Per 24 CFR 75.33(c), remedies and sanctions may be imposed by HUD “in accordance with the laws and regulations for the program under which the violation was found.”
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§§7401 et seq.), 40 C.F.R. Parts 6, 51, and 93; (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93 -523); (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205); (i) Wild and Scenic Rivers Act of 1989 (16 U.S.C. § 1271 et seq.); (j) Sole Source Aquifers (Environmental Protection Agency-40 C.F.R. part 149; (k) Farmland Protection Policy Act of 1981 (7 U.S.C. § 4201, et seq.); (l) Farmland Protection Policy (Department of Agriculture-7 C.F.R. part 658); (m) applicable criteria and standards specified in HUD environmental regulations (24 C.F.R. Part 51) (other than the runway clear zone and clear zone notification requirement in 24 C.F.R. §
51.303(a)(3); (n) HUD Notice 79 -33, Policy Guidance to Address the Problems Posed by Toxic Chemicals and Radioactive Materials, September 10, 1979; (o) Executive Order 12898 of February 11, 1994—Federal Actions to Address Environmental Justice in Minority Popula tions and Low- Income Populations, (59 FR 7629), 3 C.F.R., 1994 Comp. p. 859. Subrecipient shall include this requirement in all subcontracts under the Agreement.
In addition to generally applicable environmental laws, the Subrecipient shall comply with the following:
(i) Pursuant to the Clean Air Act, (1) Subrecipient agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq., (2) Subrecipient agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal Agency and the appropriate Environmental Protection District Regional Office, and (3) Subrecipient agrees to include these requirements in each subcontract exceeding $150,000.
(ii) Pursuant to the Federal Water Pollution Control Act, (1) Subrecipient agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., (2) Subrecipient agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal Agency and the appropriate Environmental Protection Agency Regional Office, and (3) Subrecipient agrees to include these requirements in each subcontract exceeding $150,000.
Section 27. Labor Standards (24 CFR § 570.603). Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing fewer than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation, or repair work financed in w hole or in part with assistance provided under the Agreement, shall comply with the requirements of the Davis -Bacon Act (40 USC, Chapter 3, Section 276a-276a-5) adopted by the Federal Agency pertaining to such contracts and with the applicable requirements of the Contract Work Hours and Safety Standards Act and Copeland Anti- Kickback Act (40 U.S.C. 3141-3148 and 40 U.S.C. 3701-3708) and regulations of the Department of Labor under 29 CFR parts 1, 3, 5, and 7, governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. Subrecipient shall comply with 24 CFR Part 70 with regard to the use of volunteers. The Subrecipient shall cause or
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require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph.
Section 28. Minimum Bonding Requirements (2 CFR § 200.326). If the Agreement involves construction or facility improvements in excess of the simplified acquisition threshold, as that term is defined in 2 CFR 200 subpart A, Subrecipient shall maintain a performance bond for 100 percent (100%) of the contract price to secure fulfillment of all the Agreement’s requirements.
Section 29. Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, Stalking and Trafficking . Subrecipient shall comply with the protections provided to victims of domestic violence, dating violence, sexual assault, and stalking set forth in Title 24, Part 5, subpart L, as applicable.
Subrecipient shall comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. 7104) which prohibits Subrecipient from (1) Engaging in severe forms of trafficking in persons during the period of time that the award is in effect (2) Procuring a commercial sex act during the period of time that the award is in effect or (3) Using forced labor in the performance of the Agreement.
Section 30. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment (2 CFR 200.216).
(i) Subrecipient shall not contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system funded under the Agreement. As described in Public Law 115–232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).
(1) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Cor poration, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
(2) Telecommunications or video surveillance services provided by such entities or using such equipment.
(3) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. (ii) See Public Law 115-232, section 889 for additional information.
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(iii) Subcontracts. Subrecipient shall include the substance of this section, including this paragraph, in all subcontracts and other contractual instruments
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EXHIBIT D
DEFINITION OF PROGRAM
INCOME
“Program Income” means gross income received by the recipient or a subrecipient directly generated from the use of CDBG Funds. When such income is generated by an activity that is only partially assisted with CDBG Funds, the income shall be prorated to ref lect the percentage of CDBG Funds used.
Program Income includes, but is not limited to the following:
(a) Proceeds from the disposition by sale or long- term lease of real property purchased or improved with CDBG funds;
(b) Proceeds from the disposition of equipment purchased with CDBG funds; (c) Gross income from the use or rental of real or personal property acquired by the recipient or by a subrecipient with CDBG funds, less costs incidental to generation of the income;
(d) Gross income from the use or rental of real property, owned by the recipient or by a subrecipient, that was constructed or improved with CDBG funds, less costs incidental to generation of the income;
(e) Payments of principal and interest on loans made using CDBG funds, excluding payments made by subrecipients of principal and/or interest on CDBG-funded loans received from grantees if such payments are made using Program Income received by the subrecipient, as provided in 24 CFR 570.500(a)(3);
(f) Proceeds from the sale of loans made with CDBG funds; (g) Proceeds from sale of obligations secured by loans made with CDBG funds; (h) Interest earned on Program Income pending its disposition; and (i) Funds collected through special assessments made against properties owned and occupied by households not of low- and moderate-income, where the assessments are used to recover all or part of the CDBG portion of a public improvement.
Program Income does not include income earned (except for interest described in 24 CFR 570.513) on grant advances from the U.S. Treasury. The following items of income earned on grant advances must be remitted to HUD for transmittal to the U.S. Treasury, and will not be reallocated under Section 106(c) or (d) of the Act:
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(a) Interest earned from the investment of the initial proceeds of a grant advance by the U.S. Treasury;
(b) Interest earned on loans or other forms of assistance provided with CDBG funds that are used for activities determined by HUD either to be ineligible or to fail to meet a national objective in accordance with the requirements of 24 CFR Part 570, Subpart C, or that fail substantially to meet any other requirement of this part; and
(c) Interest earned on the investment of amounts reimbursed to the CDBG program account prior to the use of the reimbursed funds for eligible purposes.
Program Income also does not include:
(a) Any income received in a single program year by the recipient and all its subrecipients if the total amount of such income does not exceed $25,000; and
(b) Amounts generated by activities that are financed by a loan guaranteed under Section 108 of the Act and meet one or more of the public benefit criteria specified at 24 CFR 570.209(b)(2)(v) or are carried out in conjunction with a grant under Section 108(q) in an area determined by HUD to meet the eligibility requirements for designation as an Urban Empowerment Zone pursuant to 24 CFR part 597, subpart B, except as provided in 24 CFR 570.500(a)(4)(ii).
Examples of other receipts that are not considered Program Income are proceeds from fund raising activities carried out by subrecipients receiving CDBG assistance (the costs of fundraising are generally unallowable under the applicable OMB circulars referenced in 24 CFR 84.27 3), funds
collected through special assessments used to recover the non- CDBG portion of a public improvement, and proceeds from the disposition of real property acquired or improved with CDBG funds when the disposition occurs after the applicable time period specified in 24 CFR 570.503(b)(8) for subrecipient-controlled property, or in 24 CFR 570.505 for recipient-controlled property.
3 24 CFR Parts 84 and 85 were superseded and replaced by 2 CFR Part 200, effective as of December 26, 2014.