City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Agenda
Tuesday, October 18, 2022
5:00 p.m. Closed Session
6:00 p.m. Regular Session
The
City
Council
holds
its
business
meetings
in
public
in
accordance
with
the
requirements
of
the
Ralph
M.
Brown
Act,
its
established
policies
and
procedures,
and
its
adopted
parliamentary
authority.
The
Council
strives
to
carry
out
its
meetings
in
an
atmosphere
of
professionalism
with
full
participation
by
members
of
the
body
and
the
public.
As
such,
the
Presiding
Officer
is
empowered
to
govern
City
Council
Meetings
to
foster
the
efficient
and
fair
administration
of
City
business
and
reserves
the
right
to
enforce
(or
cause
to
be
enforced)
the
Meeting
Rules
of
Conduct
and
Decorum
as
set
forth
in
Chapter
5 of
the
City
Council Policy and Procedures Manual.
The
City
Council
welcomes
and
encourages
public
participation
and
invites
the
community
to
attend
in
person. If you cannot attend in person, the meeting will also be available via Zoom and YouTube.
To join via Computer, Laptop, or Smart Device:
Click
the
blue
Zoom
icon
located
on
the
City’s
website
at
victorvilleca.gov/government/agendas
or
enter
the following:
Meeting ID: 836 5831 1383
Passcode: VV123
*To provide comment, click the “Raise Hand” button and the Clerk will unmute you.
To join via Audio only (cell phone or landline):
Dial: (669) 900-9128
Meeting ID: 836 5831 1383
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Public
Comments:
Members
of
the
public
may
submit
comments
electronically
to
by
4 p.m.
the
day
of
the
meeting
to
be
distributed
to
City
Council.
Participants
are
invited
to
address
the
Council
on
agendized
and
non-agendized
topics
at
the
beginning
of
the
meeting.
Public
comments
will
be
no
longer
than
three
(3)
minutes
per
community
member.
Should
a
speaker
conclude
their
comments
prior
to
the
expiration
of
three
(3)
minutes,
the
speaker
waives
the
right
to
speak
for
any
remaining
amount
of
time.
For
further
information
about
how
to
address
the
Council,
please refer to the City’s website at
victorvilleca.gov/government/agendas
.
In
compliance
with
the
Americans
with
Disabilities
Act,
if
you
need
special
assistance
to
participate
in
this
meeting,
please
contact
the
City
Clerk’s
office
at
(760)
955-5188
no
later
than
72 hours
prior
to
the
meeting.
5:00 p.m. Closed Session
Call to Order
Roll Call
Introduction to Public Comments
Public Comments for Closed Session Items
Declaration of Closed Session Item(s) by City Attorney
CITY COUNCIL
A.
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1):
Case Name:
In Re Estate of Jose Ruvalcaba, et al. v. City of Victorville Case Number: San Bernardino County Superior Court Case No. CIVDS1920990
B.
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1):
Case Name:
Francisco Aragon v. City of Victorville
Case Number: San Bernardino County Superior Court Case No. CIVDS2009633
Recess to Closed Session
6:00 p.m. Regular Session
Call to Order
Roll Call
Closed Session Announcements by the City Attorney
Invocation: Father Ismael Valenzuela-Salazar of Holy Innocents Catholic Church
Pledge of Allegiance: Police Captain John Wickum
City Clerk Presents Agenda/Revisions to Agenda
Conflict of Interest Declarations
Any
items
on
this
agenda
that
might
be
a
conflict
of
interest
to
any
Council
Members/Board Members should be identified at this time.
Introduction to Public Comments
Public Comments
PUBLIC HEARING(S)
1. United
States
Department
of
Housing
and
Urban
Development
(HUD)
required
public
hearing
for
a
Substantial
Amendment
to
the
fiscal
year
2021-2022
Annual
Action
Plan
to
allocate
Federal
Home
Investment
Partnership
–
American
Rescue
Plan Act (HOME-ARP) funds
Recommendation:
That the Honorable City Council:
(1)
Conduct
a
public
hearing
to
receive
citizen
and
public
comments
regarding
the
City’s proposed amendments to the 2021-2022 Annual Action Plan; (2)
Adopt
Resolution
No.
22-112,
amending
the
2021-2022
Annual
Action
Plan
thereby
approving
an
allocation
plan
for
$1,953,395
of
HOME-ARP
funds
available
to
the
City
of
Victorville
and
amending
the
annual
budget
for
Fiscal
Year
2022-2023
to reflect additional revenue and expenditures in the amount of $1,953,395; and (3)
Authorize
the
City
Manager
to
execute
all
necessary
documents
for
submittal
to
HUD.
CONSENT CALENDAR
2. Payroll Warrant List
Recommendation:
That
the
City
Council
and
Board
of
Directors
ratify
Payroll
Demand
Schedule
No.
3A
for
Payroll
Period
August
19,
2022,
through
September
02,
2022,
in
the
amount
of
$1,801,502.78
covering
Check
Nos.
33060
through
33083,
including
Vendor
checks.
Please
note
employee
Check
Nos.
33069
&
33071
have
a
live
Check
and
an
EFT
Advice.
Also
included
are
Advice
Nos.
291873
through
292342
and
includes
Advice
No
291872
from
Payroll
Period
August
5,
2022,
through
August
19,
2022,
per
adopted
budget
for
Fiscal
Year
2022-2023
period
covering
July
1,
2022,
through
June 30, 2023.
3. Commercial Demand Schedule No. 7
Recommendation:
That
the
City
Council
and
Board
of
Directors
ratify
Commercial
Demand
Schedule
No.
7 in
the
amount
of
$11,694,683.11,
covering
Electronic
Fund
Transfers
No.
331787
through
332018
and
Warrant
No.
787373
through
787582
for
09/16/2022
through
09/28/2022
and
Wire
Transfers
dated
09/23/2022,
per
the
adopted
budget
for
Fiscal
Year
2021-2022
for
the
period
covering
July
1,
2021
through
June
30,
2022
and
Fiscal
Year
2022-2023
for
the
period
covering
July
1,
2022
through
June
30, 2023.
4. Release of Agreements for Tract Map No. 17110
Recommendation:
That
the
Honorable
City
Council
approve
the
release
of
the
Subdivision
Agreement
and
the
Utility
Surety
Agreement
with
LB/L
SunCal
West
Creek,
LLC
for
Tract
Map
No. 17110.
5. State Library CopyCat Grant – Budget Amendment
Recommendation:
That
the
Honorable
City
Council
adopt
Resolution
No.
22-114,
approving
a
budget
amendment
for
Fiscal
Year
2022/2023
to
appropriate
$5,000.00
in
both
revenue
and
expenditures
related
to
the
State
Library
CopyCat
Grant
as
awarded
by
the
California State Library.
WRITTEN COMMUNICATIONS
6. Increase
the
amount
of
the
Annual
Supply
and
Service
Agreements
for
LN
Curtis
and All Star Fire Equipment
Recommendation:
That
Your
Honorable
City
Council
Approve
the
increase
of
the
Annual
Supply
and
Service
Agreements
for
LN
Curtis
in
the
amount
of
$200,000
for
a
total
of
$450,000
and All Star Fire Equipment in the amount of $225,000 for a total of $300,000.
7. Award of Construction Contract – Village Drive & Tawney Ridge Lane Traffic Signal
Recommendation:
That
the
Honorable
City
Council
award
a
construction
contract
to
Elecnor
Belco
Electric,
Inc.,
in
the
amount
of
$601,714.48
for
the
Village
Drive
and
Tawney
Ridge
Lane Traffic Signal project.
8. Approve the Purchase of an Elgin CNG Broom Bear Street Sweeper
Recommendation:
That
the
Honorable
City
Council
award
Haaker
Equipment
Company,
as
authorized
distributor,
the
piggyback
purchase
of
an
Elgin
CNG
Broom
Bear
Sweeper
in
the
amount
of
$467,819.66,
along
with
a
10%
contingency
of
$46,781.97,
for
a
total
amount of $514,601.63, under the Sourcewell Contract #093021-ELG.
9. Delegation
of
authority
to
make
certain
determinations
and
applications
relating
to
disability retirements under the public employees’ retirement law
Recommendation:
That
the
Honorable
City
Council
adopt
Resolution
No.
22-113
delegating
authority
to
the
City
Manager
to
make
certain
determinations
and
applications
relating
to
disability retirements under the public employees’ retirement law.
10. Security Access System Upgrade Project #CCS23-040
Recommendation:
That
the
Honorable
Southern
California
Logistics
Airport
Authority
Board
of
Directors
approve
the
award
of
a
General
Services
Provider
Standard
Agreement
in
the
amount
not-to-exceed
$100,000
to
Convergint
Technologies,
LLC
in
support
of the Security System Upgrade, Project #CCS23-040.
11. Amendment
Number
Three
to
a
Consultant/Professional
Services
Provider
Agreement with OpenGov for Budgeting and Planning Software
Recommendation:
Staff
recommends
that
the
City
Council
approve
Amendment
Number
Three,
initiating
a
five-year
term
for
the
professional
services
consultant
agreement
with
OpenGov
for
implementation
and
maintenance
of
the
Budgeting
and
Planning
software
in
an
amount
not
to
exceed
$547,775
and
authorize
the
City
Manager
to
execute all documents related to this amendment.
12. City Manager Reports
13. Discussion and Possible Action Regarding Upcoming Agenda Items
14. Reports from Council Members
Adjournment
Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: October 18, 2022
Submitted By:
Scott Webb, City Planner
Subject:
United States Department of Housing and Urban Development (HUD) required public hearing for a Substantial Amendment to the fiscal year 2021-2022 Annual Action Plan to allocate Federal Home Investment Partnership – American Rescue Plan Act (HOME- ARP) funds.
Recommendation:
That the Honorable City Council:
(1) Conduct a public hearing to receive citizen and public comments regarding the City’s proposed amendments to the 2021-2022 Annual Action Plan; (2) Adopt Resolution No. 22-112, amending the 2021-2022 Annual Action Plan thereby approving an allocation plan for $1,953,395 of HOME-ARP funds available to the City of Victorville and amending the annual budget for Fiscal Year 2022-2023 to reflect additional revenue and expenditures in the amount of $1,953,395; and (3) Authorize the City Manager to execute all necessary documents for submittal to HUD.
Fiscal Impact:
The HOME-ARP funds will provide $1,953,395 in a one-time allocation to the annual budget for Fiscal Year 2022-2023, of which $1,660,386 (85%) will be used for eligible supportive services to the community and $293,009 (15%) will be used to administer the funds (e.g. staff wages, cost allocation, etc.). All funds are required to be expended by September 30, 2030.
Account Org. Amount Adjusted
2823027 1,953,395
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Background:
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses.
While the City of Victorville received a direct allocation of American Rescue Plan Act funding (e.g. ARPA funds), the American Rescue Plan Act of 2021 also included an allocation of $5 billion in funding to be allocated through the Home Investment Partnership (HOME) Program to provide homelessness assistance and supportive services. This HOME – American Rescue Plan Act funding (HOME-ARP), is dispersed to entities eligible for direct HOME funds, such as the Apple Valley / Victorville Consortium (“Consortium”), which received a total allocation of $2,913,966. The Consortium’s allocation is then divided between Consortium members based upon the yearly HOME allocation percentage as established by HUD, resulting in the City receiving approximately 67% of the HOME-ARP allocation, or $1,953,395. This one-time HOME-ARP funding has a expenditure deadline of September 30, 2030, which begins upon the acceptance and approval of the draft FY 2021-2022 Annual Action Plan Substantial Amendment by HUD.
In accordance with HUD standards (Attachment B), to address the need for homelessness assistance and supportive services the subject HOME-ARP funds must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. Additionally, HOME-ARP funds may only be used be utilized to address four specific activity categories, as analyzed in the following “Discussion” section of this report.
As required by the noted HUD standards, the Consortium initiated a consultation and public participation process in order to solicit stakeholder input with regards to the expenditure of HOME-ARP funds, which included an in-person meeting, a virtual meeting, a survey, as well as a 30-day review of the draft FY 2021-2022 Annual Action Plan Substantial Amendment (“Annual Action Plan Amendment”). Additionally, on September 15, 2022, the City’s Community Planning and Development (CPD) Grants Subcommittee convened for a duly noticed public meeting to determine HOME-ARP allocation plan funding recommendations to be included in the draft Annual Action Plan Amendment.
After receiving recommendations from the CPD Grants Subcommittee, the 30-day review period of the draft Annual Action Plan Amendment began on September 16 th, 2022, and ended on October 17 th, 2022. In accordance with the City’s Citizen Participation Plan (Attachment C), public notices were printed in both English and Spanish, were distributed at community buildings, and published in the local newspaper.
Discussion:
In accordance with HUD standards regarding HOME-ARP funds (Attachment B), the CPD Grants Subcommittee reviewed eligible activities and public input received from the various opportunities for comment as outlined in the Annual Action Plan Amendment, which resulted in a recommendation to provide funding to the “Supportive Services” 2 8
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category as well as reimbursement to the City for administration of the award through the “Administration and Planning” category. Although not recommended for HOME-ARP funding by the CPD Grants Subcommittee, the alternative eligible activities include:
1) Development and support of affordable housing;
2) Tenant-based rental assistance (TBRA); and/or
3) Acquisition and development of non-congregate shelter units.
In addition to the “Supportive Services” category, all of the noted activities were shown to have a need per comments received in conjunction with the consultation and public participation process; however, the available funding is recommended to be focused on the provision of supportive services, which can be used to fund such services throughout the community as well as at the City’s Wellness Center. Supportive services eligible for HOME-ARP funding include a range of applications such as mental and physical health, substance abuse, life skills training, job training, and education that would provide the types of wrap-around services necessary for the Wellness Center to succeed and to address homelessness in the City of Victorville. The remaining activities eligible for HOME-ARP funding were not recommended for allocation for a variety of reasons including: the tracking, inspection, timing and follow-up required for the development of housing and TBRA (typically carried out by larger entities such as County Housing Authorities); and the use of funds for “acquisition and development of non-congregate shelter units” for the City’s Wellness Center being an ineligible activity due to the advanced stage of development and construction.
As recommended by the CPD Grants Subcommittee, the proposed Annual Action Plan Amendment would allocate the available HOME-ARP funds as follows:
Activity Amount
Supportive Services
(85% of Total Available Funds) $1,660,386
Administration & Planning
(15% Maximum of Available Funds) $293,009
Total HOME-ARP Funds Available $1,953,395
In lieu of specific program requirements for the disbursement of HOME-ARP funding to subrecipients, the “Supportive Services” category of eligible activities will be committed in various ways, such as in concurrence with the CPD Grant Subcommittee review of annual CDBG/HOME public service applications, via separate City Council review of large contracts exceeding the approval authority of the City Manager (e.g. $125,000 or more), or in conjunction with the operations of the City’s Wellness Center and applicable expenses allowable by HUD. Additionally, in accordance with the City’s Consortia Agreement (Attachment D), the noted Administration and Planning allocation of $293,009 will be split in half with the Town of Apple Valley, since the Town is the designated lead agency for the Consortium.
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Attachments:
Attachment A – Resolution No. 22-112 (2021-2022 Annual Action Plan Amendment) Attachment B – Requirements for the Use of Funds in the HOME-ARP (HUD Notice CPD-21-10)
Attachment C – City of Victorville Citizen Participation Plan Attachment D – Apple Valley / Victorville Consortium Agreement 2 5
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ATTACHMENT A
Resolution No. 22-112
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RESOLUTION NO. 22-112
A RESOLUTION OF THE COUNCIL OF THE CITY OF VICTORVILLE ADOPTING A SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN TO ALLOCATE FEDERAL HOME INVESTMENT PARTNERSHIP – AMERICAN
RESCUE PLAN ACT (HOME-ARP) FUNDS THEREBY APPROVING SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD); AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023; AND
AUTHORIZING THE CITY MANAGER TO SIGN ALL IMPLEMENTING DOCUMENTS
REQUIRED BY HUD
WHEREAS, the U.S. Department of Housing and Urban D evelopment (HUD) requires all jurisdictions that receive federal ent itlement funds to prepare a five-year Consolidated Plan and Annual Action Plans; and
WHEREAS, the City of Victorville’s five year Consol idated Plan (ConPlan) is a comprehensive, long term planning document that focuses limited resources on community needs and priorities, and ensures that the City’s Federally funded programs function in a coordinated manner; and
WHEREAS, an Annual Action Plan is developed by the City each year utilizing available resources to address community needs and meet the goals identified in the Consolidated Plan; and
WHEREAS, the City of Victorville previously adopted a ConPlan in accordance with Federal regulations for program years 2017 – 2021 beginning July 1, 2017, through June 30, 2022; and
WHEREAS, the City of Victorville had previously adopted an Annual Action Plan in accordance with the 2017-2021 ConPlan and Federal regulations for the 2021 – 2022 fiscal year beginning July 1, 2021, through June 30, 2022; and WHEREAS, the City of Victorville is an entitlement City qualified, under the provisions of the Federal Housing and Community Development Act of 1974 (as amended), for Federal assistance in the amount of approximately $1,447,740.00 in Community Development Block Grant Program and approximately $538,967.00 in HOME Investment Partnership Program funds for fiscal year 2021-2022, which had been pre viously allocated in the Fiscal Year 2021-2022 Annual Action Plan; and
WHEREAS, an additional allocation of $1,953,395 was granted to the City of Victorville through the American Rescue Plan Act of 2021, which allocated the subject funds through the Federal Home Investment Partnership – American Rescue Plan Act (HOME-ARP); and
WHEREAS, HOME-ARP funds are required to be allocated through an allocation 2 5
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plan to be included in the Fiscal Year 2021-2022 Annual Action Plan to provide funds for homelessness and supportive services; and
WHEREAS, the proposed Substantial Amendment to the 2021-2022 Annual Action Plan is the allocation plan required by HOME-ARP standards, and is consistent with the City of Victorville’s 2017-2021 ConPlan given that the proposal will meet the national objective of benefiting low- and moderate income persons as well as addressing the stated funding priorities of supportive services for the homeless and at risk of homelessness, as well as human services; and
WHEREAS, the City of Victorville, following public review and comment process specified in the Federal Regulations and in accordance with the City’s Citizen Participation Plan, has prepared a Substantial Amendment to the 2021-2022 Annual Action Plan, which is attached to this Resolution as Exhibit A; and
WHEREAS, during the October 18, 2022, public hearing in accordance with the City’s approved Citizen Participation Plan, the City Counc il considered all public comments received on the draft Substantial Amendment to the 2021-2022 Annual Action Plan; and WHEREAS, the City Council finds that the Substantial Amendment to the 2021-2022 Annual Action Plan will allocate and utilize HOME-A RP funds in accordance with the ConPlan and applicable HUD requirements; and
WHEREAS, the City Council finds that the Substantial Amendment to the 2021-2022 Annual Action Plan will enable the City of Victorville to utilize available HOME-ARP funding to meet the national objective of benefiting low- and moderate income persons and address the stated funding priorities of supportive service s for the homeless and at risk of homelessness, as well as human services as outlined in the 2017-2021 ConPlan; and WHEREAS, the submission of the Substantial Amendment to the 2021-2022 Annual Action Plan will allow the City of Victorville to receive the financial assistance provided for under the Federal Home Investment Partnership – American Rescue Plan Act; and WHEREAS, the City Manager of the City of Victorville did heretofore submit to the City Council an estimate of the expenditures and re venues of the City departments and offices, together with a proposed budget for the fiscal year 2022-2023; and WHEREAS, copies of said budget were prepared and distributed to the City Council, approved by the City Council prior to June 30, 2022 , and have been available for the inspection by the public in the office of the City Clerk of the City of Victorville; and WHEREAS, after preparation of the budget, a need to amend the budget is being recommended to the Council for approval in order to account for $1,953,395 granted to the City of Victorville in conjunction with the Federal Home Investment Partnership – American Rescue Plan Act; and
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WHEREAS, the City Council finds that all materials that constitute the record of proceeding upon which its decision is based shall be located with the City of Victorville Clerk, located at 14343 Civic Drive, Victorville, California; and WHEREAS, after hearing all testimony presented, the City Council votes to approve the Substantial Amendment to the 2021-2022 Annual Action Plan, which is attached to this Resolution as Exhibit A.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals
The recitals set forth above are true and correct and are hereby incorporated by this reference as if set forth in their entirety.
Section 2. Severability
The City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.
Section 3. Effective Date
This Resolution shall take effect immediately upon passage.
Section 4. Certification
The City Clerk shall certify to the passage and adoption of this Resolution.
Section 5. Submission to HUD
The proposed Substantial Amendment to the 2021-2022 Annual Action Plan attached hereto is approved for submission to HUD; and the City Manager, or his or her designee, is hereby authorized by the City Council to make any non-substantial revisions to the subject documents as required by HUD, as well as complete any necessary documentation, including all certifications, funding agreements, and grant application forms contained therein needed to complete submittal of the Substantial Amendment to the 2021-2022 Annual Action Plan to HUD.
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Section 6. Budget Amendment
The City of Victorville’s annual budget for Fiscal Year 2022-2023 shall be amended to reflect additional revenue and expenditures in the amount of $1,953,395 (HOME – City Org. 2823027) in Fiscal Year 2022-2023 Federal HOME allocations; and copies of such amended budget, certified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspection and certified copies thereof shall be made available for use by City departments, offices and subsidiary districts of the City.
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Exhibit A
2021-2022 Annual Action Plan - Substantial Amendment
(HOME-ARP Allocation Plan)
ATTACHMENT B
HUD Notice CPD-21-10
U.S. Department of Housing and Urban Development
Community Planning and Development
Special Attention of:
CPD Division Directors
All HOME Coordinators
All HOME Participating Jurisdictions
Notice: CPD-21-10
Issued: September 13, 2021
Expires: This NOTICE is effective until it is
amended, superseded, or rescinded
Cross Reference: 24 CFR Part 92
Subject: Requirements for the Use of Funds in the HOME-American Rescue Plan Program
Table of Contents
I. PURPOSE ........................................................................................................................ 2 II. BACKGROUND .............................................................................................................. 2 III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS ......................................... 2 IV. QUALIFYING POPULATIONS, TARGETING AND PREFERENCES ................. 3 V. HOME-ARP ALLOCATION PLAN ........................................................................... 12 VI. ELIGIBLE ACTIVITIES ............................................................................................. 18 A. Administration and Planning .................................................................................... 18 B. HOME-ARP Rental Housing..................................................................................... 20 C. Tenant-Based Rental Assistance (TBRA) ................................................................. 38 D. Supportive Services .................................................................................................... 42 E. Acquisition and Development of Non-Congregate Shelter ..................................... 55 F. Nonprofit Operating and Capacity Building Assistance ......................................... 67 VII. OTHER FEDERAL REQUIREMENTS ..................................................................... 68 VIII. PROGRAM ADMINISTRATION .............................................................................. 75 IX. PERFORMANCE REVIEWS ...................................................................................... 95 X. FINDING OF NO SIGNIFICANT IMPACT ............................................................. 97 Appendix – Waivers and Alternative Requirements for HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP)
Nitiatl T ier2st
I. PURPOSE
This Notice establishes requirements for funds appropriated under section 3205 of the American Rescue Plan Act of 2021 (P.L. 117-2) (“ARP”) for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services.
II. BACKGROUND
On March 11, 2021, President Biden signed ARP into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses.
To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through HOME to perform four activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. The program described in this notice for the use of the $5 billion in ARP funds is the HOME-American Rescue Plan or “HOME-ARP.”
ARP defines qualifying individuals or families as those that are (1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) (“McKinney-Vento”); (2) at risk of homelessness, as defined in section 401 of McKinney-Vento; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above.
ARP authorized HUD to allocate HOME-ARP funds to states, units of general local government, insular areas, and consortia of units of general local government that qualified for an allocation of HOME funds in Fiscal Year (FY) 2021, pursuant to section 217 of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (42 U.S.C. 12701 et seq.) (“NAHA”). On April 8, 2021, HUD allocated HOME-ARP funds to 651 grantees using the HOME formula established at 24 CFR 92.50 and 92.60. The HOME-ARP allocation amounts can be found here.
III. ESTABLISHMENT OF HOME-ARP REQUIREMENTS
ARP provides funds for homelessness and supportive services assistance under the HOME statute of Title II of NAHA (42 U.S.C. 12721 et seq.) and authorizes the Secretary of HUD to waive or specify alternative requirements for any provision of NAHA or regulation for the administration of the HOME-ARP program, except requirements related to fair housing, civil rights, nondiscrimination, labor standards, and the environment, upon a finding that the waiver 3 or alternative requirement is necessary to expedite or facilitate the use of HOME-ARP funds.
Pursuant to ARP, the per-unit cost limits (42 U.S.C. 12742(e)), commitment requirements (42 U.S.C. 12748(g)), matching requirements (42 U.S.C. 12750), and set-aside for housing developed, sponsored, or owned by community housing development organizations (CHDOs) (42 U.S.C. 12771) in NAHA do not apply to HOME-ARP funds.
This Notice describes the requirements applicable to a participating jurisdiction’s (PJ’s) use of HOME-ARP funds. Consolidated plan requirements for HOME are in title I of NAHA and 24 CFR part 91. HOME program regulations are in 24 CFR part 92. Except as described in ARP and this Notice, HOME statutory and regulatory provisions apply to a PJ’s use of HOME-ARP funds. Sections I-IX of this Notice describe the HOME-ARP requirements imposed on a PJ for the use of HOME-ARP funds to assist the qualifying populations through HOME-ARP projects or activities. The Appendix describes the waivers and alternative requirements imposed on PJs for the use of HOME-ARP funds and is included in any reference to “this Notice.” Specific citations in the Notice shall mean the statute or regulation cited, as may be revised by the Appendix to this Notice. PJs and insular areas must comply with all applicable statutory, regulatory, and alternative requirements, as described in this Notice, including the Appendix.
IV. QUALIFYING POPULATIONS, TARGETING AND
PREFERENCES
ARP requires that funds be used to primarily benefit individuals and families in the following specified “qualifying populations.” Any individual or family who meets the criteria for these populations is eligible to receive assistance or services funded through HOME-ARP without meeting additional criteria (e.g., additional income criteria). All income calculations to meet income criteria of a qualifying population or required for income determinations in HOME- ARP eligible activities must use the annual income definition in 24 CFR 5.609 in accordance with the requirements of 24 CFR 92.203(a)(1).
A. Qualifying Populations
1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3):
(1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
(i) An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground;
(ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or 4 (iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution;
(2) An individual or family who will imminently lose their primary nighttime residence, provided that:
(i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;
(ii) No subsequent residence has been identified; and
(iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks needed to obtain other permanent housing; (3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:
(i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a);
(ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance;
(iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and
(iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment;
2. At risk of Homelessness, as defined in 24 CFR 91.5 At risk of homelessness:
(1) An individual or family who:
5 (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD;
(ii) Does not have sufficient resources or support networks, e.g., family, friends, faith- based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the “Homeless” definition in this section; and
(iii) Meets one of the following conditions:
(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low- income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan;
(2) A child or youth who does not qualify as “homeless” under this section, but qualifies as “homeless” under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(l) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(l)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or
(3) A child or youth who does not qualify as “homeless” under this section but qualifies as “homeless” under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 6 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him.
3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD.
For HOME-ARP, this population includes any individual or family who is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. This population includes cases where an individual or family reasonably believes that there is a threat of imminent harm from further violence due to dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return or remain within the same dwelling unit. In the case of sexual assault, this also includes cases where an individual reasonably believes there is a threat of imminent harm from further violence if the individual remains within the same dwelling unit that the individual is currently occupying, or the sexual assault occurred on the premises during the 90-day period preceding the date of the request for transfer.
Domestic violence, which is defined in 24 CFR 5.2003 includes felony or misdemeanor crimes of violence committed by:
1) A current or former spouse or intimate partner of the victim (the term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship); 2) A person with whom the victim shares a child in common; 3) A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner;
4) A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving HOME-ARP funds; or 5) Any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction.
Dating violence which is defined in 24 CFR 5.2003 means violence committed by a person:
1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and
2) Where the existence of such a relationship shall be determined based on a consideration of the following factors:
a. The length of the relationship;
b. The type of relationship; and
c. The frequency of interaction between the persons involved in the relationship.
7 Sexual assault which is defined in 24 CFR 5.2003 means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent.
Stalking which is defined in 24 CFR 5.2003 means engaging in a course of conduct directed at a specific person that would cause a reasonable person to:
1) Fear for the person’s individual safety or the safety of others; or 2) Suffer substantial emotional distress.
Human Trafficking includes both sex and labor trafficking, as outlined in the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7102).
These are defined as:
1) Sex trafficking means the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or
2) Labor trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.
4. Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above but meet one of the following criteria:
(1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness is defined as households (i.e., individuals and families) who have previously been qualified as “homeless” as defined in 24 CFR 91.5, are currently housed due to temporary or emergency assistance, including financial assistance, services, temporary rental assistance or some type of other assistance to allow the household to be housed, and who need additional housing assistance or supportive services to avoid a return to homelessness.
(2) At Greatest Risk of Housing Instability is defined as household who meets either paragraph (i) or (ii) below:
(i) has annual income that is less than or equal to 30% of the area median income, as determined by HUD and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs);
8 (ii) has annual income that is less than or equal to 50% of the area median income, as determined by HUD, AND meets one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5:
(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 persons reside per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan
Veterans and Families that include a Veteran Family Member that meet the criteria for one of the qualifying populations described above are eligible to receive HOME-ARP assistance.
B. Use of Funds to Benefit Qualifying Populations
ARP states that funds must be used to primarily benefit the qualifying populations through the four eligible activities: (1) TBRA, (2) development and support of affordable housing, (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter (NCS) units. Recognizing the urgent needs of individuals and families in qualifying populations, HUD is requiring that:
100% of HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units must benefit individuals and families in qualifying populations. Individuals and families in qualifying populations may be assisted by one or more of the HOME-ARP eligible activities, consistent with the requirements in this Notice.
Not less than 70 percent of affordable rental housing units acquired, rehabilitated, or constructed with HOME-ARP funds by a PJ must be occupied by households in the qualifying populations. Units that are not restricted to occupancy by qualifying populations are subject to income targeting and rent requirements established under the 9 HOME-ARP Rental Program rules and are only permitted in projects with rental units restricted for occupancy by qualifying populations.
HUD recognizes that, because many households in the qualifying populations are unable to pay rents sufficient to cover unit operating costs, PJs and project owners should attempt to obtain Federal or state project-based rental subsidies, if available. Since project-based rental subsidies can be difficult to secure, additional flexibility may be necessary to structure and underwrite projects so that they remain both affordable and financially viable. HUD is providing PJs with additional flexibilities in Section VI.B. to structure and underwrite HOME-ARP rental projects so they remain financially viable during the minimum compliance period. One of these flexibilities is permitting up to 30 percent of HOME-ARP rental housing units funded by a PJ to be occupied by low-income households. PJs are encouraged to use this flexibility only when it is required to facilitate development of a HOME-ARP rental project.
PJs must determine and document that households meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to these populations, that households are low-income.
C. Preferences Among Qualifying Populations, Referral Methods, and Subpopulations
1. Preferences
ARP establishes the qualifying populations that are eligible for assistance with HOME-ARP funds. A PJ may establish reasonable preferences among the qualifying populations to prioritize applicants for HOME-ARP projects or activities based on the PJ’s needs and priorities, as described in its HOME-ARP allocation plan. For example, a PJ may set a preference among qualifying individuals and families for a HOME-ARP non-congregate shelter for individuals and families who are homeless; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and veterans and families with a veteran family member that meet the criteria of one of these prior qualifying populations, consistent with its HOME-ARP allocation plan.
The PJ must comply with all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a) when applying preferences through its referral methods. Persons who are eligible for a preference must have the opportunity to participate in all HOME-ARP activities of the PJ in which they are eligible under this Notice, including activities that are not separate or different, and cannot be excluded because of any protected characteristics or preferential status.
Targeted assistance: If HOME-ARP funds are used for TBRA, the PJ may establish a preference for individuals with special needs or persons with disabilities among the HOME- ARP qualifying populations. Within the qualifying populations, participation may be limited to persons with a specific disability only, if necessary, to provide effective housing, aid, benefit, or services that would be as effective as those provided to others in accordance with 24 CFR
8.4(b)(1)(iv). The PJ may also provide a preference for a specific category of individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) within the qualifying 10 populations only if the specific category is identified in the PJ’s HOME-ARP allocation plan as having unmet need and the preference is needed to narrow the gap in benefits and services received by such persons.
2. Referral Methods for Projects or Activities
A PJ may use the referral methods described below to administer HOME-ARP assistance to qualifying individuals and families. Regardless of the referral method used by the PJ, HUD holds the PJ responsible for determining and documenting that beneficiaries meet the definition of a qualifying population or, for the portion of HOME-ARP rental units not restricted to qualifying populations, that beneficiaries are low-income.
A PJ may use the coordinated entry or coordinated entry process (CE) of a continuum of care (CoC) for referrals for projects and activities as described below. Under 24 CFR 578.3, a CE is a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals within a defined area. HUD requires each CoC to establish and operate a CE with the goal of increasing the efficiency of local crisis response systems and improving fairness and ease of access to resources, including mainstream resources. A PJ may permit a CoC CE to collect information and documentation required to determine whether an individual or family meets the criteria of a HOME-ARP qualifying population at any point in the coordinated entry process, (i.e., after or concurrently with the assessment and intake processes) as long as that information is not used to rank a person for HOME-ARP assistance other than as specified by the preferences or method of prioritization established by the PJ, in accordance with HOME-ARP requirements. If the PJ uses CE, the PJ cannot require HOME- ARP victim service providers to use the CE but may permit them to do so.
The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when using the following referral methods:
i. Use of Expanded CE in HOME-ARP
Under this referral method, a PJ may use a CE established by a CoC operating within its boundaries for one or more projects or activities if the CE accepts all HOME-ARP qualifying populations eligible for those activities or projects, in accordance with the preferences and prioritization, if any, established or approved by the PJ in its HOME-ARP allocation plan and imposed through the PJ’s written agreements.
Before using a CoC’s CE, PJs should consider whether the CE covers the same service area as the HOME-ARP project or activity that would use that CE. At a minimum, the PJ must establish policies and procedures that describe the relationship of the geographic area(s) served by the project or activity to the geographic area(s) covered by the CoC CE and address how the CE will provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE.
11 The PJ must require a project or activity to use CE along with other referral methods (as provided in section ii below) or to use only a project/activity waiting list (as provided in section iii below) if:
1. the CE does not have a sufficient number of qualifying individuals and families to refer to the PJ for the project or activity;
2. the CE does not include all HOME-ARP qualifying populations; or,
3. the CE fails to provide access and implement uniform referral processes in situations where a project’s geographic area(s) is broader than the geographic area(s) covered by the CE.
ii. Use of CE with Other Referral Methods
The PJ may use a CoC CE with additional referrals from outside organizations or project- specific waiting lists consistent with HOME-ARP requirements. If using this referral method, the PJ must establish or approve any preferences or prioritization criteria applied by a CoC CE or other referral sources. The PJ may also use a waiting list to receive referrals from a CoC CE and other referral agencies for a project or activity, where a CoC CE or referral agency refers an applicant that is placed on the waiting list for that project or activity in chronological order.
If applicable, a PJ must establish policies and procedures for applying a PJ’s established preferences and method of prioritization, if any, when accepting direct referrals from a CoC CE and other referral agencies and must document that such the policies and procedures were followed for each applicant served.
iii. Use of a Project/Activity Waiting List
The PJ may establish a waiting list for each HOME-ARP project or activity. All qualifying individuals or families must have access to apply for placement on the waiting list for an activity or project. Qualifying individuals or families on a waiting list must be accepted in accordance with the PJ’s preferences, if any, consistent with this Notice or, if the PJ did not establish preferences, in chronological order, insofar as practicable.
3. Limiting Eligibility to Subpopulations
PJs must follow all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). This includes, but is not limited to, the Fair Housing Act, Title VI of the Civil Rights Act, section 504 of Rehabilitation Act, HUD’s Equal Access Rule, and the Americans with Disabilities Act, as applicable.
HOME-ARP rental housing or NCS may be limited to a specific subpopulation of a qualifying population identified in Section IV.A. of this Notice, so long as admission does not discriminate against any protected class under federal nondiscrimination laws in 24 CFR 5.105 (e.g., the housing may be limited to homeless households and at risk of homelessness households, 12 veterans and their families, victims of domestic violence, dating violence, sexual assault, stalking or human trafficking and their families).
Recipients may limit admission to or provide a preference for HOME-ARP rental housing or NCS to households who need the specialized supportive services that are provided (e.g., domestic violence services). However, no otherwise eligible individuals with disabilities or families including an individual with a disability who may benefit from the services provided may be excluded on the grounds that they do not have a particular disability.
Consistent with the statutory authority under ARP, HOME-ARP NCS may be converted to permanent housing under the CoC program or used as shelters under the ESG program, when all program and fair housing and nondiscrimination requirements are met. As such, HOME-ARP NCS may need to limit eligibility to households that are homeless and/or at risk of homelessness if the shelter will be converted to permanent housing under the CoC program or used as an emergency shelter in the ESG program.
V. HOME-ARP ALLOCATION PLAN
PJs develop annual action plans as part of their application for HOME funding. To receive its HOME-ARP funds, a PJ must engage in consultation and public participation processes and develop a HOME-ARP allocation plan that meets the requirements established in this section of the Notice and submit it to HUD as a substantial amendment to its Fiscal Year 2021 annual action plan. HUD is using the waiver and alternative requirement authority provided by ARP to establish requirements for the HOME-ARP allocation plan in this Notice. The HOME-ARP allocation plan must describe how the PJ intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations. A PJ’s HOME-ARP allocation plan must include:
A summary of the consultation process and results of upfront consultation; A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why; A description of HOME-ARP qualifying populations within the jurisdiction; An assessment of unmet needs of each qualifying population; An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system; A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and
A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population.
All the above required elements of the HOME-ARP allocation plan shall be part of the FY 2021 annual action plan for purposes of the HOME-ARP program. Consequently, PJs are not required to amend their consolidated plans.
13 A. Consultation
Before developing its HOME-ARP allocation plan, a PJ must consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in housing or service delivery systems. In addition, a PJ should use consultation to determine the HOME-ARP eligible activities currently taking place within its jurisdiction and potential collaborations for administering HOME-ARP. This consultation will provide a basis for the PJ’s strategy for distributing HOME-ARP funds for eligible activities to best meet the needs of qualifying populations. At a minimum, a PJ must consult with the CoC(s) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. State PJs are not required to consult with every PHA or CoC within the state’s boundaries; however, local PJs must consult with all PHAs (including statewide or regional PHAs) and CoCs serving the jurisdiction. In its plan, a PJ must describe its consultation process, list the organizations consulted, and summarize the feedback received from these entities.
B. Public Participation
PJs must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submitting the HOME-ARP allocation plan to HUD, PJs must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The PJ must follow its adopted requirements for “reasonable notice and an opportunity to comment” for plan amendments in its current citizen participation plan. In addition, PJs must hold at least one public hearing during the development of the HOME-ARP allocation plan prior to submitting the plan to HUD.
For the purposes of HOME-ARP, PJs are required to make the following information available to the public:
The amount of HOME-ARP funds the PJ will receive.
The range of activities the PJ may undertake.
A PJ must consider any comments or views of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. In its plan, a PJ must describe its public participation process, including any efforts made to broaden public participation. In its plan, the PJ must also include a summary of comments and recommendations received through the public participation process and any comments or recommendations not accepted and the reasons why.
Throughout the HOME-ARP allocation plan public participation process, the PJ must follow its applicable fair housing and civil rights requirements and procedures for effective communication, accessibility and reasonable accommodation for persons with disabilities and providing meaningful access to participation by limited English proficient (LEP) residents that are in its current citizen participation plan as required by 24 CFR 91.105 and 91.115.
14 C. HOME-ARP Allocation Plan Requirements
The HOME-ARP allocation plan must describe the distribution of HOME-ARP funds and the process for soliciting applications and/or selecting eligible projects. The plan must also identify any preferences being established for eligible activities or projects. However, PJs are not required to identify specific projects that will be funded in the HOME-ARP allocation plan.
1. Needs Assessment and Gaps Analysis: A PJ must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, a PJ must identify any gaps within its current shelter and housing inventory as well as the service delivery system. A PJ should use current data, including point in time count, housing inventory count, or other data available through CoCs, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services. A PJ should identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing. A PJ must consider the housing and service needs of qualifying populations, including but not limited to:
Sheltered and unsheltered homeless populations;
Those currently housed populations at risk of homelessness; Other families requiring services or housing assistance to prevent homelessness; and Those at greatest risk of housing instability or in unstable housing situations.
A PJ should include data in its HOME-ARP allocation plan that describes the qualifying populations.
In addition, a PJ must include a narrative description that:
Identifies the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions under HUD’s definition of “other populations” as established in Section IV.A.4.2.ii.G. of this Notice. Identifies the PJ’s priority needs for qualifying populations; and, Explains how the PJ determined the level of need and gaps in its shelter and housing inventory and service delivery systems.
2. HOME-ARP Activities: The HOME-ARP allocation plan must describe how a PJ will distribute HOME-ARP funds in accordance with its priority needs. The plan must describe the PJ’s method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly. If the PJ will provide any portion of its HOME-ARP administrative funds to a subrecipient or contractor prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, the plan must identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program.
PJs must indicate in the HOME-ARP allocation plan the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type, including administrative and 15 planning activities. In addition, a PJ must demonstrate that any planned funding for nonprofit organization operating assistance, as described in Section VI.F, nonprofit capacity building, and administrative costs is within HOME-ARP limits. PJs must also include a narrative description about how the characteristics of its shelter and housing inventory, service delivery system, and the needs identified in the PJ’s gap analysis provided a rationale for its plan to fund eligible activities.
3. HOME-ARP Production Housing Goals: The HOME-ARP allocation plan must estimate the number of affordable rental housing units for qualifying populations that a PJ will produce or support with its HOME-ARP allocation. The plan must also include a narrative about the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs.
4. Preferences: The HOME-ARP allocation plan must identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project. For example, PJs may include a preference for:
homeless individuals and families as defined in the ESG and CoC programs; individuals with special needs or persons with disabilities among qualifying individuals and families;
a specific category of qualifying individuals and families (e.g., chronically homeless as defined in 24 CFR 91.5).
PJs are not required to describe specific projects to which the preferences will apply in the HOME-ARP allocation plan. However, a PJ must explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis. The PJ must also describe how it will still address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in a preference through the use of HOME- ARP funds.
Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).
The PJ must comply with all applicable nondiscrimination and equal opportunity laws and requirements listed in 24 CFR 5.105(a) and any other applicable fair housing and civil rights laws and requirements when establishing preferences or methods of prioritization.
5. HOME-ARP Refinancing Guidelines: If a PJ intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being rehabilitated with HOME-ARP funds, it must state its refinancing guidelines in accordance with 24 CFR
92.206(b)(2). The guidelines must describe the conditions under with the PJ will refinance existing debt for a HOME-ARP rental project. At a minimum, the guidelines must:
Establish a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity.
16 Require a review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified populations for the minimum compliance period can be demonstrated.
State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both.
Specify whether the required compliance period is the minimum 15 years or longer. State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG.
6. Substantial Amendments to the HOME-ARP Allocation Plan: PJs must make a substantial amendment to the HOME-ARP allocation plan for changes in the method of distributing funds; to carry out an activity not previously described in the plan; or, to change the purpose, scope, location, or beneficiaries of an activity, including new preferences not previously described in the plan. In addition, the requirements for substantial amendments at 24 CFR 92.63 apply to the HOME-ARP allocation plan for insular areas. PJs are not required to make a substantial amendment to describe individual projects selected for funding if the eligible activity is included in the PJ’s plan. PJs must make the proposed substantial amendment public and provide for a 15-day public comment period prior to submission. Upon completion of the public comment period, PJs must submit substantial amendments to HUD in accordance with the process for submitting the HOME-ARP allocation plan as described in Section V.D.
7. Certifications and SF-424: PJs must submit the required certifications in accordance with the requirements in this Notice, including the following:
a. Affirmatively Further Fair Housing;
b. Uniform Relocation Assistance and Real Property Acquisition Policies Act and Anti- displacement and Relocation Assistance Plan;
c. Anti-Lobbying;
d. Authority of Jurisdiction;
e. Section 3; and,
f. HOME-ARP specific certification that a PJ will only use HOME-ARP funds consistent with ARP and the HOME-ARP Notice for eligible activities and eligible costs.
PJs must also submit the SF-424, SF-424B, and SF-424D with the HOME-ARP allocation plan.
D. Submission and Review Process
1. HOME-ARP Submission and the eCon Planning Suite: Upon completion of the HOME- ARP allocation plan, a PJ must submit the HOME-ARP allocation plan to HUD. To submit the HOME-ARP allocation plan, PJs must follow the process in IDIS to make an amendment to the Fiscal Year (FY) 2021 annual action plan. Once the FY 2021 annual action plan is reopened, a PJ must upload a Microsoft Word or PDF version of the plan as an attachment next to the “HOME-ARP allocation plan” option on the AD-26 screen (for 17 PJs whose FY. 2021 annual action plan is a Year 2-5 annual action plan) or the AD-25 screen (for PJs whose FY 2021 annual action plan is a Year 1 annual action plan that is part of the 2021 consolidated plan), unless instructed by HUD to follow a different submission procedure. PJs are not required to make any other edits to the FY 2021 annual action plan or applicable consolidated plan screens in the eCon Planning Suite. For more information on how to upload an attachment in the eCon Planning Suite, PJs can refer to the eCon Planning Suite Desk Guide.
2. HUD Review of the HOME-ARP Allocation Plan: The PJ must submit its HOME-ARP allocation plan to HUD for review in accordance with 24 CFR 91.500, as revised by this Notice. Unless instructed otherwise by HUD, the HOME-ARP allocation plan is received by HUD when the SF-424 is submitted electronically, which means that it is uploaded in the eCon Planning Suite as an attachment on AD-25 or AD-26 screen, as applicable, and the action plan status is changed to “Submitted for Review.” HUD will review a PJ’s HOME- ARP allocation plan to determine that it is:
Substantially complete, and
Consistent with the purposes of ARP.
HUD may disapprove a PJ’s HOME-ARP allocation plan in accordance with 24 CFR
91.500(b). HUD may also disapprove a HOME-ARP allocation plan or a portion of a plan if HUD determines that the plan is inconsistent with the purposes of ARP or substantially incomplete. A PJ’s plan is inconsistent with ARP if it allocates HOME-ARP funds for uses other than a HOME-ARP eligible activity, as described in this Notice. A PJ’s HOME-ARP allocation plan is substantially incomplete if:
The PJ does not complete the required public participation or consultation or fails to describe those efforts in the plan;
The PJ fails to include the required elements outlined in this Notice, including the amount of HOME-ARP funds for each eligible HOME-ARP activity type; The PJ fails to identify and describe the responsibilities of the subrecipient or contractor administering all of its HOME-ARP award, if applicable; or, HUD rejects the PJ’s HOME-ARP certification as inaccurate.
In accordance with section 105(c) of NAHA (42 U.S.C. 12705(c)) and 24 CFR 91.500(a), if the PJ’s HOME-ARP allocation plan is not disapproved within 45 days, then the plan is deemed approved 45 days after HUD receives the plan, and HUD shall notify the PJ that the plan is accepted.
If HUD determines that the plan is substantially incomplete or that the plan is inconsistent with ARP, HUD will notify the PJ in writing with the reasons for disapproval, in accordance with 24 CFR 91.500(c). If a PJ’s plan is disapproved, the PJ may revise or resubmit the plan for HUD review within 45 days after the first notification of disapproval. HUD will respond to accept or disapprove the resubmitted plan within 30 days of receiving the revisions or resubmission.
Once HUD notifies a PJ that the plan is accepted, the PJ must make the final HOME-ARP allocation plan available to the public in accordance with the same requirements in the PJ’s 18 current citizen participation plan that are followed to make the PJ’s adopted consolidated plan and substantial amendments available to the public, including the availability of materials in a form accessible to persons with disabilities, and translated materials in different languages to accommodate LEP persons, upon request.
3. HUD Review of the HOME-ARP Allocation Plan for Insular Areas: In addition to the standards for review described in Section V.D.2, HUD will review an insular area’s HOME- ARP allocation plan in accordance with 24 CFR 92.62. If HUD cannot make a determination based on the information submitted that the HOME-ARP allocation plan complies with HOME-ARP allocation plan requirements, or if the eligible activities described in the plan are not within the insular area’s management capability as demonstrated by past performance in housing and community development programs, HUD will notify the insular area within 30 days of receipt of the HOME-ARP allocation plan that supporting documentation is needed. The insular area will have a mutually agreed upon period to submit the necessary supporting information or to revise the eligible activities in its HOME-ARP allocation plan.
VI. ELIGIBLE ACTIVITIES
A. Administration and Planning
The PJ may expend, for payment of reasonable administrative and planning costs, up to 15 percent of its HOME-ARP allocation. Reasonable administrative and planning costs for the HOME-ARP program include:
1. Reasonable costs of overall HOME-ARP program management, coordination, monitoring, and evaluation. Such HOME-ARP costs include, but are not limited to, necessary expenditures for the following:
a. Salaries, wages, and related costs of the PJ’s staff. If a PJ charges costs to this category, the PJ may either include the entire salary and related costs allocable to the HOME-ARP program of each person whose primary responsibilities with regard to the HOME-ARP program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administrative assignments. A PJ may only use one of these two methods. Program administration includes:
i. Developing systems and schedules for complying with HOME-ARP program requirements, including systems to prevent a duplication of benefits among beneficiaries of HOME-ARP activities;
ii. Developing interagency agreements and agreements with entities receiving HOME-ARP funds;
iii. Monitoring HOME-ARP activities for progress and compliance with HOME- ARP program requirements;
iv. Preparing HOME-ARP reports and other documents related to the HOME-ARP program for submission to HUD;
19 v. Coordinating the resolution of audit and monitoring findings on HOME-ARP activities;
vi. Evaluating HOME-ARP program results against stated objectives in the HOME- ARP allocation plan, and
vii. Managing or supervising persons whose primary responsibilities with regard to the HOME-ARP program include such assignments as those described above.
b. Travel costs incurred for official business in carrying out the HOME-ARP program.
c. Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services.
d. Other costs for goods and services required for administering the HOME-ARP program, such as: rental or purchase of equipment, insurance, information systems necessary to track and implement beneficiaries of HOME-ARP activities in accordance with the requirements of this Notice, utilities, office supplies, and rental and maintenance (but not purchase) of office space.
e. Costs of administering HOME-ARP TBRA and HOME-ARP supportive services programs.
2. Staff and overhead costs of the PJ directly related to carrying out a HOME-ARP project, in accordance with 24 CFR 92.207(b).
3. The provision of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of projects being assisted with HOME-ARP funds.
4. Activities to affirmatively further fair housing (AFFH) in accordance with 24 CFR 5.151 and the PJ’s certification as required under this Notice and 24 CFR 5.152. The AFFH definition in HUD’s Interim Final Rule entitled, “Restoring Affirmatively Furthering Fair Housing Definitions and Certifications” (86 FR 30779, June 10, 2021), as amended, at 24 CFR 5.151, and the AFFH certification requirement, at 24 CFR 5.152, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring-affirmatively- furthering-fair-housing-definitions-and-certifications.
5. Indirect costs may be charged to the HOME-ARP program under a cost allocation plan prepared in accordance with 2 CFR part 200, subpart E, as amended.
6. Preparation of the HOME-ARP allocation plan as required in this Notice. Preparation includes the costs of public hearing, consultations, and publications.
7. Costs of complying with the applicable Federal requirements in 24 CFR part 92, subpart H.
Project-specific environmental review costs may be charged as administrative or project costs in accordance with 24 CFR 92.206(d)(8) and is at the discretion of the PJ. 20 Funds available under the HOME-ARP appropriation for administration and planning may not be used to pay costs attributable to the regular HOME Program.
PJs may provide all or a portion of its HOME-ARP administrative funds to subrecipients and contractors that are administering activities on behalf of the PJ (e.g., CoC entity, other non- Federal entity), in accordance with the requirements in this Notice. However, from the obligation date of the HOME-ARP funds in the HOME-ARP Grant Agreement and prior to HUD’s acceptance of the PJ’s HOME-ARP allocation plan, a subrecipient or contractor to the PJ may only incur and expend HOME-ARP funds for eligible administrative and planning costs if the subrecipient or contractor is responsible for the use of the PJ’s entire HOME-ARP award and has executed a HOME-ARP written agreement that complies with 24 CFR 92.504 and this Notice. The PJ must also identify the subrecipient or contractor administering the PJ’s entire HOME-ARP award and describe the subrecipient or contractor’s responsibilities in the PJ’s HOME-ARP allocation plan.
All costs must comply with the Cost Principles contained in subpart E of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200, as amended (Uniform Administrative Requirements).
Once HUD obligates the HOME-ARP funds, as described in Section VIII.C.2 of this Notice, the PJ may incur and expend up to 5 percent of its HOME-ARP allocation on eligible administrative and planning costs, as described in this section and 24 CFR 92.207. Before HUD’s acceptance of the PJ’s HOME-ARP allocation plan, the PJ is only permitted to incur and expend HOME-ARP funds on eligible administrative and planning costs.
If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, all HOME-ARP administrative and planning costs incurred by the PJ will be ineligible costs and any HOME-ARP funds expended by the PJ must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance issued by HUD. Moreover, if the PJ’s HOME-ARP allocation plan does not identify or include a description of the responsibilities of the subrecipient or contractor that is responsible for the PJ’s entire HOME-ARP award, if applicable, the administrative and planning costs incurred or expended by the subrecipient or contractor will also be ineligible and any HOME-ARP funds expended by the PJ’s subrecipient or contractor must be repaid to the PJ’s HOME Investment Trust Fund Treasury account, in accordance with guidance from HUD.
B. HOME-ARP Rental Housing
HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the qualifying populations described in Section IV.A of this Notice (“qualifying households”). Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, 70 percent of all HOME-ARP units will admit households based only upon their status as qualifying households. This complicates the underwriting and operation of projects that include HOME-ARP units. As a result, the requirements for HOME-ARP rental housing provide significant flexibilities to enable HOME-ARP rental projects to remain 21 financially viable and affordable for the qualifying populations throughout the minimum compliance period.
Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. Emergency shelters, hotels, and motels (including those currently operating as non-congregate shelter), facilities such as nursing homes, residential treatment facilities, correctional facilities, halfway houses, and housing for students or dormitories do not constitute housing in the HOME-ARP program. However, HOME-ARP funds may be used to acquire and rehabilitate such structures into HOME-ARP rental housing.
Developing financially feasible rental housing for qualifying households is challenging in the absence of project-based rental assistance. Most HOME-assisted rental projects rely on tenant rents to cover all or a portion of the debt service and project operating costs. Most HOME-ARP qualifying households will be unable to pay a rent that covers allocated debt service or operating costs, requiring PJs to use other techniques to determine that HOME-ARP units are affordable and that projects containing HOME-ARP units are sustainable throughout the minimum compliance period. PJs are encouraged to work with local PHAs and other state or local agencies to obtain project-based rental assistance for units funded with HOME-ARP. In the absence of such project-based rental assistance, the HOME-ARP units for qualifying households may require substantial capital investment through HOME-ARP and other Federal, state, local, or private sources to eliminate debt service on the units. ARP suspended the maximum per-unit subsidy limit for HOME-ARP units, enabling HOME-ARP funds to pay the entire cost to acquire, rehabilitate and/or construct the HOME-ARP rental units, eliminating the need for the HOME-ARP units to support debt. In mixed-income developments, revenue from market rate or higher income-restricted units may also provide an internal subsidy to cover a portion of the operating costs of HOME-ARP units.
To address these challenges and maintain affordability, HUD is using its HOME-ARP statutory authority to:
Establish alternative rent requirements to 24 CFR 92.252(b) and extend an owner’s ability to charge the maximum rent permissible under a rental assistance program (to units occupied by recipients of tenant-based rental assistance (e.g., Housing Choice Vouchers, HOME TBRA, HOME-ARP TBRA).
Establish a minimum compliance period of 15 years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed.
Permit the use of HOME-ARP funds to provide ongoing operating cost assistance or capitalize a project operating cost assistance reserve to address operating deficits of the HOME-ARP units restricted for qualifying households during the compliance period. Allow not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ to be restricted to households that are low-income as defined in 24 CFR 92.2 (“low-income households”). These units may only be located in projects containing HOME-ARP units restricted for qualifying households. The HOME-ARP rental units occupied by low-income households must operate under the regulations applicable to HOME rental units at 24 CFR 92.252 (i.e., be occupied by low-income 22 households and bearing a rent not greater than the lesser of a. the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or b. a rent equal to 30 percent of the adjusted income of a family with annual income at 65 percent of median income for the area, as determined by HUD, with adjustments for the number of bedrooms in the unit).
1. Targeting and Occupancy Requirements: ARP requires HOME-ARP activities to primarily benefit households in the qualifying populations. To improve the feasibility and maintain the long-term viability of projects with HOME-ARP rental units for qualifying households, a PJ may invest HOME-ARP funds in units that are not restricted for occupancy solely for qualifying populations as described in this section. Specifically, participating jurisdictions must comply with the following requirements:
a. Targeting: HOME-ARP funds can only be invested in units restricted for qualifying households or low-income households as follows:
i. Not less than 70 percent of the total number of rental units assisted with HOME- ARP funds by the PJ must be restricted for occupancy by households that are qualifying households at the time of the household’s initial occupancy; and,
ii. Not more than 30 percent of the total number of rental units assisted with HOME- ARP funds by the PJ may be restricted to low-income households. These rental units do not have to be restricted for occupancy by qualifying households, however rental units restricted to low-income households are only permitted in projects that include HOME-ARP units for qualifying households.
b. Occupancy Requirements:
i. Qualifying Households. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. A qualifying household after admission retains its eligibility to occupy a HOME-ARP rental unit restricted for qualifying populations, irrespective of the qualifying household’s changes in income or whether the household continues to meet the definition of a qualifying population.
As such, a unit restricted for a qualifying household remains in compliance with the HOME-ARP unit restriction as long as the unit is occupied by a qualifying household that met the definition of a qualifying population at the time of admission.
ii. Low-Income Households. At initial occupancy, units restricted for low-income households must be occupied by households that meet the definition of low-income in 24 CFR 92.2. If a tenant’s income increases above the applicable low-income limit during the compliance period, the unit will be considered temporarily out of compliance. Noncompliance requires the PJ to take action in accordance with the rent and unit mix requirements in Sections VI.B.15 and VI.B.17 of this Notice, respectively.
23 2. Eligible Activities: A PJ may use HOME-ARP funds for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in Section VI.B. of this Notice. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2.
HOME-ARP funds may be used to assist one or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program.
Cost allocation in accordance with 24 CFR 92.205(d)(1) is required if the assisted and non- assisted units are not comparable. After project completion, the number of HOME-ARP units in a project cannot be reduced. During the HOME-ARP minimum compliance period and prior to the end of the HOME-ARP budget period, a PJ may invest additional HOME- ARP funds to provide operating cost assistance but is prohibited from investing additional HOME-ARP funds for capital costs except within the 12 months after project completion.
A qualifying household admitted to a HOME-ARP rental unit may still receive HOME-ARP supportive services or TBRA in accordance with the requirements in this Notice.
3. Forms of Assistance: The PJ may invest HOME-ARP funds in accordance with the eligible forms of assistance described in 24 CFR 92.205(b). Each PJ has the right to establish the terms of assistance, subject to the HOME-ARP requirements described in this Notice.
4. Minimum Amount of Assistance: The minimum amount of HOME-ARP funds that must be invested in a rental housing project is $1,000 times the number of HOME-ARP-assisted units in the project as established in 24 CFR 92.205(c).
5. Eligible Costs: HOME-ARP funds may be used to pay for up to 100% of the following eligible costs associated with the acquisition, development, and operation of HOME-ARP rental units:
a. Development hard costs – defined in 24 CFR 92.206(a).
b. Refinancing – the cost to refinance existing debt secured by a rental project that is being rehabilitated with HOME-ARP funds in accordance with 24 CFR 92.206(b)(2) and the PJ’s HOME-ARP refinancing guidelines, as stated in their HOME-ARP Allocation Plan.
c. Acquisition – the costs of acquiring improved or unimproved real property.
d. Related soft costs – defined in 24 CFR 92.206(d).
e. Relocation costs – as defined in 24 CFR 92.206(f), 24 CFR 92.353, and described in this Notice.
f. Costs relating to payment of loans – If the HOME-ARP funds are not used to directly pay a cost specified in this HOME-ARP rental housing section, but are used to pay off a 24 construction loan, bridge financing loan, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost only if: (1) the loan was used for eligible costs specified in this HOME-ARP rental housing section, and (2) the HOME-ARP funds are part of the original financing for the project and the project meets the requirements of this Notice.
g. Operating Cost Assistance – A PJ may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the PJ determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long-term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the PJ to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period.
The operating cost assistance reserve for HOME-ARP units for qualifying households must be held by the project owner in a separate interest-bearing account and sized, based on an analysis of projected deficits remaining after the expected payments toward rent by qualifying households are applied to the units’ share of operating costs. Funds in a capitalized operating cost assistance reserve can only be drawn to address operating deficits associated with HOME-ARP units restricted for occupancy by the qualifying populations. A PJ must use the definition of operating costs in this Notice in its calculation of operating deficits to determine the amount of HOME-ARP funds needed for an operating cost assistance reserve or when providing operating cost assistance.
Unexpended operating cost assistance reserve amounts remaining at the end of the minimum compliance period must be returned in accordance with Section VI.B.24 of this Notice.
A PJ may provide operating cost assistance to a HOME-ARP rental project to cover an operating deficit associated with HOME-ARP units restricted for occupancy by qualifying households except for when an operating cost assistance reserve is already established for the project. Operating cost assistance committed to a project cannot be provided beyond the HOME-ARP budget period, as described in Section VIII.C.4 of this Notice.
Operating costs include costs for administrative expenses, property management fees, insurance, utilities, property taxes, and maintenance of a unit that is designated as a HOME-ARP-assisted unit and required to be occupied by a qualifying household. .
Operating costs must be reasonable and appropriate for the area, size, population(s) served, and type of project.
Project administrative expenses include payroll costs, which are gross salaries and wages paid to employees assigned to the property, including payroll taxes, employee compensation, and employee benefits; employee education, training, and travel; advertising; and general administrative costs which are costs for goods and services 25 required for administration of the housing, including rental or purchase of equipment, supplies, legal charges, bank charges, utilities, telephone/internet services, insurance, and other administrative costs that are reasonable and customary for the general administration of a rental unit occupied by qualifying populations. HOME-ARP permits the pro-rated staffing costs of a Resident Services Coordinator to be included in the operating costs allocated to a HOME-ARP unit for low-income or qualifying households if such costs are not already paid by another source. Typically, the role of a Resident Services Coordinator is to arrange community activities for residents and link residents to outside service agencies as needed.
A property management fee includes the total fee paid to a management agent by the owner for the day-to-day management of a HOME-ARP rental unit restricted for occupancy by qualifying populations. A management agent must cover its costs of supervising and overseeing operations of a HOME-ARP unit out of the fee they receive.
A reserve for replacement must be based on the useful life of each major system and expected replacement cost in a HOME-ARP project. Scheduled payments to a reserve for replacement of major systems included in the operating costs allocated to a HOME- ARP unit restricted for a qualifying household may be made from the operating cost assistance reserve. A reserve for replacement allocated to the HOME-ARP units may also be capitalized in the initial year of the minimum compliance period of the HOME- ARP units. HOME-ARP funds cannot be used to both capitalize a reserve for replacement and provide payments to the reserve for replacement from a capitalized operating reserve during the minimum compliance period.
Supportive services costs are not eligible operating costs of HOME-ARP units, however, qualifying households occupying HOME-ARP rental units may receive supportive services through the HOME-ARP supportive services eligible activity.
6. Prohibited Activities and Fees: HOME-ARP may not be used for any of the prohibited activities, costs or fees in 24 CFR 92.214, as revised by the Appendix to this Notice.
7. HOME-ARP Funds and Public Housing: HOME-ARP funds must be used in accordance with the requirements in 24 CFR 92.213(a)-(c).
8. Commitment: The affordable housing requirements in the definition of Commitment in 24 CFR 92.2, including the provisions in (2) Commit to a specific local project, apply to rental housing units assisted with HOME-ARP funds. This includes but is not limited to the requirements that the PJ and project owner have an executed legally binding written agreement under which HOME-ARP assistance will be provided to the owner for an identifiable project for which all necessary financing has been secured, a budget and schedule have been established, and underwriting has been completed and under which construction is scheduled to start within 12 months of the agreement date.
9. Maximum Per-Unit Subsidy and Limitations on Costs: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. PJs may pay up to 100 percent of the eligible and reasonable HOME-ARP costs allocated to a HOME-ARP unit, including 26 operating cost assistance associated with units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of this Notice and the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended.
10. Underwriting, Subsidy Layering: Before the PJ can commit HOME-ARP funds to a project, it must evaluate the project to determine the amount of HOME-ARP capital subsidy and operating cost assistance necessary to provide quality affordable housing that meets the requirements of this Notice and is financially viable throughout the minimum 15-year HOME-ARP compliance period. The PJ must evaluate the project in accordance with underwriting and subsidy layering guidelines it has developed for HOME-ARP projects.
The PJ’s project underwriting must include an in-depth review of underlying project assumptions, development sources and uses, and projected operating income and expenses, and the project’s long-term financial viability to determine the project’s need for HOME- ARP assistance while preventing over-subsidization of the project. HUD anticipates that project developers will rely on Low-Income Housing Tax Credit (LIHTC) financing, HOME funds, Housing Trust Fund grants, project-based vouchers, project-based rental assistance, operating cost reserves, state or local sources, or a combination of these and other resources to create a feasible HOME-ARP project and maintain compliance with HOME-ARP requirements. HOME-ARP units for qualifying households that do not receive a commitment of project-based vouchers or project-based rental assistance may require both deep capital subsidy and operating cost assistance to remain financially sustainable for the minimum 15-year HOME-ARP compliance period. However, the PJ, through its underwriting, must also determine that the HOME-ARP capital and operating subsidies do not result in over-subsidization of the project.
To secure HOME-ARP rental units for qualifying households, HOME-ARP funds may be invested in different types of projects, including permanent supportive housing, mixed- finance affordable housing, and market-rate projects. While the viability of the HOME- ARP units is the PJ’s primary concern, it must not limit its underwriting analysis to the HOME-ARP units. The long-term viability of HOME-ARP units is contingent upon the financial health of the entire project. PJs must therefore take a holistic approach to underwriting that examines the overall feasibility of the entire project to determine that the property will be financially sustainable for the duration of the 15-year HOME-ARP compliance period.
For projects that will receive operating cost assistance through a capitalized operating cost assistance reserve or on-going operating cost assistance for a specific period, the on-going operating cost assistance or operating cost assistance reserve must be included in the underwriting. Unless placed into an operating cost assistance reserve, operating cost assistance committed to a project for a specific period cannot be provided beyond the budget period, as described in Section VIII.C.4. of this Notice. HOME-ARP units that have commitments for a form of project-based rental assistance must be underwritten with the projected rental assistance and not with operating cost assistance. An operating cost assistance reserve must be sized based on an analysis of projected operating deficits 27 remaining after the expected payments toward rent by qualifying households are applied to the HOME-ARP unit's share of operating costs. While a PJ may offer on-going project operating cost assistance instead of providing an operating cost assistance reserve, it may find this approach makes it more difficult to develop HOME-ARP units.
a. Underwriting and Subsidy Layering Guidelines: PJs must develop standardized underwriting guidelines for HOME-ARP rental projects. These guidelines must provide for underwriting that accommodates and is appropriate for different types of projects.
For example, a standard market analysis does not provide the necessary data for a project where 100% of the units are restricted as permanent supportive housing for qualifying populations. In contrast, if a mixed-income property relies on rental income from market-rate units to subsidize the operating costs of permanent supportive housing units for which little or no tenant-paid rental income is projected, then a market study confirming that the proposed market rents are achievable is needed to demonstrate the long-term financial viability of the project.
PJs with existing HOME rental underwriting standards may use these standards as the foundation for their HOME-ARP underwriting guidelines, but all PJs are required to develop and implement standardized underwriting guidelines for HOME-ARP that require the following:
i. An examination of the sources and uses of funds for the project and a determination that costs are necessary and reasonable. In examining a project’s proposed sources and uses, a PJ must determine the amount of HOME-ARP development subsidy required to fill the gap between other committed funding sources and the cost to develop the project.
A developer fee is a permitted development cost under the HOME-ARP program, but the PJ must review the fee and determine that it is reasonable. A PJ may set limits on the developer fee and other fees (e.g., asset management fee, property management fee) to be paid by HOME-ARP funds that differ from other funding sources (e.g., LIHTC underwriting standards).
ii. An assessment of the current market demand for the proposed project. (1) For HOME-ARP units for qualifying households, a market assessment is not required. Rather, the PJ can demonstrate that there is unmet need among qualifying populations for the type of housing proposed through their gap analysis, CoC data, public housing and affordable housing waiting lists, point- in-time surveys, housing inventory count, or other relevant data on the need for permanent housing for the qualifying populations.
(2) For projects containing units restricted for occupancy by low-income households or market-rate households, the PJ must conduct a market assessment in accordance with 24 CFR 92.250(b)(2). A third-party market assessment completed by the developer or another funder meets this requirement, but the PJ must review the assessment and provide a written, dated acknowledgement that it accepts the assessment’s findings and conclusions. The market assessment and the PJ’s written, dated 28 acknowledgement must be retained for recordkeeping purposes.
iii. Review of and determination that the developer’s experience and financial capacity are satisfactory based on the size and complexity of the project. When assessing the developer, the PJ must review, at minimum, prior experience with similar projects and the current capacity to develop the proposed project. When determining whether the developer has the financial capacity to undertake the project, the PJ should examine financial statements and audits to determine the developer’s net worth, portfolio risk, pre-development funding, and liquidity.
iv. Firm written financial commitments for the project.
v. A careful review of the project’s operating budget, including the basis for assumptions, projections of a project’s net operating income, and reasonably expected changes in revenue and expenses during the minimum compliance period, to determine if any HOME-ARP-funded operating cost assistance is necessary and if applicable, an operating cost assistance reserve is sized appropriately. Operating income of the project must be sufficient to cover operating expenses throughout the minimum compliance period. For HOME-ARP units for qualifying households, the proforma or budget projections should include any anticipated ongoing operating cost assistance or draws from an operating cost assistance reserve, if applicable, that will offset operating deficits associated with those units to demonstrate sufficient operating support.
(1) If project-based vouchers or project-based rental assistance is or will be awarded, this analysis must include that rental assistance revenue because operating cost assistance cannot be used for units for qualifying households with project-based vouchers or project-based rental assistance. (2) A PJ’s underwriting standards may permit projects to generate reasonable net operating income throughout the minimum compliance period. However, HOME-ARP operating cost assistance may only be used to offset operating deficits, in accordance with the requirements of this Notice. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner.
vi. An assessment of the project’s overall viability through the minimum compliance period based on the households (i.e., qualifying households, low-income households, market-rate households) it will serve.
11. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards.
12. Determining Household Income: The PJ must require all HOME-ARP units to be restricted for eligible households (i.e., either qualifying or low-income households) 29 throughout the minimum compliance period. Qualifying households are eligible for admission to HOME-ARP rental units solely by meeting the definition of one of the qualifying populations (i.e., HOME-ARP does not impose income restrictions on units restricted for qualifying populations). If there is no income requirement in the qualifying population’s definition, a PJ is not required to perform an initial determination of household income except as necessary to determine an affordable rental contribution by the qualifying household or to establish eligibility for another funding source in the unit that imposes income restrictions (e.g., LIHTC). Each subsequent year during the compliance period, starting 1 year after initial occupancy, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the income of qualifying households to determine the household’s contribution to rent. For low-income households, the PJ must use the definition of annual income as defined in 24 CFR 5.609 to examine the household’s income at initial occupancy and each subsequent year during the compliance period to determine the household’s ongoing income eligibility and applicable rental contribution.
a. Qualifying populations: For purposes of establishing the qualifying household’s rental contribution after initial occupancy, a PJ must examine a HOME-ARP qualifying household’s income using 24 CFR 92.203(a)(1)(i) or (iii), starting 1 year after initial occupancy. Each year during the minimum compliance period, the owner must examine the household’s annual income in accordance with any one of the options in 24 CFR
92.203(a)(1) specified by the PJ. A project owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income.
b. Low-income Households: In accordance with 24 CFR 92.252(h), the income of each low-income household must be determined initially in accordance with 24 CFR
92.203(a)(1)(i), and each year following the initial determination during the minimum compliance period in accordance with any one of the options in 24 CFR 92.203(a)(1) specified by the PJ. An owner who re-examines household income through a statement and certification in accordance with 24 CFR 92.203(a)(1)(ii), must examine the income of each household, in accordance with 24 CFR 92.203(a)(1)(i), every sixth year of the minimum compliance period. Otherwise, an owner who accepts the household’s statement and certification in accordance with 24 CFR 92.203(a)(1)(ii) is not required to examine the household’s income unless there is evidence that the household’s written statement failed to completely and accurately state information about the household’s size or income.
c. Households Assisted by Other Programs: Notwithstanding paragraphs (a) and (b), if a family is applying for or living in a HOME-ARP-assisted rental unit, and the unit is assisted by a Federal or State project based rental subsidy then a PJ must accept a public housing agency, section 8 project owner, or CoC recipient or subrecipient’s 30 determination of the family’s annual income and adjusted income under that program’s rules and does not need to obtain source documentation in accordance with 24 CFR
92.203(a)(1) or calculate the annual income of the family. If a family is applying for or living in a HOME-ARP rental unit, and the family is assisted by a Federal tenant-based rental assistance program (e.g. housing choice vouchers) then a PJ may choose to accept the rental assistance provider’s determination of the family’s annual and adjusted income under that program’s rules without need for review under 24 CFR 92.203(a)(1).
13. Rent limitations: This Notice establishes rent limits for HOME-ARP units restricted for qualifying populations and for units that may be restricted for low-income households.
a. Units Restricted for Occupancy by Qualifying Households: In no case can the HOME- ARP rents exceed 30% of the adjusted income of a household whose annual income is equal to or less than 50% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. HUD will publish the HOME- ARP rent limits on an annual basis.
Notwithstanding the foregoing, a unit that receives a Federal or state project-based rental subsidy and is occupied by a qualifying household that pays as a contribution to rent no more than 30 percent of the household’s adjusted income, may charge the rent allowable under the Federal or state project-based rental subsidy program (i.e., the tenant rental contribution plus the rental subsidy allowable under that program). If a household receives tenant-based rental assistance, the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rental subsidy allowable under that rental assistance program).
The rent limits for HOME-ARP units for qualifying households include the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice.
b. Rent limitations – low-income households: HOME-ARP rental units occupied by low- income households must comply with the rent limitations in 24 CFR 92.252(a) (i.e., the lesser of the Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or a rent equal to 30 percent of the income of a family at 65 percent of median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit). Notwithstanding the foregoing, when a household receives a form of Federal tenant-based rental assistance (e.g., housing choice vouchers), the rent is the rent permissible under the applicable rental assistance program (i.e., the tenant rental contribution plus the rent subsidy allowable under the rental assistance program). The rent limits for low-income households apply to the rent plus the utility allowance established pursuant to Section VI.B.13.d of this Notice.
c. Rent limitations – Single Room Occupancy (SRO) Units: A HOME-ARP rental project may consist of SRO units. For the purposes of HOME-ARP rental, a SRO unit is defined as a unit that is the primary residence of the occupant(s) and must at least contain sanitary facilities but may also contain food preparation facilities. A project’s 31 designation as a SRO cannot be inconsistent with the building’s zoning and building code classification.
If the SRO units have both sanitary and food preparation facilities, the maximum HOME-ARP rent is based on the zero-bedroom fair market rent. If the SRO unit has only sanitary facilities, the maximum HOME-ARP rent is based on 75 percent of the zero-bedroom fair market rent. The rent limits for SRO units must also include the utility allowance established pursuant to Section VI.B.13.d of this Notice.
d. Initial Rent Schedule and Utility Allowance: The PJ must establish maximum allowances for utilities and services and update the allowances annually. The PJ may adopt the utility allowance schedule of the PHA.
The PJ must review and approve the HOME-ARP rents proposed by the owner, subject to the HOME-ARP rent limitations. For HOME-ARP units where the tenant is paying utilities and services (e.g., trash collection), the PJ must determine that the rent for the unit does not exceed the maximum rent minus the monthly allowance for utilities and services.
14. Tenant Contribution to Rent – Qualifying Households: The PJ must determine that the qualifying household’s contribution to rent is affordable to the qualifying household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, the household cannot be required to contribute more towards rent than the amount permitted by the requirements of the applicable rental assistance program (See Section VI.B.13.a of this Notice). If a qualifying household is not receiving project-based or tenant-based rental assistance and cannot contribute any income toward rent, or the contribution is insufficient to cover the unit rent, the project owner may draw from the project’s operating cost assistance reserve if projected rental revenue minus the operating costs of the unit results in a deficit. If an operating cost assistance reserve was not capitalized at project completion:
The PJ may provide ongoing HOME-ARP operating cost assistance to cover the operating deficits associated with units occupied by qualifying households, subject to the requirements in this Notice.
The qualifying household may receive HOME-ARP TBRA to remain housed in the HOME-ARP rental unit or the PJ may offer, in conjunction with a qualifying household’s admittance into a HOME-ARP rental unit, a simultaneous award of supportive services to the qualifying household in accordance with Section VI.D of this Notice. Any provision of supportive services must comply with all requirements of Section VI.D. of the Notice and the PJ’s policies and procedures. Operating cost assistance, HOME-ARP TBRA, and supportive services funds committed to a project cannot be provided beyond the budget period for the HOME- ARP funds, as described in Section VIII.C.4 of this Notice.
15. Changes in Income and Over-income Households:
A household that met the definition of one of the HOME-ARP qualifying populations at initial occupancy and whose annual income at the time of income re-certification is above 32 50 percent of median income for the area but at or below 80 percent of the median income for the area must pay the rent specified in 24 CFR 92.252(a).
HOME-ARP-assisted units restricted for low-income households continue to qualify as HOME-ARP rental housing despite a temporary noncompliance caused by increases in the incomes of existing households if actions satisfactory to HUD are taken so that all vacancies are filled in accordance with HOME-ARP requirements until the noncompliance is corrected.
A qualifying or low-income household that is not low-income at the time of income re- certification (i.e., whose income is above 80 percent of the median income for the area) must pay rent that complies with the over income regulatory requirements at 24 CFR
92.252(i)(2), which includes requirements applicable to HOME units that also have LIHTC restrictions.
16. Unit Designation: The PJ must determine the number of HOME-ARP units in the project restricted for qualifying households and low-income households, respectively, and whether the units are fixed or floating units at the time of project commitment. The total number of HOME-ARP rental units restricted for occupancy by qualifying households and the total number of HOME-ARP rental units restricted for low-income households must be identified as separate totals in the written agreement. In a project containing HOME-ARP and other units, the PJ must designate fixed or floating HOME-ARP units in accordance with 24 CFR
92.252(j). The PJ must maintain this unit mix throughout the compliance period.
17. Maintaining Unit Mix: At the time of admission to a HOME-ARP rental unit, a household must meet the definition for at least one qualifying population or be determined to be a low- income household, depending on the applicable HOME-ARP restriction on the rental unit to which it is being admitted and in accordance with the written agreement.
For HOME-ARP rental units restricted for occupancy by qualifying populations, a household that meets the definition of a qualifying population at the time of admission retains its eligibility to occupy a HOME-ARP rental unit restricted for occupancy by qualifying populations, irrespective of changes in income or whether the household continues to meet the definition of a qualifying population after initial occupancy. As an example, a household that qualifies as “Homeless” at admission does not meet the Homeless definition once the household occupies a HOME-ARP unit but remains a qualifying household and is eligible to remain in a HOME-ARP rental unit restricted for qualifying populations. Income determinations for qualifying households are therefore only for purposes of establishing a qualifying household’s rental contribution as described in Section VI.B.15 of this Notice and not for maintaining continued eligibility in the HOME-ARP program. In a project with floating units, PJs are encouraged but not required to shift the HOME-ARP qualifying population designation to another unit to serve another qualifying household if the household’s income subsequently is certified to be at or above 80 percent AMI and the household no longer meets the definition of any qualifying population.
33 For HOME-ARP rental units restricted for occupancy by low-income households, units will be considered temporarily out of compliance if the household’s income increases above 80 percent of area median income. The requirements for correcting any noncompliance using vacancies or redesignation of units depends on whether the HOME-ARP rental units are fixed or floating and whether other funding sources (e.g., LIHTC) impose income or other restrictions on the units. Please note, in accordance with the requirements in 24 CFR 92.253 and in Section VI.B.19.c, an increase in a tenant’s income does not constitute good cause to evict or refuse to renew a tenant’s lease, regardless of program requirements associated with other funding sources such as LIHTC. In addition, compliance with unit restrictions for low-income households requires adjustment of rents as described in Section VI.B.15 of this Notice.
18. Minimum Compliance Period: HOME-ARP-assisted units must comply with the requirements of this Notice for a minimum period of 15 years, irrespective of the amount of HOME-ARP funds invested in the project or the activity being undertaken. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period without HOME-ARP funds. The PJ may not use HOME-ARP funds to provide operating cost assistance, including a capitalized operating cost assistance reserve, to cover deficits during a PJ’s extended compliance period.
If a project-based rental assistance Housing Assistance Payments (HAP) contract is awarded to a HOME-ARP rental project, a PJ must impose a minimum compliance period that is the greater of 15 years or the term of the HAP contract. PJs are also encouraged to extend restrictions for occupancy of the HOME-ARP units in accordance with the requirements in this section to match the term of eligible HAP contract renewals.
The provisions at 24 CFR 92.252(e)(1)-(4) apply, including the requirement that the PJ must impose the HOME-ARP rental requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanisms approved by HUD. The chart providing minimum affordability periods based on rental housing activity that is contained in 24 CFR 92.252(e) does not apply. The enforceable restriction must provide that units assisted with HOME-ARP comply with the requirements of this Notice throughout the minimum 15-year compliance period, including:
a. Units restricted for qualifying populations must be occupied by households that met the definition of a qualifying population at the time of initial occupancy. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.B.14 of this Notice. The rents for these units must comply with the rent limitations established in this Notice, including the rent provisions specified in 24 CFR
92.252(i)(2) for households whose income increases above 80 percent of area median income and whose contribution to rent complies with the requirements in Section VI.B.15.
b. Units available for low-income households must be continuously occupied by households who are income eligible. The rents for these units must comply with the rent 34 limitations established in this Notice, including the rent provisions specified in 24 CFR
92.252(i)(2) for households whose income increases above 80 percent of area median income.
c. The units must comply with the ongoing property condition standards of 24 CFR
92.251(f) throughout the compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504.
d. Each household that occupies a HOME-ARP unit has an executed lease that complies with the tenant protections required in Section VI.B.19 of this Notice.
19. Tenant Protections: PJs must verify that each household that occupies a HOME-ARP assisted unit has an executed lease that complies with the tenant protection requirements of this Notice. The lease must be either be between the project owner and the household or between the project owner and a HOME-ARP sponsor with a sublease between the qualifying household and HOME-ARP sponsor. A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. PJs may permit a HOME- ARP sponsor to lease a HOME-ARP unit from an owner or execute a master lease with the owner of a HOME-ARP project for HOME-ARP units restricted for occupancy by qualifying households. The HOME-ARP sponsor may then sublease the HOME-ARP rental unit to the qualifying household. The sublease between the HOME-ARP sponsor and the qualifying household must comply with the rent limitations and tenant protection requirements of this Notice.
a. Lease Requirement: There must be a lease between the qualifying household or the low- income household and the owner of the HOME-ARP-assisted project in accordance with 24 CFR 92.253(a), except that a sublease is permitted if a HOME-ARP sponsor has executed a master lease or lease with the project owner for the leasing of the units restricted for occupancy by qualifying households.
b. Prohibited Lease Terms: The lease between the low-income household, qualifying household, or HOME-ARP sponsor and the HOME-ARP project owner or the sublease between the HOME-ARP sponsor and a qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b).
c. Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a tenant of a HOME-ARP unit or of a HOME-ARP sponsor with a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws; or for other good cause. Similarly, a HOME-ARP sponsor may not refuse to renew a sublease with a qualifying household except for serious or repeated violation of the terms and conditions of the sublease; for violation of applicable Federal, State, or local laws; or for 35 other good cause. An increase in the tenant’s or sublessee’s income does not constitute good cause.
In addition, if HOME-ARP funds were or are used to capitalize an operating cost assistance reserve or there is a current contract for the PJ to provide operating cost assistance to the project, an owner may not terminate the tenancy or refuse to renew the lease of a qualifying household because of the household’s inability to pay rent during the minimum compliance period. A qualifying household’s inability to pay rent shall mean that the qualifying household cannot pay more than 30 percent of the qualifying household’s income toward rent, based on an income determination made by the PJ in the last 30 days.
Where there is no capitalized operating reserve or other operating cost assistance to cover the operating deficit for a HOME-ARP unit occupied by a qualifying household, the PJ may assist the qualifying household with HOME-ARP TBRA or supportive services in accordance with the requirements of this Notice.
The above tenant protections are necessary as HOME-ARP requires the PJ to perform underwriting that reviews the operating feasibility of units occupied by qualifying households for the 15-year compliance period to determine how HOME-ARP funds may address the potential for qualifying households to have little to no income to contribute toward rent.
To terminate or refuse to renew tenancy for any household occupying a HOME-ARP unit, the owner must serve written notice upon the tenant (and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor) at least 30 days before termination of tenancy, specifying the grounds for the action. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action.
20. Coordinated Entry and Project-Specific Waitlists: In accordance with Section IV.C of this Notice, PJs must determine whether an owner may use a CoC’s CE, a CoC’s CE and other referral sources, or a project-specific waitlist, to select qualifying households for HOME-ARP units restricted for occupancy by qualifying populations. PJs will make this determination on a project-by-project basis. Regardless of which method is selected, in all cases, the PJ must use a project-specific waitlist when selecting households to occupy units restricted for occupancy by low-income households. Any preferences among qualifying households must be disclosed in the HOME-ARP allocation plan through the PJ’s public participation process in accordance with Section V.C. of this Notice. The written agreement between the PJ and the project owner must specify the method the owner must use for selecting qualifying households for admission to HOME-ARP units. a. The owner of a HOME-ARP rental project must adopt and follow written tenant selection policies and criteria for HOME-ARP units that:
36 i. Limits eligibility to households that meet one of the HOME-ARP qualifying populations definitions or low-income households in accordance with HOME- ARP requirements; Preferences for households in one or more of the HOME- ARP qualifying populations must comply with the PJ’s preferences and the PJ’s policies and procedures for applying those preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. ii. Do not exclude an applicant with a voucher under the section 8 Housing Choice Voucher Program (24 CFR 982), or an applicant participating in HOME, HOME-ARP or other Federal, state or local tenant-based rental assistance program because of the status of the prospective tenant as a holder of such a certificate, voucher, or comparable tenant-based assistance document; iii. Limits eligibility or gives a preference to a particular qualifying population or segment of the qualifying population if permitted in its written agreement with the participating jurisdiction (and only if the limitation or preference is described in the participating jurisdiction's HOME-ARP allocation plan). A preference for households in one or more of the HOME-ARP qualifying populations must comply with the PJ’s determined preference(s) and the PJ’s policies and procedures for applying the preference(s), if any;
iv. Any limitation or preference must not violate nondiscrimination requirements in 24 CFR 92.350. If the PJ requires the use of a project-specific waitlist to select qualifying households and/or low-income households for occupancy of HOME- ARP units, provide for the selection of households from a written waiting list in the chronological order of their application, insofar as is practicable; v. Gives prompt written notification to any rejected applicant of the grounds for any rejection; and,
vi. Complies with the VAWA requirements as described in 24 CFR 92.359.
b. Project-Specific Waitlist – Low-Income Households: A project owner must use a project-specific waitlist to select households to occupy units restricted for occupancy by low-income households in accordance with the tenant selection requirements of 24 CFR 92.253(d).
21. Project Completion and Occupancy: HOME-ARP rental projects must meet the definition of project completion at 24 CFR 92.2. If the PJ fails to complete a project within 4 years of project commitment, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). If the HOME-ARP units are not occupied by eligible qualifying households or low-income households within six months following project completion, the PJ, as applicable, must submit to HUD information on its efforts to coordinate with a CoC, homeless service providers, social service, and other public agencies to fill units for qualifying households or must submit marketing information and, if appropriate, a marketing plan to fill units for low-income households. The PJ must repay any HOME- ARP funds invested in units that are not rented to eligible qualifying or low-income households within 12 months of project completion.
22. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in rental housing that is terminated before completion or otherwise does not comply with initial or ongoing requirements of this Notice during the compliance period, as follows:
37 a. If the noncompliance or termination occurs within the first 10 years of the compliance period, the PJ must repay the entire amount of HOME-ARP funds invested in the project.
b. If the noncompliance or termination occurs in years 11 through 15, the repayment amount will be reduced by 20 percent for each year beyond the initial 10-years during which time the project was compliant.
Repayment of the HOME-ARP funds is not required if the project owner sells or transfers, either voluntarily or involuntarily, the HOME-ARP project during the compliance period if (1) the HOME-ARP restrictions remain, (2) the project and new project owner continues to comply with all HOME-ARP requirements, and (3) any HOME-ARP funds remaining in a project’s operating cost assistance reserve or reserve for replacement remain with the project and convey upon sale or transfer of the project as a restricted operating cost assistance reserve or reserve for replacement subject to HOME-ARP Notice requirements.
23. Operating Cost Assistance Reserve - Management and Oversight: The PJ must require that any HOME-ARP funds expended for project operating cost assistance reserves are held by the project owner in a separate interest-bearing account. The PJ must require the project owner to request written approval from the PJ prior to disbursing funds from the project operating cost assistance reserve. The PJ must review each requested distribution from the operating cost assistance reserve, including supporting documentation, to determine that the distribution is reasonable and necessary to cover the operating deficit associated with HOME-ARP units occupied by qualifying households. The PJ must, no less than annually, review the operating cost assistance reserve account to determine that the account is appropriately sized based on the projected operating deficits of HOME-ARP units restricted for occupancy by qualifying households. The PJ may require the project owner to enter into a deposit account control agreement for the operating cost assistance reserve where the PJ must approve disbursements from the account.
24. End of Compliance Period and Return of Operating Cost Assistance Reserve: Any unexpended operating cost assistance reserve remaining at the end of the compliance period must be returned as follows:
a. If the HOME-ARP rental project will continue to operate in accordance with the HOME-ARP requirements and serve qualifying households beyond the HOME-ARP 15- year compliance period as demonstrated by enforceable restrictions imposed by the PJ, the project can retain the operating cost assistance reserve amount to address any operating deficits associated with the HOME-ARP units occupied by qualifying households.
b. If the HOME-ARP project will not continue to operate in accordance with the HOME- ARP requirements and serve qualifying households beyond the 15-year HOME-ARP compliance period and the HOME-ARP grant has expired or is closed out, the remaining operating cost assistance reserve funds must be deposited in the PJ’s local HOME 38 account and recorded as HOME program income receipt in the Integrated Disbursement and Information System (IDIS) and used for eligible costs under 24 CFR part 92.
C. Tenant-Based Rental Assistance (TBRA)
HOME-ARP funds may be used to provide tenant-based rental assistance to qualifying households (“HOME-ARP TBRA”). In HOME-ARP TBRA, the PJ assists a qualifying household with payments to cover the entire or insufficient amounts that the qualifying household cannot pay for housing and housing-related costs, such as rental assistance, security deposits, and utility deposits. HOME-ARP TBRA assisted households may choose to rent a unit in a HOME-ARP rental project or any other eligible rental unit. HOME-ARP TBRA is a form of rental assistance that is attached to the household and not a particular rental unit.
Therefore, the HOME-ARP TBRA assisted household may choose to move to another unit with continued HOME-ARP TBRA as long as the new unit meets the applicable property standards of this Notice. If a HOME-ARP TBRA assisted household chooses to move, the rental assistance contract terminates and a new rental assistance contract for the new unit will be executed according to HOME-ARP TBRA requirements. The HOME-ARP TBRA assisted household must notify the PJ before moving in order to receive continued HOME-ARP TBRA.
1. Tenant Selection: Only individuals and families in the qualifying populations are eligible to receive HOME-ARP TBRA assistance. PJs must perform tenant selection in accordance with Section IV.C of this Notice. The PJ must select qualifying households for HOME- ARP TBRA in accordance with written tenant selection policies and criteria that are based on local housing needs established in the HOME-ARP allocation plan. The PJ must follow written tenant selection policies and criteria that:
a. Limit eligibility to households that meet one of the HOME-ARP qualifying populations definitions in accordance with HOME-ARP requirements. Preferences for households in one or more of the HOME-ARP qualifying populations, if any, must comply with the preferences and/or method of prioritization in the PJ’s HOME-ARP allocation plan and the PJ’s policies and procedures for applying such preferences, if any, and must not violate nondiscrimination requirements in 24 CFR 92.350. b. If the PJ selects HOME-ARP TBRA applicants off a waiting list, it must provide for the selection of qualifying households from a written waiting list in accordance with the PJ’s preferences or method of prioritization in the chronological order of their application, insofar as is practicable.
c. Give prompt written notification to any rejected applicant of the grounds for any rejection, and
d. Comply with the VAWA requirements as described in 24 CFR 92.359.
Finally, the PJ may offer, in conjunction with HOME-ARP TBRA assistance, a simultaneous award of services in accordance with Section VI.D of this Notice, and also provide particular types of other nonmandatory services that may be most appropriate for persons with a special need or a particular disability. Any provision of supportive services must comply with all requirements of Section VI.D of the Notice and the PJ’s policies and procedures.
39 2. Tenant Protections: PJs must require and verify that there is an executed lease between the qualifying household that receives HOME-ARP TBRA and the owner of the rental unit or between the owner of the rental unit and a HOME-ARP sponsor with a sublease between the qualifying households and the HOME-ARP sponsor, in accordance with 24 CFR 92.253(a).
A HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household.
PJs may permit a HOME-ARP sponsor, as defined in Section VI.B.19, to execute a lease or master lease with a project owner. The HOME-ARP sponsor must then sublease a unit to a qualifying household. The lease between the qualifying household and the rental unit owner or the sublease between the HOME-ARP sponsor and the qualifying household cannot contain any of the prohibited lease terms specified in 24 CFR 92.253(b).
3. Eligible Costs: Eligible costs under HOME-ARP TBRA include rental assistance, security deposit payments, and utility deposit assistance to qualifying households. HOME-ARP funds may be used to pay for up to 100% of these eligible costs. A PJ may use HOME-ARP TBRA funds to provide loans or grants to qualifying households for security deposits for rental units regardless of whether the PJ provides any other HOME-ARP TBRA assistance.
The amount of funds that may be provided for a security deposit may not exceed the equivalent of two months’ rent for the unit. Utility deposit assistance is an eligible cost only if rental assistance or a security deposit payment is provided. Costs of inspecting the housing are also eligible as costs of HOME-ARP TBRA. Administration of HOME-ARP TBRA is an eligible cost only if executed in accordance with general management oversight and coordination at 24 CFR 92.207(a), except that the costs of inspecting the housing and determining the income eligibility of the family are eligible project costs under HOME-ARP TBRA.
4. Ineligible Costs: HOME-ARP TBRA may not be used to pay for the homebuyer program as defined at 24 CFR 92.209(c)(2)(iv).
5. Portability of Assistance: A PJ may require the HOME-ARP TBRA assisted household to use HOME-ARP TBRA within the PJ's boundaries or may permit the household to use the assistance outside its boundaries pursuant to 24 CFR 92.209(d).
6. Term of Rental Assistance Contract: The requirements at 24 CFR 92.209(e) defining the term of the rental assistance contract for providing assistance with HOME funds are waived for HOME-ARP TBRA. The PJ must determine the maximum term of the rental assistance contract. The rental assistance contract continues until the end of the rental assistance contract term, as determined by the PJ, or until the lease or sublease is terminated, whichever occurs first. The term of the rental assistance contract may be renewed, subject to the availability of HOME-ARP funds. The term of the rental assistance contract must begin on the first day of the term of the lease or sublease. HOME-ARP TBRA funds cannot be used after the end of the budget period.
7. Maximum Subsidy: The PJ must establish policies for the allowable maximum subsidy, which may differ from the maximum subsidy requirements at 24 CFR 92.209(h). PJs may 40 provide up to 100 percent subsidy for rent, security deposit payments, and utility bills. The PJ must also establish policies for determining any household contribution to rent based on a determination of the qualifying household’s income.
8. Rent Standard: Consistent with 24 CFR 92.209(h)(3), PJs must also establish a rent standard for HOME-ARP TBRA by unit size that is based upon local market conditions or the section 8 Housing Choice Voucher program under 24 CFR part 982. The PJ must determine whether the rent for a HOME-ARP TBRA household complies with the rent standard established by the PJ for the HOME-ARP program and must disapprove a lease if the rent does not meet the PJ’s rent standard for HOME-ARP TBRA.
9. Housing Quality Standards: Housing occupied by a household receiving HOME-ARP TBRA must comply with all housing quality standards required in 24 CFR 982.401 (or successor inspection standards issued by HUD) unless the tenant is residing in a HOME or HOME-ARP unit, in which case the PJ may defer to initial and ongoing inspection standards.
10. Program Operation: The PJ may operate HOME-ARP TBRA itself or may contract with a PHA or other entity with the capacity to operate a rental assistance program. In either case, the PJ or entity operating the program must approve the lease. HOME-ARP TBRA may be provided through an assistance contract with (1) an owner that leases a unit to a qualifying household; (2) the qualifying household, or (3) an owner and the qualifying household in a tri-party contract. In the case of HOME-ARP TBRA provided in coordination with a HOME-ARP sponsor, as described below, the PJ may require that payments be made directly to the HOME-ARP sponsor that will make rental payments to the owner on behalf of the qualifying household or require payments directly to the owner of the unit.
11. HOME-ARP TBRA with a HOME-ARP Sponsor: HOME-ARP TBRA may be provided in coordination with a HOME-ARP sponsor. As defined in Section VI.B.19, a HOME-ARP sponsor is a nonprofit organization that provides housing or supportive services to qualifying households and facilitates the leasing of a HOME-ARP rental unit to a qualifying household or the use and maintenance of HOME-ARP TBRA by a qualifying household. A HOME-ARP sponsor may make rental subsidy payments and a security deposit payment on behalf of a qualifying household. Under HOME-ARP TBRA, a qualifying household may reside in housing leased by a HOME-ARP sponsor if there is a sublease that complies with HOME-ARP lease requirements between the HOME-ARP sponsor and the qualifying household.
a. Rental Assistance Contract: There must be a rental assistance contract between the PJ and at least one of the following:
HOME-ARP sponsor;
Qualifying household; or
Owner of the housing.
Rental subsidy payments are made on behalf of the HOME-ARP TBRA household pursuant to a rental assistance contract. The rental assistance contract continues until the 41 lease is terminated or the term of the rental assistance contract expires (and is not renewed). Regardless of the role of the HOME-ARP sponsor, the HOME-ARP TBRA household has the right to continued HOME-ARP TBRA assistance if the household chooses to move from the unit. HOME-ARP TBRA funds cannot be used beyond the end of the HOME-ARP budget period.
The HOME-ARP sponsor may only receive the TBRA subsidy directly from the PJ on behalf of the qualifying household if the rental assistance contract is between the HOME-ARP sponsor and the PJ or the HOME-ARP sponsor and the PJ have entered into a written agreement as outlined below. The HOME-ARP sponsor must make rental subsidy payments to the owner on behalf of the qualifying household per the terms and conditions of the HOME-ARP TBRA contract or written agreement with the PJ. When the HOME-ARP TBRA assisted household moves to a new unit, the HOME-ARP sponsor is not required to continue its sponsor relationship with the HOME-ARP TBRA assisted household for the new rental unit but may do so with the consent of the HOME- ARP TBRA household.
The PJ must establish policies and procedures regarding termination of HOME-ARP TBRA assistance for qualifying households who are absent from the rental unit for a minimum of 60 days and where a HOME-ARP sponsor is leasing the rental unit and subleasing to the qualifying household or providing HOME-ARP TBRA rental subsidy payments on behalf of the household.
b. Lease and Sublease: PJs must require and verify that each household that receives HOME-ARP TBRA assistance has an executed lease that complies with the tenant protection requirements of this Notice. The lease agreement may be between the project owner and the HOME-ARP TBRA household, or PJs may permit a HOME-ARP sponsor to execute a lease with an owner for an individual unit or a master lease for more than one unit restricted for occupancy by HOME-ARP TBRA households. If the lease agreement is between the HOME-ARP sponsor and owner, the HOME-ARP sponsor must execute a sublease agreement with a HOME-ARP TBRA household. The sublease between the HOME-ARP sponsor and the HOME-ARP TBRA household must meet the tenant protection requirements of this Notice.
c. Written Agreement with HOME-ARP Sponsor: The PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME-ARP sponsor will receive the HOME-ARP TBRA subsidy directly from the PJ. The written agreement must specify the requirements for the HOME-ARP sponsor receiving the HOME-ARP TBRA subsidy on behalf of the qualifying household and the HOME-ARP sponsor’s obligation to provide the HOME-ARP TBRA payment to the owner for the unit’s required rent.
12. Project Completion: Project completion for a HOME-ARP TBRA project means the final drawdown has been disbursed for the project.
42 D. Supportive Services
HOME-ARP funds may be used to provide a broad range of supportive services to qualifying individuals or families as a separate activity or in combination with other HOME-ARP activities. Supportive services include: a) services listed in section 401(29) of the McKinney- Vento Homeless Assistance Act (“McKinney-Vento Supportive Services”)1 (42 U.S.C. 11360(29)); b) homelessness prevention services , as described in Section VI.D.3. and D.4 below; and c) housing counseling services.
1. Eligible Program Participants: Supportive services may be provided to individuals and families who meet the definition of a qualifying population under Section IV.A of this Notice and who are not already receiving these services through another program. Program participants in other HOME-ARP activities are eligible for supportive services under this Notice in accordance with policies and procedures developed by the PJ. These policies and procedures should identify the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section.
2. Client Selection: HOME-ARP funds may only be used to provide supportive services to individuals or families that meet the definition of a qualifying population in Section IV.A of this Notice. PJs must develop policies and procedures for the selection of program participants for services under this section of the Notice that comply with Section IV.C and this section of this Notice.
3. Eligible Supportive Services under HOME-ARP: There are three categories specifically included as supportive services under HOME-ARP:
a. McKinney-Vento Supportive Services: McKinney-Vento Supportive Services under HOME-ARP are adapted from the services listed in section 401(29) of McKinney- Vento.
b. Homelessness Prevention Services: HOME-ARP Homelessness Prevention Services are adapted from eligible homelessness prevention services under the regulations at 24 CFR 576.102, 24 CFR 576.103, 24 CFR 576.105, and 24 CFR 576.106, and are revised, supplemented, and streamlined in Section VI.D.4.c.i below.
c. Housing Counseling Services: Housing counseling services under HOME-ARP are those consistent with the definition of housing counseling and housing counseling services defined at 24 CFR 5.100 and 5.111, respectively, except where otherwise noted.
The requirements at 24 CFR 5.111 state that any housing counseling, as defined in 24 CFR 5.100, required under or provided in connection with any program administered by HUD shall be provided only by organizations and counselors certified by the Secretary under 24 CFR part 214 to provide housing counseling, consistent with 12 U.S.C. 1701x.
1 The Consolidated Appropriations Act, 2021 (P.L. 116-260) enacted changes that renumbered section 401(27) to (29) of McKinney-Vento.
43 HUD-approved Housing Counseling Agencies can be found on HUD’s website at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc.
Program requirements and administration under 24 CFR part 214 apply to the provision of HOME-ARP Housing Counseling supportive services except those provisions related to current homeowners do not apply. Eligible HOME-ARP topics under Housing Counseling include but are not limited to the following examples:
Rental Housing
Counseling Topics
(24 CFR 214.300(e)(4))
Pre-Purchase Homebuying
Topics
(24 CFR 214.300(e)(1))
Homeless Services Topics
(24 CFR 214.300(e)(5))
HUD rental and rent
subsidy programs
Advice regarding readiness
and preparation
Homeless assistance
information regarding
emergency shelter
Other federal, state, or
local assistance
Federal Housing
Administration insured
financing
Other emergency services
Fair housing Housing selection and
mobility
Transitional housing
Rental search assistance Housing search assistance Referral to local, state, and federal resources (24 CFR
214.300(b)(2))
Landlord tenant laws Fair housing and predatory
lending
Lease terms Budgeting and credit
Rent delinquency Loan product comparison
Referrals to local, state,
and federal resources
Purchase procedures and
closing costs
Referrals to local, state, and
federal resources
Housing Counseling surrounding the following topics are ineligible under HOME-ARP:
Resolving or preventing mortgage delinquency, including, but not limited to default and foreclosure, loss mitigation, budgeting, and credit; Home maintenance and financial management for homeowners, including, but not limited to: Escrow funds, budgeting, refinancing, home equity, home improvement, utility costs, energy efficiency, rights and responsibilities of homeowners, and reverse mortgages.
In accordance with 24 CFR 214.300(a)(2), housing counselors must establish an action plan for each participating qualifying individual or family. Additionally, as per 24 CFR 44 214.300(c), housing counselors must also make reasonable efforts to have follow-up communications with participating qualifying individuals, when possible, to assure that the individual or family is progressing toward the housing goal established in the plan, to modify or terminate housing counseling, and to learn and report outcomes.
4. Eligible Costs of Supportive Services for Qualifying Individuals and Families: HOME- ARP funds may be used to pay eligible costs associated with the HOME-ARP supportive services activity in accordance with the requirements in this Notice. Eligible costs that may be paid using HOME-ARP funds are limited to only those identified in Section VI.D.4.c below. Any ineligible costs paid using HOME-ARP funds must be repaid in accordance with the requirements of this Notice.
HUD has used its discretion in ARP to include eligible costs for supportive services that are necessary to assist the qualifying populations, prevent homelessness, or to enable qualifying households to obtain and maintain housing. The list of eligible costs associated with McKinney-Vento Supportive Services and Homelessness Prevention Services is in Section VI.D.4.c.i of this Notice.
While all qualifying households are eligible to receive supportive services under this activity, the PJ must establish requirements for documenting eligible costs for an individual or family in a qualifying population (as defined in Section IV.A of this Notice) as McKinney-Vento supportive services, homelessness prevention services, or Housing Counseling.
If a person is homeless, then the person is eligible to be provided the supportive services as McKinney-Vento supportive services for the costs allowable in Section VI.D.4.c below. If a person is housed and the supportive services are intended to help the program participant regain stability in the program participant’s current permanent housing or move into other permanent housing to achieve stability in that housing then the person is eligible for homelessness prevention services for the costs allowable in Section VI.D.4.c.i below.
Housing Counseling services may be provided regardless of whether a person is homeless or currently housed.
PJs must document in their files which types of supportive services they wish to offer program participants. If PJs are using a supportive services provider, PJs must document in their written agreements with supportive service providers whether they are authorizing McKinney-Vento supportive services, homelessness prevention services, Housing Counseling services or some combination of the three. Only the supportive services that are authorized in the written agreement with the supportive service provider may be provided to program participants by that supportive service provider and only program participants that are eligible for those supportive services may be served. As such, supportive services providers must demonstrate through their documentation that the individuals served were eligible to receive the supportive services that were authorized under the written agreement in order for those costs to be eligible.
45 Consistent with the requirements in this section, the PJ may set a maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c. below and may also set a maximum period for which a program participant may receive any of the types of assistance or services.
a. Oversight of Eligible Costs: All supportive service costs paid for by HOME-ARP must comply with the requirements of this Notice, including requirements in 2 CFR part 200, subpart E, Cost Principles that require costs be necessary and reasonable. If a qualifying household is already receiving the same eligible supportive service or has been approved to receive the same service through another program or provider, the program participant does not have a need for the HOME-ARP service and the costs related to the service do not comply with the Cost Principles. The PJ is responsible for establishing requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services. This may include the use of systems such as Homeless Management Information Systems in coordination with local supportive service providers, CoCs, and other nonprofit organizations.
b. Direct provision of services: PJs contracting with service providers engaged directly in the provision of services under the HOME-ARP eligible supportive services categories, shall have written agreements or contracts that comply with the requirements of this Notice and, to the extent practicable, enter into agreements or contracts in amounts that cover the actual total program costs and administrative overhead to provide the services contracted.
If the services outlined in paragraph c. below are being directly delivered by the PJ or a subrecipient, the following costs are eligible project delivery costs for those services:
the costs of labor or supplies and materials incurred by the PJ or subrecipient in directly providing supportive services to program participants. the salary and benefit packages of the PJ and subrecipient staff who directly deliver the services.
These project delivery costs must be attributable to the identifiable objective of the service delivered, otherwise they are administrative costs of the PJ or subrecipient. c. Eligible Costs:
i. Eligible Costs for McKinney Vento Supportive Services and Homelessness Prevention Services: Eligible costs for supportive services under either of these two categories include costs associated with the following services:
(A) Child care: The costs of child care for program participants, including providing meals and snacks, and comprehensive and coordinated developmental activities, are eligible. The child care center must be licensed by the jurisdiction in which it operates in order for its costs to be eligible. The following conditions also apply:
46 Children must be under the age of 13 unless the children have a disability. Children with a disability must be under the age of 18.
(B) Education services: The costs of improving knowledge and basic educational skills are eligible costs including:
Instruction or training in consumer education, health education, substance abuse prevention, literacy, English as a Second Language, and General Educational Development (GED).
Screening, assessment, and testing; individual or group instruction; tutoring; provision of books, supplies, and instructional material; counseling; and referral to community resources.
(C) Employment assistance and job training: The costs of establishing and/or operating employment assistance and job training programs are eligible, including classroom, online and/or computer instruction, on-the-job instruction, services that assist individuals in securing employment, acquiring learning skills, and/or increasing earning potential. The cost of providing reasonable stipends to program participants in employment assistance and job training programs is also an eligible cost.
Learning skills include those skills that can be used to secure and retain a job, including the acquisition of vocational licenses and/or certificates. Services that assist individuals in securing employment consist of:
Employment screening, assessment, or testing;
Structured job skills and job-seeking skills;
Special training and tutoring, including literacy training and pre- vocational training;
Books and instructional material;
Counseling or job coaching; and
Referral to community resources.
(D) Food: The cost of providing meals or groceries to program participants is eligible.
(E) Housing search and counseling services: Costs of assisting eligible program participants to locate, obtain, and retain suitable housing are eligible. Services are:
Development of an action plan for locating housing;
Housing search;
Tenant counseling;
Securing utilities;
Making moving arrangements;
Outreach to and negotiation with owners;
Assistance submitting rental applications and understanding leases; Assessment of housing for compliance with HOME-ARP requirements for TBRA assistance in Section VI.C of this Notice and financial 47 assistance for short-term and medium-term rental payments provided under Section VI.D.4.c.i.(R) below;
Assistance obtaining utilities; and
Tenant counseling;
Mediation with property owners and landlords on behalf of eligible program participants;
Credit counseling, accessing a free personal credit report, and resolving personal credit issues; and
Payment of rental application fees;
Other Housing counseling costs, as defined in 24 CFR 5.100, funded with or provided in connection with grant funds must be carried out in accordance with 24 CFR 5.111.
Please Note: When PJs or subrecipients provide housing services to eligible persons that are incidental to a larger set of holistic case management services, these services do not meet the definition of Housing counseling, as defined in 24 CFR 5.100, and therefore are not required to be carried out in accordance with the certification requirements of 24 CFR 5.111.
(F) Legal services: Eligible costs are the fees charged by licensed attorneys and by person(s) under the supervision of licensed attorneys, for advice and representation in matters that interfere with a qualifying individual or family's ability to obtain and retain housing.
Eligible subject matters are child support; guardianship; paternity; emancipation; legal separation; orders of protection and other legal remedies for victims of domestic violence, dating violence, sexual assault, human trafficking, and stalking; appeal of veterans and public benefit claim denials; landlord-tenant disputes; and the resolution of outstanding criminal warrants; landlord/tenant matters, provided that the services must be necessary to resolve a legal problem that prohibits the program participant from obtaining permanent housing or will likely result in the program participant losing the permanent housing in which the program participant currently resides.
Legal services for immigration and citizenship matters and for issues related to mortgages and homeownership are ineligible. Retainer fee arrangements and contingency fee arrangements are prohibited. Services may include client intake, receiving and preparing cases for trial, provision of legal advice, representation at hearings, and counseling.
Fees based on the actual service performed (i.e., fee for service) are also eligible, but only if the cost would be less than the cost of hourly fees.
Filing fees and other necessary court costs are also eligible. If the subrecipient is a legal services provider and performs the services itself, the eligible costs are the subrecipient's employees' salaries and other costs necessary to perform the services.
48 (G) Life skills training: The costs of teaching critical life management skills that may never have been learned or have been lost during the course of physical or mental illness, domestic violence, dating violence, sexual assault, stalking, human trafficking, substance abuse, and homelessness are eligible. These services must be necessary to assist the program participant to function independently in the community. Life skills training includes:
the budgeting of resources and money management, household management, conflict management, shopping for food and other needed items, nutrition, the use of public transportation, and parent training.
(H) Mental health services: Eligible costs are the direct outpatient treatment of mental health conditions that are provided by licensed professionals. Mental health services are the application of therapeutic processes to personal, family, situational, or occupational problems in order to bring about positive resolution of the problem or improved individual or family functioning or circumstances. Problem areas may include family and marital relationships, parent-child problems, or symptom management. Services are crisis interventions; counseling; individual, family, or group therapy sessions; the prescription of psychotropic medications or explanations about the use and management of medications; and combinations of therapeutic approaches to address multiple problems.
(I) Outpatient health services: Eligible costs are the direct outpatient treatment of medical conditions when provided by licensed medical professionals including:
Providing an analysis or assessment of a program participant’s health problems and the development of a treatment plan;
Assisting program participants to understand their health needs; Providing directly or assisting program participants to obtain and utilize appropriate medical treatment;
Preventive medical care and health maintenance services, including in- home health services and emergency medical services;
Provision of appropriate medication;
Providing follow-up services; and
Preventive and non-cosmetic dental care.
(J) Outreach services: The costs of activities to engage qualified populations for the purpose of providing immediate support and intervention, as well as identifying potential program participants, are eligible. Eligible costs include the outreach worker's transportation costs and a cell phone to be used by the individual performing the outreach. Costs associated with the following services are eligible: initial assessment; crisis counseling; addressing urgent physical needs, such as providing meals, blankets, clothes, or toiletries; actively connecting and providing people with information and referrals to homeless and 49 mainstream programs; and publicizing the availability of the housing and/or services provided within the PJ’s geographic area.
(K) Substance abuse treatment services: Eligible substance abuse treatment services are designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors and are provided by licensed or certified professionals. The costs include:
Program participant intake and assessment;
Outpatient treatment;
Group and individual counseling
Drug testing;
Inpatient detoxification and other inpatient drug or alcohol treatment are ineligible.
(L) Transportation: Eligible costs are:
The costs of program participant's travel on public transportation or in a vehicle provided by the PJ or subrecipient to and from medical care, employment, childcare, or other services eligible under this Notice; Mileage allowance for service workers to visit program participants and to carry out housing inspections;
The cost of purchasing or leasing a vehicle in which staff transports program participants and/or staff serving program participants; The cost of gas, insurance, taxes, and maintenance for the vehicle; The costs of PJ or subrecipient staff to accompany or assist program participants to utilize public transportation; and
If public transportation options are not sufficient within the area, the PJ may make a one-time payment on behalf of a program participant needing car repairs or maintenance required to operate a personal vehicle, subject to the following:
Payments for car repairs or maintenance on behalf of the program participant may not exceed 10 percent of the Blue Book value of the vehicle (Blue Book refers to the guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models, and types);
Payments for car repairs or maintenance must be paid by the PJ or subrecipient directly to the third party that repairs or maintains the car; and
PJs or subrecipients may require program participants to share in the cost of car repairs or maintenance as a condition of receiving assistance with car repairs or maintenance.
The PJ must establish policies and procedures surrounding payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants. Such costs must be limited to program participants with the inability to pay for such costs and who, without such assistance, would not be able to participate in eligible services under this Section VI.D.4.c.i. 50 (M) Case management: The costs of assessing, arranging, coordinating, and monitoring the delivery of individualized services to meet the needs of the program participant(s) are eligible costs. PJs and subrecipients providing these supportive services must have written standards for providing the assistance.
Eligible costs are those associated with the following services and activities:
Conducting the initial evaluation, including verifying and documenting eligibility, for individuals and families applying for supportive services; Counseling;
Developing, securing, and coordinating services;
Using a centralized or coordinated assessment system that complies with the requirements of Section IV.C of the Notice;
Obtaining federal, State, and local benefits;
Monitoring and evaluating program participant progress; Providing information and referrals to other providers; Providing ongoing risk assessment and safety planning with victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking;
Developing an individualized housing and service plan, including planning a path to permanent housing stability; and
Conducting re-evaluations of the program participant's eligibility and the types and amounts of assistance the program participant needs.
(N) Mediation: HOME-ARP funds may pay for mediation between the program participant and the owner or person(s) with whom the program participant is living, provided that the mediation is necessary to prevent the program participant from losing permanent housing in which the program participant currently resides.
(O) Credit repair: HOME-ARP funds may pay for credit counseling and other services necessary to assist program participants with critical skills related to household budgeting, managing money, accessing a free personal credit report, and resolving personal credit problems. This assistance does not include the payment or modification of a debt.
(P) Landlord/Tenant Liaison: Costs of liaison services between property managers/owners and program participants are eligible HOME-ARP costs and may include:
Landlord outreach;
Physical inspections and rent reasonable studies as needed to secure units;
Rental application fees and security deposits for clients, in accordance with the financial assistance costs requirements in (R); Mediation services in (N) for housing issues that may arise between owner, property manager, or other residents and clients; 51 Coordination or assistance with the provision of other HOME-ARP eligible services to assist clients to maintain permanent housing.
(Q) Services for special populations: HOME-ARP funds may be used to provide services for special populations, such as victim services, so long as the costs of providing these services are eligible under this section. The term victim services means services that assist program participants who are victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking including services offered by rape crisis centers and domestic violence shelters, and other organizations with a documented history of effective work concerning domestic violence, dating violence, sexual assault, stalking, or human trafficking.
(R) Financial assistance costs: HOME-ARP funds may be used to pay housing owners, utility companies, and other third parties for the following costs, as applicable:
Rental application fees: Rental housing application fee that is charged by the owner to all applicants.
Security deposits: A security deposit that is equal to no more than 2 months’ rent. This assistance is separate and distinct from the provision of financial assistance for First and Last Month’s rent provided under this section and cannot be used to duplicate those costs.
Utility deposits: HOME-ARP funds may pay for a standard utility deposit or initiation fee required by the utility company or owner (if owner-paid utilities are provided) for all program participants for the following utilities:
Gas
Electric
Water
Sewer
Utility payments: HOME-ARP funds may pay for up to 24 months of utility payments per program participant, per service, including up to 6 months of utility payments in arrears, per service. A partial payment of a utility bill counts as one month. This assistance may only be provided if the program participant or a member of the same household has an account in his or her name with a utility company or proof of responsibility to make utility payments. Eligible utility services are gas, electric, water, and sewage. No program participant shall receive more than 24 months of utility assistance within any 3-year period. Moving costs: HOME-ARP funds may pay for moving costs, such as truck rental or hiring a moving company. This assistance may include payment of temporary storage fees for up to 3 months, provided that the fees are accrued after the date the program participant begins receiving assistance under this section of the Notice and before the program participant moves into permanent housing. Payment of temporary storage fees in arrears is not eligible.
52 First and Last month's rent: If necessary to obtain housing for a program participant, HOME-ARP funds may be used to make a pre-payment of the first and last month's rent under a new lease to the owner at the time the owner is paid the security deposit for the program participant’s tenancy in the housing. This assistance must not exceed two month's rent and must be tracked for purposes of determining the total short- and medium-term financial assistance for rent that the program participant may receive. This assistance is separate and distinct from financial assistance for Security Deposits provided under this section and cannot be used to duplicate those costs.
Payment of rental arrears: HOME-ARP funds may be used for a one- time payment for up to 6 months of rent in arrears, including any late fees or charges on those arrears, if necessary for the household to maintain their existing housing or, for those without housing, if necessary to remove a demonstrated barrier to obtaining housing.
(S) Short-term and medium-term financial assistance for rent: Subject to the following conditions, a PJ may provide a program participant with short-term or medium-term financial assistance for rent, provided that the total financial assistance provided, including any pre-payment of first and last month’s rent as described above, does not exceed 24 months of rental payments over any 3-year period.
Short-term means up to 3 months.
Medium-term means more than 3 months but not more than 24 months. The PJ may make rental payments only to an owner with whom the PJ has entered into a financial assistance agreement for rental payment. The financial assistance agreement must set forth the terms under which rental payments will be provided, including the requirements that apply under this Notice. The financial assistance agreement must provide that, during the term of the agreement, the owner must give the PJ a copy of any notice to the program participant to vacate the housing unit or any complaint used under State or local law to commence an eviction action against the program participant. The owner must serve written notice upon the program participant at least 30 days before termination of tenancy specifying the grounds for the action. Each financial assistance agreement that is executed or renewed must comply with the requirements in 24 CFR 92.359.
The PJ must make timely payments to each owner in accordance with the financial assistance agreement. The financial assistance agreement must contain the same payment due date, grace period, and late payment penalty requirements as the program participant's lease. The PJ is solely responsible for paying late payment penalties that it incurs with non- HOME-ARP funds.
Rental payments cannot be provided unless the rent does not exceed the Fair Market Rent established by HUD, as provided under 24 CFR 53 part 888, and complies with HUD's standard of rent reasonableness, as established under 24 CFR 982.507.
Each program participant receiving financial assistance for rental payments must have a legally binding, written lease for the rental unit, unless the assistance is solely for rental arrears. The lease must be between the owner and the program participant. Where the financial assistance is solely for rental arrears, an oral agreement may be accepted in place of a written lease, if the agreement gives the program participant an enforceable leasehold interest under state law and the agreement and rent owed are sufficiently documented by the owner's financial records, rent ledgers, or canceled checks. New leases must have an initial term of 1 year unless a shorter period is agreed upon by the program participant and owner. The lease requirements in 24 CFR 92.359 apply to this financial assistance. PJs must establish requirements to prevent the provision of short- or medium-term financial assistance for rent for the same period for which a program participant is receiving rental assistance or living in housing provided with ongoing assistance (such as project-based rental assistance or operating subsidies).
If a program participant receiving financial assistance for short- or medium-term rental payments under this section meets the conditions for an emergency transfer under 24 CFR 5.2005(e), HOME-ARP funds may be used to pay amounts owed for breaking a lease to effectuate an emergency transfer. These costs are not subject to the 24-month limit on rental payments.
Ineligible costs - Financial assistance cannot be provided to a program participant who is receiving the same type of assistance through other public sources. Financial assistance also cannot be provided to a program participant who has been provided with replacement housing payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 USC 4601 et seq.) and its implementing regulations at 49 CFR part 24, or Section 104(d) of the Housing and Community Development Act of 1974 (42 USC 5304(d) and its implementing regulations at 24 CFR part 42, during the period of time covered by the replacement housing payments.
ii. Eligible Costs Associated with Housing Counseling under 24 CFR 5.100 and
5.111: Costs associated with housing counseling services as defined at 24 CFR
5.100 and 5.111 are eligible under HOME-ARP. As homeowner assistance and related services are not eligible HOME-ARP activities, costs for the provision of services related to mortgages and homeownership to existing homeowners are also not eligible under HOME-ARP. If a program participant is a candidate for homeownership, costs associated with pre-purchase homebuying counseling, education and outreach are eligible under HOME-ARP. Eligible costs are those costs associated with the services listed in 24 CFR part 214 and include, but are not limited to:
54 (A) Staff salaries and overhead costs of HUD-certified housing counseling agencies related to directly providing eligible housing counseling services to HOME-ARP program participants;
(B) Development of a housing counseling workplan;
(C) Marketing and outreach;
(D) Intake;
(E) Financial and housing affordability analysis;
(F) Action plans that outline what the housing counseling agency and the client will do to meet the client's housing goals and that address the client's housing problem(s);
(G) Follow-up communication with program participants.
5. Termination of assistance to program participants:
a. Termination of assistance: The PJ may terminate assistance to a program participant who violates program requirements or conditions of occupancy or no longer needs the services as determined by the PJ. Termination under this section does not bar the PJ from providing further assistance at a later date to the same individual or family under this Notice.
b. Due process: The PJ must establish policies and procedures for termination of assistance to program participants. In terminating assistance to a program participant, the PJ must provide a formal process that recognizes the rights of individuals receiving assistance under the due process of law. This process, at a minimum, must consist of:
i. Providing the program participant with a written copy of the program rules and the termination process before the participant begins to receive assistance; ii. Written notice to the program participant containing a clear statement of the reasons for termination;
iii. A review of the decision, in which the program participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and
iv. Prompt written notice of the final decision to the program participant.
During this process, the PJ must provide effective communication and accessibility for individuals with disabilities, including the provision of reasonable accommodations.
Similarly, the PJ must provide meaningful access to persons with LEP.
6. Commitment: For supportive services, commitment means that before disbursing any HOME-ARP funds to any entity, the PJ executed a legally binding written agreement that complies with HOME-ARP requirements with the contractor or subrecipient providing the supportive service (that includes the date of the signature of each person signing the agreement).
7. Policies and Procedures: PJs must establish the following policies and procedures in compliance with this notice:
55 a. Tenant selection procedures in accordance with Section IV.C.2 and this section; b. Eligibility of program participants in other HOME-ARP activities for supportive services under Section VI.D.4.c.i above including the length of time that program participants may be served by HOME-ARP TBRA and/or HOME ARP rental housing before they will no longer be eligible as a qualifying population for purposes of this section;
c. If the PJ chooses to set maximum amounts and/or maximum periods for assistance or services, the maximum dollar amount that a program participant may receive for each type of service described in Section VI.D.4.c.i above and/or maximum periods for which a program participant may receive any of the types of assistance or services under this section;
d. Documentation of eligible costs;
e. Requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services;
f. Payments for the cost of gas, insurance, taxes, the one-time payment for car repairs or maintenance described above, and maintenance for vehicles of program participants; g. Financial assistance for short-term and medium-term rental payments under this Notice, including requirements to prevent a duplication of rental or financial assistance provided to a program participant;
h. Housing stability case management; and
i. Termination of assistance to program participants.
8. Project Completion: Project completion for a HOME-ARP Supportive Services project means the final drawdown has been disbursed for the project.
E. Acquisition and Development of Non-Congregate Shelter A non-congregate shelter (NCS) is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME- ARP NCS. Consequently, PJs must consider the availability of ongoing operating funds for the HOME-ARP NCS so that the HOME-ARP NCS can remain viable through the restricted use period specified in this Notice.
56 During the restricted use period, HOME-ARP NCS may:
Remain as HOME-ARP NCS in compliance with the requirements of this Notice. Be used as a non-congregate emergency shelter under the Emergency Solutions Grants (ESG) program (Subtitle B of title IV of the McKinney-Vento Homeless Assistance Act) (42 USC 11371 et seq.), in which case the non-congregate shelter must be operated in compliance with all requirements at 24 CFR part 576 that apply when ESG funds are provided for operating costs or essential services in the shelter. During any period for which ESG funds are provided, the applicable ESG requirements shall govern in the event of any conflict with HOME-ARP requirements.
Be converted to permanent affordable housing according to the requirements established in Section VI.E.11 of this Notice.
Be converted to permanent housing as defined in Subtitle C of title IV of the McKinney- Vento Homeless Assistance Act (42 USC 11381 et seq.) according to requirements of this Notice and 24 CFR part 578.
1. Admission and Occupancy: HOME-ARP NCS units may only be occupied by individuals or families that meet the criteria for one or more of the qualifying populations as defined in Section IV.A. of this Notice. Where applicable, occupancy of NCS units by qualifying populations must be in accordance with the requirements in Section IV.C of this Notice.
The PJ must not allow qualifying populations to be charged occupancy fees or other charges to occupy a HOME-ARP NCS unit unless the PJ determines such fees and charges to be customary and reasonable and the charges comply with 24 CFR 578.77(b).
To ensure that access to HOME-ARP NCS by qualifying populations is effectively integrated with other assistance and services, PJs are encouraged to incorporate each HOME-ARP NCS into the CE established by the CoC(s) for the area the NCS is funded to serve, provided that the CE is used in accordance with Section IV.C of this Notice. Whether or not packaged with NCS funding, HOME-ARP supportive services may also be provided as needed to qualifying individuals and families served by the HOME-ARP NCS in accordance with the requirements contained in Section VI.D of this Notice.
No individual or family may be denied admission to or removed from a HOME-ARP NCS unit on the basis or as a direct result of the fact that the individual or family is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the individual or family meets the criteria of one of the qualifying populations.
2. Eligible Activities: HOME-ARP funds may be used to acquire and/or rehabilitate or construct HOME-ARP NCS units to serve qualifying populations. Acquisition of vacant land or demolition of existing structures may be undertaken only as part of a HOME-ARP NCS project. HOME-ARP NCS units acquired and/or developed with HOME-ARP funds must meet the requirements of this Notice, i.e., be used as HOME-ARP NCS or used as emergency shelter under ESG for the restricted use period established in Section VI.E.9 of this Notice.
3. Eligible Costs: HOME-ARP funds may be used for actual costs of acquiring NCS or developing HOME-ARP NCS as follows:
57 a. Acquisition Costs: Costs to acquire improved or unimproved real property. b. Demolition Costs: Costs of demolishing existing structures for the purpose of developing HOME-ARP NCS.
c. Development Hard Costs: Costs identified in 24 CFR 92.206(a) to rehabilitate or construct HOME-ARP NCS units, except costs must be for meeting the physical standards established in Section VI.E.7 of this Notice. d. Site Improvements: Costs to make improvements to the project site, including installation of utilities or utility connections, and the construction or rehabilitation of laundry, community facilities, on-site management, or supportive service offices. e. Related Soft Costs: Reasonable and necessary costs incurred by the PJ and owner associated with the financing, acquisition, and development of HOME-ARP NCS projects, including costs identified in 24 CFR 92.206(d) with the following exceptions:
i. Costs to provide information services such as affirmative marketing to prospective homeowners and tenants are not eligible.
ii. Costs of funding an initial operating deficit reserve are not eligible. iii. Costs of project-specific assistance to community housing development organizations, including technical assistance and site control loans or seed money loans as specified in 24 CFR 92.301 are not eligible. f. Replacement Reserve: Costs to capitalize a replacement reserve to pay the reasonable and necessary costs of replacing major systems and their components whose useful life will end during the restricted use period. Major systems include structural support, roofing, cladding, and weatherproofing, plumbing, electrical and HVAC. The costs of replacing major systems must be determined through a Capital Needs Assessment or documented in writing after an inspection by the PJ or PJ-selected contractor to assess the remaining useful life of major systems expected upon completion of the HOME- ARP NCS project. The costs of a replacement reserve must be included in the project budget in the written agreement along with a list of major systems to be replaced with the reserve and projected replacement schedule during the restricted use period (i.e., reserve for replacement analysis). Rehabilitation planned to be completed with HOME- ARP NCS reserve funds at a later date must be included in IDIS as a rehabilitation activity at initial commitment.
4. Prohibited Costs: HOME-ARP funds may not be used to:
a. Pay any operating costs of a HOME-ARP NCS project.
b. Provide additional HOME-ARP investment in a HOME-ARP NCS project during the restricted use period, except that additional HOME-ARP funds can be invested in the project up to one year after project completion in IDIS for eligible costs. 58 c. Pay costs of a conversion of HOME-ARP NCS as described in Section VI.E.11 of this Notice.
d. Provide non-Federal matching contributions required under any other Federal program. e. Provide assistance for uses authorized under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (Public Housing Capital and Operating Funds). f. Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low-Income Housing Mortgages).
g. Pay for the acquisition of property owned by the PJ, except for property acquired by the PJ with HOME-ARP NCS funds, or property acquired in anticipation of carrying out a HOME-ARP NCS project.
h. Pay delinquent taxes, fees, or charges on properties to be assisted with HOME-ARP NCS funds.
i. Pay for any cost that is not eligible under this Notice.
5. Commitment: PJs must commit HOME-ARP funds before disbursing funds for a HOME- ARP NCS project. HOME-ARP funds are committed to a HOME-ARP NCS project when the PJ executes a legally binding written agreement that meets the requirements in this Notice.
If the project is an acquisition-only activity, the PJ may commit HOME-ARP funds if it reasonably expects the project will be operated as HOME-ARP NCS within 6 months of the date of acquisition. Acquisition-only HOME-ARP NCS projects may be performed when the PJ reasonably determines that the units acquired will not require rehabilitation to meet the property standards in Section VI.E.7 of this Notice. If the project is not in active use as HOME-ARP NCS within 6 months of the acquisition, HUD may require the PJ to submit a schedule for placing the project into operation within a period determined by HUD or may require the PJ to repay the funds to its HOME-ARP Treasury Account.
For projects that will involve rehabilitation or new construction with or without acquisition, the PJ may commit HOME-ARP funds if it reasonably expects development to begin within 12 months of the date of commitment.
6. Project Development Due Diligence: HOME-ARP NCS projects must meet the requirements of this Notice for the restricted use period. Consequently, before awarding HOME-ARP funds to a HOME-ARP NCS project, PJs must determine that acquisition and/or development is financially feasible. The PJ is responsible for maintaining continued operation of the NCS in accordance with this Notice throughout the restricted use period.
Therefore, the PJ must consider whether the HOME-ARP NCS project has secured or has a high likelihood of securing operating funding because operating costs cannot be paid with HOME-ARP.
59 PJs must assess HOME-ARP NCS projects, including a review of information from the owner and/or developer that demonstrates the project’s financial feasibility throughout the restricted use period. Before awarding funds for HOME-ARP NCS, the PJ must:
Require that the developer submit evidence of appropriate skills and experience related to the development of shelters or similar facilities. Require the owner to submit evidence of prior experience with operating shelters. Require an acquisition or development budget, timeline, and sources and uses statement for the acquisition and/or development of the project be submitted for review.
Require the owner to submit a proposed operating budget, including secured sources for operating costs and any operating gap that will require additional assistance. If there is a gap in the operating budget, the PJ should require the owner to submit a plan for securing additional private, local, state, or Federal funding sufficient for successful operation of the project.
Before committing funds, PJs should also determine whether the owner intends to continue operating the project as HOME-ARP NCS or emergency shelter NCS under ESG for the entire full restricted use period or plans to convert the HOME-ARP NCS to permanent affordable housing or CoC permanent housing during the restricted use period, once the minimum use period for HOME-ARP NCS established in this section is completed. If a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS project. In such instances, the PJ should consider the physical design needs of an eventual conversion in its evaluation of the HOME-ARP NCS project.
7. Property and Habitability Standards: HOME-ARP NCS projects must meet the minimum HOME-ARP property standards prior to occupancy and the HOME-ARP NCS ongoing property standards throughout the restricted use period as described in this Notice.
An “acquisition only” project must meet the HOME-ARP NCS minimum property standards described in paragraph a. below at the time of acquisition. If the project requires rehabilitation or repair to meet the minimum property standards, the project is considered acquisition and rehabilitation irrespective of the source of funds used for the rehabilitation or repair and must meet the NCS rehabilitation standards in paragraph b. below. In addition, PJs must meet the standards required in this Notice for rehabilitation or new construction, as applicable. The PJ must determine that construction contracts and documents describe the work to be completed in adequate detail to establish a basis for inspection to determine that all work was completed to contracted specifications and that the project met the HOME- ARP NCS property standards. Project classification as rehabilitation or new construction is determined by the PJs local code requirements based on specific work to be completed. PJs may also choose to adopt a standard that exceeds the minimum standards described here.
The written agreement must impose the HOME-ARP NCS property standards or the PJ’s locally developed standards and require that the PJ or its representatives have access to the property to perform inspections during development and throughout the restricted use period.
60 a. Minimum HOME-ARP NCS Property Standards: All HOME-ARP NCS units and common areas must meet all applicable State and local codes, ordinances, and requirements and the applicable provisions of HUD’s Lead Safe Housing Rules at 24 CFR Part 35. In addition, all HOME-ARP NCS projects must meet the following minimum safety, sanitation, accessibility, and privacy standards:
i. Must be structurally sound to protect occupants from the elements and not pose any threat to health and safety of the occupants.
ii. Must be accessible in accordance with section 504 of the Rehabilitation Act (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; the Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 CFR part 100; and Title II of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.) and implementing regulations at 24 CFR part 35, all as applicable. iii. Must provide each individual or family with an acceptable, individual room to sleep which includes adequate space and security for themselves and their belongings.
iv. Must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of occupants. v. Must have a water supply free of contamination.
vi. Must have in-unit sanitary facilities that are in proper operating condition and are adequate for personal cleanliness and the disposal of human waste. vii. Must provide necessary heating/cooling facilities in proper operating condition. viii. Must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances. ix. Food preparation areas, if any, must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner. x. Must provide one working smoke detector and one working carbon monoxide detector in each unit. All smoke and carbon monoxide detectors and alarm systems must be designed for hearing-impaired residents. All public areas of the shelter must have at least one working smoke detector and one carbon monoxide detector. There must also be a second means of exiting the building in the event of fire or other emergency.
Minimum HOME-ARP NCS Rehabilitation Standards: HOME-ARP NCS rehabilitation projects must meet all applicable State and local codes, ordinances, and requirements , or in the absence of such codes, International Residential Code or the International Building Code (as applicable), and must comply with the Lead Safe Housing Rule at 24 CFR Part 35. Additionally, PJs must consider the remaining useful life of major systems. PJs are encouraged to use a Capital Needs Assessment to determine the reasonable and necessary investment of HOME-ARP funding in rehabilitation projects and expected cost of ongoing replacement needs during the restricted use period. If HOME-ARP funding will capitalize a replacement reserve, the PJ must determine the remaining useful life of major systems through a Capital Needs Assessment or other PJ inspection documented in writing, in accordance with requirements for capitalized replacement reserve costs in VI.E.3.
61 Minimum HOME-ARP NCS New Construction Standards: HOME-ARP NCS projects that are newly constructed must meet all applicable State and local codes, ordinances, and requirements, or in the absence of such codes, the International Residential Code or the International Building Code (as applicable to the type of structure). HOME-ARP funds cannot be used to fund a replacement reserve for newly constructed HOME-ARP NCS.
b. On-going Property Standards and Inspections: PJs must develop ongoing inspection procedures to verify that HOME-ARP NCS projects meet the minimum HOME-ARP NCS property standards established in this Notice throughout the restricted use period.
A PJ’s inspection procedures must require annual inspections that are applied consistently to all HOME-ARP NCS projects. When deficiencies are identified, a follow-up inspection to verify that deficiencies are corrected must occur within 6 months. The PJ may establish a list of non-hazardous deficiencies for which correction can be verified by third party documentation (e.g., paid invoice or work order) rather than reinspection. If life-threatening deficiencies exist, the owner or operator of the HOME-ARP NCS must correct such deficiencies immediately. In such instances, the PJ must re-inspect to verify the deficiency has been corrected within 14 days.
8. Project Completion: Project Completion for HOME-ARP NCS means:
All necessary title transfer requirements and construction work has been performed; The project complies with the requirements of this Notice, including the HOME- ARP NCS property standards as evidenced by a final inspection; The project is actively operating as a HOME-ARP NCS;
Final drawdown of HOME-ARP funds has been disbursed; and Project completion information is entered into IDIS.
All HOME-ARP NCS projects must be completed within 4 years of the date of commitment of the HOME-ARP funds based on the date of the last signature on the written agreement.
If the PJ fails to complete a project within 4 years of project completion, it must comply with the terminated project requirements at 24 CFR 92.205(e)(2). HOME-ARP NCS rehabilitation and new construction projects must begin operating as active shelters within 6 months after the date of completion of the construction work. If the HOME-ARP NCS project is not in use within 6 months, HUD may require the PJ to submit a schedule for placing the project into operation as an active shelter within a period determined by HUD or may require the PJ to repay the HOME-ARP funds to its HOME-ARP Treasury Account.
9. Restricted Use Period: HOME-ARP NCS projects must comply with the requirements of this Notice for not less than the restricted use period specified in this Notice. PJs must impose the HOME-ARP NCS requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanism approved by HUD. The use restriction should not identify that the property is prioritized for victims of domestic violence, dating violence, sexual assault, stalking or human trafficking. This use restriction must require that the property is operated as HOME-ARP NCS or non-congregate emergency shelter under ESG for the required restricted use period except that HOME-ARP 62 NCS projects may be converted to permanent affordable housing or CoC permanent housing after being operated as HOME-ARP NCS for the applicable minimum use period prior to conversion as described in Section VI.E.11. If the HOME-ARP NCS is converted, the PJ must amend its use restriction to reflect the change in requirements for the remainder of the restricted use period.
The restricted use period begins at project completion as defined in Section VI.E.8 of this Notice and must be imposed for at least the following periods:
a. New Construction: Newly constructed HOME-ARP NCS units must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 15 years, regardless of the amount of HOME-ARP funds invested in the project.
b. Rehabilitation: HOME-ARP NCS units which receive any amount of HOME-ARP funds for rehabilitation but are not designated as new construction by the PJ’s state or local building code requirements must be operated as HOME-ARP NCS units for qualifying populations for a restricted use period of 10 years.
c. Acquisition Only: Units acquired for use as HOME-ARP NCS that do not require rehabilitation for occupancy must serve the qualifying populations for a restricted use period of 10 years.
d. PJs may impose longer restricted use periods but must require the project remain financially viable for the extended period.
10. Return of Replacement Reserve: HOME-ARP funds may capitalize a replacement reserve for HOME-ARP NCS projects performing rehabilitation as described in Section VI.E.3 of this Notice. Any unexpended HOME-ARP funds remaining in a project’s replacement reserve at the completion of the restricted use period or upon conversion must be used or returned as follows:
a. If the HOME-ARP NCS project will continue to operate in accordance with the HOME- ARP NCS requirements and serve qualifying households beyond the HOME-ARP NCS restricted use period demonstrated by enforceable restrictions imposed by the PJ in accordance with Section VI.E.9, the project can retain the replacement reserve to pay reasonable and necessary costs of replacing major systems and their components. b. If the HOME-ARP NCS project will not continue to operate in accordance with the HOME-ARP NCS requirements because the NCS is being converted to either CoC permanent housing or permanent affordable housing as described in Section VI.E.11 of this Notice and the HOME-ARP grant is still open, the remaining HOME-ARP funds in the replacement reserve must be returned to the PJ’s HOME Investment Trust Fund Treasury account.
c. If the HOME-ARP NCS grant has expired or is closed out, any remaining HOME-ARP funds in the replacement reserve must be deposited in the PJ’s local HOME account, 63 recorded as a program income receipt in IDIS and used for eligible costs under 24 CFR part 92.
11. Conversion of Non-Congregate Shelter to Rental Housing: The ARP authorizes the conversion of HOME-ARP NCS units into permanent housing under subtitle C of title IV of McKinney-Vento or permanent affordable housing as described in this section, during the restricted use period. No HOME-ARP funds may be used for conversion. The written agreement between the PJ and the owner of the HOME-ARP NCS project must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve any conversion in advance.
a. Minimum Use Period: All HOME-ARP NCS projects must be operated as NCS for a minimum period of time prior to conversion. The minimum use period prior to conversion varies based on the original HOME-ARP NCS eligible activity undertaken and the amount of funds invested in the project. If the HOME-ARP NCS project involves rehabilitation, the minimum use period prior to conversion is based on the total cost of the rehabilitation as a percentage of the total appraised value of the improved property. A larger investment for rehabilitation will require operation as HOME-ARP NCS for a longer minimum use period prior to conversion. i. Acquisition Only: HOME-ARP NCS activities not requiring rehabilitation for occupancy must be operated as HOME-ARP NCS for no less than 3 years from project completion prior to conversion.
ii. Moderate Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources of less than 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive moderate rehabilitation must be operated as HOME-ARP NCS for no less than 5 years from project completion prior to conversion. iii. Substantial Rehabilitation: Occurs when an NCS HOME-ARP project requires rehabilitation and the total rehabilitation expenditure from all sources exceeds 75 percent of the total appraised value of the improved property. HOME-ARP NCS projects that receive substantial rehabilitation must be operated as HOME-ARP NCS for no less than 10 years from project completion before conversion. iv. New Construction: Any HOME-ARP NCS project defined by the PJ’s state or local code requirements as new construction must be operated as HOME-ARP NCS for no less than 10 years from project completion prior to conversion.
Requirements for conversions vary depending on the type of conversion, as follows:
b. Permanent Affordable Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may provide written approval to convert the project from HOME-ARP NCS to permanent affordable housing (e.g., affordable multifamily rental housing, transitional housing) in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner.
64 The converted permanent affordable housing project must meet the following requirements:
i. Additional HOME-ARP Investment: The PJ is prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project from HOME-ARP NCS to permanent affordable housing or to pay for operating the project as permanent affordable housing. However, the PJ must determine that adequate financial resources are committed to the project to bring it into compliance with the property standards of Section VI.B.11 of this Notice and maintain the financial feasibility of the project to be operated as permanent affordable housing for the qualifying populations throughout the remaining restricted use period. If permitting conversion of HOME-ARP NCS into permanent affordable housing, a PJ must develop and evaluate the project in accordance with standardized underwriting guidelines for conversion. At minimum, the PJ’s underwriting guidelines for conversion must include an examination of the sources and uses of funds for the conversion and a careful review of the project’s operating budget, including the assumptions, projections, and reasonably expected increases in expenses throughout the minimum compliance period defined in the section below, to determine that the project will remain financially feasible to serve the qualifying populations for the remainder of the restricted use period.
The PJ may assist households living in affordable rental housing units in converted projects by providing HOME-ARP TBRA in accordance with Section VI.C of this Notice or financial assistance services in accordance with Section VI.D.4.c.i.R.
ii. Minimum Compliance Period: The minimum compliance period for converted housing is the period that the housing must continue to comply with the requirements of this Notice and is equal to the balance of the HOME-ARP NCS restricted use period. A PJ may impose a longer compliance period but should plan for the project’s financial feasibility for the longer period. The PJ may not use HOME-ARP funds to provide operating assistance, including a capitalized operating reserve, to cover deficits during the minimum or an extended compliance period.
The PJ must amend the use restriction for HOME-ARP NCS to reflect the conversion to permanent affordable housing. The provisions for imposing affordability requirements at 24 CFR 92.252(e)(1) through (e)(4) apply to the amended use restriction. In addition, the amended use restriction for the permanent affordable housing must be enforceable to maintain compliance with the requirements of this Notice for the minimum compliance period, including the following:
(1) The same number of units that were operated as HOME-ARP NCS for qualifying populations must be restricted for and must be occupied by households that meet the definition of a qualifying population at the time of initial occupancy of the permanent affordable housing. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.E.11 of this Notice. 65 (2) The units must comply with the ongoing property condition standards of 24 CFR 92.251(f) throughout the minimum compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504(d)(ii).
(3) Each household that occupies a HOME-ARP assisted rental unit must have an executed lease that complies with the tenant protections required in Section VI.B.18 of this Notice.
iii. Property Standards: For the remaining restricted use period, the PJ must require that project owners maintain the housing as decent, safe and sanitary housing in good repair in accordance with the ongoing property condition standards of 24 CFR
92.251(f) as demonstrated by an on-site inspection at least once every three years in accordance with 24 CFR 92.504(d)(ii).
iv. Tenant Contribution to Rent: The PJ must confirm that the qualifying household’s contribution to rent is affordable to the household based on a determination of the household’s income. If the household is receiving project-based or tenant-based rental assistance, it cannot contribute towards rent more than is permitted in accordance with the requirements of the applicable program. If a qualifying household cannot contribute to rent, or the contribution is insufficient to cover the unit rent, the PJ may provide HOME-ARP TBRA or supportive services to assist the qualifying household but may not provide operating cost assistance or fund an operating cost assistance reserve.
v. Tenant Protections: Following conversion, each qualifying household that occupies a permanent affordable housing unit must have an executed lease or sublease that complies with the tenant protections requirements of this Notice.
(1) Lease Requirement: There must be a lease between the qualifying household and the owner of the permanent affordable housing project or, if there is a sublease with a qualifying household, a lease between a HOME-ARP sponsor and the owner in accordance with 24 CFR 92.253(a). (2) Prohibited Lease Terms: The lease between the qualifying household and the owner, lease between HOME-ARP sponsor and the owner, and sublease between a HOME-ARP sponsor and qualifying household may not contain any of the prohibited lease terms specified in 24 CFR 92.253(b). (3) Termination of tenancy: An owner may not terminate the tenancy or refuse to renew the lease of a qualifying household (or of a HOME-ARP sponsor with a sublease with a qualifying household) in a permanent affordable housing unit except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local laws, or for other good cause. An increase in the qualifying household’s income does not constitute good cause.
66 To terminate or refuse to renew tenancy, the owner must serve written notice upon the qualifying household and the HOME-ARP sponsor if the lease is between an owner and HOME-ARP sponsor, specifying the grounds for the action at least 30 days before termination of tenancy. In the case of a sublease, to terminate or refuse to renew tenancy of a qualifying household, the HOME-ARP sponsor, in accordance with the policy established by the PJ, must notify the PJ in advance of serving written notice to the qualifying household and must serve written notice upon the qualifying household at least 30 days before termination of tenancy, specifying the grounds for the action.
vi. Coordinated Entry and Project-Specific Waitlists: On a project-by-project basis, the PJ must use the method of tenant selection in Section VI.B.19 of this Notice to select qualifying households for occupancy of permanent affordable housing.
vii. Penalties for Noncompliance: The PJ must repay HOME-ARP funds invested in HOME-ARP NCS that was converted to permanent affordable housing if the permanent affordable housing does not comply with initial or ongoing requirements of this Notice during the compliance period.
c. CoC Permanent Housing: During the HOME-ARP NCS restricted use period but only after the HOME-ARP NCS minimum use period, a PJ may permit the conversion of a HOME-ARP NCS project to permanent housing or permanent supportive housing under 24 CFR 578.43 (acquisition) and/or 24 CFR 578.45 (rehabilitation) of the CoC program regulations. Conversions may only occur in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner. If conversion is approved by the PJ, the HOME-ARP NCS use restrictions must remain in place until the project is approved for CoC funding and the required CoC restrictions are imposed on the property.
Conversion to CoC permanent housing or permanent supportive housing may serve the following eligible households as defined in 24 CFR 578.3, subject to any further eligibility conditions that may apply to the use of CoC Program funds to provide rental assistance in the housing or otherwise support the project:
Chronically homeless individuals
Homeless individuals or families
PJs are prohibited from investing additional HOME-ARP funds to pay for the cost of converting the project to CoC permanent housing or permanent supportive housing. The CoC designates eligible applicants for grant funds under 24 CFR Part 578, which includes nonprofit organizations, States, local governments, and instrumentalities of State or local governments. For-profit entities are not eligible to apply for CoC grants or to be subrecipients of grant funds. Consequently, if a HOME-ARP NCS project owner intends to convert the project to CoC permanent housing or permanent supportive housing during the restricted use period, the PJ is encouraged to pursue partnership and leveraging opportunities with the CoC early in the planning stage of a HOME-ARP NCS 67 project. Additionally, PJs may provide supportive services or HOME-ARP TBRA to qualifying households that must move because of the conversion. (See Section VII.F.4.b for more information on relocations involving shelter occupants).
F. Nonprofit Operating and Capacity Building Assistance
A PJ may use up to 5 percent of its HOME-ARP allocation to pay operating expenses of CHDOs and other nonprofit organizations that will carry out activities with HOME-ARP funds.
A PJ may also use up to an additional 5 percent of its allocation to pay eligible costs related to developing the capacity of eligible nonprofit organizations to successfully carry out HOME- ARP eligible activities.
PJs may award operating expense assistance or capacity building assistance to a nonprofit organization if it reasonably expects to provide HOME-ARP funds to the organization for any of the eligible HOME-ARP activities within 24 months of the award.
1. Eligible Costs
a. Operating Expense Assistance: Operating expenses are defined as reasonable and necessary costs of operating the nonprofit organization. These costs include employee salaries, wages and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment, materials, and supplies.
HOME-ARP funds used for operating expenses must be used for the “general operating costs” of the nonprofit organization. These operating costs must not have a particular final cost objective, such as a project or activity, or must not be directly assignable to a HOME-ARP activity or project. For example, HOME-ARP funds for operating expenses may not be used for staffing costs to provide supportive services or develop HOME-ARP-rental housing (as operating costs to develop HOME-ARP rental housing are paid for by a developer fee which is a project delivery or soft cost). Because ARP does not permit any HOME-ARP funds to be used to operate a shelter, all costs related to operating a non-congregate shelter (e.g., allocable overhead and staffing costs, insurance, utilities) also cannot be paid with HOME-ARP funds.
The actual costs of implementing a specific activity or project, including staff costs to deliver supportive services or administer HOME-ARP TBRA, are considered HOME- ARP project delivery costs or project soft costs and are not eligible costs under Nonprofit Operating and Capacity Building Assistance. HOME-ARP project delivery costs are those allowable costs incurred for implementing and carrying out eligible HOME-ARP projects or activities, such as supportive services. All project delivery costs are allocable to a HOME-ARP project, including direct project and related delivery costs integral to developing the project or providing the activity. HOME-ARP project delivery costs may be paid, if eligible, by HOME-ARP funds provided under a written agreement for the activity or project and must not be paid with nonprofit operating expense or capacity building assistance.
68 b. Capacity Building Assistance: Capacity building expenses are defined as reasonable and necessary general operating costs that will result in expansion or improvement of an organization’s ability to successfully carry out eligible HOME-ARP activities. Eligible costs include salaries for new hires including wages and other employee compensation and benefits; costs related to employee training or other staff development that enhances an employee’s skill set and expertise; equipment (e.g., computer software or programs that improve organizational processes), upgrades to materials and equipment, and supplies; and contracts for technical assistance or for consultants with expertise related to the HOME-ARP qualifying populations.
2. Limitations on Assistance: NAHA and the HOME regulations limit the amount of operating expense assistance that an organization can receive annually. ARP extends this limitation to the capacity building assistance paid with HOME-ARP funds.
In any fiscal year, operating assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, for that fiscal year or $50,000.
In any fiscal year, capacity building assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, or $50,000.
If an organization receives both operating assistance and capacity building assistance in any fiscal year, the aggregate total amount of assistance it may receive is the greater of 50 percent of the organization’s total operating expenses for that fiscal year or $75,000.
To implement the above limitations on assistance, HUD has established separate fund types in IDIS for operating expense assistance and capacity building assistance. This will facilitate accurate tracking and ensure that PJs do not exceed the limits established in NAHA and ARP.
3. Commitment of Operating Expense and Capacity Building Assistance: A PJ commits operating expense assistance or capacity building assistance when it enters into a legally binding agreement with the nonprofit organization to provide the assistance.
VII. OTHER FEDERAL REQUIREMENTS
HOME-ARP funds are federal financial assistance and, therefore, are subject to requirements applicable to such funds. PJs must comply with the following requirements: 24 CFR part 92, subpart H, 92.352 – Environmental review; 92.353 – Displacement, relocation, and acquisition; and 92.355 – Lead-based paint.
69 A. Other Federal Requirements and Nondiscrimination
The requirements in 24 CFR 92.350 apply to the HOME-ARP program. PJs must comply with the Federal requirements set forth in 24 CFR part 5, subpart A, including: nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended or ineligible contractors; drug-free work; and housing counseling and the nondiscrimination requirements at section 282 of NAHA. The requirements in section 282 of NAHA are waived in connection with the use of HOME-ARP funds on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108). PJs must also comply with the Violence Against Women Act (VAWA) requirements set forth in 24 CFR 92.359.
B. Affirmative Marketing and Minority Outreach
The requirements in 24 CFR 92.351 apply to HOME-ARP activities.
C. National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and Related Laws
The environmental requirements in 24 CFR 92.352 apply to eligible activities under this Notice.
The environmental effects of each activity carried out with HOME-ARP funds must be assessed in accordance with the provisions of NEPA and the related authorities listed in HUD's implementing regulations at 24 CFR part 58. The applicability of the provisions of 24 CFR part 58 is based on the HOME-ARP project as a whole (i.e., all individual project activities, such as acquisition and rehabilitation, aggregated according to the requirements at 24 CFR 58.32), not on the type of the cost paid with HOME-ARP funds. In accordance with the provisions in 24 CFR part 58, activities undertaken with HOME-ARP funds are subject to environmental review by a PJ or State recipient. The PJ or State recipient (referred to as the “Responsible Entity” or “RE”) must assume responsibility for environmental review, decision making, and action for each activity that it carries out with HOME-ARP funds, in accordance with the requirements at 24 CFR Part 58. A state PJ must assume responsibility for approval of Requests for Release of Funds and Certification (RROF/C) submitted by State recipients.
No funds may be committed to a HOME-ARP activity or project before the completion of the environmental review and approval of the RROF/C, as applicable. Neither a HOME-ARP recipient nor any participant in the development process, including public or private nonprofit or for-profit entities, or any of their contractors, may commit HUD assistance on an activity or project until the environmental review has been completed and HUD or the state has approved the recipient's RROF/C from the RE as applicable. In addition, until the RROF/C have been approved, neither a HOME-ARP recipient nor any participant in the development process may commit non-HUD funds on or undertake a HOME-ARP activity or project if the activity or project would have an adverse environmental impact or limit the choice of reasonable alternatives. Therefore, it is important for REs to begin and complete any required environmental reviews as soon as possible.
70 1. HOME-ARP TBRA and Supportive Services
HOME-ARP TBRA and supportive services as defined at 24 CFR 58.35(b) are categorically excluded, not subject to the Federal laws and authorities at 24 CFR 58.5 (CENST) or exempt from review under NEPA. A RE may complete a single CENST review categorized under 24 CFR 58.35(b) for their supportive services program or their HOME-ARP TBRA program where participants choose their own unit and are not restricted to units within a pre-determined specific project site or sites. There is no need to complete reviews for every unit selected by participants.
2. HOME-ARP Rental Housing
Acquisition of a structure to be used as HOME-ARP rental housing is categorically excluded, subject to the Federal laws and authorities referenced at 24 CFR 58.5 (CEST) under 24 CFR
58.35(a)(5) (with the possibility of converting to exempt under 24 CFR 58.34(a)(12)) if the structure acquired will be retained for the same use (e.g., residential). Rehabilitation of buildings for residential use with one to four units for HOME-ARP rental housing is CEST under 24 CFR 58.35(a)(3)(i), if the density is not increased beyond four units, and the land use is not changed. Rehabilitation of buildings for use as HOME-ARP multifamily rental housing is CEST under 24 CFR 58.35(a)(3)(ii) only if:
1. the unit density is not changed more than 20 percent;
2. the project does not involve changes in land use from residential to non-residential; and
3. the estimated cost of rehabilitation is less than 75 percent of the total estimated cost of replacement after rehabilitation.
Rehabilitation for HOME-ARP rental housing that does not meet the thresholds for multifamily residential buildings listed above requires completion of an Environmental Assessment in accordance with 24 CFR Part 58, Subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction.
3. HOME-ARP NCS
HOME-ARP NCS activities are subject to environmental review by the RE under 24 CFR part
58. Acquisition of a structure to be used as HOME-ARP NCS is CEST under 24 CFR
58.35(a)(5) (with the possibility of converting to exempt under 24 CFR 58.34(a)(12)) if the structure acquired will be retained for the same use (e.g., residential). Rehabilitation of a structure for HOME-ARP NCS is CEST if the project meets the thresholds listed at 24 CFR
58.35(a)(3)(i) or (ii). Rehabilitation that does not meet these thresholds requires completion of an Environmental Assessment pursuant to 24 CFR part 58, subpart E. An Environmental Assessment is also required for new construction, demolition, acquisition of vacant land for new construction, and acquisition of non-residential structures for demolition and new construction.
HOME-ARP NCS projects which may convert to emergency shelter or permanent housing pursuant to Sec. 3204(a)(4)(B) or (C) of the ARP may complete a single environmental review that covers all proposed HUD funding sources and project activities. Conversion to a program using project-based rental assistance is CEST and requires completion of an environmental review. If conversion or other additional HUD funding sources are proposed after the 71 environmental review has been completed, a CENST review for supplemental assistance under 24 CFR 58.35(b)(7) can be performed if the review is completed by the same RE that conducted the original review and if re-evaluation is not required by 24 CFR 58.47.
The PJ or subrecipient, or any contractor of the PJ or subrecipient, may not acquire, rehabilitate, convert, repair, dispose of, demolish, or construct property for a HOME-ARP NCS project, or commit or expend HUD or non-HUD funds for NCS under HOME-ARP, until the RE has completed an environmental review under 24 CFR part 58 and received HUD or state approval of the RROF/C, as applicable.
D. Labor Standards
The requirements in 24 CFR 92.354 apply to HOME-ARP activities.
E. Lead Hazard Control Requirements
The Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, subparts A, B, J, K, M, and R apply to HOME-ARP-assisted activities.
For HOME-ARP NCS, a project must comply with 24 CFR part 35, Subpart K when the HOME-ARP activity is acquisition only. HOME-ARP NCS projects that involve rehabilitation of pre-1978 facilities, whether the rehabilitation is funded with HOME-ARP or other funds, must comply with the requirements of 24 CFR part 35, Subpart J.
F. Uniform Relocation Assistance and Real Property Acquisition Policies Act, Section 104(d), and HOME-ARP Displacement, Relocation and Acquisition Program Requirements
HOME-ARP funding is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and section 104(d) of the Housing and Community Development Act of 1974, in addition to the Displacement, Relocation and Acquisition regulatory requirements of 24 CFR 92.353. This Notice also includes HOME-ARP program specific relocation requirements applicable to HOME-ARP-assisted projects. PJs must comply with all applicable requirements, as described in this section.
1. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970:
Costs incurred to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. § 4601 et seq.) (URA) are eligible HOME-ARP project costs pursuant to this Notice and 24 CFR 92.206(f). The URA establishes minimum requirements for the acquisition of real property and the displacement of persons from their homes, businesses, or farms as a direct result of acquisition, rehabilitation, or demolition for federally-assisted programs and projects. The URA implementing regulations at 49 CFR part 24 establish:
72 Requirements for the provision of replacement housing assistance, advisory services, and moving costs to persons displaced as a result of a program or project that receives federal financial assistance;
Requirements for acquisitions, including the payment of just compensation pursuant to 49 CFR part 24, subpart B, and provisions for voluntary acquisitions set forth in 49 CFR
24.101.
Minimum requirements for temporary relocation of persons, businesses, or farms as a result of a project or program that receives federal financial assistance. These requirements are found in Appendix A, Section 24.2(a)(9)(ii)(D).
Additional HUD URA policy and guidance is available in HUD Handbook 1378.
2. Section 104(d) of the Housing and Community Development Act of 1974: HOME-ARP is HOME funding and subject to the requirements in section 104(d) of the Housing and Community Development Act of 1974, as amended, (42 USC § 5304(d)), (“section 104(d)”) unless waived, as described in this section and Appendix. Costs incurred to comply with section 104(d) requirements are eligible HOME-ARP project costs under 24 CFR 92.206(f). section 104(d) applies to the demolition or conversion, as defined in 24 CFR 42.305, of a lower-income dwelling unit in connection with a HOME or Community Development Block Grant Program (CDBG) assisted activity. section 104(d) includes the following requirements:
A PJ must have a residential anti-displacement and relocation assistance plan (RARAP);
A PJ must provide relocation assistance to displaced lower-income persons; and A PJ must perform one-for-one replacement of lower-income dwellings demolished or converted to a use other than a lower-income dwelling unit. A lower-income dwelling unit is defined in 24 CFR 42.305 as a dwelling unit with a market rent (including utility costs) that does not exceed the applicable Fair Market Rent (FMR) for existing housing, as defined by HUD.
Section 104(d) implementing federal regulations can be found at 24 CFR part 42 Subpart C.
HOME-ARP Section 104(d) Waiver / One-for-One Replacement Housing.
For purposes of , the one-for-one replacement housing requirements of section 104(d)(2)(A)(i) and (ii) and (d)(3) (42 U.S.C. 5304(d)(2)(A)(i) and (ii) and 42 U.S.C. 5304(d)(3)) and 24 CFR 42.375, lower-income dwelling units shall not include single-room occupancy (SRO) units or residential hotel or motel units in jurisdictions where those units are considered dwelling units under state or local law. All other section 104(d) requirements, including but not limited to the requirement that the PJ have and follow a RARAP, remain in effect. (See 24 CFR 92.353(e) and 24 CFR part 42, subpart C).
3. HOME Program Displacement, Relocation and Acquisition Regulations: In addition to the URA and section 104(d) requirement described above, the HOME program’s Displacement, Relocation and Acquisition regulations at 24 CFR 92.353 also apply to projects funded with HOME-ARP funds. Some of these requirements differ from those 73 of the URA and section 104(d), including but not limited to the expanded temporary relocation protections at 24 CFR 92.353(b) and (c); optional relocation assistance policies in 24 CFR 92.353(d); and the right to return to a building or complex, if feasible, upon completion of a HOME project, in accordance with 24 CFR 92.353(a). PJs must follow these program-specific requirements in HOME-ARP assisted projects.
PJs are encouraged to develop optional relocation policies to address individuals that may not be eligible for URA or section 104(d) assistance due to their length of occupancy in a unit, ineligibility of their dwelling unit, or other factors beyond their control. Such policies must be in writing, applied consistently, and must not violate any other federal law or regulation. Costs incurred to comply with 24 CFR 92.353, including optional relocation policies, are eligible HOME-ARP project costs under 24 CFR 92.206(f).
4. Additional HOME-ARP Program Relocation Related Requirements: The following additional HOME-ARP program relocation requirements apply:
a. Acquisition and/or rehabilitation of hotels, motels and other non-residential property: In states where hotels and motels are not considered dwelling units or residential property, the acquisition of non-residential property such as hotels and motels for the production of HOME-ARP NCS units or HOME-ARP rental housing will not make a person occupying those properties eligible for relocation assistance under the URA, section 104(d) or 24 CFR 92.353. HOME PJs may provide HOME-ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in HOME-ARP NCS units, or the ability to rent a HOME-ARP rental unit, if the individuals or families can demonstrate that–
i. they have been in continuous residence at the property for 30 or more calendar days, and
ii. they are a qualifying household, as defined by this Notice.
Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice. For purposes of HOME-ARP, costs associated with activities under this provision of the Notice may be charged as either project delivery costs or relocation costs eligible under 24 CFR 92.206(f).
b. Conversion of HOME-ARP NCS: If HOME-ARP NCS units are occupied and converted to either permanent housing under CoC or permanent affordable housing as described in Section VI.E.11 of this Notice, persons occupying the shelter would not normally be eligible for relocation assistance under the URA, section 104(d) or 24 CFR
92.353 because they are not displaced from a dwelling unit. However, since the individuals or families occupying such shelter units are already qualifying households under HOME-ARP, HOME PJs may immediately provide such occupants with HOME- ARP assistance, as defined by this Notice, including the provision of HOME-ARP supportive services, HOME-ARP TBRA, the ability to stay in other HOME-ARP 74 NCS units, or the ability to rent a HOME-ARP rental unit. Additionally, the PJ may provide the occupants with assistance for moving costs or advisory services, as appropriate, as HOME-ARP administrative costs or under the HOME-ARP supportive services activity in Section VI.D of this Notice. Any assistance provided pursuant to this section may be provided without regard to any preferences, project-specific waiting lists, or any other form of prioritization the PJ has developed pursuant to this Notice, as the persons occupying the NCS units were already determined to be qualifying households under the HOME-ARP.
5. Persons Ineligible for HOME-ARP Assistance and Ineligible for URA, Section 104(d), or assistance pursuant to 24 CFR 92.353: If a person is required to move as a direct result of a HOME-ARP project and is determined ineligible for HOME-ARP housing assistance under the preceding Section VII.F.4 and also determined ineligible as a displaced person under the URA, section 104(d) or HOME program rules, the PJ may provide such persons advisory services as an eligible HOME-ARP administrative cost, as the PJ determines to be reasonable and necessary.
G. Section 3 Economic Opportunities for Low- and Very Low-Income Persons
Section 3 requirements established at 24 CFR Part 75 apply to HOME-ARP-assisted projects.
H. Conflicts of Interest
HOME-ARP is subject to the following conflicts of interest requirements:
1. Conflicts of Interest: PJs, State recipients, and subrecipients engaging in any of the activities defined this Notice shall be subject to the conflicts of interest provisions at 24 CFR 92.356, including but not limited to the conflicts of interest exception process defined in 24 CFR 92.356(d)-(e). Owners and developers of HOME-ARP NCS and HOME-ARP rental housing shall be subject to 24 CFR 92.356(f).
2. Organizational Conflicts of Interest: The provision of any type or amount of HOME- ARP TBRA or supportive services may not be conditioned on an individual’s or family's acceptance or occupancy of a shelter or housing unit owned by the PJ; State recipients; the subrecipient; or a parent, affiliate, or subsidiary of the subrecipient. No subrecipient may, with respect to individuals or families occupying housing owned by the subrecipient, or any parent, affiliate, or subsidiary of the subrecipient, administer financial assistance that includes rental payments, utility deposits, security deposits, or first and last month’s rent provided pursuant to this Notice. All contractors of the PJ, State recipients, or subrecipient must comply with the same requirements that apply to subrecipients under this section.
3. Written Standards of Conduct: PJs, State recipients, and subrecipients must maintain written standards of conduct covering the conflicts of interest and organizational conflicts of interest requirements under this Notice and 2 CFR 200.318. The written standards of conduct must also provide for internal controls and procedures to require a fair and open selection process for awarding HOME-ARP funds pursuant to this Notice. These standards 75 must include provisions on if and how Continuum of Care board members may participate in and/or influence discussions or resulting decisions concerning the competition or selection of an award or other financial benefits made pursuant to the HOME-ARP Notice, including internal controls on when funds may be awarded to the organization that the member represents.
4. Requesting Exceptions to Organizational Conflicts of Interest: Any request for an exception to the organizational conflicts of interest provisions in this Notice shall be in writing and shall be considered by HUD only after the PJ or State recipient has provided the following:
a. A written disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and
b. An opinion of the PJ’s or State recipient's attorney that the interest for which the exception is sought would not violate State or local law.
5. Granting Exceptions to Organizational Conflicts of Interest: HUD shall determine whether to grant an exception to the organizational conflicts of interest on a case-by-case basis when it determines that the exception will serve to further the purposes of HOME- ARP. HUD shall consider the following factors, as applicable, in determining whether to grant such an exception:
c. Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available d. Whether undue hardship will result to the PJ, State recipient, subrecipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict;
e. Whether conditioning approval on changes to the PJ, State recipient, or subrecipient’s policies or procedures can adequately address the organizational conflict of interest; and f. Any other factors relevant to HUD’s determination, including the timing of the requested exception.
VIII. PROGRAM ADMINISTRATION
A. PJ Responsibilities
The PJ is responsible for managing the day-to-day operations of its HOME-ARP program, ensuring that HOME-ARP funds are used in accordance with all program requirements and written agreements, and taking appropriate action when performance problems arise. The use of State recipients, subrecipients, or contractors does not relieve the PJ of this responsibility.
B. Written Agreement Requirements
Before disbursing any HOME-ARP funds to any entity, the PJ must enter into a written agreement with that entity pursuant to 24 CFR 92.504. Similarly, before disbursing any HOME 76 funds to a State recipient, subrecipient, or contractor which is administering all or a part of the HOME-ARP program on behalf of the PJ, the PJ must also enter into a written agreement with that entity that complies with 24 CFR 92.504 and the requirements described below. A written agreement cannot commit to providing HOME-ARP funds after the end of the HOME-ARP budget period.
The written agreement must require compliance with the requirements of this Notice. The content of the written agreement will vary depending upon the role the entity is asked to assume or the type of project undertaken.
This section details basic requirements by activity and the minimum provisions, in addition to those at 24 CFR 92.504 that must be included in a written agreement. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and apply for all HOME-ARP written agreements.
1. Rental Housing: The PJ must execute a written agreement with the project owner/developer prior to the expenditure of HOME-ARP funds. The written agreement must comply with 24 CFR 92.504 and contain the following additional provisions:
a. Use of HOME-ARP funds for Rental Housing: The agreement between the owner/developer must describe the address of the project or legal description of the property if a street address has not be assigned to the property, the use of the HOME- ARP funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget, including any HOME-ARP funds used to capitalize an operating cost reserve for qualified HOME-ARP units. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements.
b. Operating Cost Assistance: If the PJ will provide HOME-ARP funds for operating cost assistance, the agreement must specify whether the PJ will provide assistance through periodic payments or capitalize the operating cost assistance reserve based on the operating deficit projected for the 15-year compliance period. If the PJ is providing ongoing assistance, the amount of assistance must be based on the actual operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written agreement must specify the frequency of operating assistance payments made to the owner (e.g., monthly, quarterly, etc.) and state that the amount of assistance will be equal to the deficit demonstrated and/or incurred. The written agreement may only provide for HOME-ARP funds to be used for operating assistance payments during the budget period defined in Section VIII.C.4 below. If operating cost assistance will be required beyond the budget period, the PJ should capitalize an operating reserve before the expiration of the budget period for HOME-ARP funds in accordance with Section VI.B.23. If the PJ is capitalizing the operating reserve for the 15-year HOME-ARP compliance period, the amount of assistance must be based on the project’s underwriting and the total anticipated operating deficit associated with the HOME-ARP units restricted for occupancy by qualifying households. The written 77 agreement must specify the amount of the capitalized reserve and the restrictions on its use during the minimum compliance period in Section VI.B.18. Net operating income resulting from HOME-ARP operating cost assistance is not permitted and must be prohibited in the written agreement between the participating jurisdiction and the owner.
c. Sublease/Master Lease of HOME-ARP Units: If the PJ will permit a project owner to execute a sublease or master lease with a nonprofit organization for HOME-ARP units restricted for occupancy by qualifying households, the agreement must specify the duration of the sublease or master lease, applicable rents, lease requirements and tenant protections.
d. On-going compliance: The agreement must require rental housing assisted with HOME- ARP funds to comply with the on-going requirements of Section VI.B of this Notice or require repayment in accordance with Section VI.B.22.
e. Property Standards: The agreement must require the housing to meet the property standards required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c)(1) and (2) acquisition of standard housing and (f) on-going property condition standards.
f. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements. The owner/developer of rental housing must annually provide the PJ with information on rents and occupancy of HOME-ARP assisted units to demonstrate compliance with this Notice. If the rental project has floating HOME-ARP units, the project owner/developer must provide the PJ with information regarding unit substitution and filling vacancies so that the project remains in compliance with the HOME-ARP occupancy requirements. The agreement must specify the reporting requirements, (including copies of financial statements) to enable the PJ to determine the financial condition and continued financial viability of the project.
g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement.
h. Request for disbursement of funds: The agreement must specify that the owner/developer may not request disbursement of funds under the agreement until the funds are needed for payment of eligible costs. The owner/developer may request capitalization of a project operating cost assistance reserve for the qualifying units once all necessary title transfer requirements and construction work have been performed.
The amount of each request must be limited to eligible costs in the amount needed, as described in Section VI.B.5.g.
78 i. Duration of the agreement: The agreement must be in effect for at least the 15-year HOME-ARP minimum compliance period.
j. On-site Inspections and Financial Oversight: The PJ must comply with the on-site inspections and financial oversight requirements of 24 CFR 92.504(d)(1) and (2). In addition, if the PJ will permit the capitalization of a project operating cost assistance reserve, the PJ must, no less than annually, oversee the administration of the operating cost assistance reserve account to verify that the account is appropriately sized and draws from the account are used to cover any deficits associated with units occupied by qualifying households.
k. Tenant Selection: The written agreement must contain provisions explaining the method of tenant selection to be used in accordance with the requirements of Section IV.C and VI.B.20 of this Notice. This section must be in sufficient detail to determine which method of tenant selection is being used for the qualifying population (i.e., use of CE, use of CE with other referral methods, or project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR
92.253(d)), and any required policies and procedures around the use of a CE or project- specific waiting list. This section must also be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).
2. TBRA (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for TBRA. The written agreement provisions in 24 CFR 92.504 that reference the requirements of 24 CFR 92.350, 24 CFR 92.351, and 24 CFR 92.359 are not waived and still apply for HOME-ARP written agreements. The written agreement must contain the following provisions:
a. Use of HOME ARP funds: At a minimum, the written agreement must describe the amount and use of the HOME-ARP funds, the tasks to be performed, or services to be provided. HOME-ARP funds cannot be provided after the end of the HOME-ARP budget period.
b. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements.
c. Duration of agreement and disbursement of funds: The agreement must specify the duration of the agreement and state that disbursement of funds under the agreement may not be requested until the funds are needed.
d. Compliance with HOME-ARP program requirements: The written agreement must require compliance with HOME-ARP program requirements for the HOME-ARP TBRA activity as outlined in Section VI.C of this Notice.
79 e. Rental assistance contract: There must be a rental assistance contract between the PJ and either the HOME-ARP sponsor, the HOME-ARP TBRA assisted household, or the property owner. The PJ must determine the terms of the rental assistance contract. The rental assistance contract continues until the lease is terminated. If the rental assistance is being provided through a HOME-ARP sponsor, the PJ must determine the term of the rental assistance contract between the PJ and HOME-ARP sponsor.
If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME- ARP sponsor will be receiving the HOME-ARP TBRA subsidy directly from the PJ.
The written agreement must specify the requirements for the HOME-ARP sponsor receiving the TBRA subsidy on behalf of the HOME-ARP TBRA household and the HOME-ARP sponsor’s obligation to use the HOME-ARP TBRA payment to pay rent for the unit to the property owner or management agent. If HOME-ARP TBRA is provided in coordination with a HOME-ARP sponsor, the sponsor must enter into a sublease with the HOME-ARP TBRA assisted household that must specify the duration of the sublease, applicable rents, lease requirements and tenant protections, all in accordance with the requirements of this Notice.
f. Tenant Selection: The written agreement must require the owner to comply with the method of tenant selection determined by the PJ and applicable requirements of Section IV.C and VI.C.1 of this Notice. The written agreement must include a description of the required method of tenant selection for the qualifying populations (i.e., use of CE, use of CE with other referral methods, project-specific waiting list), the method of tenant selection for low-income households (See Section VI.B.20.b and 24 CFR 92.253(d)), and any required policies and procedures around the use of a CE or project-specific waiting list. This section of the written agreement must be in sufficient detail to determine compliance with the PJ’s preferences and/or method of prioritization, if any, as well as all applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).
3. Supportive Services (subrecipient or contractor): The requirements at 24 CFR 92.504, apply to the use of HOME-ARP funds for supportive services. The provisions of the written agreement will depend on the role the entity is asked to assume. At a minimum, the written agreement must contain the following provisions:
a. Use of HOME funds: The written agreement must describe the amount and uses of the HOME-ARP funds, the tasks to be performed, the services to be provided, and include a budget. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period.
b. Records and Reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted in order to assist the PJ in meeting its recordkeeping and reporting requirements as required under Section VIII.F of this Notice.
80 c. Duration of the agreement and Disbursement of Funds: The agreement must specify the duration of the agreement, and state that disbursement of funds under the agreement may not be requested until the funds are needed.
d. Compliance with HOME-ARP Program Requirements: The written agreement must also require compliance with HOME-ARP program requirements for the HOME-ARP supportive services activity as described in Section VI.D of this Notice.
4. HOME-ARP Non-Congregate Shelter (owner/developer): Written agreements must be executed between the PJ and the owner for all HOME-ARP NCS projects. A legally binding HOME-ARP NCS written agreement must include the date of the signature of each person signing the agreement. PJs are responsible for entering into written agreements before disbursing HOME-ARP funding. Contents of written agreements can vary based on specific needs of the PJ, the owner, and the project. Agreements for the acquisition, development, and rehabilitation of HOME-ARP NCS units must contain the following provisions:
a. Use of HOME-ARP funds: The agreement between the PJ and owner must include the address of the project or legal description of the property if a street address has not been assigned to the property, the use of the HOME-ARP NCS funds and other funds for the project, including the tasks to be performed for the project, a schedule for completing the tasks and the project, and a complete budget. These items must be in sufficient detail to provide a sound basis for the PJ to effectively monitor performance under the agreement to achieve project completion and compliance with HOME-ARP requirements. The written agreement cannot agree to provide HOME-ARP funds after the end of the HOME-ARP budget period.
b. Habitability and Property Standards: The agreement must require the HOME-ARP NCS project to meet the habitability and property standards as described in Section VI.E.7 of this Notice based on the type of project completed. c. Project Requirements: The agreement must require the HOME-ARP NCS project to meet the project requirements as described in this Notice. d. Other program requirements: The agreement must require the PJ and owner to carry out the project in compliance with the other Federal requirements of 24 CFR 92 subpart H and 24 CFR 92.505.
e. Records and reports: The agreement must specify the particular records that must be maintained and the information or reports that must be submitted to assist the PJ in meeting its recordkeeping and reporting requirements.
f. Restricted Use Period: The agreement must require the project to meet the Restricted Use Period as described in Section VI.E.9 of this Notice based on project type. g. Enforcement of the agreement: The agreement must provide for a means for the PJ to enforce compliance with HOME-ARP requirements. This means of enforcement may include liens, deed restrictions, covenants running with the land, use restriction, or other 81 mechanism approved by HUD under which the PJ has the right to require specific performance. In addition, the agreement must specify remedies for breach of the provisions of the agreement.
h. Plan of Conversion: PJs that intend to allow conversion of HOME-ARP NCS projects to other permanent affordable housing as permitted in this Notice must describe conversion as a possible outcome of the HOME-ARP NCS project; specify the conditions under which conversion will be permitted; and require that the PJ approve the terms and conditions of any conversion before the conversion occurs. i. Additional PJ Conditions and Requirements: PJs may include additional program and project requirements as determined necessary.
5. Non-Profit Operating and Capacity Building: The requirements at 24 CFR 92.504(c)(6), apply to the use of HOME-ARP funds for non-profit operating and capacity building assistance. The written agreement must describe the amounts and uses of HOME-ARP funds for operating expenses or capacity building. If the non-profit organization is not also receiving HOME-ARP funds to carry out a HOME-ARP project, the agreement must provide that the organization is expected to receive funds for a HOME-ARP project within 24 months of the date of receiving the funds for operating or capacity building expenses and must specify the terms and conditions upon which this expectation is based and the consequences of failure to receive funding for a project.
When a PJ provides both operating assistance and capacity building assistance to an organization, it must enter into either one written agreement for both types of assistance or separate written agreements for operating expense assistance and capacity building assistance. If a PJ chooses to enter into one written agreement, the PJ must separately identify the scope of assistance, eligible uses and costs, and a budget for each type of funds.
C. Grants Management
1. HOME-ARP Grant Agreement: HUD will make HOME-ARP funds available to the PJ pursuant to a HOME-ARP Grant Agreement, consistent with Section VIII.C.2 below.
Subject to the provisions of the grant agreement and requirements in this Notice, HUD will obligate HOME-ARP funds to the PJ upon execution of the agreement by both parties. In the grant agreement, the PJ agrees that funds invested in affordable housing under this Notice are repayable if the housing no longer meets the requirements of this Notice during the compliance period or the NCS no longer meets the requirements of this Notice during the restricted use period. The PJ also agrees to assume all responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR
92.352 and 24 CFR Part 58. The PJ agrees to comply with 24 CFR 92.505 and applicable Uniform Administrative Requirements at 2 CFR part 200, as amended. The PJ agrees to comply with requirements established by the Office of Management and Budget (OMB) concerning the unique entity identifier and System for Award Management (SAM) requirements in Appendix I to 2 CFR part 200, as amended, and the Federal Funding Accountability and Transparency Act (FFATA) in Appendix A to 2 CFR part 170. The PJ 82 agrees to comply with the federal nondiscrimination and equal opportunity requirements at 24 CFR 92.350 and affirmative marketing requirements in 24 CFR 92.351 and the VAWA requirements set forth in 24 CFR 92.359. The HOME-ARP grant is obligated when the HUD Authorized Official signs the memorandum obligating HOME-ARP grants. The HOME-ARP Grant Agreement must be signed by the CPD Field Office Director and counter-signed by the PJ’s authorized signatory. Once the CPD division in the local field office receives the fully executed HOME-ARP Grant Agreement, it will send the agreement to HUD’s CFO Accounting Office for processing. As described in Section VIII.C.2 of this Notice, funds will become available to the PJ in IDIS once HUD’s CFO Accounting Office processes the grant.
2. Access to Administrative Set-aside Funds: Upon issuance of this Notice, HUD will obligate all HOME-ARP grants to PJs through the signing of the HOME-ARP obligating memorandum, after which each HOME-ARP Grant Agreement must be signed by both parties. After obligation, HUD will permit the PJ to use 5 percent of its award for eligible administrative and planning costs under Section VI.A of this Notice. The PJ may not expend any funds for non-administrative and planning costs before the HOME-ARP allocation plan is accepted by HUD as described in Section V.D.2 and 3 of this Notice.
HUD will make the remaining HOME-ARP grant funds available to the PJ once HUD accepts the HOME-ARP allocation plan. If the PJ does not submit a HOME-ARP allocation plan or if the PJ’s plan is not accepted within a reasonable period of time, as determined by HUD, any costs incurred or HOME-ARP funds expended by the PJ will be considered ineligible costs and must be repaid with non-Federal funds in accordance with guidance from HUD.
3. HOME-ARP Grant Number: The PJ’s HOME-ARP grant number is similar to its HOME grant number with the exception of the source type code. All HOME-ARP grants have the program identifier “M” and the source year of the grant “21.” The different source type codes are identified in the table below.
Source Type
Description
HOME Source
Type Code
HOME-ARP
Source Type Code
HOME Consortium DC DP
Metropolitan City MC MP
State SG SP
Insular Area ST IP
Urban County UC UP
The unique grantee identifier portion of the grant number will be the same for HOME-ARP grants as it is for HOME grants. See examples of HOME-ARP grant numbers with the different source type codes in the table below.
83 Participating
Jurisdiction
HOME Grant
Number
HOME-ARP
Grant Number
Maryland M21SG240100 M21SP240100
Baltimore M21MC240200 M21MP240200
4. Budget Period: The budget period for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME- ARP Grant Agreement. The budget period for HOME-ARP grants ends on September 30, 2030. The PJ may not expend any HOME-ARP funds after September 30, 2030. After September 30, 2030, any HOME-ARP funds remaining in the PJ’s HOME Investment Trust Fund Treasury account will be cancelled and not available for obligation or expenditure for any purpose (per 31 U.S.C. 1552).
5. Period of Performance: The period of performance for HOME-ARP grants begins on the Federal Award Date, which is the date of the HUD Authorized Official’s signature specified on the HOME-ARP Grant Agreement. The period of performance for HOME-ARP grants ends on September 30, 2030.
6. Audit: Audits of the PJ, State recipients, and subrecipients must be conducted in accordance with 2 CFR part 200, subpart F.
7. Closeout: HOME-ARP funds will be closed out in accordance with 2 CFR part 200, subpart D. The PJ will use HUD’s data system to closeout HOME-ARP grants once all HOME-ARP funds have been expended, all HOME-ARP activities are completed in accordance with the requirements of this Notice, and the proper beneficiary data has been entered. In order to closeout its HOME-ARP grants, the PJ must not have any open CPD monitoring findings or audits related the HOME-ARP funds. HUD will provide closeout guidance and instructions at a later date.
D. Applicability of Uniform Administrative Requirements.
The requirements of 2 CFR part 200, as amended apply to PJs, State recipients, and subrecipients receiving HOME-ARP funds, except for the following provisions: 2 CFR 200.306, 200.307, 200.308 (not applicable to participating jurisdictions), 200.311 (except as provided in 24 CFR 92.257), 200.312, 200.329, 200.333, and 200.334. The provisions of 2 CFR 200.305 apply as modified by 24 CFR 92.502(c) and this Notice. If there is a conflict between definitions in 2 CFR part 200 and 24 CFR part 92, the definitions in 24 CFR part 92, govern.
Moreover, if there is a conflict between the provisions of 2 CFR part 200 and the provisions of this Notice, the provisions of this Notice govern.
Where regulations in 24 CFR part 92 refer to specific regulations of 2 CFR part 200 that were or are renumbered or revised by amendments to 2 CFR part 200, the requirements that apply to the 84 use of HOME-ARP funds are the applicable requirements in 2 CFR part 200, as amended, notwithstanding the renumbered regulatory reference.
E. Financial Management
1. The HOME Investment Trust Fund: HUD will establish a HOME-ARP Investment Trust Fund Treasury account (Treasury account) for a PJ’s HOME-ARP funds. The Treasury account includes all HOME-ARP funds allocated to the PJ by formula and any HOME-ARP funds repaid by the PJ.
The PJ must establish a HOME-ARP Investment Trust Fund local account (local account) as described in 24 CFR 92.500. The PJ may use either a separate local account or, a subsidiary account within its general fund (or other appropriate fund) as the local account. The PJ may not use the same local account for HOME-ARP that it uses for its HOME local account.
The local account includes deposits of HOME-ARP funds disbursed from the Treasury account. The local account must be interest-bearing.
HUD will reduce or recapture any HOME-ARP funds that are in the Treasury account that are not expended (drawn down) by September 30, 2030. Due to end-of-year financial system closeouts that begin before this date and prevent electronic access to the payment system, requests to draw down the funds must be made at least 7 full business days before this date so that the funds still can be drawn from the Treasury account through IDIS.
2. Program Income: Program Income means gross income received by the PJ generated from the use of HOME-ARP funds during the grant period of performance. This includes, but is not limited to, principal and interest payments from a loan made with HOME-ARP funds, or other income or fees received from project owners in connection with HOME-ARP funds, and interest earned by the PJ on program income before its disposition.
Program income earned as a result of the use of HOME-ARP funds is HOME program income and must be used in accordance with the requirements of 24 CFR part 92. All program income must be recorded in IDIS. Program income must be deposited in the PJ’s HOME-ARP local account (unless the PJ allows a State recipient or subrecipient to retain the program income for additional HOME projects pursuant to such terms and conditions in the written agreement and this Notice). The PJ must enter HOME-ARP program income retained by the State recipient or subrecipient as a HOME program income receipt in IDIS and subgrant the program income to the State recipient or subrecipient that retained the program income. The PJ is responsible to report on the use of its program income in IDIS, including program income it allowed a State recipient or subrecipient to retain.
3. Repayments: Any HOME-ARP funds used for costs that are not eligible under this Notice, funds invested in a project that is terminated before completion, either voluntarily or otherwise, or funds invested in HOME-ARP rental housing and NCS that does not meet the requirements in this Notice for the applicable period specified in this Notice must be repaid by the PJ to its Treasury account. If the funds are repaid after September 30, 2030, they will be recaptured by the U.S. Department of Treasury and the PJ will not be able to re-use the 85 funds for eligible HOME-ARP activities. HOME-ARP funds may not be repaid to the PJ’s local account.
4. Integrated Disbursement and Information System (IDIS): The PJ will use IDIS to administer its HOME-ARP funds. The PJ will request disbursements of HOME-ARP funds from its Treasury account and collect and report information on the use of HOME-ARP funds through IDIS. (For purposes of reporting in IDIS, a HOME-ARP project is an activity.) The PJ must report all program income in IDIS.
The requirements of 24 CFR 92.502(c)(3) do not apply to HOME-ARP funds.
In accordance with this Notice, a HOME-ARP written agreement providing HOME-ARP funds to a project or the CHDO/nonprofit must be signed and dated by:
a. the PJ and project owner for HOME-ARP rental and HOME-ARP NCS; b. the PJ and service provider for HOME-ARP supportive services; c. the PJ and landlord, tenant, and/or HOME-ARP sponsor, as applicable, for HOME-ARP TBRA; and,
d. the PJ and CHDO/nonprofit organization for HOME-ARP Operating Expenses and Capacity Building Assistance.
This must occur before any HOME-ARP funds are disbursed. Federal funds cannot be drawn from the Treasury account in advance of the need to pay an eligible cost.
Consequently, HOME-ARP funds cannot be drawn from the U.S. Treasury and placed in escrow or advanced in lump sums to State recipients, subrecipients, project owners, service providers, or landlords or tenants, except funds drawn down for a HOME-ARP rental project for an operating cost assistance reserve or reserve for replacement pursuant to Section VI.B.5.g. of this Notice or a HOME-ARP NCS project for a replacement reserve pursuant to Section VI.E.
Once funds are drawn from the PJ’s Treasury account, they must be expended for an eligible HOME-ARP cost within 15 days. Any interest earned within the 15-day period may be retained by the PJ as HOME program income and recorded in IDIS as a program income receipt. Any funds that are drawn down and not expended for eligible costs within 15 days of the disbursement must be returned to HUD for deposit in the PJ's Treasury account.
Interest earned after 15 days belongs to the United States and must be remitted to the United States as provided in 2 CFR 200.305(b)(9), except interest amounts up to $500 per year may be retained for the PJ’s administrative expenses.
Additional HOME-ARP funds may be committed to a project up to one year after project completion.
86 HUD will govern access to IDIS by other entities participating in the HOME program (e.g., State recipients). Only PJs and State recipients (if permitted by the State) may request disbursement.
F. Recordkeeping
Each PJ must establish and maintain sufficient records to enable HUD to determine whether the PJ has met the requirements of this Notice. At a minimum, the following records are needed:
1. Program Records:
a. Records evidencing that all HOME-ARP funds used by a PJ for TBRA, supportive services, and acquisition and development of non-congregate shelter units benefit individuals and families in qualifying populations.
b. Records evidencing that not less than 70 percent of affordable rental housing units acquired, rehabilitated, and/or constructed with HOME funds by a PJ are restricted for occupancy by households in the qualifying populations.
c. Records documenting compliance with the 15 percent limitation on administrative and planning costs.
d. Records documenting compliance with the 5 percent limitation on CHDO and non-profit operating and capacity building costs.
e. The underwriting and subsidy layering guidelines adopted in accordance with Section VI.B.10 of this Notice that support the PJ's HOME-ARP allocation plan certification. f. If existing debt is refinanced for multifamily rehabilitation projects, the HOME-ARP refinancing guidelines established in the HOME-ARP in the HOME-ARP Allocation Plan.
g. If HOME-ARP funds are used for TBRA, records supporting the PJ's written selection policies and criteria; supporting documentation for preferences for specific categories of qualifying individuals; and records supporting the rent standard and minimum tenant contribution established in accordance with Section VI.C.7 and 8 of this Notice. h. Confidentiality.
i. The PJ’s written policies and procedures for maintaining confidentiality of qualifying households as individuals or families fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking in accordance with Section VIII.H.
ii. The PJ’s written policies and procedures for maintaining confidentiality in compliance with the VAWA protections contained in 24 CFR Part 5, Subpart L. 87 2. Project Records: PJs are required to retain the following records for HOME-ARP-assisted projects, as specified by activity type.
a. A full description of each project assisted with HOME-ARP funds, including the location (address of project), form of HOME-ARP assistance, and the units, families, or qualifying households assisted with HOME-ARP funds, subject to confidentiality requirements in this Notice.
b. The source and application of funds for each project, including supporting documentation in accordance with 2 CFR 200.302; and records to document the eligibility and permissibility of the project costs, including the documentation of the actual HOME-ARP-eligible development costs of each HOME-ARP-assisted unit as defined in this Notice.
c. Records (i.e., written agreements) demonstrating compliance with the written agreement requirements in Section VIII.B of this Notice.
d. Records (e.g., inspection reports) demonstrating that each HOME-ARP rental project meets the property standards in Section VI.B.11 of this Notice at project completion and through the applicable minimum compliance period. In addition, during a HOME-ARP rental project’s minimum compliance period, records demonstrating compliance with the property standards and financial oversight pursuant to 24 CFR 92.504(d) and the operating cost assistance reserve management and oversight required by Section VI.B.23 of this Notice.
e. Records (e.g., inspection reports) demonstrating that each unit occupied by a qualifying household receiving HOME-ARP TBRA, meets the housing quality standards of Section VI.C.9 of this Notice at initial occupancy and throughout the household’s term of assistance.
f. Records (e.g., inspection reports) demonstrating that each NCS project meets the property and habitability standards of Section VI.E.7 of this Notice at project completion and throughout the applicable restricted use period.
g. Records demonstrating that each qualifying household is eligible for HOME-ARP assistance based on the requirements of the ARP and Section IV of this Notice. h. Records demonstrating that each household qualifying as homeless, records that meet the requirements in 24 CFR 576.500(b)(1), (2), (3), or (4), as applicable (except that youth aged 24 and under must not be required to provide third-party documentation to show they are homeless to receive any shelter, housing, or services for which ESG or CoC Program funds may be used to supplement the HOME-ARP assistance). i. Records demonstrating that each household qualifying as “at risk of homelessness,” records that meet the requirements in 24 CFR 576.500(c)(1) or (2), as applicable, and include the following documentation of annual income:
88 i. Income evaluation form containing the minimum requirements specified by HUD and completed by the recipient or subrecipient; and ii. Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement);
iii. To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party of the income the household received over the most recent period for which representative data is available; or iv. To the extent that source documents and third-party verification are unobtainable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation.
j. Records demonstrating compliance with the household income requirements in accordance with Section VI.B.12 of this Notice for each HOME-ARP rental project. k. Records demonstrating that each HOME-ARP rental and NCS project meets the minimum compliance period or restricted use period described in Sections VI.B.18 and VI.E.9 respectively, of this Notice.
l. Records demonstrating that for each HOME-ARP rental housing unit or for each household receiving HOME-ARP TBRA, compliance with the tenant protection requirements of Sections VI.B.19 and VI.C.2, respectively, of this Notice. For HOME- ARP TBRA or rental projects under a master lease, the PJ must retain records demonstrating that a master lease for housing leased by a HOME-ARP sponsor and each sublease between a qualifying household and HOME-ARP sponsor complies with the tenant and participant protections of 24 CFR 92.253 and this Notice. Records must be kept for each household.
m. Records demonstrating compliance with the return of the HOME-ARP rental capitalized operating cost assistance reserve and/or the NCS replacement reserve at the end of the compliance or restricted use period in accordance with Sections VI.B.24 and VI.E.10 respectively, of this Notice.
n. Records demonstrating that each HOME-ARP rental and each NCS project meets the underwriting and subsidy layering or due diligence requirements of Section VI.B.10 or VI.E.6 of this Notice.
o. Records demonstrating that each HOME-ARP rental housing project meets the rent limitations of Sections VI.B.13 and VI.B.15 of this Notice for the 15-year minimum compliance period. Records must be kept for each household assisted. 89 p. Records demonstrating that each multifamily HOME-ARP rental housing project involving rehabilitation with refinancing complies with the refinancing guidelines established in accordance with 24 CFR 92.206(b).
q. Records demonstrating that a site and neighborhood standards review was conducted for each HOME-ARP rental housing project involving new construction under Section VI.B of this Notice to determine that the site meets the requirements of 24 CFR 983.57(e)(2) and (e)(3), in accordance with 24 CFR 92.202.
r. Records demonstrating that any conversion of HOME-ARP NCS complies with the requirements established by Section VI.E of this Notice, including that conversion of NCS only occurred after the end of the applicable minimum use period defined in Section VI.E.11.
s. For all HOME-ARP NCS projects the following documents must be maintained, as applicable:
i. Purchase contract, closing documents, settlement statement and title work for acquisitions.
ii. Appraisal or other estimation of value to justify acquisition expenditure. iii. Architectural and engineering contracts and completed designs, plans, and specifications for rehabilitation and new construction activities. iv. Invoices, pay requests, and proof of payment for all project expenditures. v. Proof of insurance.
vi. Project and program audits.
t. For all HOME-ARP Supportive Services projects pursuant to McKinney-Vento or Homelessness Prevention Supportive Services:
i. Records, where applicable, demonstrating compliance with the termination of assistance requirement as described in Section VI.D.5 of this Notice. ii. Records of all solicitations of and agreements with subrecipients and contractors, records of all payment requests by and dates of payments made to subrecipients, and documentation of all monitoring and sanctions of subrecipients, as applicable including any findings and corrective actions required. iii. Records of all procurement contracts and documentation of compliance with the procurement requirements in 2 CFR part 200, subpart D, as revised by Section VIII.D of this Notice.
iv. Records evidencing the use of the written procedures required under Section VI.D.2 and records evidencing compliance with Section IV.C.2 of this Notice. 90 v. Records of all leases, subleases, and financial assistance agreements for the provision of rental payments, documentation of payments made by the PJ to owners, HOME-ARP sponsor, or qualifying households for the provision of financial assistance for rental payments, and supporting documentation for these payments, including dates of occupancy by qualifying individuals and families. vi. Records that document the monthly allowance for utilities (excluding telephone) used to determine compliance with the rent restriction. vii. Records of the types of services provided under the PJ’s program and the amounts spent on these services.
viii. Records demonstrating subrecipient compliance with the recordkeeping requirements in Section VIII.F of this Notice.
u. For all HOME-ARP Housing Counseling Services projects as defined in 24 CFR part 5, each participating housing counseling agency must maintain a recordkeeping and reporting system in accordance with 24 CFR 214.315 and 24 CFR 214.317. The system must permit HUD to easily access all information needed for a performance review. v. For all HOME-ARP-assisted nonprofit operating expense and capacity building assistance activities:
i. Records concerning the use of funds for nonprofit operating expense and capacity building assistance must be maintained to enable HUD to determine whether the PJ has met the requirements of Section VI.F of this Notice. ii. Written agreements between the PJ and the nonprofit organization providing nonprofit operating expense assistance or capacity building assistance must be retained for five years after the agreement terminates.
3. Financial records:
a. Records, in accordance with 2 CFR 200.302, identifying the source and application of HOME-ARP funds. Identification must include, as applicable, the Assistance Listing program title and number (formerly Catalogue of Federal Domestic Assistance), Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any.
b. Records concerning the HOME-ARP Investment Trust Fund Treasury account and local account required to be established and maintained by this Notice, including deposits, disbursements, balances, supporting documentation and any other information required by IDIS.
c. Records identifying the source and application of program income and repayments. d. Records demonstrating adequate budget control and other records required by 2 CFR 200.302, including evidence of periodic account reconciliations. 91 4. Program administration records:
a. Records demonstrating compliance with the written agreements required by Section VIII.B of this Notice.
b. Records demonstrating compliance with the applicable uniform administrative requirements required by Section VIII.D of this Notice. c. Records documenting required inspections, monitoring reviews and audits, and the resolution of any findings or concerns.
5. Records concerning other Federal requirements:
a. Equal opportunity and fair housing records.
i. Data on the extent to which each racial and ethnic group, and single-headed households by gender of household head) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOME- ARP funds.
ii. Documentation that the PJ submitted a certification that it will affirmatively further fair housing consistent with HUD’s Interim Final Rule entitled Restoring Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR 30779, June 10, 2021) (codified at 24 CFR 5.151 and 5.152;), available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring- affirmatively-furthering-fair-housing-definitions-and-certifications. iii. Records demonstrating compliance with the nondiscrimination and equal opportunity requirements of 24 CFR 92, Subpart H.
b. Affirmative marketing and MBE/WBE records.
i. Records demonstrating compliance with the affirmative marketing procedures and requirements of 24 CFR 92.351 and this Notice.
ii. Documentation and data on the steps taken to implement the jurisdiction's outreach programs to minority-owned (MBE) and female-owned (WBE) businesses including data indicating the racial/ethnic or gender character of each business entity receiving a contract or subcontract of $25,000 or more paid, or to be paid, with HOME-ARP funds; the amount of the contract or subcontract, and documentation of participating jurisdiction's affirmative steps to assure that minority business and women's business enterprises have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services.
c. Records demonstrating compliance with the environmental review requirements of 24 CFR 92.352, 24 CFR part 58, and this Notice including flood insurance requirements. 92 d. Records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VII.F of this Notice regarding displacement, relocation, and real property acquisition, including but not limited to:
i. project occupancy lists identifying the name and address of all persons occupying the real property on the date described in 24 CFR 92.353(c)(2)(i)(A), moving into the property on or after the date described in 24 CFR
92.353(c)(2)(i)(A), and occupying the property upon completion of the project; ii. lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify for assistance under this Notice as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME- ARP program by the PJ following the closure of the nonresidential properties because of HOME-ARP activities
iii. lists of all individuals or families occupying HOME-ARP NCS that were converted during the required use period that qualify for assistance under this Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME-ARP administrative costs or under the HOME- ARP supportive services activity in Section VI.D of this Notice, and records indicating whether such persons were assisted by the HOME-ARP program by the PJ following the conversion of the HOME-ARP NCS units. iv. Documentation that the PJ has and followed a RARAP in accordance with 24 CFR 92.353 and 24 CFR 42.325.
e. Records demonstrating compliance with the labor requirements of 24 CFR 92.354, including contract provisions and payroll records.
f. Records demonstrating compliance with the lead-based paint requirements of 24 CFR part 35, subparts A, B, J, K, M and R, as applicable.
g. Records supporting compliance with conflict of interest requirements in 24 CFR 92.356, as revised by Section VII.H of this Notice, as well as documentation of any exceptions granted by HUD or a state PJ, as applicable, to the conflict of interest provisions in 24 CFR 92.356, as revised by Section VII.H of this Notice. h. Records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424.
i. Records concerning intergovernmental review, as required by 24 CFR 92.357. j. Records of emergency transfers requested under 24 CFR 5.2005(e) and 24 CFR 92.359 pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of those requests.
93 k. Documentation of actions undertaken to meet the requirements of 24 CFR part 75 which implements section 3 of the Housing Development Act of 1968, as amended (12 U.S.C. 1701u).
6. State Recipients and Subrecipients: A PJ that distributes HOME-ARP funds to State recipients or subrecipients must require the State recipients or subrecipients to keep the records required by paragraphs 1. program records, 2. project records, 3. financial records,
4. program administration records, and 5. records concerning other federal requirements of Section VIII.F of this Notice, and such other records as the PJ determines to be necessary to enable the PJ to carry out its responsibilities under this Notice. The PJ need not duplicate the records kept by the State recipients or subrecipients. The PJ must keep records concerning its annual review of the performance and compliance of each State recipient and subrecipient as required under 24 CFR 92.504(a).
7. Period of record retention: All records pertaining to HOME-ARP funds must be retained for five years, except as provided below.
a. For HOME-ARP rental housing projects, records may be retained for five years after the project completion date; except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five-year period, until five years after the affordability period terminates. b. For HOME-ARP TBRA projects, records must be retained for five years after the period of rental assistance terminates.
c. Written agreements must be retained for five years after the agreement terminates. d. Records covering displacements and acquisition must be retained for five years after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with 24 CFR 92.353.
e. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.
8. Access to records: The PJ must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable state and local laws and any other applicable grant conditions from other federal grant programs regarding privacy and obligations of confidentiality.
The PJ, subrecipient, contractor, or owner may create a program participant identifier code or number that can be used on a file and maintained internally, in such a way that the number itself does not inadvertently identify the program participant, (i.e., no use of initials, date of birth, or other pieces of information that might suggest the identity of the program participant). The “key” or “cypher” for the program participant identifier code would itself be confidential and would not leave the provider. In the circumstance of HUD programs, the 94 Unique Personal Identification Number which is generated within the comparable database could be used with auditors to identify records of services to distinct individuals, subject to the below requirement.
HUD and the Comptroller General of the United States, any of their representatives, have the right of access to any pertinent books, documents, papers, or other records of the PJ, state recipients, and subrecipients, in order to make audits, examinations, excerpts, and transcripts. If a provider of services or operator of an NCS is subject to state or local laws or other federal grant programs that require that HUD not be given access to records detailing PII of victims, then auditors or evaluators may be given access to representative files without any sharing of individual identifying information.
G. Reporting and Performance Reports.
The PJ must submit reports in a format and at such time as prescribed by HUD. In addition, HUD and Office of the Inspector General (OIG) staff must be given access, upon reasonable notice, to all information related to the selection, award, and use of HOME-ARP funds.
Each PJ must enter the required HOME-ARP data elements timely in IDIS.
1. For HOME-ARP rental activities under Section VI.B of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS, except the assisted units can be marked vacant until they are occupied by eligible households.
2. For HOME-ARP NCS activities under Section VI.E of this Notice, the PJ must enter complete project completion information when it completes the activity in IDIS. In addition, the PJ must report the disposition of any HOME-ARP-assisted NCS activity that is converted to another eligible use at the time of conversion.
3. For HOME-ARP TBRA activities under Section VI.C of this Notice, the PJ must report beneficiary information in IDIS at the time assistance is provided.
4. For HOME-ARP Supportive Services activities under Section VI.D of this Notice, the PJ must report in IDIS quarterly, by the 30th day after the end of each calendar quarter, on the number of homeless and not homeless households assisted with supportive services and housing counseling, including the race and ethnicity, household size, and household type of the households assisted.
HUD will issue guidance about reporting on HOME-ARP activities in the PJ’s consolidated annual performance and evaluation report (CAPER) required under 24 CFR 91.520, at a later date.
H. Confidentiality Requirements
1. All entities assisted by HOME-ARP funds must develop, implement, and maintain written procedures to require that –
95 a. All records containing personally identifying information of any individual or family who applies for and/or receives HOME-ARP assistance will be kept secure and confidential;
b. The address or location of any NCS or HOME-ARP rental housing exclusively for individuals fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as necessary where making the address or location public does not identify occupancy of the NCS or HOME-ARP rental housing, when necessary to record use restrictions or restrictive covenants in accordance with Section VI.B or VI.E, or with written authorization of the person or entity responsible for the operation of the NCS or HOME-ARP rental housing; and
c. The address or location of any program participant that is a fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be made public, except as provided under a privacy policy of the PJ consistent with state and local laws and any other grant conditions from other federal grant programs regarding privacy and obligations of confidentiality.
2. Documenting status of a qualifying population that is fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking:
a. If an individual or family qualifies because the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking then acceptable evidence includes an oral or written statement by the qualifying individual or head of household seeking assistance that they are fleeing that situation. An oral statement may be documented by either – i. a written certification by the individual or head of household; or ii. a written certification by a victim service provider, intake worker, social worker, legal assistance provider, health-care provider, law enforcement agency, legal assistance provider, pastoral counselor, or an intake worker in any other organization from whom the individual or family sought assistance.
The written documentation need only include the minimum amount of information indicating that the individual or family is fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking and need not include any additional details about the conditions that prompted the individual or family to seek assistance.
IX. PERFORMANCE REVIEWS
HUD will review the performance of each PJ in carrying out its responsibilities for the use of HOME-ARP funds and its compliance with the requirements of this Notice. Such reviews may take the form of remote or on-site monitoring, review of IDIS data or reports, assessment of documents requested from the PJ, subrecipient, or other entity carrying out HOME-ARP activities, and inquiries resulting from external audit reports, media reports, citizen complaints, 96 or other sources of relevant information. HUD may also review a PJ’s timely use of HOME- ARP funds for eligible activities, including the progress of expenditures for individual projects or activities, the requirement to place a project in service in accordance with requirements in this Notice, and compliance of HOME-ARP rental housing and NCS with the 4-year deadline for completing projects.
If HUD preliminarily determines that a PJ has not met a requirement of this Notice or an applicable requirement of the HOME regulations at 24 CFR Part 92, HUD will communicate its determination in writing and provide the PJ with the opportunity to demonstrate, based on substantial facts, documentation, and data, that it has done so. HUD may extend any time period it provided to the PJ to demonstrate its compliance if upon request of the PJ, HUD determines that is it infeasible for the PJ to provide a full response within the prescribed period.
If the PJ fails to demonstrate to HUD's satisfaction that it has met the requirement, HUD will take corrective or remedial action in accordance with this section or 24 CFR 92.552.
A. Corrective and Remedial Actions
Corrective or remedial actions for a performance deficiency (e.g., failure to meet a provision of this Notice or an applicable provision of 24 CFR Part 92) will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. HUD may impose corrective or remedial actions including but not limited to the following:
1. HUD may instruct the PJ to submit and comply with proposals for action to correct, mitigate and prevent a performance deficiency, including:
a. Preparing and following a schedule of actions for carrying out the affected activities, consisting of schedules, timetables, and milestones necessary to implement the affected activities;
b. Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions;
c. Canceling or revising activities likely to be affected by the performance deficiency, before expending HOME-ARP funds for the activities;
d. Reprogramming HOME-ARP funds that have not yet been expended from affected activities to other eligible activities;
e. Reimbursing its HOME-ARP grant in any amount not used in accordance with the requirements of this Notice;
f. Suspending disbursement of HOME-ARP funds for affected activities; and g. Establishing procedures to ensure compliance with HOME-ARP requirements. 97 2. HUD may also:
a. Change the method of payment from an advance to a reimbursement basis and may require supporting documentation to be submitted for HUD review for each payment request before payment is made;
b. Determine the PJ to be high risk and impose special conditions or restrictions on the use of HOME-ARP funds in accordance with 2 CFR 200.208; and c. Take other remedies that may be legally available, including remedies under 2 CFR 200.339 and 200.340.
B. Sanctions
The requirements at 24 CFR 92.552 apply to HOME-ARP funds, except that the provision at 24 CFR 92.552(a)(2)(iv) related to failure to comply with matching contribution requirements shall not apply.
X. FINDING OF NO SIGNIFICANT IMPACT
A Finding of No Significant Impact (FONSI) with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for inspection at HUD's Funding Opportunities web page at:
https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.
ATTACHMENT C
City of Victorville
Citizen Participation Plan
CITY OF VICTORVILLE - CITIZEN PARTICIPATION PLAN
Amended: May 5, 2020 (Amendments Underlined)
I. EXECUTIVE SUMMARY
Since 1997, the City of Victorville (the “City”) has received an annual allocation of Community Development Block Grant (CDBG) funds from the U. S. Department of Housing and Urban Development (HUD). In 2003, the City formed a HOME Investment Partnership Program Consortium with the Town of Apple Valley (the “HOME Consortium”) in order to meet the threshold of obtaining HOME entitlement status with HUD. The City receives both CDBG and HOME funding annually.
As an Entitlement City, the City is required to prepare and adopt a Consolidated Plan (Con Plan) and an Assessment of Fair Housing (AFH). The Con Plan is a plan of three to five years in length, which reviews and considers the housing and community development needs of the City, establishes priorities for CDBG and HOME funds, creates and institutes an Annual Action Plan (AP) for meeting current and future needs, and identifies the City’s performance in meeting its annual goals through the Consolidated Annual Performance Evaluation Report (CAPER).
The AFH replaces the Analysis of Impediments to Fair Housing (AI) to assist the City in identifying fair housing issues and related contributing factors to achieve comprehensive community development goals and affirmatively further fair housing. The Con Plan, A P Plan and AFH are also required to have a strategy for resident and citizen participation in the planning process. According to 24 CFR § 91.105 and as a condition of federal funding , the City must adopt and follow a Citizen Participation Plan (CPP) describing how the City will encourage participation from residents and citizens of all ages, genders, economic levels, races, ethnicities and special needs to provide them with equal access in the development of the Con Plan, A P and AFH, and to ensure their issues and concerns are adequately addressed. Participation shall include community-based and regionally-based organizations that represent and assist protected class members and organizations that enforce fair housing laws.
II. PURPOSE OF THE CITIZEN PARTICIPATION PLAN
The purpose of the CPP is to provide the method and process by which the City’s Con Plan, AP and AFH processes will comply with the citizen participation requirements set forth by HUD pursuant to 24 CFR §
91.105 and the Affirmatively Furthering Fair Housing Final Rule (24 CFR §§ 5.150 through 5.180). This CPP states the process of soliciting the views and recommendations from the public, as well as the process for incorporating public comments and views into the objectives and outcomes developed in the Con Plan, AP, and AFH. This CPP and the participation process shall be implemented and monitored by the City’s Development Department.
III. DEVELOPMENT OF AFH, CON PLAN, AP, AND CAPER; SUBSEQUENT
REVISIONS AND SUBSTANTIAL AMENDMENTS
Introductory Note. The citizen participation processes and procedures associated with each of the planning documents/reports discussed in this Section are detailed in Section V of this CPP and further described in tabular format on page 5 (the “Summary Table”).
2 Assessment of Fair Housing (AFH). The AFH is required every five years prior to the preparation of the Con Plan. When preparing an AFH , the City will make HUD -provided data and other supplemental information available to interested citizens, residents, agencies and organizations in an effort to provide meaningful analyses of local fair housing conditions and issues. The City shall publish a notice announcing the availability of this data /information and requesting the views of the residents at a public hearing at least ten (10) days prior to the date of such hearing. In addition, prior to the City adopting and submitting the final AFH to HUD, at least one thirty (30) day public comment period will be provided (after publication of notice and the draft AFH) and a second public hearing will be noticed and held to obtain further citizen input. The City may choose to conduct this hearing in conjunction with one of the two required public hearings on the Con Plan.
AFH Revisions. Pursuant to 24 CFR §5.164, t he City shall consider an AFH previously accepted by HUD to require modification (“Revisions”) and re-submission to HUD in the following instances:
When the City’s circumstances change in a way that affects the information on which the AFH is based, to the extent that the analysis, the fair housing contributing factors, or the priorities and goals of the AFH are no longer applicable or reflect actual circumstances. Examples of changed circumstances include:
o Presidentially declared disasters affecting the City that significantly impact the steps the City may need to take to affirmatively further fair housing; o Significant changes in the City’s demographic;
o The occurrence of new significant contributing factors in the City’s jurisdiction o civil rights findings, determinations, settlements (including Voluntary Compliance Agreements) or court orders
Upon HUD’s written notification specifying a material change that requires the Revisions Revisions may not necessarily require the submission of an entirely new AFH. Revisions need only focus on the material change and appropriate adjustments to the analy ses, assessments, priorities, or goals.
AFH Revisions will be published and noticed for public comment and hearing (see Summary Table).
Consolidated Plan (C on Plan); Annual Action Plan (AP) . The Con Plan examines housing and community development needs, sets priorities for grant monies and establishes a strategic plan with specific measurable goals to address priority needs. Prior to adopting the Con Plan or AP, the City will make available to citizens, public agencies, and other interested parties:
The amount of assistance the City expects to receive; The range of activities that may be undertaken with such funds; The amount of funds proposed to be used for activities and the estimated benefit to low and moderate income persons; and
The City’s plans to minimize displacement of persons and what type of assistance will be made available to those persons displaced.
At least one (1) public hearing will be noticed and held during the development of the Con Plan and AP to receive public comment and incorporate citizen participation . In addition, a second public hearing regarding the contents of the Con Plan / AP will be noticed and conducted prior to the City’s adoption of these documents and submission to HUD. Notices of such public hearings will be published at least ten (10) days in advance or as specified in the Summary Table. At least thirty (30) days prior to adoption, copies of the proposed Con Plan, AP, and any Substantial Amendments (defined below) will be published by the City (made available for publ ic review) and a thirty (30) day public comment period will be noticed and provided. The City Manager or their designee may allow adjustments to public noticing, public hearing, and publishing requirements in conjunction with applicable waivers provided by HUD.
3 CAPER. At least fifteen (15) days prior to submission to HUD, copies of the CAPER will published and a like period of public comment will be noticed and provided.
Substantial Amendments . The occurrence of any of the following circumstances shal l require a modification of the Con Plan or AP (“Substantial Amendment”), which shall be noticed, heard, published for comment and adopted in accordance with the provisions of Section V of this CPP, as applicable:
A significant shift is proposed in allocation priorities, or a substantial change in the method of distributing funds;
An activity not included in the AP is proposed for funding; To use funds, including program income, not previously described in the Annual Action Plan; An activity included in the AP is proposed for elimination; The amount allocated to any activity is proposed to be increased or decreased from the amount described in the AP by more than 25%; or
Change in the location of the activity, target area, beneficiaries, eligibility c riteria, or general scope from that described in the AP.
IV. CITIZEN PARTICIPATION PROCESS – OPPORTUNITIES AND PARTICIPATION Citizen Participation. Citizens and residents should be afforded the maximum feasible opportunity to :
provide input on housing and community development needs; address issues/problems affecting low- and moderate- income persons; learn about various programs available and the expected amount of assistance provided/allowed by each opportunity; develop local project proposals; give input to project selections and funding distributions; and participate in the implementation of funded activities. The procedures in this Section are designed to encourage persons of low and moderate income, particularly those per sons residing in slum and blighted and other City- targeted revitalization areas ; minorities; non-English speaking persons ; persons with disabilities ; persons with HIV/AIDS and their families ; and homeless persons to participate in the planning, implementat ion and assessment of the documents and reports described in this CPP . The City Manager or their designee may allow adjustments to the Public Participation process in conjunction with applicable waivers provided by HUD.
Organizational Participation. In developing and implementing the Con Plan and AFH, the City shall encourage participation of local and regional institutions and government agencies; public housing authorities, adjoining cities; Continuums of Care; and other organizations (including businesses, developers, nonprofit organizations, philanthropic organizations, and community- based and faith- based organizations). In conjunction with consultation with public housing authorities, the City shall further encourage the residents of public and assisted housing developments, including their resident advisory boards, councils or management corporations, to participate in the development and implementation of the Con Plan and AFH. In addition to conducting required public hearings and providing public comment periods, the City will encourage citizen and organizational participation by conducting surveys, community outreach meetings, forming focus groups and engaging in other outreach processes. The City Manager or their designee may allow adjustments to the Organizational Participation process in conjunction with applicable waivers provided by HUD.
V. CITIZEN PARTICIPATION PROCESS – PROCEDURES AND PROCESSES
Public Hearings and Comment Periods . Public hearings provide citizens, residents and organiz ations with opportunities to make oral and/or written comments on community needs and on the various planning documents described herein. Public hearings and other meetings shall be held at times and in locations convenient to potential and actual program beneficiaries. Providing time periods during which citizens, residents and other members of the public are given the opportunity to submit written and oral comments on draft documents published by the City (“Comment Period(s)”) , further facilitates
4 community input and feedback. The requirements for publishing notices of public hearings and Comment Periods, as well as publication of draft documents , are detailed below and further explained in the Summary Table.
Noticing Public Hearings . To ensure citizens, residents, and organizations are advised in advance of opportunities to attend and participate in public hearings, all public hearing notices shall adhere to the following unless otherwise waived by HUD and approved by the City Manager or their designee. Be published at least ten (10) days prior to the hearing date (unless the public hearing notice is combined with a thirty (30) day public comment notice, in which case notice will be published at least thirty (30) days prior to the close of the public comment period and the date of the public hearing as further described in Noticing Public Comment Periods, below. Be published in one or more newspapers of general circulation (as legal notices and/or display ads)
Be prepared in a language other than English when a significant number of non- English residents can reasonably expected to participate
Include the time, date and place of the hearing, a descript ion of the subject/purpose of the hearing, and where associated documents (if applicable) are posted or may otherwise be obtained Include information on how to request special accommodations Be posted on the City’s website ( https://www.victorvilleca.gov/government/legally-required- postings) on or before the date of publication
Be subject to the provision of additional forms of notice, including: posting and/or distributing notices at community locations such as the public library, hospitals, other public agency locations, specified locations at Victorville City Hall and in targe t neighborhoods; sending electronic mail to the EDDHD’s list of interested persons; and creation and distribution of supplemental flyers and/or mailers
Noticing Public Comment Periods . Comment Periods may be included in public hearing notices (provided the applicable advance comment period is accounted for). Comment Period notices shall adhere to the following unless otherwise waived by HUD and approved by the City Manager or their designee.
Be published prior to the commencement date of the applicable Comment Period Be published, prepared and posted in the manner provided for Noticing Public Hearings, above In cases where a public hearing is noticed in conjunction with a required Comment Period, provide for a Comment Period that ends prior to the date of the public hearing Include the time, date and place of any associated public hearing and how to request reasonable accommodations
Include the beginning and ending dates of the Comment Period; how and where comments may be submitted; a brief description of the subject matter/purpose of the document or item on which comment is being sought; a summary of the item or content of the documents; how/where full copies of any document(s) may be obtained; and the date the City Council will consider the approval of the item or document(s)
Be posted on the City’s website, various locations in and around City Hall, and in such other places as specified in Noticing Public Hearings, above
Publication of Draft Planning Documents . Notices of public hearings and Comment Periods shall contain summaries of the contents of any draft documents being provided for public review and comment (e.g., the AFH, Con Plan, AP and Revisions or Substantial Amendments). All such draft documents will be made available to members of the public “published” by the City by providing copies on its website, at City Hall, and in such other places as shall be specified in each applicable public hearing or Comment Period notice. Such notices will also contain instructions on how the public may request such documents in alternative formats for persons with disabilities.
5 Technical Assistance. Development Department staff will meet with groups or individuals representative of persons of low - and moderate -income upon request to provide them with technical assistance in commenting on the AFH, identifying specific needs, and/or developing/preparing project proposal applications for programs covered by the Con Plan.
6 Summary Table
Publication of Notices of Public Hearings and Comment Periods Document Publication of Public Hearing (PH) and
Comment Period (CP) Notices†
Minimum Number of
Public Hearings; Timing†
Comment
Period (CP)†
Con Plan /AP
PH Notice - At least 10 days†† prior to PH date
CP Notice - At least 30 days prior to date set
for close of CP and after draft(s) published. If
combined with PH Notice, CP Notice
publication must occur at least 30 days prior to
both the close of the CP and the PH date.
PH Notice - At least 10 days prior to PH date
(if noticed separately after earlier publication of
CP Notice)
First Hearing:
Prior to drafting Con
Plan/AP
Second Hearing:
After publication of Con
Plan/AP draft and close of
CP
N/A
30 days
Substantial
Amendments
to Con Plan /
AP
CP Notice - At least 30 days prior to date set
for close of CP and after draft(s) published. If
combined with PH Notice, CP Notice
publication must occur at least 30 days prior to
both the close of the CP and the PH date.
PH Notice - At least 10 days prior to PH date
(if noticed separately after earlier publication of
CP Notice)
One Hearing:
After publication of
Substantial Amendments
and close of CP
30 days
AFH
PH Notice - At least 10 days prior to PH date
CP Notice - At least 30 days prior to date set
for close of CP and after draft(s) published. If
combined with PH Notice, CP Notice
publication must occur at least 30 days prior to
both the close of the CP and the PH date.
PH Notice - At least 10 days prior to PH date
(if noticed separately after earlier publication of
CP Notice)
First Hearing:
After publication of HUD-
provided and other data
Second Hearing:
After publication of AFH
draft and close of CP (may
be combined with second
Con Plan hearing after
initial adoption of AFH)
N/A
30 days
AFH
Revisions
CP Notice - At least 30 days prior to date set
for close of CP and after draft(s) published. If
combined with PH Notice, CP Notice
publication must occur at least 30 days prior to
both the close of the CP and the PH date.
PH Notice - At least 10 days prior to PH date
(if noticed separately after earlier publication of
CP Notice)
One Hearing:
After publication of draft
Revisions and close of CP
30 days
CAPER
CP Notice - At least 15 days prior to CP close
Not required
15 days
† All required noticing requirements, mandatory public hearings, and comment periods can be adjusted in accordance with any waivers provided by HUD, as approved by the City Manager or their designee. †† All references days in this Summary table refer to calendar days
7 Consideration of Public Comments/Views. Prior to adopting the AFH, Con Plan, AP, CAPER and/or Revisions or Substantial Amendments, the City will consider any comments/view received from citizens and residents ( individuals or groups representing their interests) in writing during Comment Periods, or orally during public hearing(s). Such comments/views shall be summarized and attached to the final versions of the AFH, Con Plan, AP, any Revisions or Substantial Amendments, and the CAPE R as applicable.
Questions and Complaints. Development Department staff will answer all questions received from residents or their representative groups in the manner in which the questions were posed ( e.g., verbal responses to verbal requests, written responses to written requests). Written complaints and grievances received from residents or their representative groups relating to the Con Plan, AP, CAPER, AFH, and/or any Substantial Amendments or Revisions , shall be substantively responded to by Development Department staff within fifteen (15) working days of receipt, where practicable.
Access to / Availability of Records . The City will provide residents of the community, public agencies and other interested parties with reasonable and timely access to the AFH, Con Plan, AP, CAPER, CPP, all Substantial Amendments or Revisions, and information/records related to these documents (including the use of assistance under the CDBG and HOME programs for the preceding five (5) years) by:
Maintaining copies at City Hall for public inspection and m aking a reasonable number of copies (paper or electronic) of the AFH , Con Plan and CPP available to residents and other groups that request them free of charge
Making copies of other documents and records available in accordance with the California Public Records Act (direct costs of duplication may apply) Posting these documents and related information on the City’s website Maintaining copies of the final versions of the AFH, Con Plan, AP, CAPER and CPP on the City’s website, at City Hall and at the City’s Public Library Providing such documents and records in an accessible format for persons with disabilities, upon forty-eight (48) hours’ advance request
Americans with Disabilities Act (ADA); Accessibility. In compliance with the ADA, if special assistance to participate in public hearings and/or community or consultation meetings is needed, individuals should contact Development Department staff forty-eight ( 48) hours prior to the meeting or public hearing to ensure that the City will be able to make reasonable arrangements. Examples of assistance provided may include the following:
Auxiliary aids and services to communicate with people who have communication disabilities, such as providing a qualified reader; providing information on large print; or providing an audio recording of printed information for individuals who are blind, have vision loss, or are deaf-blind.
A “qualified” reader means someone who is able to read effectively, accurately, and impartially, using any necessary specialized vocabulary;
For people who are de af, have hearing loss, or are deaf -blind, the City may provide a qualified notetaker; a qualified sign language interpreter; written materials; or a printed script of a stock speech (such as given on a museum or historic house tour). A “qualified” interpre ter means someone who is able to interpret effectively, accurately, and impartially, both receptively ( i.e., understanding what the person with the disability is saying) and expressively (i.e., having the skill needed to convey information back to that person) using any necessary specialized vocabulary.
In addition, persons with disabilities may bring a “companion” to assist them. The term “companion” includes any family member, friend, or associate of a person who is an appropriate person with whom the City should communicate. Public hearings and other m eetings shall be held in areas that are handicap accessible and other accommodations shall be made upon request as noted above.
8 HUD Waivers. Should HUD temporarily suspend/adjust/waive any of the required noticing, comment or participation processes discussed herein regarding the development , review, or amendment of applicable assessments/plans, the City Manager or their designee may approve the application of any such waiver based upon a unique circumstance such as natural disaster, national emergency, state emergency, local emergency, major disaster declaration, etc. that necessitates the use of the waiver provided.
Review, Amendment and Availability of Citizen Participation Plan (CPP) . Prior to its adoption by the City Council, this CCP was made available for public review and comment and at least one public hearing was held. Future Substantial Amendments to the CPP will utilize the public hearing and Comment Period associated with the adoption of Substantial Amendments to the Con Plan.
Amended: May 5, 2020 (Amendments Underlined)
9 Community & Regionally Based Organizations
CHC California Housing Consortium
National Crime Prevention Council
National Coalition for the Homeless
Shelter Network
Latin-American Association
NAACP National Association for the Advancement of Colored People- California Branch NARF Native American Rights Fund
NOMAR National Organization for Mexican-American Rights Big Brothers Big Sisters
California Coalition for Youth
California Youth Advocacy Network
Americans United for Life
California Public Health Association – North
Department of Employment & Human Services
Department of Behavioral Health – San Bernardino County Homeless Partnership High Desert Homeless Services, Inc.
Victor Valley Domestic Violence, Inc.
Moses House Ministries
Legal Aid Society of San Bernardino
San Bernardino Sexual Assault Servicies
Victor Valley Community Services Council
ATTACHMENT D
Apple Valley / Victorville
Consortium Agreement
Item Number: 2
City Council / Board of Directors
Consent Calendar
Meeting of: October 18, 2022
Submitted By:
John Mendiola, Finance Director / City Treasurer
Subject:
Payroll Warrant List
Recommendation:
That the City Council and Board of Directors ratify Payroll Demand Schedule No. 3A for Payroll Period August 19, 2022, through September 02, 2022, in the amount of $1,801,502.78 covering Check Nos. 33060 through 33083, including Vendor checks.
Please note employee Check Nos. 33069 & 33071 have a live Check and an EFT Advice.
Also included are Advice Nos. 291873 through 292342 and includes Advice No 291872 from Payroll Period August 5, 2022, through August 19, 2022, per adopted budget for Fiscal Year 2022-2023 period covering July 1, 2022, through June 30, 2023.
Fiscal Impact:
A total fiscal impact of $1,801,502.78 is authorized with this action. The attached report details the payments by check numbers.
Discussion:
I hereby certify that the claims or demands covered by the attached list of warrants have been audited as to the accuracy and availability of funds for payment thereof and that said claims or demands are accurate and the funds are available for payment thereof.
Attachments: A. Payroll Report PPE 090222
Attachment A
Payroll Report PPE 090222
City of Victorville Council Payroll Report 09/08/2022Page 1 of 13 Checks
Check Number Employee ID Check Date Total Net
33060 3679 09/01/2022 $89.53
33061 3680 09/01/2022 $109.89
33062 3375 09/01/2022 $193.88
33063 3575 09/01/2022 $166.86
33064 3658 09/01/2022 $85.47
33065 3662 09/01/2022 $23.78
33066 3678 09/01/2022 $97.67
33067 3681 09/01/2022 $97.67
33068 3551 09/09/2022 $584.87
33069 2705 09/09/2022 $1,171.24
33070 3698 09/09/2022 $738.11
33071 3140 09/09/2022 $658.76
33072 3670 09/09/2022 $67.60
33073 3654 09/09/2022 $490.70
33074 3667 09/09/2022 $210.32
33075 3665 09/09/2022 $195.30
33076 240 09/09/2022 $5.00
33077 787 09/09/2022 $50.00
33078 1145 09/09/2022 $350.61
33079 1182 09/09/2022 $100.00
33080 1182 09/09/2022 $100.00
33081 13491 09/09/2022 $422.31
33082 18154 09/09/2022 $175.00
33083 20821 09/09/2022 $423.00
Checks Total 6,607.57
City of Victorville
City Council Payroll Report
Payroll Period Beginning: August 19, 2022 through September 02, 2022 City of Victorville Council Payroll Report 09/08/2022Page 2 of 13 Advices
Check Number Employee ID Check Date Total Net
33069 2705 09/09/2022 $2,000.00
33071 3140 09/09/2022 $282.32
291872 3434 08/26/2022 $3,799.85
291873 2564 09/06/2022 $283.30
291874 3608 09/09/2022 $2,346.94
291875 1099 09/09/2022 $657.43
291876 3495 09/09/2022 $2,088.62
291877 3597 09/09/2022 $3,479.83
291878 3243 09/09/2022 $2,784.98
291879 2115 09/09/2022 $5,346.84
291880 3142 09/09/2022 $1,644.72
291881 3640 09/09/2022 $1,783.90
291882 3297 09/09/2022 $630.71
291883 3458 09/09/2022 $357.45
291884 3229 09/09/2022 $4,123.23
291885 3283 09/09/2022 $2,525.83
291886 1064 09/09/2022 $7,090.28
291887 2287 09/09/2022 $2,582.40
291888 3467 09/09/2022 $1,932.35
291889 1706 09/09/2022 $4,563.21
291890 2395 09/09/2022 $3,365.17
291891 3625 09/09/2022 $1,686.03
291892 3684 09/09/2022 $2,060.71
291893 2624 09/09/2022 $2,450.42
291894 3043 09/09/2022 $1,926.92
291895 3031 09/09/2022 $2,756.09
291896 1748 09/09/2022 $2,738.23
291897 2361 09/09/2022 $2,155.53
291898 3328 09/09/2022 $2,271.26
291899 3638 09/09/2022 $3,501.96
291900 3502 09/09/2022 $1,796.08
291901 3561 09/09/2022 $2,332.42
291902 1903 09/09/2022 $1,834.05
291903 3616 09/09/2022 $2,341.28
291904 3630 09/09/2022 $1,727.56
291905 3527 09/09/2022 $1,824.27
291906 2682 09/09/2022 $2,166.97
291907 2627 09/09/2022 $2,153.14
291908 2366 09/09/2022 $1,847.39
291909 3643 09/09/2022 $3,416.22
291910 2594 09/09/2022 $2,820.91
City of Victorville Council Payroll Report 09/08/2022Page 3 of 13 291911 2297 09/09/2022 $1,921.51
291912 3516 09/09/2022 $2,615.78
291913 3695 09/09/2022 $2,003.35
291914 2093 09/09/2022 $1,755.97
291915 3697 09/09/2022 $4,873.75
291916 1973 09/09/2022 $3,291.13
291917 2019 09/09/2022 $2,496.69
291918 3494 09/09/2022 $2,410.01
291919 3538 09/09/2022 $1,757.82
291920 2102 09/09/2022 $2,891.85
291921 2233 09/09/2022 $2,607.33
291922 2606 09/09/2022 $2,257.32
291923 3660 09/09/2022 $1,633.56
291924 3046 09/09/2022 $1,916.33
291925 1635 09/09/2022 $4,806.97
291926 3653 09/09/2022 $2,080.60
291927 3327 09/09/2022 $2,127.30
291928 3624 09/09/2022 $2,013.31
291929 3009 09/09/2022 $3,235.19
291930 2618 09/09/2022 $1,787.77
291931 2619 09/09/2022 $2,326.55
291932 2603 09/09/2022 $1,749.12
291933 2491 09/09/2022 $2,375.14
291934 2235 09/09/2022 $2,801.30
291935 2300 09/09/2022 $3,303.30
291936 2655 09/09/2022 $1,573.06
291937 3088 09/09/2022 $2,531.72
291938 2032 09/09/2022 $3,217.57
291939 2685 09/09/2022 $1,775.69
291940 3521 09/09/2022 $2,283.06
291941 3528 09/09/2022 $1,999.82
291942 3045 09/09/2022 $2,384.96
291943 3499 09/09/2022 $1,995.18
291944 3362 09/09/2022 $2,130.81
291945 2232 09/09/2022 $2,780.81
291946 1957 09/09/2022 $2,545.03
291947 3290 09/09/2022 $732.86
291948 3085 09/09/2022 $2,047.31
291949 3246 09/09/2022 $2,995.58
291950 2042 09/09/2022 $4,953.42
291951 3615 09/09/2022 $2,485.51
291952 2323 09/09/2022 $3,289.84
291953 1767 09/09/2022 $2,917.46
291954 3508 09/09/2022 $2,113.65
City of Victorville Council Payroll Report 09/08/2022Page 4 of 13 291955 3682 09/09/2022 $3,193.81
291956 2225 09/09/2022 $3,436.79
291957 3544 09/09/2022 $1,933.47
291958 3221 09/09/2022 $2,796.04
291959 3627 09/09/2022 $2,085.28
291960 1533 09/09/2022 $2,317.62
291961 2833 09/09/2022 $2,088.83
291962 2211 09/09/2022 $4,673.40
291963 3497 09/09/2022 $1,702.14
291964 1426 09/09/2022 $1,065.79
291965 3105 09/09/2022 $1,781.26
291966 2254 09/09/2022 $3,112.45
291967 3618 09/09/2022 $2,009.36
291968 3482 09/09/2022 $1,680.56
291969 3354 09/09/2022 $3,446.10
291970 3011 09/09/2022 $1,717.89
291971 3623 09/09/2022 $1,126.78
291972 3295 09/09/2022 $1,848.02
291973 3184 09/09/2022 $3,130.26
291974 3400 09/09/2022 $2,335.05
291975 3547 09/09/2022 $1,126.78
291976 3673 09/09/2022 $867.61
291977 2742 09/09/2022 $2,751.41
291978 3089 09/09/2022 $2,752.01
291979 3641 09/09/2022 $1,611.08
291980 2379 09/09/2022 $2,108.07
291981 3672 09/09/2022 $1,126.78
291982 3634 09/09/2022 $2,682.00
291983 2711 09/09/2022 $1,744.73
291984 3639 09/09/2022 $1,967.83
291985 3586 09/09/2022 $1,808.22
291986 3190 09/09/2022 $3,020.10
291987 2249 09/09/2022 $4,876.33
291988 3650 09/09/2022 $1,434.98
291989 3393 09/09/2022 $1,684.53
291990 3250 09/09/2022 $1,606.48
291991 3491 09/09/2022 $695.92
291992 3548 09/09/2022 $1,126.78
291993 3511 09/09/2022 $1,926.56
291994 3581 09/09/2022 $2,172.18
291995 3396 09/09/2022 $1,916.25
291996 3663 09/09/2022 $1,483.77
291997 3541 09/09/2022 $2,425.87
291998 2499 09/09/2022 $2,954.76
City of Victorville Council Payroll Report 09/08/2022Page 5 of 13 291999 3379 09/09/2022 $2,936.00
292000 3694 09/09/2022 $2,606.50
292001 2105 09/09/2022 $4,548.37
292002 3474 09/09/2022 $2,101.90
292003 2515 09/09/2022 $2,246.59
292004 3636 09/09/2022 $2,303.86
292005 2679 09/09/2022 $3,247.03
292006 3490 09/09/2022 $2,728.47
292007 3475 09/09/2022 $2,107.00
292008 3353 09/09/2022 $2,835.13
292009 3542 09/09/2022 $3,487.31
292010 1955 09/09/2022 $2,714.41
292011 3147 09/09/2022 $2,764.93
292012 1632 09/09/2022 $2,175.60
292013 3692 09/09/2022 $3,223.38
292014 3148 09/09/2022 $2,946.51
292015 3195 09/09/2022 $2,683.35
292016 3602 09/09/2022 $2,238.79
292017 1970 09/09/2022 $2,347.98
292018 1520 09/09/2022 $3,228.34
292019 2605 09/09/2022 $2,023.74
292020 3505 09/09/2022 $4,458.61
292021 2540 09/09/2022 $3,349.37
292022 3522 09/09/2022 $1,779.98
292023 2377 09/09/2022 $2,805.12
292024 1079 09/09/2022 $2,592.33
292025 3463 09/09/2022 $2,648.06
292026 2312 09/09/2022 $3,001.39
292027 3510 09/09/2022 $1,328.73
292028 3637 09/09/2022 $2,610.13
292029 1901 09/09/2022 $6,681.55
292030 3628 09/09/2022 $2,164.51
292031 3068 09/09/2022 $2,063.87
292032 3633 09/09/2022 $2,406.05
292033 3129 09/09/2022 $3,410.80
292034 1998 09/09/2022 $2,820.41
292035 2376 09/09/2022 $4,316.95
292036 2111 09/09/2022 $3,375.97
292037 3303 09/09/2022 $3,394.70
292038 3558 09/09/2022 $2,544.13
292039 1655 09/09/2022 $3,631.01
292040 3285 09/09/2022 $2,505.37
292041 1529 09/09/2022 $597.45
292042 3238 09/09/2022 $3,967.82
City of Victorville Council Payroll Report 09/08/2022Page 6 of 13 292043 3242 09/09/2022 $2,200.11
292044 3346 09/09/2022 $2,074.71
292045 1776 09/09/2022 $3,087.56
292046 3192 09/09/2022 $2,001.02
292047 2798 09/09/2022 $2,429.89
292048 2522 09/09/2022 $2,380.07
292049 3265 09/09/2022 $2,131.39
292050 1503 09/09/2022 $3,052.76
292051 1515 09/09/2022 $2,722.75
292052 2505 09/09/2022 $3,627.95
292053 3299 09/09/2022 $1,714.39
292054 3113 09/09/2022 $2,097.35
292055 1007 09/09/2022 $3,381.01
292056 2343 09/09/2022 $713.74
292057 3273 09/09/2022 $2,689.72
292058 3121 09/09/2022 $2,261.49
292059 3635 09/09/2022 $1,724.69
292060 1497 09/09/2022 $2,598.34
292061 3537 09/09/2022 $3,044.48
292062 2192 09/09/2022 $1,791.14
292063 3685 09/09/2022 $1,126.78
292064 2034 09/09/2022 $2,037.19
292065 2275 09/09/2022 $2,814.08
292066 3380 09/09/2022 $2,232.66
292067 3191 09/09/2022 $2,299.82
292068 2530 09/09/2022 $2,841.25
292069 3496 09/09/2022 $427.92
292070 3051 09/09/2022 $2,710.26
292071 1750 09/09/2022 $2,344.42
292072 2770 09/09/2022 $1,864.63
292073 2228 09/09/2022 $2,217.13
292074 3101 09/09/2022 $2,599.56
292075 3335 09/09/2022 $2,111.09
292076 3611 09/09/2022 $1,212.46
292077 3388 09/09/2022 $1,233.91
292078 1249 09/09/2022 $1,970.17
292079 3284 09/09/2022 $2,007.95
292080 3580 09/09/2022 $1,126.78
292081 3621 09/09/2022 $1,126.78
292082 3270 09/09/2022 $1,770.59
292083 1117 09/09/2022 $3,363.30
292084 2248 09/09/2022 $1,929.85
292085 3263 09/09/2022 $1,585.94
292086 3622 09/09/2022 $1,028.26
City of Victorville Council Payroll Report 09/08/2022Page 7 of 13 292087 1588 09/09/2022 $2,117.04
292088 2189 09/09/2022 $2,493.37
292089 3560 09/09/2022 $1,668.42
292090 3509 09/09/2022 $1,982.64
292091 3226 09/09/2022 $1,732.24
292092 3257 09/09/2022 $1,790.89
292093 1121 09/09/2022 $2,246.98
292094 2689 09/09/2022 $1,032.75
292095 3149 09/09/2022 $2,859.74
292096 2181 09/09/2022 $2,268.81
292097 1865 09/09/2022 $2,114.16
292098 3479 09/09/2022 $1,137.70
292099 3689 09/09/2022 $1,126.78
292100 1723 09/09/2022 $10.61
292101 3288 09/09/2022 $1,112.39
292102 3296 09/09/2022 $2,117.99
292103 3572 09/09/2022 $1,229.21
292104 2531 09/09/2022 $3,958.86
292105 1513 09/09/2022 $1,971.10
292106 2118 09/09/2022 $1,160.83
292107 3387 09/09/2022 $960.23
292108 3330 09/09/2022 $1,974.43
292109 2681 09/09/2022 $3,651.70
292110 2119 09/09/2022 $1,815.51
292111 1612 09/09/2022 $2,050.32
292112 1282 09/09/2022 $2,260.11
292113 3610 09/09/2022 $1,126.78
292114 3277 09/09/2022 $2,401.24
292115 3287 09/09/2022 $1,883.57
292116 3037 09/09/2022 $2,067.82
292117 1449 09/09/2022 $2,713.74
292118 3481 09/09/2022 $1,112.39
292119 2677 09/09/2022 $5,719.84
292120 3688 09/09/2022 $1,126.78
292121 3341 09/09/2022 $1,787.22
292122 1137 09/09/2022 $1,766.54
292123 2383 09/09/2022 $1,814.40
292124 3130 09/09/2022 $2,416.44
292125 2489 09/09/2022 $5,488.56
292126 3361 09/09/2022 $2,834.17
292127 3139 09/09/2022 $1,628.43
292128 3099 09/09/2022 $2,494.01
292129 2696 09/09/2022 $2,088.44
292130 1287 09/09/2022 $2,843.83
City of Victorville Council Payroll Report 09/08/2022Page 8 of 13 292131 3536 09/09/2022 $2,314.23
292132 1254 09/09/2022 $1,981.08
292133 3187 09/09/2022 $1,093.97
292134 2368 09/09/2022 $1,922.53
292135 3095 09/09/2022 $2,232.59
292136 3532 09/09/2022 $1,909.85
292137 3258 09/09/2022 $1,142.93
292138 3100 09/09/2022 $2,552.04
292139 3259 09/09/2022 $1,142.93
292140 3344 09/09/2022 $1,949.19
292141 1338 09/09/2022 $3,518.68
292142 3507 09/09/2022 $1,142.93
292143 2229 09/09/2022 $1,647.46
292144 1049 09/09/2022 $2,299.74
292145 1506 09/09/2022 $1,894.37
292146 1959 09/09/2022 $3,261.53
292147 3004 09/09/2022 $2,002.82
292148 1893 09/09/2022 $1,968.18
292149 3626 09/09/2022 $1,856.93
292150 1581 09/09/2022 $2,512.62
292151 3279 09/09/2022 $2,685.56
292152 2460 09/09/2022 $1,838.58
292153 3671 09/09/2022 $1,648.49
292154 3112 09/09/2022 $1,921.70
292155 2732 09/09/2022 $2,153.36
292156 3338 09/09/2022 $590.27
292157 2552 09/09/2022 $1,936.26
292158 2476 09/09/2022 $3,310.66
292159 2279 09/09/2022 $3,104.14
292160 3515 09/09/2022 $4,848.49
292161 3092 09/09/2022 $2,899.52
292162 3138 09/09/2022 $1,049.80
292163 3146 09/09/2022 $2,790.36
292164 2590 09/09/2022 $2,167.68
292165 2748 09/09/2022 $2,915.65
292166 2669 09/09/2022 $3,065.96
292167 2623 09/09/2022 $1,870.71
292168 2637 09/09/2022 $2,612.44
292169 3079 09/09/2022 $1,784.06
292170 2638 09/09/2022 $2,792.68
292171 3513 09/09/2022 $2,033.15
292172 3109 09/09/2022 $2,974.63
292173 2671 09/09/2022 $3,139.43
292174 3019 09/09/2022 $3,208.88
City of Victorville Council Payroll Report 09/08/2022Page 9 of 13 292175 2593 09/09/2022 $2,422.45
292176 3461 09/09/2022 $1,726.17
292177 2626 09/09/2022 $1,614.26
292178 3038 09/09/2022 $2,492.12
292179 3052 09/09/2022 $2,039.69
292180 2290 09/09/2022 $1,996.30
292181 3110 09/09/2022 $3,424.64
292182 2641 09/09/2022 $2,037.28
292183 2612 09/09/2022 $2,379.98
292184 2642 09/09/2022 $2,113.78
292185 3331 09/09/2022 $1,979.55
292186 2674 09/09/2022 $2,462.59
292187 3231 09/09/2022 $2,379.10
292188 3228 09/09/2022 $2,628.91
292189 2628 09/09/2022 $2,783.14
292190 3301 09/09/2022 $1,649.79
292191 2630 09/09/2022 $2,741.78
292192 3182 09/09/2022 $2,538.19
292193 2599 09/09/2022 $3,643.76
292194 2683 09/09/2022 $1,932.41
292195 2753 09/09/2022 $2,159.37
292196 2610 09/09/2022 $2,379.33
292197 3323 09/09/2022 $2,072.65
292198 1389 09/09/2022 $2,833.07
292199 3264 09/09/2022 $1,935.02
292200 2808 09/09/2022 $1,819.43
292201 2646 09/09/2022 $2,436.95
292202 3617 09/09/2022 $2,020.32
292203 2600 09/09/2022 $2,688.97
292204 2524 09/09/2022 $2,603.84
292205 2686 09/09/2022 $1,996.25
292206 2193 09/09/2022 $2,376.47
292207 3322 09/09/2022 $3,024.26
292208 3629 09/09/2022 $2,367.20
292209 3230 09/09/2022 $2,881.82
292210 1931 09/09/2022 $2,402.93
292211 2038 09/09/2022 $1,573.88
292212 2339 09/09/2022 $2,367.92
292213 2678 09/09/2022 $3,685.06
292214 3240 09/09/2022 $2,161.15
292215 3215 09/09/2022 $2,805.14
292216 3035 09/09/2022 $1,956.38
292217 3651 09/09/2022 $2,045.39
292218 3185 09/09/2022 $2,203.07
City of Victorville Council Payroll Report 09/08/2022Page 10 of 13 292219 1853 09/09/2022 $2,815.55
292220 3645 09/09/2022 $816.48
292221 3503 09/09/2022 $2,458.81
292222 3589 09/09/2022 $977.00
292223 3676 09/09/2022 $446.94
292224 3579 09/09/2022 $752.08
292225 3376 09/09/2022 $3,464.23
292226 3384 09/09/2022 $1,085.49
292227 3386 09/09/2022 $1,947.43
292228 2488 09/09/2022 $1,084.61
292229 3120 09/09/2022 $972.16
292230 3675 09/09/2022 $202.81
292231 3582 09/09/2022 $1,045.14
292232 3252 09/09/2022 $2,513.46
292233 3070 09/09/2022 $2,226.40
292234 3657 09/09/2022 $915.60
292235 1866 09/09/2022 $1,848.91
292236 3371 09/09/2022 $1,017.52
292237 3674 09/09/2022 $973.05
292238 3655 09/09/2022 $490.75
292239 3656 09/09/2022 $915.60
292240 2478 09/09/2022 $1,059.30
292241 3648 09/09/2022 $620.46
292242 3470 09/09/2022 $457.62
292243 3573 09/09/2022 $1,080.03
292244 3471 09/09/2022 $1,040.34
292245 3531 09/09/2022 $3,832.04
292246 3587 09/09/2022 $810.20
292247 3669 09/09/2022 $231.41
292248 3029 09/09/2022 $1,778.11
292249 3326 09/09/2022 $3,131.87
292250 3649 09/09/2022 $454.46
292251 3609 09/09/2022 $915.60
292252 3492 09/09/2022 $482.79
292253 3691 09/09/2022 $915.60
292254 3576 09/09/2022 $653.36
292255 3647 09/09/2022 $353.05
292256 3566 09/09/2022 $643.49
292257 2006 09/09/2022 $1,370.45
292258 2684 09/09/2022 $1,406.04
292259 1966 09/09/2022 $2,087.22
292260 2204 09/09/2022 $3,084.71
292261 2355 09/09/2022 $2,165.95
292262 3696 09/09/2022 $2,740.04
City of Victorville Council Payroll Report 09/08/2022Page 11 of 13 292263 3500 09/09/2022 $2,257.16
292264 2039 09/09/2022 $1,841.21
292265 3281 09/09/2022 $1,651.30
292266 1990 09/09/2022 $1,909.27
292267 3550 09/09/2022 $1,923.06
292268 2629 09/09/2022 $2,051.28
292269 3348 09/09/2022 $1,852.61
292270 1544 09/09/2022 $2,338.23
292271 3543 09/09/2022 $2,031.62
292272 3107 09/09/2022 $2,139.03
292273 3081 09/09/2022 $2,035.39
292274 3523 09/09/2022 $3,618.36
292275 3271 09/09/2022 $1,785.63
292276 3017 09/09/2022 $5,364.50
292277 3512 09/09/2022 $2,346.79
292278 2027 09/09/2022 $1,427.75
292279 2330 09/09/2022 $2,461.72
292280 2795 09/09/2022 $417.71
292281 1932 09/09/2022 $1,799.70
292282 3437 09/09/2022 $3,417.85
292283 3652 09/09/2022 $2,109.47
292284 3421 09/09/2022 $1,392.73
292285 3439 09/09/2022 $2,425.58
292286 3440 09/09/2022 $3,282.73
292287 3441 09/09/2022 $5,067.61
292288 3473 09/09/2022 $5,246.72
292289 3406 09/09/2022 $7,909.42
292290 3422 09/09/2022 $4,547.84
292291 3407 09/09/2022 $1,025.28
292292 3442 09/09/2022 $6,412.65
292293 3368 09/09/2022 $1,426.26
292294 3433 09/09/2022 $3,066.41
292295 3469 09/09/2022 $3,623.33
292296 3424 09/09/2022 $6,474.43
292297 3414 09/09/2022 $3,843.28
292298 3443 09/09/2022 $3,321.91
292299 3600 09/09/2022 $6,024.92
292300 3598 09/09/2022 $4,712.80
292301 3418 09/09/2022 $2,816.06
292302 3444 09/09/2022 $4,303.81
292303 3583 09/09/2022 $2,000.29
292304 3585 09/09/2022 $3,472.13
292305 3594 09/09/2022 $3,367.08
292306 1718 09/09/2022 $4,705.32
City of Victorville Council Payroll Report 09/08/2022Page 12 of 13 292307 3409 09/09/2022 $4,492.04
292308 3426 09/09/2022 $7,135.65
292309 3642 09/09/2022 $3,876.91
292310 3584 09/09/2022 $4,638.15
292311 3410 09/09/2022 $3,726.34
292312 3447 09/09/2022 $2,856.38
292313 3427 09/09/2022 $5,075.64
292314 3607 09/09/2022 $3,538.03
292315 3411 09/09/2022 $4,084.58
292316 3448 09/09/2022 $5,624.94
292317 3571 09/09/2022 $2,394.05
292318 3518 09/09/2022 $1,854.51
292319 3449 09/09/2022 $5,708.01
292320 3428 09/09/2022 $5,317.91
292321 3429 09/09/2022 $2,857.38
292322 3455 09/09/2022 $2,936.90
292323 3451 09/09/2022 $6,312.26
292324 3595 09/09/2022 $2,751.66
292325 3430 09/09/2022 $4,986.07
292326 3452 09/09/2022 $4,443.94
292327 3417 09/09/2022 $3,231.56
292328 3431 09/09/2022 $8,189.86
292329 3419 09/09/2022 $2,943.11
292330 3524 09/09/2022 $2,955.14
292331 3412 09/09/2022 $3,661.89
292332 3420 09/09/2022 $4,633.05
292333 3378 09/09/2022 $5,392.82
292334 3435 09/09/2022 $5,161.19
292335 3432 09/09/2022 $4,496.11
292336 3408 09/09/2022 $3,204.05
292337 3445 09/09/2022 $3,162.24
292338 3456 09/09/2022 $3,673.93
292339 3591 09/09/2022 $3,135.64
292340 3392 09/09/2022 $3,686.75
292341 2210 09/09/2022 $2,715.45
292342 3434 09/09/2022 $3,939.54
Advices Total 1,166,233.76
City of Victorville Council Payroll Report 09/08/2022Page 13 of 13 Electronic Vendor Payments
`
Vendor Check Date Total Gross
IRS 8/30/2022 31.55
IRS 9/2/2022 31.74
IRS 9/6/2022 22.87
IRS 9/9/2022 211,862.75
State Taxes 9/9/2022 60,392.35
CASDU 9/2/2022 23.79
CASDU 9/9/2022 4,210.51
Deferred Comp (457) 8/31/2022 59.46
Deferred Comp (457) 9/1/2022 73.48
Deferred Comp (457) 9/7/2022 24.44
Deferred Comp (457) 9/12/2022 73,703.81
Deferred Comp (401a) 9/9/2022 262.26
PERS 9/15/2022 275,022.44
VV Professional Firefighters 9/8/2022 2,940.00
Total Electronic P Payments 628,661.45
Item Number: 3
City Council / Board of Directors
Consent Calendar
Meeting of: October 18, 2022
Submitted By:
John Mendiola, Finance Director / City Treasurer
Subject:
Commercial Demand Schedule No. 7
Recommendation:
That the City Council and Board of Directors ratify Commercial Demand Schedule No. 7 in the amount of $11,694,683.11, covering Electronic Fund Transfers No. 331787 through 332018 and Warrant No. 787373 through 787582 for 09/16/2022 through 09/28/2022 and Wire Transfers dated 09/23/2022, per the adopted budget for Fiscal Year 2021-2022 for the period covering July 1, 2021 through June 30, 2022 and Fiscal Year 2022-2023 for the period covering July 1, 2022 through June 30, 2023.
Fiscal Impact:
The total fiscal impact for FY21-22 in the amount of $87,345.06 and total fiscal impact for FY22-23 in the amount of $11,607,338.05 is authorized with this action. The attached report details the total funds paid to vendors.
Background:
Pursuant to the City’s Municipal Code (2.24.080) the attached demands were presented by the departments, audited by the Finance Department and subsequent warrants/wire transfers were issued. All were found to be in conformity to City policies and procedures and funds were budgeted or available to pay said demands. List of commercial warrants and wire transfers are now being presented to Council for approval.
Attachments: A. Commercial Demand Schedule No. 7 Check Register Summary ATTACHMENT A:
Commercial Demand Schedule No. 7 Check Register Summary
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 1User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
331787 09/21/2022 EFT 019341 MARTIN, ARMANDO JR. 2,000.00 331788 09/21/2022 EFT 019621 AGA ENGINEERS, INC. 29,210.00 331789 09/21/2022 EFT 000104 DANTIN ENTERPRISES, INC. 3,000.00 331790 09/21/2022 EFT 001646 ALLSTAR FIRE EQUIPMENT 7,720.92 331791 09/21/2022 EFT 018562 BEST POWER EQUIPMENT, LLC 474.99 331792 09/21/2022 EFT 000297 BECK OIL, INC. 20,398.99
331793 09/21/2022 EFT 002720 CALIFORNIA TOOL & WELDING 67.94 331794 09/21/2022 EFT 014820 CAL-STATE AUTO PARTS 290.04 331795 09/21/2022 EFT 028287 CASTELLON, STEPHANIE 50.00 331796 09/21/2022 EFT 016335 CHARTER COMMUNICATION HOL 17,052.37 331797 09/21/2022 EFT 012417 CLEAN DIESEL SPECIALISTS 402.16 331798 09/21/2022 EFT 015486 CONSOLIDATED ELECTRICAL D 6,850.00 331799 09/21/2022 EFT 012505 DESERT ENVIRONMENTAL SERV 1,463.25 331800 09/21/2022 EFT 000760 DESERT SERVICE STATION MA 518.74 331801 09/21/2022 EFT 022345 DIAMOND ENVIRONMENTAL SER 313.94 331802 09/21/2022 EFT 018870 ENNIS-FLINT, INC. 11,690.63 331803 09/21/2022 EFT 014106 ENGINEERING RESOURCES OF 10,045.20 331804 09/21/2022 EFT 015760 FASTENAL COMPANY 549.19
331805 09/21/2022 EFT 017560 FERGUSON WATERWORKS 12,232.09 331806 09/21/2022 EFT 016263 AFECO, INC 750.38
331807 09/21/2022 EFT 016134 FRONTIER COMMUNICATIONS C 400.83 331808 09/21/2022 EFT 001740 G.A. OSBORNE PIPE-SUPPLY 457.89 331809 09/21/2022 EFT 001076 GRAINGER 74.32
331810 09/21/2022 EFT 003047 GRAVES & KING LLP 649.23
331811 09/21/2022 EFT 001104 HAAKER EQUIPMENT CO. 912.19 331812 09/21/2022 EFT 018938 HARRIS & ASSOCIATES, INC. 2,597.50 331813 09/21/2022 EFT 002809 HIGH DESERT HOMELESS SERV 68,000.00 331814 09/21/2022 EFT 008848 HI DESERT FIRE PROTECTION 1,067.85 331815 09/21/2022 EFT 014969 LOS ANGELES TRUCK, LLC 244.43 331816 09/21/2022 EFT 010777 ICONIX WATERWORKS (US) IN 422.50 331817 09/21/2022 EFT 007512 IMPERIAL SPRINKLER SUPPLY 3,335.21 331818 09/21/2022 EFT 014949 INNOVYZE, INC. 38,271.37
331819 09/21/2022 EFT 001059 JOE A. GONSALVES & SON 3,000.00 331820 09/21/2022 EFT 004986 LESLIE'S SWIMMING POOL SU 274.96 331821 09/21/2022 EFT 000696 L.N. CURTIS & SONS 4,740.83 331822 09/21/2022 EFT 017743 PULICE, SAMUEL A. 124.76
331823 09/21/2022 EFT 001603 MOJAVE WATER AGENCY 33,450.00 331824 09/21/2022 EFT 016352 MONTGOMERY, ROGER 250.00
331825 09/21/2022 EFT 016376 SHEPARD, MARSHALL 12,927.00 331826 09/21/2022 EFT 001696 NIXON-EGLI EQUIPMENT COMP 104.43 331827 09/21/2022 EFT 009644 NORTHERN SAFETY COMPANY I 324.30 331828 09/21/2022 EFT 003523 ODYSSEY POWER CORPORATION 974.02 331829 09/21/2022 EFT 028213 O'REILLY AUTO PARTS 18.39
331830 09/21/2022 EFT 001789 PARKHOUSE TIRE, INC. 1,771.39 331831 09/21/2022 EFT 013165 PETE'S ROAD SERVICE 89.22
331832 09/21/2022 EFT 011299 PFT/ALEXANDER SERVICE, IN 11,808.08 331833 09/21/2022 EFT 001886 PRUDENTIAL OVERALL SUPPLY 718.87 331834 09/21/2022 EFT 000319 R&R INDUSTRIES, INC. 1,009.85 331836 09/21/2022 EFT 024930 REFRIGERATION SUPPLIES DI 86.38 331837 09/21/2022 EFT 002037 SAN BERNARDINO COUNTY 5,587,306.00 331838 09/21/2022 EFT 005712 SOUTHERN COUNTIES OIL CO. 29,031.62 331839 09/21/2022 EFT 019701 TIME WARNER CABLE LLC 2,375.00
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 2User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
331840 09/21/2022 EFT 019341 MARTIN, ARMANDO JR. 4,000.00 331841 09/21/2022 EFT 017269 TOWN & COUNTRY TIRE INC 3,474.14 331842 09/21/2022 EFT 002790 TREADWELL, KENNETH R. 9,500.00 331843 09/21/2022 EFT 022839 TRIMARK ASSOCIATES, INC. 11,911.32 331844 09/21/2022 EFT 028349 TYLER TECHNOLOGIES, INC. 4,218.00 331845 09/21/2022 EFT 001169 AUTO PARTS DIRECT LLC 1,165.01 331846 09/21/2022 EFT 002419 UNDERGROUND SERVICE ALERT 924.90 331847 09/21/2022 EFT 029118 UNITED ROTARY BRUSH CORPO 1,966.36 331848 09/21/2022 EFT 027706 HD SUPPLY FACILITIES MAIN 1,873.77 331849 09/21/2022 EFT 015004 U.S. DEPARTMENT OF ENERGY 8,257.40 331850 09/21/2022 EFT 015079 VERIZON WIRELESS SERVICES 30,105.91 331851 09/21/2022 EFT 008430 CALMAT COMPANY 128.70
331852 09/21/2022 EFT 002481 VICTOR VALLEY ANIMAL PROT 48,528.66 331853 09/21/2022 EFT 002862 V.V. TOW, INC. 170.00
331854 09/21/2022 EFT 002554 WAXIE SANITARY SUPPLY 791.56 331855 09/21/2022 EFT 008863 WINNER INDUSTRIAL SUPPLY 1,499.75 331856 09/21/2022 EFT 017122 ZAMORA, ZACHARY 107.00
331857 09/21/2022 EFT 018845 Z GLOBAL INC. 306,135.75
331858 09/28/2022 EFT 010537 ACCO ENGINEERED SYSTEMS, 26,850.00 331859 09/28/2022 EFT 014820 CAL-STATE AUTO PARTS 99.11 331860 09/28/2022 EFT 003047 GRAVES & KING LLP 45.21
331861 09/28/2022 EFT 020842 ALL PURPOSE FIRE EXT. COR 183.58 331862 09/28/2022 EFT 019363 ALL PROPEST CONTROL SERVI 130.00 331863 09/28/2022 EFT 000144 AMERICAN GREEN DEVELOPERS 21,092.00 331864 09/28/2022 EFT 000205 ATLAS COPCO USA HOLDINGS 238.50 331865 09/28/2022 EFT 007650 BAKER & TAYLOR, INC. 1,665.67 331866 09/28/2022 EFT 000297 BECK OIL, INC. 73,483.01
331867 09/28/2022 EFT 000312 BEST, BEST & KRIEGER 1,460.81 331868 09/28/2022 EFT 000857 CALIFORNIA SURVEYING & DR 4,558.53 331869 09/28/2022 EFT 002720 CALIFORNIA TOOL & WELDING 26.94 331870 09/28/2022 EFT 014820 CAL-STATE AUTO PARTS 611.02 331871 09/28/2022 EFT 028287 CASTELLON, STEPHANIE 50.00 331872 09/28/2022 EFT 027067 COMPASS PEST MANAGEMENT I 112.00 331873 09/28/2022 EFT 015486 CONSOLIDATED ELECTRICAL D 90.56 331874 09/28/2022 EFT 000662 THE COUNSELING TEAM INTER 950.00 331875 09/28/2022 EFT 029743 COUNTS UNLIMITED, INC. 7,420.00 331876 09/28/2022 EFT 012505 DESERT ENVIRONMENTAL SERV 420.00 331877 09/28/2022 EFT 022345 DIAMOND ENVIRONMENTAL SER 109.29 331878 09/28/2022 EFT 019731 EL DORADO BROADCASTERS LL 624.00 331879 09/28/2022 EFT 017560 FERGUSON ENTERPRISES, LLC 537.41 331880 09/28/2022 EFT 001829 FINDAWAY WORLD, LLC 886.12 331881 09/28/2022 EFT 016767 KALMIKOV ENTERPRISES, INC 2,058.59 331882 09/28/2022 EFT 016134 FRONTIER COMMUNICATIONS C 47.21 331883 09/28/2022 EFT 001002 G & M AUTOMOTIVE & TOWING 115.50 331884 09/28/2022 EFT 003960 CENGAGE LEARNING, INC. 490.32 331885 09/28/2022 EFT 008308 PLAYCORE WISCONSIN, INC. 3,889.74 331886 09/28/2022 EFT 001076 GRAINGER 903.71
331887 09/28/2022 EFT 003047 GRAVES & KING LLP 50,069.42 331888 09/28/2022 EFT 001104 HAAKER EQUIPMENT CO. 553.43 331889 09/28/2022 EFT 018938 HARRIS & ASSOCIATES, INC. 495.00 331890 09/28/2022 EFT 007512 IMPERIAL SPRINKLER SUPPLY 1,460.48 331891 09/28/2022 EFT 018048 INDUSTRIAL CLERICAL RECRU 1,936.88
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 3User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
331892 09/28/2022 EFT 004986 LESLIE'S SWIMMING POOL SU 284.72 331893 09/28/2022 EFT 015804 MISSION AMBULANCE, INC. 214,700.00 331894 09/28/2022 EFT 017743 PULICE, SAMUEL A. 248.63
331895 09/28/2022 EFT 016352 MONTGOMERY, ROGER 50.00
331896 09/28/2022 EFT 016376 SHEPARD, MARSHALL 15,000.00 331897 09/28/2022 EFT 008568 NBS GOVERNMENT FINANCE GR 912.49 331898 09/28/2022 EFT 025260 PENWORTHY COMPANY, THE 778.31 331899 09/28/2022 EFT 022232 PERMA-BOUND BOOKS 566.33
331900 09/28/2022 EFT 013165 PETE'S ROAD SERVICE 1,876.90 331901 09/28/2022 EFT 001886 PRUDENTIAL OVERALL SUPPLY 1,475.35 331902 09/28/2022 EFT 016281 REA'S AUTOMOTIVE INC. 1,841.88 331903 09/28/2022 EFT 024930 REFRIGERATION SUPPLIES DI 105.79 331904 09/28/2022 EFT 002063 SBC FIRE DEPARTMENT 7,280.00 331905 09/28/2022 EFT 017661 SCHARDIJN, LISA 774.00
331906 09/28/2022 EFT 015670 SCORPION FIRE PROTECTION, 20,123.75 331907 09/28/2022 EFT 021434 SOUTH COAST, LLC 2,306.42
331908 09/28/2022 EFT 001153 DS SERVICES OF AMERICA, I 196.00 331909 09/28/2022 EFT 012798 PRO SALES GROUP 106.36
331910 09/28/2022 EFT 021414 CALAMP WIRELESS NETWORKS 460.00 331912 09/28/2022 EFT 017269 TOWN & COUNTRY TIRE INC 450.61 331913 09/28/2022 EFT 028349 TYLER TECHNOLOGIES, INC. 4,440.00 331914 09/28/2022 EFT 014536 UNITED SITE SERVICES OF C 9,549.97 331915 09/28/2022 EFT 013356 VALLEYWIDE NEWSPAPERS LLC 294.00 331916 09/28/2022 EFT 015079 VERIZON WIRELESS SERVICES 159.50 331917 09/28/2022 EFT 008430 CALMAT COMPANY 2,667.90
331918 09/28/2022 EFT 002481 VICTOR VALLEY ANIMAL PROT 1,320.00 331919 09/28/2022 EFT 002498 VICTOR VALLEY WASTEWATER 1,161,614.08 331920 09/28/2022 EFT 011361 WALTERS WHOLESALE ELECTRI 2,386.24 331921 09/28/2022 EFT 002554 WAXIE SANITARY SUPPLY 361.55 331922 09/28/2022 EFT 015764 WESTRUX INTERNATIONAL INC 289.94 331923 09/28/2022 EFT 007786 WILLIAMS, MONIQUE 3,024.00 331924 09/28/2022 EFT 022033 WOODARD & CURRAN, INC. 9,921.90 331925 09/28/2022 EFT 018845 Z GLOBAL INC. 201,426.38
331926 09/28/2022 EFT 014212 ALDERETE, EVONIA 337.24
331927 09/28/2022 EFT 011930 ANDERSON, PAMELA K 323.78
331928 09/28/2022 EFT 019717 ARROYO, JOANN 178.80
331929 09/28/2022 EFT 022271 ASHTON, STEVE 735.31
331930 09/28/2022 EFT 004941 BATES, CAROLEE 588.16
331931 09/28/2022 EFT 003638 BECERRA, ELIZABETH 687.80
331932 09/28/2022 EFT 012054 BECKER, JOHN R 183.33
331933 09/28/2022 EFT 014654 BEVILACQUA, ANTHONY 803.01 331934 09/28/2022 EFT 011916 BIER, MICHAEL 304.78
331935 09/28/2022 EFT 018689 BORROWMAN, STEVEN H. 661.52 331936 09/28/2022 EFT 012066 BROWN, MARTY R 337.24
331937 09/28/2022 EFT 012044 BURCHAK, GLORIA J 301.26
331938 09/28/2022 EFT 011926 BUSH, YVONNE 265.55
331939 09/28/2022 EFT 012056 CALDWELL, TERRY E 183.33
331940 09/28/2022 EFT 001114 CAMELI-STEVENS, LORAINE 158.02 331941 09/28/2022 EFT 003218 CARBAJAL, STEVEN 622.39
331942 09/28/2022 EFT 025314 CASTRO, MELISSA 675.08
331943 09/28/2022 EFT 003645 CATHCART, MICHAEL 566.35
331944 09/28/2022 EFT 008111 COLLINS, KEVIN 386.97
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 4User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
331945 09/28/2022 EFT 011935 COSTELLO, JOSE 110.51
331946 09/28/2022 EFT 011934 COX, JAMES L 265.55
331947 09/28/2022 EFT 012064 COY, MICHAEL 87.85
331948 09/28/2022 EFT 012069 DEZWART, AMY LYN 301.26
331949 09/28/2022 EFT 006095 DIAZ, JANET 502.26
331950 09/28/2022 EFT 019734 DORAN, WILLIAM J. III 243.08 331951 09/28/2022 EFT 009544 FALZONE, RICHARD 161.28
331952 09/28/2022 EFT 012046 FITZSIMMONS, RALPH L 50.79 331953 09/28/2022 EFT 012062 FLORES, CYNTHIA D 161.28
331954 09/28/2022 EFT 011940 GARCIA, VINCENT J 720.26
331955 09/28/2022 EFT 011909 GARLAND, SHEILA D 170.38
331956 09/28/2022 EFT 012063 HARBOUR, RAYMOND LEE 831.26 331957 09/28/2022 EFT 015665 HELDRETH, GREGORY 818.67
331958 09/28/2022 EFT 012052 HINOJOS, JANICE A 249.95
331959 09/28/2022 EFT 011677 HOLLAND, KELLEY 243.50
331960 09/28/2022 EFT 012050 JARRETT, JENNIE L 301.26
331961 09/28/2022 EFT 022215 KARRES, RONALD J. 257.09
331962 09/28/2022 EFT 012049 KUHLMANN, EULEMA 102.63
331963 09/28/2022 EFT 029000 LACEY, MICHAEL P. 281.27
331964 09/28/2022 EFT 014183 LAURIE, BERNEE 163.02
331965 09/28/2022 EFT 012061 LAWSON, JAMES 394.99
331966 09/28/2022 EFT 012047 LEEF, DAVID 183.33
331967 09/28/2022 EFT 009048 LUDWIG, TRACY 481.68
331968 09/28/2022 EFT 019051 LUTHER, KARLA 243.50
331969 09/28/2022 EFT 012060 MADDOX, JONNIE F 337.24
331970 09/28/2022 EFT 011919 MARTINEZ, BASILIO 803.01
331971 09/28/2022 EFT 019440 MCCORMICK, DONNA 661.62
331972 09/28/2022 EFT 014184 MCGINN, JOHN 511.79
331973 09/28/2022 EFT 011918 MCGLADE, JOHN A 161.58
331974 09/28/2022 EFT 004588 MCGOWAN, CHERYL 244.37
331975 09/28/2022 EFT 003603 MCMURTRY, DANIEL 616.98
331976 09/28/2022 EFT 011913 MILLENDER, FRANCENE J 495.14 331977 09/28/2022 EFT 004745 MILLER, BRUCE 106.57
331978 09/28/2022 EFT 011917 MORSE, RENEE 323.78
331979 09/28/2022 EFT 012070 MOSHER, ADELE 74.58
331980 09/28/2022 EFT 012426 MULLINS, DENNIS M. 225.77
331981 09/28/2022 EFT 012065 NEWELL, CAROLYN 719.18
331982 09/28/2022 EFT 003200 O'DELL, DARRELL 477.87
331983 09/28/2022 EFT 013672 OGILVIE-HARPER, MARQUITA 220.72 331984 09/28/2022 EFT 012697 OROS, DWAYNE E. 675.08
331985 09/28/2022 EFT 012057 PATTERSON, ADAIR MARIE 323.78 331986 09/28/2022 EFT 011914 PETERSON, ROGER 152.11
331987 09/28/2022 EFT 022185 PIEPER, WADE 675.08
331988 09/28/2022 EFT 020717 PRUEITT, CORINNE 661.62
331989 09/28/2022 EFT 020716 PRUEITT, DAVID 661.62
331990 09/28/2022 EFT 011910 RAMIREZ, DIANA M 38.11
331991 09/28/2022 EFT 018894 RANDALL, DAVID L. 521.17
331992 09/28/2022 EFT 011920 RANKIN, SHARON 261.02
331993 09/28/2022 EFT 013209 RANKIN, TIMOTHY 471.39
331994 09/28/2022 EFT 020907 RODRIGUEZ, ANGELA 257.09
331995 09/28/2022 EFT 014496 RODRIGUEZ, LOUIE 616.98
331996 09/28/2022 EFT 017345 RUSSO, MARILEE 365.70
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 5User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
331997 09/28/2022 EFT 003583 RUSSO, VINCE 519.39
331998 09/28/2022 EFT 014493 SALAS, GLENN 279.68
331999 09/28/2022 EFT 012045 SALBERG, RAYMOND A 217.58
332000 09/28/2022 EFT 011929 SALINAS SR., XAVIER S 178.26 332001 09/28/2022 EFT 017488 SCHROEDER, KAY D. 265.55
332002 09/28/2022 EFT 014082 SMITH, ARNOLD 106.57
332003 09/28/2022 EFT 011931 SONGER FAMILY SURVIVAL TR 337.24 332004 09/28/2022 EFT 024654 SPARKS, DAVID J. 655.46
332005 09/28/2022 EFT 005559 ST. LOUIS, LINDA 803.01
332006 09/28/2022 EFT 018887 STONESIFER, ROBERT 102.63
332007 09/28/2022 EFT 021852 STONESIFER, BARRY 675.08
332008 09/28/2022 EFT 012949 STRATTON, DANIEL 495.14
332009 09/28/2022 EFT 017153 SZARZYNSKI, MICHAEL J. 457.33 332010 09/28/2022 EFT 021025 TAYLOR, SHARON 667.57
332011 09/28/2022 EFT 012078 THOMASSON, PHILLIP 536.32
332012 09/28/2022 EFT 014806 WASSERMAN, REBECCA A 103.92 332013 09/28/2022 EFT 019160 WEAVER, STUART 419.17
332014 09/28/2022 EFT 011915 WHITE, JAMES M 337.24
332015 09/28/2022 EFT 011924 WILSON, BOBBY G 217.49
332016 09/28/2022 EFT 012048 WILSON, HELEN E 442.45
332017 09/28/2022 EFT 012958 WOLTERS, MARCELLA 414.20
332018 09/28/2022 EFT 012059 ZIZZI, WARREN J 565.27
787373 09/16/2022 PRINTED 019735 PACIFIC UTILITY INSTALLAT 57,000.00 787374 09/21/2022 PRINTED 018995 AIR EXCHANGE, INC. 286,945.53 787375 09/21/2022 PRINTED 024821 ALPHA OMEGA SEPTIC SERVIC 10,227.51 787376 09/21/2022 PRINTED 006125 ANIXTER, INC. 364.69
787377 09/21/2022 PRINTED 003042 APPLE VALLEY COMMUNICATIO 107.66 787378 09/21/2022 PRINTED 025164 BANK OF NEW YORK MELLON T 4,764.00 787379 09/21/2022 PRINTED 021298 BASCOM TURNER INSTRUMENTS 7,216.00 787380 09/21/2022 PRINTED 000290 BATTERY MART OF APPLE VAL 260.15 787381 09/21/2022 PRINTED 014084 BAUER COMPRESSORS, INC 2,008.56 787382 09/21/2022 PRINTED 021170 BIG AZ INFLATABLES INC. 1,485.00 787383 09/21/2022 PRINTED 017353 BOUND TREE MEDICAL, LLC 1,522.29 787384 09/21/2022 PRINTED 014201 BURLINGTON SAFETY LABORAT 480.54 787385 09/21/2022 PRINTED 000380 BURRTEC WASTE INDUSTRIES 2,945.66 787386 09/21/2022 PRINTED 000380 BURRTEC WASTE INDUSTRIES 835.34 787387 09/21/2022 PRINTED 999975 CARRILLO, BRENDA 60.00 787388 09/21/2022 PRINTED 016222 CACEO 465.00
787389 09/21/2022 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 218.65 787390 09/21/2022 PRINTED 014359 CIVILTEC ENGINEERING, INC 1,493.75 787391 09/21/2022 PRINTED 011084 COMMERCIAL TRANSPORTATION 5,373.23 787392 09/21/2022 PRINTED 021986 CORDERO, MARTIN 231.26 787393 09/21/2022 PRINTED 018933 CUMMINS, INC. 3,371.87 787394 09/21/2022 PRINTED 020448 D'ALESIO, DEAN 4,984.56 787395 09/21/2022 PRINTED 014883 DAILY PRESS 237.96
787396 09/21/2022 PRINTED 010314 DAVID EVANS AND ASSOCIATE 15,758.79 787397 09/21/2022 PRINTED 016284 DELVALLE, LUIS ANTONIO 450.00 787398 09/21/2022 PRINTED 000764 DESERT TRUCK SUPPLY 18.52 787399 09/21/2022 PRINTED 021257 DIVE RESCUE, INC. 3,758.81 787400 09/21/2022 PRINTED 018020 DIXON PEST CONTROL, INC. 245.00 787401 09/21/2022 PRINTED 021194 FALLON, BRIAN 320.00
787402 09/21/2022 PRINTED 000975 FRANKLIN TRUCK PARTS, INC 26.20
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 6User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
787403 09/21/2022 PRINTED 013833 TORTORO ENTERPRISES, INC. 6,075.00 787404 09/21/2022 PRINTED 011371 GARDA CL NORTHWEST, INC. 94.21 787405 09/21/2022 PRINTED 010778 GARNICA-PICENO, ALFREDO 358.95 787406 09/21/2022 PRINTED 001074 GRAHAM EQUIPMENT 342.57 787407 09/21/2022 PRINTED 007552 GROOVELABS LLC 9,398.80 787408 09/21/2022 PRINTED 021441 HENRY SCHEIN, INC. 511.68 787409 09/21/2022 PRINTED 001155 HESPERIA HOSE SUPPLY 158.18 787410 09/21/2022 PRINTED 021346 HIGH DESERT PARTY RENTALS 7,179.00 787411 09/21/2022 PRINTED 021394 LAMADRID, ROBERT M 1,400.00 787412 09/21/2022 PRINTED 004590 LEGACY HOMES 272,889.78 787413 09/21/2022 PRINTED 017054 LOOPNET, INC. 576.00
787414 09/21/2022 PRINTED 021366 MBCA ENTERPRISED 4,755.88 787415 09/21/2022 PRINTED 021415 MOAT, LEVI 100.00
787416 09/21/2022 PRINTED 019967 MOJAVE AUTO COLLISION 12,040.36 787417 09/21/2022 PRINTED 021435 MOUNTAIN VIEW CHEVROLET, 38,534.23 787418 09/21/2022 PRINTED 999986 NELSON, MARIA 54.50
787419 09/21/2022 PRINTED 001648 NAPA AUTO PARTS 3,706.69 787420 09/21/2022 PRINTED 021023 NEWMAN - HARRISON, SUSAN 814.74 787421 09/21/2022 PRINTED 020885 CAMACHO, ERNEST M. 311,791.16 787422 09/21/2022 PRINTED 020257 PARK PLACE TECHNOLOGIES 14,382.02 787423 09/21/2022 PRINTED 018519 PARSONS TRANSPORTATION GR 63,247.97 787424 09/21/2022 PRINTED 004933 PATTY'S PONIES & PETS 1,600.00 787425 09/21/2022 PRINTED 021396 POP VINYL, LLC 2,800.00 787426 09/21/2022 PRINTED 018369 PRIME GOVERNMENT SOLUTION 28,350.00 787427 09/21/2022 PRINTED 021438 PROLOGIS SCLC INVESTMENTS 50,000.00 787428 09/21/2022 PRINTED 002618 PUBLIC WORKS SAFTEY SUPPL 229.80 787429 09/21/2022 PRINTED 011466 RANGE VEHICLE CENTER INC. 364.66 787430 09/21/2022 PRINTED 010689 RED HELMET TRAINING 400.00 787431 09/21/2022 PRINTED 010689 RED HELMET TRAINING 300.00 787432 09/21/2022 PRINTED 003857 ROADLINE PRODUCTS INC. 241.60 787433 09/21/2022 PRINTED 003150 ROBERTSON'S 742.76
787434 09/21/2022 PRINTED 002746 ROTO ROOTER PLUMBERS 632.50 787435 09/21/2022 PRINTED 002037 SAN BERNARDINO COUNTY 761.32 787436 09/21/2022 PRINTED 007647 SB COUNTY THEATER ARTS YO 500.00 787437 09/21/2022 PRINTED 002071 SAN BERNARDINO CO SOLID W 304,980.97 787438 09/21/2022 PRINTED 016345 NNN INVESTMENTS INC. 59.75 787439 09/21/2022 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 144,097.91 787440 09/21/2022 PRINTED 017936 STAPLES INC 259.94
787441 09/21/2022 PRINTED 002236 STATE WATER RESOURCES CON 8,100.22 787442 09/21/2022 PRINTED 002269 SUNLAND FORD 68.23
787443 09/21/2022 PRINTED 018780 TEAMCALIFORNIA ECONOMIC D 500.00 787444 09/21/2022 PRINTED 006279 TURF STAR, INC. 2,784.37 787445 09/21/2022 PRINTED 021442 U-SELECT-IT HOLDINGS LLC 4,800.00 787446 09/21/2022 PRINTED 018471 VILLARREAL, MATTHEW 317.32 787447 09/21/2022 PRINTED 029510 WEST END MATERIAL SUPPLY 284.68 787448 09/21/2022 PRINTED 021395 KEATING, JOHN 1,800.00 787449 09/21/2022 PRINTED 016092 BRAYFIELD, ZACHARY SCOTT 3,154.00 787450 09/21/2022 PRINTED 000694 ZENNER PERFORMANCE METERS 39.49 787451 09/21/2022 PRINTED 021144 THE DRALA PROJECT, INC. 1,032,292.81 787452 09/21/2022 PRINTED 021456 ABOU ZAKHEM, MANAR 30.05 787453 09/21/2022 PRINTED 013091 BOBERG ENGINEERING & CONT 223.87 787454 09/21/2022 PRINTED 021468 BURNING TREE TOWNHOUSES 228.29
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 7User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
787455 09/21/2022 PRINTED 021462 CHICAGO TITLE CO 138.11 787456 09/21/2022 PRINTED 021446 DAO, KIM DUC 50.61
787457 09/21/2022 PRINTED 020372 DESERADA INC 424.08
787458 09/21/2022 PRINTED 021171 DR HORTON LOS ANGELES HOL 74.98 787459 09/21/2022 PRINTED 021448 GONZALEZ, MIGUEL A. 15.34 787460 09/21/2022 PRINTED 021445 HEINZ, TYLER G 54.69
787461 09/21/2022 PRINTED 020457 HERNANDEZ, OSBALDO 36.30 787462 09/21/2022 PRINTED 021464 LAM, BOSCO 13.42
787463 09/21/2022 PRINTED 021458 LAMASSU UTILITY SERVICES 570.88 787464 09/21/2022 PRINTED 021461 LEE, THEODORE 93.78
787465 09/21/2022 PRINTED 021459 MORENO, ROBERT A. 48.84 787466 09/21/2022 PRINTED 021453 NAVARRO RIVERA, MARIBEL 12.28 787467 09/21/2022 PRINTED 021447 NEWELL, SHANNON 67.94
787468 09/21/2022 PRINTED 021460 OLIVARES, BENNY 98.32
787469 09/21/2022 PRINTED 021465 ORANGE COAST TITLE 99.17 787470 09/21/2022 PRINTED 021457 PATEL & ASSOCIATES 689.88 787471 09/21/2022 PRINTED 021312 PHILLIPS, JANE 70.67
787472 09/21/2022 PRINTED 021444 PINO, RICHARD 157.46
787473 09/21/2022 PRINTED 015394 REAL ESTATE UNLIMITED 46.43 787474 09/21/2022 PRINTED 021450 SAN, TIMOTHY 52.32
787475 09/21/2022 PRINTED 021449 THIGPEN, HEATHER 49.20 787476 09/21/2022 PRINTED 021451 THOMAS, CLIFFORD M 75.62 787477 09/21/2022 PRINTED 021452 UAC BUILDERS 686.21
787478 09/21/2022 PRINTED 021455 VILLALBA, YVONNE 89.79 787479 09/21/2022 PRINTED 021454 WATSON, CYNTHIA G. 13.30 787480 09/21/2022 PRINTED 021463 YU, KAM KI 138.41
787481 09/21/2022 PRINTED 020864 ZAB, LLC 394.72
787482 09/28/2022 PRINTED 010660 LOVELAND'S AUTOMOTIVE SER 395.00 787483 09/28/2022 PRINTED 019735 PACIFIC UTILITY INSTALLAT 772.16 787484 09/28/2022 PRINTED 999973 AMAYA, KENNY 375.00
787485 09/28/2022 PRINTED 000104 DANTIN ENTERPRISES, INC. 9,900.00 787486 09/28/2022 PRINTED 016339 ALL STAR ELITE SPORTS 1,805.34 787487 09/28/2022 PRINTED 003042 APPLE VALLEY COMMUNICATIO 8,072.27 787488 09/28/2022 PRINTED 017968 AVCOM SERVICES, INC. 1,275.00 787489 09/28/2022 PRINTED 999974 BROADWAY, LANAE 200.00 787490 09/28/2022 PRINTED 015662 BALLARD, JAMES ANDREW AND 8,938.94 787491 09/28/2022 PRINTED 000290 BATTERY MART OF APPLE VAL 2,021.64 787492 09/28/2022 PRINTED 016931 BARNES, CHARMAINE L. ALEX 3,400.00 787493 09/28/2022 PRINTED 017353 BOUND TREE MEDICAL, LLC 155.73 787494 09/28/2022 PRINTED 000256 BSN SPORTS, INC. 867.88 787495 09/28/2022 PRINTED 999975 CHATMAN, JANINA 360.00 787496 09/28/2022 PRINTED 999975 COMAV FACILITIES LLC 342.38 787497 09/28/2022 PRINTED 999975 CORLEY, REE'QUELL 200.00 787498 09/28/2022 PRINTED 016222 CACEO 1,700.00
787499 09/28/2022 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 74.08 787500 09/28/2022 PRINTED 021482 CASTELLANOS, RAY 109.42 787501 09/28/2022 PRINTED 001162 CAZCOM, INC. 380.00
787502 09/28/2022 PRINTED 021249 CLEAN AIR TESTING, INC. 647.07 787503 09/28/2022 PRINTED 021254 CODING MINDS, INC. 875.00 787504 09/28/2022 PRINTED 011084 COMMERCIAL TRANSPORTATION 5,373.23 787505 09/28/2022 PRINTED 018141 CR&R INCORPORATED 352.14 787506 09/28/2022 PRINTED 002752 D & H WATER SYSTEMS 10,181.43
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 8User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
787507 09/28/2022 PRINTED 010314 DAVID EVANS AND ASSOCIATE 45,523.51 787508 09/28/2022 PRINTED 020623 DIVERSIFIED GLASS, INC. 1,365.00 787509 09/28/2022 PRINTED 018020 DIXON PEST CONTROL, INC. 815.41 787510 09/28/2022 PRINTED 023124 DOUG PAGE MFG. 4,914.95 787511 09/28/2022 PRINTED 000946 FIRST AMERICAN TITLE COMP 4,282.00 787512 09/28/2022 PRINTED 016324 FIRST BAPTIST CHURCH OF H 500.00 787513 09/28/2022 PRINTED 013384 LASTAND, INC. 145.00
787514 09/28/2022 PRINTED 000975 FRANKLIN TRUCK PARTS, INC 96.63 787515 09/28/2022 PRINTED 016752 GENGLER, BRIAN 125.00
787516 09/28/2022 PRINTED 020022 THE GREATER HIGH DESERT C 600.00 787517 09/28/2022 PRINTED 999980 HENDERSON, NICOLE 34.00 787518 09/28/2022 PRINTED 999980 HOLLEY, VANESSA 114.00 787519 09/28/2022 PRINTED 001155 HESPERIA HOSE SUPPLY 325.44 787520 09/28/2022 PRINTED 010135 KAT EQUIPMENT LEASING INC 959.20 787521 09/28/2022 PRINTED 028879 KOA CORPORATION 800.00 787522 09/28/2022 PRINTED 018875 KONICA MINOLTA BUSINESS S 3,731.85 787523 09/28/2022 PRINTED 018875 KONICA MINOLTA BUSINESS S 266.98 787524 09/28/2022 PRINTED 022774 LIEBERT CASSIDY WHITMORE 2,300.50 787525 09/28/2022 PRINTED 010660 LOVELAND'S AUTOMOTIVE SER 544.64 787526 09/28/2022 PRINTED 004292 LU'S LIGHTHOUSE 1,515.00 787527 09/28/2022 PRINTED 999985 MARHEFKA, MELISSA 135.00 787528 09/28/2022 PRINTED 021415 MOAT, LEVI 25.00
787529 09/28/2022 PRINTED 001592 MOBILE OCCUPATIONAL SERVI 960.00 787530 09/28/2022 PRINTED 019967 MOJAVE AUTO COLLISION 6,592.76 787531 09/28/2022 PRINTED 016208 MOTOROLA SOLUTIONS, INC 108,885.53 787532 09/28/2022 PRINTED 001648 NAPA AUTO PARTS 662.96 787533 09/28/2022 PRINTED 021023 NEWMAN - HARRISON, SUSAN 1,000.68 787534 09/28/2022 PRINTED 018455 OWENBY, MATTHEW PAUL 360.00 787535 09/28/2022 PRINTED 021110 THE PRINTERY, INC. 22,464.34 787536 09/28/2022 PRINTED 014355 QUINN COMPANY 29.37
787537 09/28/2022 PRINTED 999990 ROMO, MARTHA 200.00
787538 09/28/2022 PRINTED 020678 UNITED SAFETY SERVICES 1,041.82 787539 09/28/2022 PRINTED 003150 ROBERTSON'S 1,185.27
787540 09/28/2022 PRINTED 021385 ROMTEC UTILITIES, INC. 59,045.00 787541 09/28/2022 PRINTED 002746 ROTO ROOTER PLUMBERS 212.75 787542 09/28/2022 PRINTED 999991 SANDOVAL, MONICA 200.00 787543 09/28/2022 PRINTED 002037 SAN BERNARDINO COUNTY 29.00 787544 09/28/2022 PRINTED 002037 SAN BERNARDINO COUNTY 5,000.00 787545 09/28/2022 PRINTED 002071 SAN BERNARDINO CO SOLID W 5,181.04 787546 09/28/2022 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 12,517.40 787547 09/28/2022 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 24,536.29 787548 09/28/2022 PRINTED 020284 SOCAL PPE, LLC 271.88
787549 09/28/2022 PRINTED 017936 STAPLES INC 315.40
787550 09/28/2022 PRINTED 002269 SUNLAND FORD 195.69
787551 09/28/2022 PRINTED 002204 SOUTHWEST GAS CORPORATION 275,183.40 787552 09/28/2022 PRINTED 021255 NAKENDRA HARRIS 240.00 787553 09/28/2022 PRINTED 023108 VCA ANIMAL HOSPITAL 489.12 787554 09/28/2022 PRINTED 007765 VICTOR BOWL 1,050.00
787555 09/28/2022 PRINTED 002879 VICTOR VALLEY TRANSIT AUT 244.50 787556 09/28/2022 PRINTED 001147 WAGE WORKS 1,376.50
787557 09/28/2022 PRINTED 018955 WASHEX MACHINERY OF CALIF 853.59 787558 09/28/2022 PRINTED 029101 ACUITY SPECIALTY PRODUCTS 861.52
CITY OF VICTORVILLE
Report generated: 09/28/2022 14:51 Page 9User:
Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
787559 09/28/2022 PRINTED 021253 SANDLIN, ANGEL L 120.00 787560 09/28/2022 PRINTED 013671 WEBB, WILLIAM C 326.47 787561 09/28/2022 PRINTED 021470 BETTER HOMES & GARDENS RE 46.43 787562 09/28/2022 PRINTED 011794 BRECKENRIDGE PROPERTY FUN 43.37 787563 09/28/2022 PRINTED 011794 BRECKENRIDGE PROPERTY FUN 100.28 787564 09/28/2022 PRINTED 009701 DIAB, ZOUHIR 44.39
787565 09/28/2022 PRINTED 021304 FRYE-WILLIAMS, JANICE 125.00 787566 09/28/2022 PRINTED 021475 GENTRY GENERAL ENGINEERIN 541.52 787567 09/28/2022 PRINTED 018823 GJH DEVELOPMENT INC 73.64 787568 09/28/2022 PRINTED 021471 GM REAL ESTATE TRUST 64.17 787569 09/28/2022 PRINTED 021487 GRG INVESTMENTS, LLC 87.04 787570 09/28/2022 PRINTED 021486 HERRIED, JENNIFER 1,837.45 787571 09/28/2022 PRINTED 021473 INGUANZO, JENNIE 13.30 787572 09/28/2022 PRINTED 021484 JONES-LEWIS, D MICHELLE 150.63 787573 09/28/2022 PRINTED 021485 LEIGHTON CONSULTING 567.21 787574 09/28/2022 PRINTED 021474 MA, SANDY F. 14.32
787575 09/28/2022 PRINTED 021488 NEW STAR REALTY 12.09
787576 09/28/2022 PRINTED 002901 NGO, MONG HUAN 46.91
787577 09/28/2022 PRINTED 021489 SPRUCE TITLE CO 19.46
787578 09/28/2022 PRINTED 021478 STEWART TITLE CO OF CALIF 162.37 787579 09/28/2022 PRINTED 021472 THE COMMUNITY BUILDING GR 45.41 787580 09/28/2022 PRINTED 021476 UDC CORPORATION 479.13 787581 09/28/2022 PRINTED 021477 WEDGEWOOD LLC 224.66
787582 09/28/2022 PRINTED 021469 ZHANG, NIANHUI 13.30
440 CHECKS CASH ACCOUNT TOTAL 11,694,431.31 .00
Wires Initiated through Wells Fargo Bank
DATE OF
WIRE ACCOUNT NAME DESCRIPTION AMOUNT WELLS FARGO BANK CONF #
09/23/22 Vantage Transfer Agents - 401 Vantage Transfer Agents - 401 Payment $ 251.80 CHIPS:0245355/001260/001260 Total: $ 251.80
Item Number: 4
City Council / Board of Directors
Consent Calendar
Meeting of: October 18, 2022
Submitted By:
Brian Gengler, City Engineer
Subject:
Release of Agreements for Tract Map No. 17110
Recommendation:
That the Honorable City Council approve the release of the Subdivision Agreement and the Utility Surety Agreement with LB/L SunCal West Creek, LLC for Tract Map No. 17110.
Fiscal Impact:
There is no fiscal impact related to this item.
Discussion:
Tract Map No. 17110 (Tract 17110) was part of a residential subdivision that was approved at the August 4, 2020, City Council meeting. The Subdivider, Walton California, LLC and WUSF 4 West Creek, LLC, requested the approval of twelve final tract maps which collectively included 829 lots and are within the West Creek Specific Plan. The twelve tract maps are located north of Mojave Drive, east of Cobalt Road, south of Hopland Street, and west of Amethyst Road. The subdivider was required to enter into a Subdivision Improvement Agreement (SIA) and Lien Agreement with the City pursuant to Victorville Municipal Code (VMC) 17.64. This agreement obligates the Subdivider to complete the public improvements to the satisfaction of the City, both agreements were approved and recorded on April 14, 2021.
First American Title has brought to the City’s attention that they do not have on file the SIA and Utility Surety Agreement releases from the previous owner, LB/L SunCal West Creek, LLC. After some research, it has been determined those releases were never executed and recorded. Therefore, staff recommends that the Honorable City Council approve the release the Subdivision Agreement and the Utility Surety Agreement with LB/L SunCal West Creek, LLC for Tract 17110.
Staff remains available to answer any questions the Council may have. 2 8
1 6
Attachments: A. Vicinity Map
B. Existing Subdivision Improvement Agreement
C. Existing Lien Agreement
D. Previous Owner Subdivision Improvement Agreement
E. Previous Owner Utility Surety Agreement
F. Subdivision Improvement Agreement Release
G. Utility Surety Agreement Release
Attachment A
Vicinity Map
Vicinity Map
COBALT ROAD
BRUCITE ROAD
AMETHYST ROAD
HOPLAND STREET
TAWNEY RIDGE LANE
MOJAVE DRIVE
WEST CREEK
MASTER TRACT 17110
WITH TRACT MAP NOS.
17111, 17112, 17113, 17114,
17115, & 17116
WEST CREEK
MASTER TRACT
17308
WITH TRACT
MAP NOS. 17309,
17310, & 17311
Attachment B
Existing Subdivision Improvement Agreement
Attachment C
Existing Lien Agreement
Attachment D
Previous Owner Subdivision Improvement
Agreement
Attachment E
Previous Owner Utility Surety Agreement
Attachment F
Subdivision Improvement Agreement Release
Recording Requested By:
CITY OF VICTORVILLE
When Recorded Please Return To:
CITY OF VICTORVILLE
14343 Civic Drive
Victorville, CA 92392
Various APNs
SATISFACTION AND RELEASE OF LIEN FOR
SUBDIVISION AGREEMENT FOR TRACT 17110
WHEREAS, the CITY OF VICTORVILLE required the execution of Subdivision Agreement by LB/L SunCal West Creek, LLC in interest of the below described property; and
WHEREAS, said Subdivision Agreement imposed duties, obligations, and requirements on property owner; and
WHEREAS, such duties, obligations, and requirements were recorded on October 17, 2007, as Document No. 200 7-0585583 in the office of the County Recorder of the County of San Bernardino; and
WHEREAS, property owner now is in compliance with said Subdivision Agreement as it relates to the property described below and the duties, obligations, and requirements thereunder having been fulfilled;
NOW, THEREFORE, in consideration of the compliance with said agreement hereinabove stated, the CITY OF VICTORVILLE hereby releases property owner, his heirs, assignees, or successors in interest from any further duty, obligation, or requirement imposed pursuant to the above indicated document only, and the same is here deemed of no further form and effect and shall cease to exist as a lien, duty, obligation, or cloud on the title to the following described real property:
Tract Map No. 17110, in the City of Victorville, County of San Bernardino, State of California, as per map filed in Book 330 of Tract Maps at Pages 83 through 93 and recorded as Document Number 2007-0623909, in the Office of the County Recorder of said County.
I hereby certify that all improvements required by Section 9.32 of the Victorville Municipal Code have been installed along the street frontages of the hereinabove described property.
Brian Gengler, City Engineer
R.C.E. C44730
City of Victorville
By:
Name: Debra Sue Jones
Title: Mayor
ATTEST:
By:
Jennifer Thompson, City Clerk
APPROVED AS TO FORM:
Andre de Bortnowsky, City Attorney
Lee Brown, City Risk Manager
Attachment G
Utility Surety Agreement Release
Recording Requested by:
The City of Victorville
When Recorded Please Return To:
CITY OF VICTORVILLE
14343 Civic Drive
Victorville, CA 92392
Various APNs
Recording of this document is fee exempt under
Government Code Section 6103.
No Docum entary Transfer Tax is due on the document
pursuant to Revenue Taxation Code Section 11922
UTILITY SURETY AGREEMENT RELEASE
Tract Map No. 17110
WHEREAS, the City of Victorville, hereinafter called “CITY” entered into a Utility Surety Agreement with LB/L SunCal West Creek, LLC , hereinafter called “ DEVELOPER”, pursuant to the provisions of the Subdivision Map Act of the State of California, for Tract Map No. 17110, hereinafter called “PROPERTY”; and
WHEREAS, said Utility Surety Agreement imposed duties, obligations, and requirements on the City and DEVELOPER; and
WHEREAS, such performance, obligations, and requirements were recorded on October 17, 2007 as Document No. 2007- 0585586 in the office of the County Recorder of the County of San Bernardino; and
WHEREAS, the DEVELOPER has sold the PROPERTY to Walton California, LLC , a California Limited Lia bility Company, as to an undivided 5% interest, and WUSF 4 West Creek, LLC, a California Limited Liability Company, as to an undivided 95% interest, as tenants in common who has executed a new Lien Agreement per Victorville Municipal Code 17.64.065(k); and
WHEREAS, the Subdivision Improvement Agreement between Walton California, LLC , a California Limited Liability Company, as to an undivided 5% interest, and WUSF 4 West Creek, LLC, a California Limited Liability Company, as to an undivided 95% interest, as tenants in common and the City of Victorville was recorded on April 15, 2021, as Document No. 2021-0174652 in the office of the County Recorder of the County of San Bernardino;
NOW, THEREFORE, in consideration that these properties having a security bonds against them by and between Walton California, LLC, a California Limited Liability Company, as to an undivided 5% interest, and WUSF 4 West Creek, LLC, a California Limited Liability Company, as to an undivided 95% interest, as tenants in common and the CITY and to be in compliance with said agreement hereinabove stated, the CITY hereby releases DEVELOPER from any further duty, obligation, or requirement imposed pursuant to the above indicated document only, and the same is hereby deemed of no further form and effect and shall cease to exist as a lien, duty obligation, or cloud on the title to the following d escribed real properties:
See Exhibit “A”
I hereby state that all performances, obligations, and requirements required by the Lien Agreement, herein identified, per Title 17 of the Victorville Municipa l Code required for Tract Map No. 17110 have been complied with on the hereinabove described property.
_________________________
Brian Gengler, City Engineer
R.C.E. 44730
CITY OF VICTORVILLE
By: _____________________________
Debra Sue Jones, Mayor
ATTEST:
________________________________
Jennifer Thompson, City Clerk
APPROVED AS TO FORM:
_________________________________
Andre De Bortnowsky, City Attorney
RISK MANAGEMENT:
_________________________________
Lee Brown, Risk Manager
EXHIBIT “A”
Tract Map No. 17110, in the City of Victorville, County of San Bernardino, State of California, as per map filed in Book 330 of Tract Maps at Pages 83 throug h 93 and recorded as Document Number 2007 -0623909, in the Office of the County Recorder of said County.
Item Number: 5
City Council / Board of Directors
Consent Calendar
Meeting of: October 18, 2022
Submitted By:
Jenele Davidson, Deputy City Manager
Subject:
State Library CopyCat Grant – Budget Amendment
Recommendation:
That the Honorable City Council adopt Resolution No. 22-114, approving a budget amendment for Fiscal Year 2022/2023 to appropriate $5,000.00 in both revenue and expenditures related to the State Library CopyCat Grant as awarded by the California State Library.
Fiscal Impact:
Adopting Resolution No. 22-114 (Attachment A) will result in additional revenue and expenditures in the amount of $5,000.00. These funds are allocated below:
Account Amount
2706030-43110-21378 (Revenue) $5,000
2706030-52110-21378 (Expenditure, Supplies) $5,000
Background:
The California State Library offered a CopyCat Grant Program as an initiative to help libraries implement previously funded programs from other libraries. The grant funds will be used to duplicate a Pop-Up MakerSpace program for Teens and Tweens. These programs will address deficiencies in Teen and Tween services noted in the Library Master Plan, Section 8, Recommendations, improving Services to Youth, p.8.8 (Attachment B).
Discussion:
A grant application was submitted to the California State Library on July 26, 2022, for the State Library CopyCat Grant. The California State Library approved the Library’s request for funds in the amount of $5,000.00 and the City received the Grant Acceptance Letter 2 8
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(Attachment C) on September 29, 2022. These funds will assist the Library with expenses related to implementing the Pop-Up MakerSpace toolkit. Grant funds will be used to purchase materials and to host six Teen STEAM programs, eight Tween (8-12) STEAM programs and seven Teen MakerSpace “Petting Zoo” programs.
The STEAM programs will allow participants to complete a STEAM-themed craft project that encourages creativity, independence and self-guided learning. The “Petting Zoo” program will give teens a hands-on experience with our 3D Printer and the software to create files. With newly purchased VR Headsets, teens will also be able to experience Virtual Reality.
The City Manager authorized the acceptance of the grant in accordance with VMC
2.28.060(e)(10) – authority for grant applications, grant agreements, or grant acceptance that may result in revenue of one-hundred twenty-five thousand dollars or less. However, a budget amendment is required to appropriate the associated grant revenue and expenses formally.
Staff recommends that the City Council adopt Resolution No. 22-114, approving a budget amendment for Fiscal Year 2022/2023 to appropriate $5,000.00 in both revenue and expenditures related to State Library CopyCat Grant as awarded by the California State Library.
Staff is available for any questions the City Council may have.
Attachments: A. Resolution No. 22-114
B. Library Master Plan 8.8
C. Grant Acceptance Letter
ATTACHMENT A
RESOLUTION NO. 22-114
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VICTORVILLE AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023;
APPROVING ADDITIONAL APPROPRIATIONS AND ADDITIONAL REVENUE AND EXPENDITURES FOR THE STATE LIBRARY COPYCAT GRANT.
W
HEREAS, the City Manager of the City of Victorville did heretofore submit to the City Council an estimate of the expenditures and revenues of the City departments and offices, together with a proposed budget for the fiscal year 2022-2023; and W
HEREAS, copies of said budget were prepared and distributed to the City Council and approved by the City Council on June 21, 2022, and have been available for inspection by the public in the office of the City Clerk of the City of Victorville; and W
HEREAS, the City of Victorville has been notified of the award of grant funding in the amount of Five Thousand Dollars ($5,000.00) relating to the 2022 State Library CopyCat Grant; and
W
HEREAS, the City Council wishes to amend the annual budget as set forth in this Resolution to memorialize the acceptance of the grant and recognize the associated increase in revenue and expenditures.
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE AS FOLLOWS:
S
ECTION 1. That the annual budget for the fiscal year 2022-2023 for the City of Victorville is hereby amended to reflect a change in the amounts and associated accounts listed below and as described in the corresponding Agenda Item.
Amount Amount Adjusted
2706030 43110 21378 (Revenue) $5,000.00
2706030 52110 21378 (Expenditure) $5,000.00
S
ECTION 2. That copies of such amended budget, certified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspection, and certified copies thereof shall be made available for use by the City departments, offices and subsidiary districts of the City.
ATTACHMENT B
ATTACHMENT C
From: Killian, Michelle@CSL
To: George Carter; Jennifer Agnew
Cc: Pham, Lena@CSL; Oliva, Lynne@CSL
Subject: 22-23 LSTA CopyCat Award Notification: Victorville City Library Date: Thursday, September 29, 2022 10:09:33 AM
[EXTERNAL EMAIL]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear George Carter:
I’m pleased to notify you that the California State Library intends to award a 2022-23 CopyCat Grant to the Victorville City Library to fund the proposed project, Monthly STEAM, for a total of $5,000 in Library Services and Technology Act (LSTA) funds.
Following this notification, you will receive an award packet that will include the official award letter, grant agreement and compliance certification documents, and a payment claim form.
The award packet will be delivered via DocuSign within the next couple weeks.
On behalf of the Library Development Services team at the State Library, we look forward to working with you during the CopyCat award period!
Sincerely,
Michelle Killian|Grants Analyst
California State Library|Library Development Services
900 N Street|Sacramento, CA 95814
[email protected]
Item Number: 6
City Council / Board of Directors
Written Communications
Meeting of: October 18, 2022
Submitted By:
Brian Fallon, Fire Chief
Subject:
Increase the amount of the Annual Supply and Service Agreements for LN Curtis and All Star Fire Equipment
Recommendation:
That Your Honorable City Council Approve the increase of the Annual Supply and Service Agreements for LN Curtis in the amount of $200,000 for a total of $450,000 and All Star Fire Equipment in the amount of $225,000 for a total of $300,000.
Fiscal Impact:
The increase, if approved will be funded by the Fire Department Fiscal Year 2022/2023 budget, Fire – Equipment Expense (1002010-52220), Fire – Equipment Expense – Personal Protective Equipment (1002010-52220-96016), and Measure P – Fire Equipment Expense (1052010-52220) and there will be no additional appropriations. This is only to increase the contract with these vendors, not to add to the overall Fire budget.
Background:
The Fire Department must purchase fire prevention equipment supplies for daily operational needs, apparatus and personal protective equipment (PPE) throughout the year. The department requested Annual Supply and Service Agreements with various vendors/suppliers to meet the equipment and supply purchase needs and two of those vendors are LN Curtis and All Star Fire Equipment. Both LN Curtis and All Star Fire Equipment provide fire equipment and supplies, are competitively priced and provide quality service.
Discussion:
On June 21, 2022, Council approved the contract renewal for Annual Supply and Service Agreements for various vendor/supplier for Fiscal Year 2022/2023. These are previously competitively bid and/or sole source contracts that are eligible for an additional one-year contract renewal option based on performance. In the contract renewal, the Fire 2 7
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Department requested agreements for LN Curtis, in the amount of $250,000 and All Star Fire Equipment, in the amount of $75,000 for the purchase of fire prevention equipment and supplies for Fiscal Year 2022/2023.
With the anticipated arrival of three (3) new fire apparatuses, the recruitment and hiring of nine (9) Firefighter Paramedics, and the need to purchase fire prevention equipment and supplies throughout the fiscal year, the approved amount and the amount within the City Manager’s authority have been exhausted. The requested increase has been budgeted for in Fiscal Year 2022/2023 and there will be no fiscal impact.
Staff recommends that City Council approve the increase to the Annual Supply and Service Agreement for LN Curtis in the amount of $200,000 for a total of $450,000 and All Star Fire Equipment in the amount of $225,000, for a total of $300,000.
Attachments: A. Summary Overview
B. All Star Certified Vendor Information
C. L.N.Curtis Certified Vendor Information
D. L.N Curtis Purchases to date in FY22/23
E. All-Star Purchases to date in FY22/23
F. Annual Servicer Agreements Requiring Council
Approval Form
ATTACHMENT A
ATTACHMENT B
ATTACHMENT C
ATTACHMENT D
ATTACHMENT E
ATTACHMENT F
Item Number: 7
City Council / Board of Directors
WRITTEN COMMUNICATION(s)
Meeting of: October 18, 2022
Submitted By:
Brian Gengler, City Engineer
Subject:
Award of Construction Contract – Village Drive & Tawney Ridge Lane Traffic Signal Recommendation:
That the Honorable City Council award a construction contract to Elecnor Belco Electric, Inc., in the amount of $601,714.48 for the Village Drive and Tawney Ridge Lane Traffic Signal project.
Fiscal Impact:
This action will result in a fiscal impact of $601,714.48. An additional appropriation is not required. There are sufficient funds in the budget to cover the planned expenses. This project is funded by the following funds: Highway Safety Improvement Program (HSIP) grant, Fund 270; and Measure I, Fund 250.
The FY 2022/2023 budget included this Capital Improvement Project. Please refer to the table below that shows the account numbers and amounts for the available budget.
Account No. Account Description Available Budget:
2504500-55330-62063 Measure I $82,802.00
2707501N-55315-62063 HSIP $539,000.00
Total $621,802.00
Background:
In October of 2020, City staff submitted an application to Caltrans Local Assistance for a HSIP grant to fund the installation a new traffic signal at the intersection of Village Drive and Tawney Ridge Lane. Please refer to Attachment A, a vicinity map showing the location of the proposed traffic signal.
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On March 26, 2021, Caltrans notified the City that the HSIP grant was approved for the requested amount of $539,000 of State funds with a minimum $30,000 proposed City match. To be eligible for the grant, Engineering staff first had determined that the intersection satisfied warrants (minimum requirements) for the installation of a traffic signal, as required in the Manual of Uniform Traffic Control Devices (MUTCD).
On June 1, 2021, City Council authorized the installation of four-way stop controls at the intersection of Village Drive and Tawney Ridge Lane, as recommended by the City Engineer. This was justified in accordance with the MUTCD as an interim measure to control traffic while arrangements would be made to install a traffic signal. The project was designed in-house by engineering staff.
On November 16, 2021, City Council approved the Notice of Exemption. This project was determined to meet the conditions for a categorical exemption as defined in the California Code of Regulations, CEQA §15301(c), with reference to existing highways and streets.
Discussion:
The purpose of this project is to construct a traffic signal located at the intersection of Village Drive and Tawney Ridge Lane. The project plans, specifications and engineer’s estimate for the project were prepared in-house by the City of Victorville Engineering Department. This project was bid using formal bidding procedures in accordance with Municipal Code §2.28.210, pertaining to formal bidding procedures, and the California Public Contract Code. Advertising of the project started on August 5, 2022. On September 13, 2022, five bids were received, opened, and publicly read aloud. The bid results are shown below.
Company Bid Amount
Elecnor Belco $601,714.00
PTM General Engineering Services $616,016.00
DBX, Inc $618,724.00
Crosstown Electric $626,957.00
Calpromax Engineering, Inc. $695,957.00
After a careful review and tabulation of the bid proposals, staff determined that the lowest responsive, responsible bidder is Elecnor Belco. The Engineer’s estimate for the project prepared in 2020 was $569,000.00. The low bid came in at 5.7% above the estimate. The price increase for construction is attributed to current market inflation resulting in greater material costs and higher labor rates.
It should be noted that Elecnor Belco submitted a total bid in amount of $601,714.00, which had an addition error, being $0.48 too low. The total bid amount was corrected by staff after the bids were submitted and opened, in accordance with the rules stipulated in the “Bid Proposal Form Instructions”. Because this project is not federally funded, there are no Disadvantaged Business Enterprise (DBE) program requirements. 2 8
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The Engineering Department will be responsible for the management of the construction of this project. It is estimated that the duration of the project will be approximately seven months. The total duration of the project will depend on the long lead time for the procurement of traffic signal equipment including poles, cabinets, and electrical components.
Staff recommends that the City Council award a construction contract to Elecnor Belco Electric, Inc., in the amount of $601,714.48 for the Village Drive & Tawney Ridge Lane Traffic Signal project.
Staff remains available for any questions the City Council may have.
Attachments: A. Location Map
B. Contract
ATTACHMENT A
ATTACHMENT B
1 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
CONSTRUCTION CONTRACT BY AND BETWEEN
THE CITY OF VICTORVILLE AND
ELECNOR BELCO ELECTRIC, INC.
FOR
VILLAGE DRIVE & TAWNEY RIDGE LANE TRAFFIC SIGNAL
CITY PROJECT NO. CC23-020
THIS CONSTRUCTION CONTRACT (the “Contract”) dated ______________________ for reference purposes only is made and entered into by and between the City of Victorville, a municipal corporation and charter city located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and Elecnor Belco Electric, Inc., a California corporation, hereinafter referred to as the “Contractor”. The City and Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.” RECITALS:
WHEREAS, the City requires construction of Village Drive & Tawney Ridge Lane Traffic Signal as more fully described in the solicitation documents issued by the City for Project No. CC23-020 (the “Project”); and
WHEREAS, on August 5, 2022 the City issued a Notice Inviting Bids and solicitation documents to prospective bidders for the Project. In response, Contractor submitted a Bid which the City determined to be the lowest responsive and responsible bid; and WHEREAS, Contractor is a duly organized Corporation in good standing in the State of California, and represents that it has the background, knowledge, experience, expertise and resources to perform the Work and other obligations encompassed by this Contract; and WHEREAS, at its meeting held on October 18, 2022 , the Victorville City Council duly accepted Contractor’s Bid for the Project and directed that a written agreement for the Project be entered into with Contractor; and
WHEREAS, in light of the facts set forth above and the certifications made by Contractor as part of its Bid, the City desires to retain Contractor to perform the construction Work for the Project as set forth in this Contract and in the Contract Documents, as hereinafter described.
NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS,
AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Contract by this reference, as though set forth herein.
2 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Section 2. CONTRACT DOCUMENTS; ORDER OF PRECEDENCE
a. Contract Documents. The Contract Documents consist of the following documents for the Project identified in the Recitals, all of which are either attached hereto as exhibits or are incorporated and made a part of this Contract by this reference. Said Contact Documents are complementary; what is called for in one is binding as if called for in all, and together constitute Contractor’s performance obligations:
(1) This Contract and its attached Exhibits, subject to the limitations in Sections 9 and 20 with respect to Exhibit “A” (Contractor’s submitted Bid Proposal as accepted by the City);
(2) Change Orders issued and approved by the City;
(3) Regulatory Permits from other agencies specified in the bid package for the Project or as may otherwise be required by law;
(4) Bid Addenda issued by the City;
(5) Notice Inviting Bids and Instructions to Bidders;
(6) Special Provisions;
(7) Greenbook 2021 Edition (Standard Specifications);
(8) Appendices;
(9) Plans and TS Equipment Specifications;
(10) Bid Forms and attachment thereto;
(11) Faithful Performance Bond;
(12) Payment Bond.
b. Interpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection a. above shall control.
c. Definitions. Unless specifically defined or assigned a meaning in this Contract, or the context clearly indicates otherwise, capitalized terms herein shall have the meaning assigned to them in the Standard Specifications as amended by the Special Provisions.
Section 3. C ONTRACTOR’S OBLIGATIONS
Contractor will perform all of the Work required for the Project, as specified in the Contract Documents described in Section 2, above. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents, and to the satisfaction of Brian Gengler, City Engineer, or his/her designee (hereinafter the “ Project Manager”).
Section 4. CONTRACT PRICE; PAYMENT AND RETENTION
a. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor Six Hundred One Thousand Seven Hundred Fourteen and 48/100 Dollars, ($601,714.48) (the “Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with Contractor’s Bid Proposal (attached hereto as Exhibit “A”) subject to the provisions of this Contract and the Contract Documents. 3 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
b. Procedures relating to payment and retention are set forth in the Special Provisions.
Section 5. CONTRACT TIME; NOTICE TO PROCEED
a. Contract Time. The Work under this Agreement shall be diligently prosecuted to completion before expiration of Forty (40) WORKING DAYS, commencing within Fifteen (15) calendar days after the issuance of the Notice to Proceed. The City will not issue a Notice to Proceed to the Contractor until this Contract, including bonds and insurance documents, have been executed and/or approved by the City.
b. N otice to Proceed. No work, service, material, or equipment shall be performed or furnished under this Contract unless and until a Notice to Proceed has been given to the Contractor by the City. Contractor shall commence Work pursuant to the Contract Documents and as directed by the City in the Notice to Proceed, and diligently execute the same to completion within the Contract Time.
Section 6. DI
SPUTE RESOLUTION AND CLAIMS PROCEDURES
a. Public Contract Code Section 9204. For purposes of any Public Works Claims filed by a Contractor or Subcontractor (as those terms are defined in Public Contract Code Section 9204) under this Contract, the claims procedures in Public Contract Code Section 9204 (“Section 9204”) and the provisions of this Section shall apply. Public Contract Code Section 9204 is set forth in full in Section 2-10 of the Special Provisions. (1) In the event of a Section 9204 Public Works Claim, Contractor may not stop working pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work during the Section 9204 process.
(2) Any Public Works Claims not resolved by the Section 9204 procedures (and/or any tort claims) shall be subject to Section 2.24.020 of the Victorville Municipal Code (“VMC”) and the provisions of the Government Claims Act (Government Code section 810 et seq.).
b. For disputes or claims that do not constitute Public Works Claims, City and Contractor agree to comply with the following process:
(1) Each Party shall designate a senior management or executive level representative to negotiate any dispute.
(2) The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.
(3) If the issue remains unresolved after ten (10) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiation between the legal counsel for each Party. If the above process fails, the Parties may mutually agree to engage in non-binding mediation or non-binding arbitration in which the Parties equally share the costs of any mediator or arbitrator, or may proceed with suit or other remedies, subject to the provisions of subparagraph (5) of this Subsection and other applicable provisions and laws.
(4) The alternative dispute resolution process set forth herein is a material condition of this Contract and must be exhausted as an administrative remedy prior to either Party initiating legal action.
4 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
(5) Compliance with VMC Section 2.24.020 and the provisions of the Government Claims Act (Government Code section 810 et seq.) is also required prior to initiating suit again the City.
Section 7. TERMINATION OF CONTRACT FOR CONVENIENCE
a. The City may, by providing thirty (30) days' advance written notice to Contractor, terminate this Contract in whole or in part, whenever the City shall determine that such termination is in the best interests of the City, or when it becomes impracticable or impossible to proceed, or because of conditions or events beyond the control of the City. Any such termination shall be effected by delivery to Contractor of a Notice of Termination for Convenience, specifying the extent to which performance of Work under this Agreement is terminated, and the date upon which such termination becomes effective. Upon such termination, the obligations of the Contractor for portions of the Work already performed shall continue. b. Upon receipt of a Notice of Termination for Convenience, the Contractor shall, unless the notice directs otherwise, do the following:
(1) Immediately discontinue the Work to the extent specified in the notice. (2) Place no further orders or subcontracts for materials, equipment, services, or facilities, except as may be necessary to complete such portion(s) of the Work that are not to be discontinued.
(3) Promptly cancel, on the most favorable terms reasonably possible, all subcontracts to the extent that they relate to the performance of the discontinued portion of the Work. (4) Thereafter do only such Work as may be necessary to preserve and protect the Work already in progress and to protect materials, plants, and equipment on the Project site or in transit thereto.
c. Upon such termination, the Contractor will be paid without duplication for:
(1) Work completed in accordance with the Contract Documents prior to the effective date of the Notice of Termination for Convenience;
(2) Reasonable costs incurred in settlement of terminated contracts with Subcontractors, suppliers and others; and
(3) Reasonable expenses directly attributable to termination.
The Contractor shall submit a final termination settlement proposal to the City no later than ninety (90) days from the effective date of termination, unless extended in writing by the City, upon written request by the Contractor. If the Contractor fails to submit a proposal, the City may determine the amount, if any, due the Contractor as a result of the termination. The City will pay the Contractor the amount it determines is reasonable. If the Contractor disagrees with the amount determined by the City as being reasonable, the Contractor shall provide notice to the City within thirty (30) Days of receipt of payment. Any amount due shall be subject to the dispute resolution provisions set forth in the Contract Documents.
d. Contractor shall include provisions in all of its subcontracts, purchase orders, and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor under this Section 7.
5 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Section 8. TERMINATION FOR CONTRACTOR’S DEFAULT
a. Default. The City may terminate this Contract for Contractor’s default as set forth in this Section. The City will consider the Contractor in default of this Contract if, prior to the City’s acceptance of the Work, the Contractor:
(1) becomes insolvent, assigns its assets for the benefit of its creditors, is unable to pay its debts as they become due, or is otherwise financially unable to complete the Work; (2) abandons the Work by failing to report to the Work site and diligently prosecute the Work to completion;
(3) disregards written instructions from the City or materially violates provisions of the Contract Documents;
(4) fails to prosecute the Work according to the schedule approved by the Engineer, (5) disregards laws or regulations of any public body having jurisdiction, or (6) commits continuous or repeated violations of regulatory or statutory safety requirements.
Notices, and other written communications regarding default between the Contractor, the City, and the Surety shall be transmitted in accordance with Section 21 of this Contract. b. Notice and Opportunity to Cure. The City will issue a written notice to cure the default to the Contractor and its Surety. The Contractor shall commence satisfactory corrective actions within five (5) Working Days after receipt. If the Contractor fails to commence satisfactory corrective action within five (5) Working Days after receipt of the notice to cure, or to diligently continue satisfactory and timely correction of the default thereafter, the City will consider the Contractor in default of the Contract and:
(1) will terminate the Contractor’s right to perform under the Contract by issuing a written notice of termination for default to the Contractor and its Surety; (2) may use any materials, equipment, tools or other facilities furnished by the Contractor to secure and maintain the Work site, and
(3) may furnish labor, equipment, and materials the City deems necessary to secure and maintain the Job Site;
c. Remedies Cumulative. The provisions of this Section shall be in addition to all other legal rights and remedies available to the City. Termination of this Contract will not relieve the Surety of its obligation for any just claims arising out of the Work performed.
Section 9. PRE VAILING WAGE
a. Compliance with State Prevailing Wage Requirements. Pursuant to Labor Code Section 1773, the City has obtained the prevailing rate of per diem wages and the prevailing wage rate for holiday and overtime work applicable in San Bernardino County, California from the Director of the Department of Industrial Relations (DIR) for each craft, classification, or type of worker needed to perform the Work required under this Contract. A copy of these prevailing wage rates are on file at the City’s Finance Department/Purchasing Division and shall be made available for review to any interested party on request. In addition, a copy of the prevailing rate of per diem wages may be obtained via the internet at:
http://www.dir.ca.gov/DLSR/PWD. Contractor and all
Subcontractors shall pay not less than said specified State of California rates to all workers employed by them in the execution of the Work contemplated by this Contract, including workers performing Work covered by under Labor Code Sections 1720 and 1720.9. Contract or shall be 6 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
responsible for using the correct and current prevailing wage rates. Contractor shall be solely responsible for using the correct wage decision or determination and performing accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct prevailing wage.
b. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the terms of this Section 9 and the provisions of Exhibit “A”, the terms of this Section 9 shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Submitted Bid Proposal conflicting with the requirements of this Section 9.
c. Payroll Records. Contractor must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq . (hereinafter the “Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.
(1) C
ontractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(a) The information contained in the payroll record is true and correct; and (b) Contractor or the Subcontractor has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any Work performed by its employees on the Project.
(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.
(3) E
nforcement . Upon notice of noncompliance with Labor Code § 1776, Contractor or Subcontractor has ten days in which to comply with the requirements of this section. If Contractor or Subcontractor fails to do so within the ten- day period, Contractor or Subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement , these penalties will be withheld from payments then due to Contractor. d. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.
e. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices as required by regulation. f. Other Labor Requirements. Contractor has the responsibility for and shall comply with all other requirements of California Labor Code Section 1720 et seq., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be 7 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor will require the same of all its Subcontractors. g. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced as follows:
(1) Pursuant to Labor Code section 1775, the Contractor and any Subcontractor under it shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Contract by it or by any Subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor. (2) The Contractor or Subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Contract by the respective contractor or Subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this subsection. In awarding any contract for public work, Contractor must forfeit to City Twenty -five Dollars ($25.00) per day f or each worker who works in excess of the minimum working hours when Contractor does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day.
h. DIR Monitoring. Pursuant to Labor Code § 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the DIR. i. DIR Registration . Pursuant to Labor Code sections 1725.5 and 1771.1, the Contractor and its Subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Contract, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code sections 1725.5 and 1771.1 in any subcontract and ensure that all Subcontractors are registered at the time this Contract is entered into and maintain registration for the duration of the Project.
Section 1
0. LIQUIDATED DAMAGES
If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of One Thousand Dollars ($1.000.00) per day for each day of unexcused delay in completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.
Section 1
1. COMPLIANCE WITH LAWS
Contractor shall comply with all Laws applicable to the performance of the Work required by the Contract Documents, including any rule, regulation, or bylaw governing the conduct or performance of Contractor, its employees, officers, board members, agents, independent contractors, and Subcontr actors. Unless otherwise specified in the Contract Documents, all required permits and licenses, including a City business license, shall be held or obtained by the Contractor at its sole expense and prior to commencing any Work hereunder.
8 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Section 12. WORKERS’ COMPENSATION CERTIFICATION
Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”
Section 13. INSURANCE
a. Contractor shall procure and maintain at its own expense at all times during the period covered by this Contract (and through the one- year guarantee period following the date of City’s acceptance of the Project) the following policies of insurance:
(1) Commercial General Liability (“CGL”) Insurance: Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence resulting from the acts or omissions of the Contractor or its officers, employees, servants, volunteers, and agents, and independent contractors. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (2) Commercial Vehicle Liability Insurance: Covering person injury and property damage, of not less than Five Million Dollars ($5,000,000) combined single limit, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the Work required by this Contract. (3) Workers’ Compensation Insurance : Providing coverage as required by the California State Workers’ Compensation Law and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. If any class of employees employed by Contractor is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.
(4) Course of Construction, Builders’ Risk, or Inland Marine Insurance for Work on Site: Issued on an occurrence basis, for all -risk or “all perils” coverage on a 100% completed value basis on the insurable portion of the Project for the benefit of City, that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor, which is to become part of the Work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the Project from such temporary locations. Contractor shall also be responsible for insuring its owned, leased/rented, or borrowed equipment.
(a) City of Victorville shall be named as a Loss Payee. (b) If the Project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such project s, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery, and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery, or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Project/Work site.
9 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
b. Additional Insurance Requirements. With respect to the policies of insurance set forth above, compliance with the following is also required:
(1) Additional Insureds. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the City and its elected or appointed officials, officers, employees, servants, volunteers, agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds. The coverage shall contain no special limitations on the scope of protection afforded to the City of Victorville, its officers, officials, employees, agents, or volunteers. (2) W aiver of Subrogation Rights. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City and its elected or appointed officers, officials, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver. (3) S
ufficiency of Insurers . Contractor must secure all policies of insurance required by this Contract from a good and responsible company or companies authorized to do insurance business in the State of California, with an AM Best’s rating of not less than A;VII.
(4) P roof of Insurance Coverage Required Prior to Commencement of Work. W ithin ten (10) days of the date Contractor receives this Contract from the City for execution (following award of same by the City Council), certificates of insurance evidencing the policies of insurance, coverages, and endorsements required by this Contract and satisfactory to and approved by the City shall be furnished by Contractor to the City’s Risk Manager (copies of policies may also be required). In no event shall any Work on the Project be permitted to commence until adequate proof of insurance and endorsements have been so furnished.
(5) S
pecial Provisions. Any additional insurance requirements set forth in Section 5- 4 of the Special Provisions shall also apply to this Contract. (6) O ther Required Endorsements .
(a) The policies shall be endorsed to provide that in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of cancellation for non- payment, ten (10) days advance written notice shall be given. (b) The CGL and vehicle liability policies shall be endorsed as Primary and Non-contributory.
c. Subcontractors. Contractor must ensure that each Subcontractor is required to obtain and maintain the same insurance coverage required under this Section 13 with respect to its performance of Work on the Project, including those requirements related to the Additional Insureds and waiver of subrogation. Contractor must confirm that each Subcontractor has complied with these insurance requirements before the Subcontractor is permitted to begin Work on the Project. Upon request by the City, Contractor must provide certificates and endorsements submitted by each Subcontractor to prove compliance with this requirement. The insurance requirements for Subcontractors do not replace or limit the Contractor’s insurance obligations.
10 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Section 14. HSIP CYCLE 10 MASTER AGREEMENT AND PROGRAM SUPPLEMENT Contractor acknowledges that the Project is being funded in part with Cycle 10 State Highway Safety Improvement Program (HSIP) funds, pursuant to that certain Master Agreement Administering Agency -State Agreement for State- Funded Projects No. 08- 5380S21 (dated September 20, 2021) between the City and State of California, acting by and through Caltrans, as amended by Program Supplement No. 000000Z63 (hereinafter collectively, the “Master Agreement”). Said Master Agreement was included in Section B of the solicitation documents (bid package) for the Project and is attached to this Contract as Exhibit “B” and incorporated as part hereof by this reference. Contractor and subcontractors have read and agree to comply with the following provisions of said Master Agreement, all of which are incorporated into this Contract by this reference as if set forth fully herein: (1) Article IV - FINANCIAL PROVISIONS; (2) Article V - AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS ; and (3) Exhibit A - FAIR EMPLOYMENT PRACTICES ADDENDUM (in which Exhibit the phrase “Contractor” shall be inserted in the place of the phrase “ADMINISTERING AGENCY”). Said Master Agreement Exhibit A requires Contractor and its Subcontractors to comply with all applicable State laws prohibiting discrimination, including without limitation, the California Fair Employment and Housing Act (Govt. Code § 12900 et seq.) and the regulations promulgated thereunder (2 California Code of Regulations § 11000 et seq.).
Section 15. TIME OF THE ESSENCE
Time is of the essence in the performance of this Contract.
Section 16. INDEMNIFICATION
a. Notwithstanding the limits of any insurance and to the fullest extent permitted by law, Contractor shall indemnify the City, its elected or appointed officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (hereinafter " Claims or Liabilities ") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the performance of the Work, operations, or activities of Cont ractor, its agents, employees, Subcontractors, or invitees on the Project, or arising or alleged to arise from the acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Contract, but excluding such Claims or Liabilities or portion of such Claims or Liabilities arising or alleged to arise from the active negligence, sole negligence, or willful misconduct of the City, its elected or appointed officials, officers, agents, volunteers, or employees, and in connection therewith:
(1) Contractor will defend any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;
(2) Contractor will promptly pay any judgment rendered against the City, its elected or appointed officials, officers, agents, volunteers, or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', Subcontractors' or invitees') performance of or failure to perform such Work, operations or activities hereunder; and Contractor agrees to save and hold the City, its elected or appointed officials, officers, agents, volunteers and employees harmless therefrom;
(3) In the event the City, its elected or appointed officials, officers, agents, volunteers, or employees is made a party to any action or proceeding filed or prosecuted against 11 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Contractor for such damages or other claims arising or alleged to arise out of or in connection with the performance of or failure to perform the Work, operation, or activities of Contractor hereunder, Contractor shall pay to the City, its elected or appointed officials, officers, agents ,volunteers, or employees, any and all costs and expenses incurred by the City, its elected or appointed officers, officials, agents, volunteers, or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
(4) Contractor's duty to defend, indemnify, and hold harmless as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of, or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to, the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances Control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter - Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.
b. City will timely notify Contractor upon receipt of any third- party claim relating to the Contract, as required by Public Contract Code § 9201. The Contractor's indemnification and defense obligations pursuant to this Section shall survive the termination of this Contract.
Contractor shall require the same indemnification from all Subcontractors.
Section 17. REPORTS; BOOKS AND RECORDS; AUDIT
a. Upon request by the Project Manager Contractor shall prepare and submit reports concerning Contractor's performance of the Work required by this Contract. b. Contractor shall keep such books and records as shall be necessary to perform the work required by this Contract and enable the Project Manager to evaluate the cost and the performance of such Work.
c. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles, and Contractor and its subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred Project costs and matching funds by line item for the Project. The Project Manager and the parties specified in Article V of the Master Agreement referenced in Section 14 of this Contract and attached hereto as Exhibit “B”, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Contractor and made available to the Project Manager for purposes of performing an audit for a period of three (3) years from the date of the City receives its final payment from the State as set forth Article V of the Master Agreement in the attached Exhibit “B”.
e. Contractor and all Subcontractors shall also comply with and are subject to all other provisions of Article V of the Master Agreement in the attached Exhibit “B” with respect to 12 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
maintenance, retention, access to, and inspection of books, documents, papers, accounting records, and other evidence pertaining to the performance of this Contract.
Section 18. MODIFICATIONS AND AMENDMENTS
This Contract may be modified or amended only by written Change Orders as specified in the Contract Documents or a written instrument signed by both Parties.
Section 19. ENTIRE AGREEMENT
a. This Contract supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Contract.
b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Contract and the Contract Documents incorporated herein.
c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.
Section 20. AMBIGUITIES
This Contract is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them. Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Contract. Notwithstanding the foregoing, the Parties agree that Exhibit “A” is attached hereto for reference purposes, and to the extent there are any ambiguities, inconsistencies, or conflicts between the terms of this Contract and Exhibit “A”, the terms of this Contract shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Contract.
Section 21. NOTICES
a. Any notice to be provided pursuant to this Contract shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:
To City: Brian Gengler, City Engineer
Engineering Department City of Victorville
14343 Civic Drive
Victorville, CA 92392
To Contractor:
John Wong, Vice President
Elecnor Belco Electric, Inc.
14320 Albers Way
Chino, CA 91710
13 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
To Surety: TBD_______________________________
_______________________________
_______________________________
_______________________________
_______________________________
b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.
c. Either Party, or the surety, may change its address by giving notice in writing to all other parties listed above, and thereafter notices shall be addressed and transmitted to such new address.
Section 22. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Contractor or to its successor(s), or for any breach of any obligation of the terms of this Contract.
Section 23. REVIEW BY ATTORNEYS
Each Party hereto has had its attorneys review this Contract and all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Contract based on such consultation.
Section 24. BONDS
Concurrently with the execution of this Contract by the Contractor, and before the commencement of any Work, Contractor shall furnish to the City a Faithful Performance Bond, and a Payment (Labor and Materials Bond) each in an amount equal to one hundred percent (100%) of the Contract Price written on the forms included in the Contract Documents. These bonds must remain in force until the later of (1) the expiration of the one-year guarantee period; or (2) on one year from the date of completion of the corrective Work. Such bonds must be issued by a responsible corporate Surety, licensed and authorized to issue such bonds in the State of California with an AM Best’s Rating of at least A: VII.
Section 25. CA
RE OF WORK
Contractor must adopt reasonable methods during the life of the Contract to furnish continuous protection to the Work, and the equipment, materials, papers, documents, plans, studies, and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the Work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the Work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective Work (including the obligation to remedy any defective Work or materials during the one-year guarantee period after the City’s acceptance thereof) at no further cost to the City.
Section 26. CAPTIONS AND HEADINGS
The captions and headings contained in this Contract are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.
14 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
Section 27. OWNERSHIP OF DOCUMENTS
No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from City. Contractor is deemed to have conveyed the copyright in any designs, drawings, specifications, Shop Drawings, or other documents (in paper or electronic form) developed by Contractor for the Project, and City will retain all rights to such works, including the right to possession.
Section 28. SUCCESSORS, HEIRS, AND ASSIGNS
Except as otherwise expressly provided herein, this Contract shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties. This Contract may not be assigned or transferred by Contractor without the concurrence of the surety and express written consent of the City.
Section 29. GENDER; PLURAL
In this Contract, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.
Section 30. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Contract and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.
Section 31. GOVERNING LAW
The validity of this Contract and any of its terms or provisions, as well as the rights and duties of the Parties under this Contract, shall be construed pursuant to and in accordance with California law.
Section 32. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Contract, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.
Section 33. VENUE
All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Contract and all proceedings involving any enforcement action related to this Contract shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.
Section 34. EFFECTIVENESS OF CONTRACT
This Contract shall not be binding upon the City until signed by the authorized representative(s) of Contractor, approved by the City’s Risk Manager, and executed by the authorized City personnel or the Mayor.
Section 35. REPRESENTATIONS OF PARTIES AND PERSONS EXECUTING
CONTRACT
Each of the Parties to this Contract hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Contract a binding obligation of each of 15 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
the Parties hereto. The persons executing this Contract warrant that they are duly authorized to execute this Contract on behalf of and bind the Parties each purports to represent.
Section 36. WAIVER
No delay or omission in the exercise of any right or remedy by a non- defaulting Party on any default under this Contract shall impair such right or remedy or be construed as a waiver. A Party's consent to or approval of any act by the other Party requiring the Party's consent or approval shall not be deemed to waive or render unnecessary the other Party's consent to or approval of any subsequent act. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Contract.
Section 37. INDEPENDENT CONTRACTOR STATUS
Contractor is an independent contractor. All persons working for or under the direction of the Contractor are the Contractor's employees, agents, or subcontractors, and they shall not be deemed agents, servants, or employees of the City.
Section 38. COUNTERPARTS
This Contract may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Contract.
Section 39. PROVISIONS REQUIRED BY LAW DEEMED INSERTED
Each and every provision of law and clause required by Law to be inserted in this Contract shall be deemed to be inserted herein and the Contract shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either Party the Contract shall forthwith be physically amended to make such insertion or correction.
Section 40. ATTORNEY'S FEES
If either Party commences an action against the other Party, either legal, administrative, or otherwise, arising out of or in connection with this Contract, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.
(END OF THIS PAGE – SIGNATURE PAGE FOLLOWS)
16 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed as of the dates written below.
THE CITY OF VICTORVILLE ELECNOR BELCO ELECTRIC, INC.
By: By: _______________________________
Debra Jones, Mayor John Wong, Vice President
Dated: Dated:_____________________________
ATTEST
By:
Jennifer Thompson, City Clerk
Dated:
APPROVED AS TO STANDARD FORM
By:
Andre de Bortnowsky, City Attorney
Dated:
THE CITY OF VICTORVILLE
By:
Lee Brown, Risk Manager
Dated:
17 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
EXHIBIT A
CONTRACTOR’S BID PROPOSAL
EXHIBIT A
18/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
EXHIBIT A
19/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
EXHIBIT A
20/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
EXHIBIT A
21/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 22 Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020
EXHIBIT B
M
ASTER AGREEMENT
(
See Contract Section 14)
20th
September
21 EXHIBIT B, PROJECT CC23-020
23/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
24/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
25/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
26/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
27/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
28/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
29/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
30/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
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32/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
33/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
34/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
35/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 Sr. Transportation Engineer
September 20, 2021
EXHIBIT B, PROJECT CC23-020
36/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
37/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
38/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
39/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 EXHIBIT B, PROJECT CC23-020
40/Construction Agreement/Elecnor Belco Electric, Inc./Project CC23-020 Item Number: 8
City Council / Board of Directors
Written Communications
Meeting of: October 18, 2022
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Approve the Purchase of an Elgin CNG Broom Bear Street Sweeper Recommendation:
That the Honorable City Council award Haaker Equipment Company, as authorized distributor, the piggyback purchase of an Elgin CNG Broom Bear Sweeper in the amount of $467,819.66, along with a 10% contingency of $46,781.97, for a total amount of $514,601.63, under the Sourcewell Contract #093021-ELG.
Fiscal Impact:
Funds have been appropriated in the American Rescue Plan Act (ARPA) Fund 277 for this expenditure as budgeted for in the FY 2022-2023 Capital Improvement Project (CIP) budget under account 2770010-55040-70722. The 10% contingency is to cover any additional cost/price increase due to the current market volatility of new equipment and vehicle prices nationwide stemming largely from supply chain issues and market demand.
Also, as indicated in the attached quote, the price is good for only 15 days.
Background:
Public Works staff sweeps commercial corridors weekly, residential streets on a four to six-week interval (depending on time of year), and Caltrans roads twice monthly (by agreement). The City currently has four Sweeper Operator positions, and five street sweeping units (ranging from 2009 to 2021). Due to the substantial amount of maintenance and repairs required for street sweeping units that result in downtime, it is optimal for the department to have at least five street sweeping machines (one being a spare or backup unit), including one air displacement unit, to support current operations.
Discussion:
The proposed CNG street sweeper will be utilized by the Street Sweeping Division of Public Works to perform routine operations and maintenance activities such as street sweeping on a daily basis and immediately after storm events. The delivery time for this 2 8
2 4
new street sweeping unit is estimated at six to eight months. The two oldest units in the City’s inventory are eight and thirteen years old, with a recommended useful life of eight to ten years when dispatched for daily operation. The newer unit is used daily, and the other is a backup unit. The purchase of this new street sweeping unit will help ensure that turnaround times are kept at current levels or better and will ensure that Public Works staff has reliable and operable equipment to support all daily operations and maintenance activities, as well as emergency response needs.
Per the City’s Municipal Code § 2.28.120, Purchasing of Supplies and Equipment through Cooperative Purchasing Agreements, the City may utilize various cooperative purchasing programs to take advantage of volume pricing through Sourcewell. Sourcewell is a public Agency that serves as a member-focused cooperative and offers a multitude of cooperatively contracted specialized products and equipment to government entities that cannot be procured from local dealers.
Sourcewell’s cooperative contract purchasing leverages the national purchasing power of more than 50,000 member agencies while also streamlining the required purchasing process. As a municipal national contracting agency, Sourcewell establishes and provides nationally leveraged and competitively solicited purchasing contracts under the guidance of the Uniform Municipal Contracting Law. Joint Power law enables members to legally purchase through awarded contracts.
Sourcewell offers its members contract purchasing solutions that are leveraged nationally to enable contracted suppliers and member agencies to work smarter and more efficient as they do business with each other. Sourcewell does this by establishing a business and service alliance between member buyers and contracted suppliers ensuring a valued and successful national cooperative contract program. The City has utilized the Sourcewell program over the last several years and is extremely satisfied with the results.
The piggyback of the Sourcewell contract fulfills the City’s legal obligations of competitive bidding requirements, thus providing significant savings. Public Works staff, Fleet Maintenance Division, have reviewed the specification requirements and quote submitted, and have confirmed that the quote from Haaker Equipment Company meets or exceeds the minimum specification requirements. Accordingly, staff recommends that the City Council approve the award to Haaker Equipment Company for the piggyback purchase of an Elgin CNG Broom Bear Sweeper in the amount of $467,819.66 and 10% contingency of $46,781.97, if needed, for a total amount of $514,601.63.
Staff remains available for any questions the City Council may have.
Attachments: A. Quote from Haaker Equipment Company
B. Sourcewell/NJPA Certificate of Membership
C. Memo & Resolution-NJPA Name Change to Sourcewell
D. Authorized Dealer Letter and Sourcewell Contract #093021-ELG
AGENDA
ATTACHMENT A
2070 North White Avenue, La Verne, California 91750
(909) 598-2706 ~ FAX (909) 598-1427 ~ haaker.com
QUOTE
September 27, 2022
TO: CITY OF VICTORVILLE ATTN: Mr. Sparky Kale
14177 Mcart Rd. 760-713-2285
Victorville CA 92392 Email: [email protected]
In accordance with your request, we are pleased to submit the following proposal for your consideration and approval based on the Sourcewell Cooperative Purchasing Agreement - Contract # 093021-ELG.
ONE (1) NEW ELGIN CNG BROOM BEAR SWEEPER
Variable Height, Ride Side Dumping 4.5 Cu Yd. Hopper with Dual Hydraulically Driven, Trailing Arm Side brooms. Mounted On A 2024 Freightliner M2 Chassis With Cummins 8.9L 300 HP CNG Engine, Allison Transmission, 50 DGE Fuel System, PM 10 Compliant Water System, Powder Painted Standard White. Unit to Include: Following:
Standard Equipment Included
· Broom side, 46" steel vertical digger 4 or 5 segment
· Broom side, air floating suspension with adjustable
reach, air deploy
· Broom, main, 34" diameter, 60" wide prefab
disposable
· Broom Measurement Ruler
· Conveyor chain, hardened with polyurethane sprockets
· Conveyor, belt type with 13 molded-in full width cleats · Conveyor, lift independent from main broom
· Conveyor, three piece replaceable wear plates
· Conveyor flush out system
· Conveyor raise in reverse
· Conveyor stall alarm
· Dirt shoes, spring assisted, heavy duty single row
carbide steel (rubber isolated)
· Electric backup alarm
· Hopper inspection door
· Hopper, 4.5 cu yd. with window and skylight
· Hopper up indicator and beep
· Hopper, variable high dump; 9' 6", 4.5 yard
· Hose, hydrant fill, 16' 8" with coupling
· Hydraulic oil level gauge w/ external thermometer and in-cab level light
· Hydraulic system, load sensing with selectable
transmission driven PTO pump
· Lights, automatic backup
· Lights, combination tail/stop, separate amber signal
· Lights, flood light, one per broom (3)
· Manuals, operator and parts
· Rear broom cover and anti-carryover wrap
· Rear broom spray bar
· Rear right hand flood light
· Reflectors, set of 6
· Sidebroom speed control, external to cab
· Sweep resume/raise in reverse
· Tactile controls for all sweep functions
· Tool storage
· Water fill, anti-siphon
· Water level indicator in-cab
· Water Pump, electric diaphragm
· Water tank, molded polyethylene, 360 gallon total
nominal capacity
· 1 Year Parts and Labor Warranty
· AM/FM/CD Radio
· Left Hand Fender Mounted Mirror
· Sweeper Painted Standard White
· Chassis Painted Standard White
· Red Logo
· Sweeper - Operator Manual
· Sweeper Parts Manual\
· Chassis Operators Manual
· Chassis Parts Manual
Optional Equipment Included
· Chassis Battery Disconnect
· 12" Convex Mirrors
· Spare Tire & Rim
· PM-10 Complaint
· PM10 Compliant Oil Tempered Steel Bristles
· Sidebroom Tilt Option Left Hand
· Sidebroom Tilt Option Right Hand
· In-Cab Variable Speed and Reversing Broom Control
· Air Purge for Water System
· In-Cab Function Control for Sidebroom Water
· Heavy Duty Lower Roller
· Variable Speed Conveyor
· Carbide Double Row Rubber Mounted Dirt Shoes
· Lifeliner Hopper System
· Extended Hopper Door
· Broom Hour Meter
· Hydraulic Oil Temperature Display
· Hopper Full Indicator (volumetric)
· Elevator Reverse Light and Alarm
· Midwest Autolube Sweeper Only
· Package A : LED Stop/Tail/Turn Lights
· Package B : Rear Mounted Arrowstick
· Package C : (2) Rear Low Mounted Oval Amber LED
Flashers
· Package D : (2) Rear High Mounted Oval Amber LED
Flashers
· Warranty through 5th Year (Parts/Labor) – Sweeper
Body and Chassis. Chassis to include Cummins
Engine, After-treatment, Truck Coverage,
Transmission, Front/Rear Axle
· Sweeper Service Manual
· Chassis Operators Manual
· Chassis Parts Manual
· Chassis Service Manual
· Fire Extinguisher, 5 lb.
· Safety Triangles
· Hydrant Wrench
· Camera (2) front, (1) rear
· Wide Front Spray Bar
· Two Strobes Mounted At Front Grill
· 1 Rotating Beacon On Top Of Hopper
· 1 Rotating Beacon At Top/Rear Of Sweeper
Sourcewell Unit Price: ................................ ................................ .............. $ 437,243.00 Sourcewell Discount: ................................ ................................ ............. ($ 7,084.00) Subtotal: ................................ ................................ ................................ ... $ 430,179.00 Sales Tax (8.75%) .................................................................................... $ 37,640.66
TOTAL UNIT PRICE, FOB: VICTORVILLE, CA: ............................ $ 467,819.66
THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO
WARRANTY EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT.
NOTE: Price is good for 15 Days. Cost increases due to the addition of Government mandated safety or environmental devices incurred after the date of this proposal, will be charged to you at our cost. Proof of such costs, if any, will be documente d.
TAXES: SALES TAX applicable at time of delivery will be shown on our invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted.
DELIVERY: 180-220 Days TERMS: Net 10 or Approved Lease
We appreciate the opportunity to present this proposal and look forward to being of further and continued service.
HAAKER EQUIPMENT COMPANY ACCEPTED BY:
BY: George Lopez DATE:
GEORGE LOPEZ
SALES REPRESENTATIVE
AGENDA
ATTACHMENT B
AGENDA
ATTACHMENT C
AGENDA
ATTACHMENT D
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Solicitation Number: RFP #093021
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Elgin Sweeper Company, 1300 West Bartlett Road, Elgin, IL 60120 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Street Sweepers and Specialty Sweepers, with Related Equipment, Accessories, and Supplies from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires November 16, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
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Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.
In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be
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returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change;
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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS
A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at government- owned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell
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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum; the terms of which will be negotiated directly between the Participating Entity and the Supplier. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT
A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased
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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE
A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT
A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers,
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resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws.
5. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for Products-Completed operations
$2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms
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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is
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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
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21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
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C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names
093021-ELG
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of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation
093021-ELG
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and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 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 program for procurement of recovered materials identified in the EPA guidelines.
M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier not use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.
Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
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T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell Elgin Sweeper Company
By: __________________________ By: __________________________ Jeremy Schwartz David Panizzi
Title: Chief Procurement Officer Ti tle: Business Development Manager
Date: ________________________
Date: ________________________
Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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Bid Number: RFP 093021 Vendor Name: Elgin Sweeper Co.
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7KH%LGGHUDFNQRZOHGJHVDQGDJUHHVWKDWWKHDGGHQGXPDGGHQGDEHORZIRUPSDUWRIWKH%LG'RFXPHQW Bid Number: RFP 093021 Vendor Name: Elgin Sweeper Co.
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Bid Number: RFP 093021 Vendor Name: Elgin Sweeper Co.
Item Number: 9
City Council / Board of Directors
Written Communications
Meeting of: October 18, 2022
Submitted By:
Sophie L. Smith, Deputy City Manager
Josie Trevino, Human Resources Officer
Subject:
Delegation of authority to make certain determinations and applications relating to disability retirements under the public employees’ retirement law Recommendation:
That the Honorable City Council adopt Resolution No. 22-113 delegating authority to the City Manager to make certain determinations and applications relating to disability retirements under the public employees’ retirement law.
Fiscal Impact:
There is no fiscal impact associated with this item.
Background:
The City of Victorville contracts with the California Public Employees’ Retirement System (CalPERS) to manage pension benefits. CalPERS is the nation’s largest public pension system and manages the pension and health benefits of more than 2 million public employees, retirees, and their families from California’s state, school, and public agency employers. CalPERS pension benefit plan is a defined benefit retirement plan in which pension payments are determined by a set formula and are payable for life. This pension plan is funded through three sources including contributions from CalPERS members, employer contributions, and investment earnings. The calculation used to determine an employee’s retirement pension includes service credit (total years of CalPERS service), benefit factor (percentage of pay employee is entitled to based on age of retirement), and final compensation (highest average annual compensation earnable).
There are three types of retirement offered through the CalPERS retirement system including:
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•Service Retirement – the general retirement from employment after a minimum period of five years of CalPERS-credited service and attainment of the minimum age requirement.
•Disability Retirement – consists of a monthly retirement allowance paid to the employee until they recover from their disabling injury or illness or for the duration of their life. The cause of the disability need not be related to employment. To qualify for disability retirement, the employee must be substantially incapacitated from performing their job duties, based on a physical or mental condition which is expected to be permanent or last indefinitely. There is no minimum age requirement; however; the employee must have at least five (5) years of CalPERS- credited service.
•Industrial Disability Retirement (Public Safety Employees only) – If the employee’s disability is the result of a job-related illness or injury, they may be entitled to an industrial disability retirement. A monthly retirement allowance will be paid to the employee until they recover from their disabling injury or illness or for the duration of their life. There is no minimum age or service requirement for an industrial disability retirement.
Under California Public Employees’ Retirement Law, disability is defined as the incapacity from the performance of duty in public services for permanent or extended and uncertain duration of twelve consecutive months or longer, as determined on the basis of competent medical opinion. Disability is not necessarily the inability to perform every function of a given position. Rather, the courts have concluded that the test in any case is whether the employee can substantially perform their usual duties. It is the inability to perform the essential functions of the actual and present job duties that determines whether the member is substantially incapacitated for the performance of their job duties. If the member cannot substantially perform the duties of the position, then he or she is disabled for CalPERS retirement purposes; otherwise, the member is not disabled.
Government Code section 21156(a)(2) provides that the board or governing body of the contracting agency shall make a determination on a member’s disability retirement. This determination must be made on the basis of competent medical opinion and shall not use disability retirement as a substitute for the disciplinary process. All determinations, applications and documentation relating to a members disability retirement submitted by an employer must be signed by the governing body or its lawful delegate (i.e., City Manager). If the governing body delegates the responsibility of making such determinations, a certified copy, which is approved and signed by the governing body, of the delegation order of this authority must accompany the finding by such delegate in every instance.
Discussion:
The City Council or its delegate must be certain that if any of the following separations reasons or circumstances apply, the City must forward all relevant personnel documents and medical records to CalPERS and obtain CalPERS’ determination that the member is eligible to apply for disability retirement before the City starts the process of adjudication:
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1. Disciplinary process was underway prior to the member’s separation from employment
2. The member was terminated for cause
3. The member resigned in lieu of termination
4. The member signed an agreement to waive their reinstatement rights as part of a legal settlement (i.e., Employment Reinstatement Waiver)
5. The member has been convicted of or is being investigated for a work-related felony
The City’s determination shall be made on the basis of competent medical opinion. The City shall not use disability retirement as a substitute for the disciplinary process (Government Code section 21156(2)). If the disciplinary process occurred before the member’s separation from employment, the City is required to forward all relevant personnel documents to CalPERS for determination of the member’s eligibility for disability retirement before the City starts the process of determination.
If the member is found to be disabled, CalPERS will require the following documentation:
1. A statement from the employer certifying that the determination for disability retirement was made based on competent medical opinion and the disability is expected to fulfill at least one of the following statements:
a) Is permanent
b) Will last at least twelve (12) consecutive months from the date of an application for benefits
c) Will result in death
2. A statement certifying the determination was not used as a substitute for the disciplinary process. The statement must also confirm that all relevant personnel documents were forwarded to CalPERS and CalPERS’ determination that the member is eligible to apply for disability retirement.
3. A finding indicating the member has been found to be substantially incapacitated from the performance of the usual duties of their position.
4. A statement confirming whether or not the member has filed a Workers' Compensation claim(s) for the disabling condition(s). If so, a statement as to whether the claim(s) is accepted.
5. A finding by the employer as to whether or not the causation of the disability was Industrial:
a) In the case of an ongoing dispute about the causation of the disability, the employer must provide a revised determination resolution along with a copy of the Workers' Compensation Appeals Board findings resolving the question of industrial causation.
b) A member must have a minimum of five years of service credit to qualify for non-industrial disability retirement.
6. A statement by the employer documenting the member’s last day on payroll. The retirement effective date must be established in accordance with Government Code sections 21163 and 21164.
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7. A statement by the employer as to whether there is, or is not, a possibility of third- party liability present.
8. A statement from the employer identifying the disabling condition(s) and body part(s) involved.
9. If Advance Disability Pension Payments (ADPP) have been or will be paid to the member, the employer must include the monthly amount and the beginning date.
To ensure that such determinations and applications relating to CalPERS disability retirements are addressed accordingly and completed in a timely manner in accordance with Government Code sections 21154 and 21156, staff recommends that the Honorable City Council adopts Resolution No. 22-113 delegating authority to the City Manager to make such determinations and applications.
Staff remains available for any questions the City Council may have.
Attachments: A. Resolution No. 22-113
ATTACHMENT A
Resolution No. 22-113
RESOLUTION NO. 22-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VICTORVILLE, CALIFORNIA,
FOR DELEGATION OF AUTHORITY TO MAKE CERTAIN DETERMINATIONS AND
APPLICATIONS RELATING TO DISABILITY RETIREMENTS UNDER THE PUBLIC EMPLOYEES’ RETIREMENT LAW
WHEREAS, the City of Victorville (City) is a contracting agency of the California Public Employees’ Retirement System; and
WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the Public Employees’ Retirement Law and such disability is “industrial” within the meaning of such Law; and WHEREAS, the City Council (Council) has determined that it may delegate authority under Government Code Section 21173 to make such determinations to the incumbent of the position of the City Manager.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE AS FOLLOWS:
The following are the conditions for delegation of authority:
SECTION 1. The Council does hereby delegate to the incumbent of the position of City Manager, authority to make applications on behalf of the Agency pursuant to Government Code Section 21152(c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability.
SECTION 2. The Council does hereby delegate to the incumbent of the position of City Manager authority to make determinations of disability on behalf of the City under Government Code section 21156 and whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System.
SECTION 3. The Council does hereby delegate to the City Manager authority to make determinations of disability on behalf of the City under Government Code section 21156, determinations as to w hether such disability is industrial and to certify those determinations together with any and all other information required by the California Public Employees’ Retirement System.
SECTION 4. In the event any local safety member appeals the decision of the City Manager regarding his or her incapacitation from the performance of his or her duties pursuant to the Public Employees’ Retirement Law, the City Manager is authorized and empowered to represent the City and arrange to have the appeal heard pursuant to the laws governing CalPERS retirement, including, but not limited to, entering into an agreement with the Officer of Administrative Hearings for the provision of a hearing before an administrative law judge.
SECTION 5. This Resolution shall take immediate effect following the passage and adoption.
Item Number: 10
City Council / Board of Directors
Written Communications
Meeting of: October 18, 2022
Submitted By:
C. Eric Ray, Airport Director
Subject:
Security Access System Upgrade Project #CCS23-040
Recommendation:
That the Honorable Southern California Logistics Airport Authority Board of Directors approve the award of a General Services Provider Standard Agreement in the amount not-to-exceed $100,000 to Convergint Technologies, LLC in support of the Security System Upgrade, Project #CCS23-040.