HomeMy WebLinkAboutIowa Department of Economic Development-First Amended Contract-08.24.2009 vi2-O 44 . .Uo- g3/
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
NEIGHBORHOOD STABILIZATION PROGRAM
FIRST AMENDED AND RESTATED CONTRACT
RECIPIENT: Waterloo
CONTRACT NUMBER: 08-NSP-018
CONTRACT EFFECTIVE DATE: April 1,2009
AWARD AMOUNT: $850,570
END DATE: July 31,2013 •
THIS NEIGHBORHOOD STABILIZATION PROGRAM ("NSP") CONTRACT is made by and between the IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309 ("Department" or
"IDED")and the Recipient,effective as of the date stated above.
WHEREAS,the Department is designated to receive,administer, and disburse NSP funds; and
WHEREAS,the Department desires to disburse grant funds to the Recipient for eligible purposes primarily benefiting
Low-, Moderate- and Middle Income Persons and Low-Income Persons for the redevelopment of abandoned and foreclosed
upon homes and residential properties and the stabilization and revitalization of neighborhoods;and
WHEREAS,the Recipient submitted a Plan and/or an Application for funding to the Department and the Department
has approved the Application; and
WHEREAS, in approving the Plan and/or Application the Department has relied upon the representations of proposed
activities; investment of other funds; and other material information contained therein; and
WHEREAS, the Recipient has certified to the Department that the primary purpose for obtaining NSP funds is to
primarily benefit Low-, Moderate- and Middle Income Persons and Low-Income Persons for the redevelopment of abandoned
and foreclosed upon homes and residential properties and the stabilization and revitalization of neighborhoods;and
WHEREAS, the Department and the Recipient previously entered into the Neighborhood Stabilization Program
Contract on April 1,2009(the"Original Contract"); and
WHEREAS, on June 19, 2009 HUD (defined herein) published a Notice of Allocations, Application Procedures,
Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and
Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008; revisions to Neighborhood Stabilization
Program (NSP) and Technical Correction (the "2009 Notice") amending and clarifying previous guidelines published with
respect to NSP; and
WHEREAS, certain amendments to the Original Contract are necessary in order to comply with the provisions of the
2009 Notice; and
WHEREAS, the parties hereto have determined it is in their best interests to amend and restate the Original Contract
as provided herein; and
NOW, THEREFORE, the Recipient accepts this grant upon the terms and conditions set forth in this Contract. In
consideration of the mutual promises contained in this Contract and other good and valuable consideration, it is agreed as
follows:
Cone ae:Number 08-NSP-018
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ARTICLE 1
DEFINITIONS
As used in this Contract,the following terms shall apply:
1.1 ABANDONED. "Abandoned" means a Home or Residential Property with regard to which mortgage or tax
foreclosure proceedings have been initiated,no mortgage or tax payments have been made by the owner of such property for at
least ninety (90) days prior to the date of such determination, and such Home or Residential Property has been vacant for at
least ninety(90)days prior to the date of such determination.
1.2 ACT. "Act" means Title III of Division B of the Housing and Economic Recovery Act of 2008, Pub. L. 110-289, as
amended,and the regulations promulgated thereunder and guidance disseminated by HUD with respect thereto.
1.3 ACTION PLAN. "Action Plan" means the Consolidated Plan Amendment — Action Plan for the Neighborhood
Stabilization Program submitted by IDED to HUD February 3,2009, as may be amended or supplemented from time to time.
1.4 ACTIVITY. "Activity" means a discrete category of work as determined to be eligible under program guidelines
other activities described in the Action Plan. An Activity must be (1) purchase and redevelopment of Foreclosed Homes and
Residential Properties as described in Section 2301(c)(3)(A) of the Act, (2) purchase and rehabilitation of Foreclosed or
Abandoned Homes and Residential Properties as described in Section 2301(c)(3)(B) of the Act, (3) establishment of Land
Banks as described in Section 2301(c)(3)(C)of the Act,(4)demolish Blighted Structures as described in Section 2301(c)(3)(D)
of the Act,or(5)redevelop demolished or vacant properties.
1.5 ALLOWABLE COSTS. "Allowable Costs" are those costs which are identified on Attachment A, "Program
Description and Budget;" Attachment B, Application; and are consistent with Federal regulations and guidelines applicable to
the NSP program.
1.6 BANK COMPLIANCE AGREEMENT. "Bank Compliance Agreement" means an agreement between the
Recipient or any Subrecipient, as the case may be, and a bank or other lender who agrees to comply with the bank regulators'
guidance for non-traditional mortgages as set forth in the Statement on Subprime Mortgage Lending issued by the Office of the
Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation,
Department of the Treasury, and National Credit Union Administration.
1.7 BLIGHTED STRUCTURE. "Blighted Structure" means a structure exhibiting objectively determinable signs of
deterioration sufficient to constitute a threat to human health, safety and public welfare, as further described in the Action Plan.
1.8 BONA FIDE LEASE. "Bona fide Lease" means a lease of a Home or Residential Property meeting the following
requirements; (i) the mortgagor is not the tenant under the lease; (ii) the lease was executed as a result of an arms' length
transaction; and (iii)the Lease requires the receipt of rent that is not substantially less than fair market rent for such Home or
Residential Property.
1.9 BONA FIDE TENANT. "Bona fide Tenant"means a tenant of a Home or Residential Property pursuant to a tenancy
or lease that meets the following requirements; (i)the mortgagor is not the tenant; (ii)the lease or tenancy was the result of an
arms length transaction; and (iii) the lease or tenancy requires the receipt of rent that is not substantially less than fair market
rent for such Home or Residential Property.
1.10 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG). "Community Development Block
Grant Program" or"CDBG" means the grant program authorized by Title I of the Housing and Community Development Act
of 1974,as amended.
1.11 CONTRACT. "Contract" means this Contract and all other instruments or documents executed by the Recipient or
otherwise required in connection with the Contract, including the NSP Plan and/or Application together with any related
submittal documents.
Document prepared by:Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number:08-NSP-018
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1.12 CONTRACT END DATE. "Contract End Date"means the date the Contract ceases to be in force and effect, unless
the Contract is terminated earlier. The Contract expires upon the occurrence of one of the following: a)the Recipient fulfills
the conditions and accomplishments agreed to herein as of the Contract End Date; or b) the Contract is terminated by the
Department due to any default under Article 9; or c) the Contract is terminated in accordance with provisions set forth in
Sections 8 and 9 of the General Provisions,Attachment C of this Contract.
1.13 COVENANTS. "Covenants" means the covenants contained in a mortgage, deed of restrictions or other document
containing restrictive covenants with respect to a Property, including but not limited to the covenants relating to Continued
Affordability as set forth in Section 4.2 hereof.
1.14 CURRENT MARKET APPRAISED VALUE. "Current Market Appraised Value" means the value of an
Abandoned or Foreclosed Home, Residential Property or other property that is established through an appraisal made in
conformity with the appraisal requirements of the URA at 49 CFR 24.103 and completed within sixty (60) days prior to an
offer made for the Abandoned or Foreclosed Home or Residential Property;provided, however, that if the anticipated value of
the proposed acquisition is estimated at$25,000 or less,the current market appraised value of such property may be established
by a valuation of the property that is based on a review of available data and is made by a person approved by the Department
that the Department determines is qualified to make the valuation.
1.15 ENTITLEMENT COMMUNITY. "Entitlement Community" means, collectively, principal cities of Metropolitan
Statistical Areas, other metropolitan cities with populations of at least 50,000, and qualified urban counties with populations of
at least 200.000(excluding the population of any city otherwise qualifying as an Entitlement Community.
1.16 FORECLOSED. "Foreclosed" means a Home or Residential Property for which any (i) mortgage foreclosure, (ii)
tax foreclosure(iii)nonjudicial foreclosure pursuant to Section 655A of the Code of Iowa(2009),or(iv)alternative nonjudicial
voluntary foreclosure pursuant to Section 654.18 of the Code of Iowa (2009) with respect to such Home or Residential
Property is complete, and the title of such property has transferred to the appropriate person as determined under such
proceedings.
1.17 GRANT. "Grant"means the award of NSP funds to the Recipient for activities.
1.18 HOME. "Home" means any type of permanent residential dwelling unit, [including but not limited to] detached
single family structures, townhouses, condominium units, multifamily rental apartments (covering the entire property), and
manufactured homes which are treated under state law as real estate and not personal property.
1.19 HOUSING ACT. "Housing Act" means Section 8 of the United States Housing Act of 1937 (42 U.S.C. Section
14370,as amended.
1.20 HUD. "HUD"means the U.S. Department of Housing and Urban Development.
1.21 INITIAL SUCCESSOR IN INTEREST. "Initial Successor in Interest" means a person or entity acquiring a Home
or Residential Property through a foreclosure.
1.22 LAND BANK. "Land Bank" means any governmental or nongovernmental nonprofit entity established, at least in
part,to assemble,temporarily manage, and dispose of Homes and Residential Properties that have been foreclosed upon for the
purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.
1.23 LOW-, MODERATE- AND MIDDLE INCOME FAMILIES. " Low-, Moderate- and Middle Income Families"
means those families earning no more than 120 percent(120%)of the higher of the median family income of the county or the
statewide nonmetropolitan area—statewide metropolitan area cannot be used for entitlement communities as determined by the
latest U.S. Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall be
considered as one-person families for this purpose.
Document prepared by: Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number:08-NSP-018
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1.24 LOW-,MODERATE-AND MIDDLE INCOME PERSONS. "Low-,Moderate-and Middle Income Person"
means a member of a Low-, Moderate-and Middle Income Family as defined in Section 1.20 hereof.
1.25 LOW-INCOME FAMILIES. "Low-Income Families"means those families earning no more than 50 percent(50%)
of the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest U.S.
Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall be considered as
one-person families for this purpose.
1.26 LOW- INCOME PERSONS. "Low-Income Persons" means a member of a low-income family as defined in
Section 1.22 hereof.
1.27 NEIGHBORHOOD STABILIZATION PROGRAM. "Neighborhood Stabilization Program" or"NSP"means the
grant program authorized by the Act.
1.28 NON-ENTITLEMENT COMMUNITY. "Non-Entitlement Community" means any city other than a city
qualifying as an Entitlement Community.
1.29 PROGRAM INCOME. "Program Income"shall have the meaning for such term set forth in 24 CFR 570.500(a).As
provided in 24 CFR 570.500(a),. if the Recipient and any Subrecipient receives revenues related to the NSP Program in an
aggregate amount less then $25,000 during any program year, no Program Income shall be deemed to have been received
during such program year.
1.30 PROJECT. "Project" means the totality of work, services, and other accomplishments to be performed by the
Recipient as described in the NSP Plan and/or Application approved by the Department.
1.31 RESIDENTIAL PROPERTY. "Residential Property means, collectively, Homes and vacant land that is currently
designated for residential use, such as through a zoning ordinance.
1.32 SUBRECIPIENT. "Subrecipient" means an entity operating under an agreement or contract with the Recipient to
carry out an Activity as approved by IDED.
ARTICLE 2
FUNDING
2.1 FUNDING SOURCE. The source of funding for the Grant is a Federal appropriation for the Neighborhood
Stabilization Program.
2.2 RECEIPT OF FUNDS. All payments under this Contract are subject to receipt by the Department of sufficient
Federal funds for the NSP program. Any termination, reduction, or delay of NSP funds to the Department shall, at the option
of the Department,result in the termination,reduction or delay of NSP funds to the Recipient.
2.3 PRIOR COSTS. If any Recipient has received written approval from the Department to incur certain costs prior to
the Effective Date of this Contract, then said written approval and the terms and conditions therein are incorporated herein and
made a part of this Contract by this reference as if fully set forth. Any such costs incurred prior to the Effective Date of this
Contract are subject to the Special Conditions and General Conditions of this Contract.
2.4 DISBURSEMENT OF LESS THAN THE TOTAL AWARD AMOUNT. If the total award amount has not been
requested by the Recipient within sixty(60)days after the Contract End Date,then the Department shall be under no obligation
for further disbursement. The Department may allow access to funds after this time for allowable costs associated with the
conduct of the audit(s)required in Article 2.0 of the General Provisions,Attachment C to this Contract.
Document prepared by: Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number: 08-NSP-018
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ARTICLE 3
TERMS OF GRANT
3.1 TIME OF PERFORMANCE. The services of the Recipient are to commence as of the Effective Date and shall be
undertaken in such sequence as to assure their expeditious completion. All of the services required hereunder shall be
completed on or before the Contract End Date.
3.2 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the
Recipient by the Department for any item of work or service shall conform to the budget as presented in Attachment A,
"Program Description and Budget." It is further understood and agreed that the total of all payments to the Recipient by the
Department for all work and services required under this Contract shall not exceed the Award Amount unless modified by
written amendment of this Contract as provided in Section 1.0 of the General Provisions,Attachment C to this Contract.
3.3 ADMINISTRATION. This Contract shall be administered in accordance with the Act,the Community Development
Block Program and all other applicable State and Federal laws and regulations, including Chapters 2 and 4 of the 2008 Iowa
Housing Fund Management Guide and, for Non-Entitlement Communities, the required elements of the IDED's Owner-
Occupied Rehabilitation Administrative Plan.
ARTICLE 4
ACTIVITY REQUIREMENTS
4.1 INCOME REQUIREMENTS.
(a) The Activities funded by NSP funds shall benefit Low-, Moderate- and Middle Income Families in at
least one of the following ways:
(i) The Activity shall provide or improve permanent residential structures that will be occupied by a
household whose income meets the criteria for Low-,Moderate-and Middle Income Families;or
(ii) The Activity serves an area in which at least fifty-one percent(51%) of the residents are Low-,
Moderate-and Middle Income Persons;or
(iii) The Activity serves a limited clientele consisting of Low-Moderate and Middle Income
Persons.
(b) In addition to the requirements of subsection(a), at least 26%of the NSP funds awarded to the Recipient
must be used for the purchase and redevelopment of Abandoned or Foreclosed Homes or Residential Properties that
will be used to house Low-Income Persons or Low-Income Families.
4.2 CONTINUED AFFORDABILITY. The Recipient shall, and shall require any Subrecipient to, ensure,that the sale,
rental, rehabilitation or redevelopment of Abandoned and Foreclosed Homes and Residential Properties assisted with NSP
funds remain affordable to (i) Low-, Moderate- and Middle Income Persons or, (ii) with respect to the sale, rental,
rehabilitation or redevelopment of Abandoned and Foreclosed Homes and Residential Properties for which funds used pursuant
to subsection (b) of Section 4.1 hereof were expended, Low-Income Persons, as provided in this section and Attachment A.
Such affordability restrictions may be enforced by the Department and shall be recorded in the county recorder of the county in
which the Property is located as restrictive covenants,mortgages or deed restrictions.
(a) The Recipient shall, and shall require any Subrecipient to, establish rental rates on rental units in an
amount not to exceed an amount in which (i) Low-, Moderate- and Middle Income Families or, (ii) with respect to
rental units purchased, rehabilitated and/or redeveloped with funds used pursuant to subsection (b) of Section 4.1
hereof, Low-Income Families, pay no more than 30 percent of their gross income for rent, including utilities or the
applicable fair market rents for the area less any utility costs paid by tenants,whichever is lower.
Document prepared by:Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number:08-NSP-018
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(b) The purchase price of a Property sold to a homebuyer to be used as such homebuyer's principal residence
shall be an amount equal to or less than the cost to acquire and redevelop or rehabilitate such Property up to a decent,
safe, and habitable condition. Such sales price is determined by aggregating all costs of acquisition, rehabilitation,
and redevelopment(including related activity delivery costs,which may include but are not limited to,costs related to
the sale of the Property); provided, however, that if the Property is not otherwise redeveloped or rehabilitated using
NSP funds, the costs of completing a sales transaction or other disposition are not considered redevelopment or
rehabilitation costs, and such costs may not be included in the determination of the sales price of such Property. The
Recipient shall, and shall require any Subrecipient to, maintain sufficient documentation with respect to the purchase
and sale prices of each Property, and the sources and uses of funds for each Activity to provide evidence of
compliance with this requirement. For reporting purposes only, a Recipient or Subrecipient, as the case may be,
operating a housing program involving multiple single-family structures under the management of a single entity,may
report the aggregate of activity delivery costs across the total portfolio of projects until completion of the program or
the termination of this Contract.
(c) The Recipient shall,and shall require any Subrecipient to,ensure that the sale,rental or redevelopment of
Abandoned Property and Foreclosed Property shall be affordable to Low-, Moderate- and Middle Income Persons or
Low-Income Persons,as applicable, as provided in this Section 4.2.
(d) Any agreement to assist rental property and any contract to sell Property shall contain affordability
restrictions pursuant to this Section 4.2, recorded in the records of the county recorder in the county in which such
Property is located, that such affordability restrictions shall be in place for the following time periods and any NSF
funds allocated to such Property shall be repayable as follow:
(i) If the amount of NSP funds allocated to such Property is less than $15,000 per unit, the period
of affordability shall be not less than five (5)years. The amount of NSP funds subject to repayment in the
event the affordability restrictions required by this section shall be one hundred percent(100%) prior to the
first anniversary of the imposition of the affordability restrictions, and shall decrease by twenty percent
(20%) of the original amount of the NSP funds allocated to such Property on each anniversary date of the
imposition of the affordability restrictions with respect to such Property.
(ii) If the amount of NSP funds allocated to such Property is equal to or more than $15,000 per
unit but not more than$40,000 per unit,the period of affordability shall be not less than ten (10)years. The
amount of NSP funds subject to repayment in the event the affordability restrictions required by this section
shall be one hundred percent (100%) prior to the first anniversary of the imposition of the affordability
restrictions, and shall decrease by ten percent (10%) of the original amount of the NSP funds allocated to
such Property on each anniversary date of the imposition of the affordability restrictions with respect to such
Property.
(iii) If the amount of NSP funds allocated to such Property is more than $40,000 per unit, the
period of affordability shall be not less than fifteen (15) years. The amount of NSP funds subject to
repayment in the event the affordability restrictions required by this section shall be one hundred percent
(100%)prior to the first anniversary of the imposition of the affordability restrictions, and shall decrease by
six and six/tenths percent(6.6%)of the original amount of the NSP funds allocated to such Property on each
anniversary date of the imposition of the affordability restrictions with respect to such Property.
(iv) If NSP funds are expended for new construction of rental property,the period of affordability
shall be not less than twenty (20) years. The amount of NSP funds subject to repayment in the event the
affordability restrictions required by this section shall be one hundred percent (100%) prior to the first
anniversary of the imposition of the affordability restrictions, and shall decrease by five percent(5%) of the
original amount of the NSP funds allocated to such Property on each anniversary date of the imposition of
the affordability restrictions with respect to such Property.
Document prepared by:Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number:08-NSP-018
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(e) The Recipient may apply periods of affordability longer than those provided in this subsection with
the prior written consent of IDED.
4.3 HOME ASSISTANCE. IF NSP funds assist a Property that was previously assisted with HOME funds,but on which
the affordability restrictions were terminated through foreclosure or transfer through a deed in lieu of foreclosure pursuant to
24 CFR part 92,the Recipient must ensure the HOME affordability restrictions are placed on the Property for the greater of the
remaining period of the HOME affordability restrictions or the Continued Affordability requirements as set forth in Section 4.2
hereof.
4.4 FINANCING MECHANISMS. With respect to NSP Funds allocated to financing mechanisms as described in
Section 2301(c)(3)(A)of the Act,the following additional requirements shall apply:
(a) Within sixty (60) days of the date of a purchase offer, but prior to the purchase any Foreclosed Homes and
Residential Properties to be financed, the Recipient shall, and shall require any Subrecipient to, obtain an appraisal of
any Foreclosed Home or Residential Property. Such appraisal shall meet the requirements necessary to establish the
Current Market Appraised Value for such Property.
(b) The Recipient shall, and shall require any Subrecipient to, require that any Foreclosed Home or Residential
Property be purchased at a contract price that is discounted from the Current Market Appraised Value by a minimum of
one percent(1%)of Current Market Appraised Value of such Foreclosed Home or Residential Property. Recipients and
Subrecipients are encouraged to seek additional discounts from the Current Market Appraised Value of Foreclosed
Homes or Residential Properties to be purchased. The Recipient shall, and shall require any Subrecipient to, maintain
adequate records of purchases including the address, appraised value, purchase offer amount and discount amount of
each property purchased and shall make such records available to the Department. Each contract to purchase a
Foreclosed Home or Residential Property shall require that such Foreclosed Home or Residential Property be sold and
conveyed to the homebuyer, in fee simple, free and clear of liens, with marketable title. A Title Guaranty Certificate or
title opinion shall be obtained with respect to each such Foreclosed Home or Residential Property financed.
(c) The Recipient shall, and shall require any Subrecipient to, require that the interest rate on any loan shall not
exceed eight percent(8%).
(d) The Recipient shall, and shall require any Subrecipient to, enter into a Bank Compliance Agreement with any
bank or other lending institution providing financing as described in Section 230I(c)(3)(A)of the Act.
4.5 ACQUISITION. With respect to NSP Funds allocated to acquisition of Foreclosed and Abandoned Homes and
Residential Properties as described in Section 2301(c)(3)(B)of the Act,the following additional requirements shall apply:
(a) The Recipient may purchase and rehabilitate only Foreclosed or Abandoned Homes and Residential Properties, in
order to sell,rent or redevelop such Foreclosed or Abandoned Homes and Residential Properties.
(b) Within sixty(60) days of making an offer to purchase, but prior to the purchase of any Foreclosed or Abandoned
Home or Residential Property, the Recipient shall, and shall require any Subrecipient to, obtain an appraisal of the
Foreclosed or Abandoned Home or Residential Property from. Such appraisal shall meet the requirements necessary to
establish the Current Market Appraised Value for such Foreclosed or Abandoned Home or Residential Property.
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Contract Number:08-NSP-018
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(c) The Recipient shall, and shall require any Subrecipient to, acquire any Foreclosed or Abandoned Home or
Residential Property to be purchased with NSP funds allocated to this Activity at a contract price that is discounted from
the Current Market Appraised Value by a minimum of one percent (1%) of Current Market Appraised Value of such
Foreclosed or Abandoned Home or Residential Property. Recipients and Subrecipients are encouraged to seek
additional discounts from the Current Market Appraised Value of Foreclosed Homes or Residential Properties to be
purchased. The Recipient shall, and shall require any Subrecipient to, maintain adequate records of purchases including
the address, appraised value, purchase offer amount and discount amount of each property purchased and shall make
such records available to the Department. Each contract to purchase a Foreclosed or Abandoned Home or Residential
Property shall require that such Foreclosed or Abandoned Home or Residential Property shall be sold and conveyed to
the Recipient or Subrecipient, as applicable, in fee simple, free and clear of liens, with marketable title. A Title
Guaranty Certificate or title opinion shall be obtained with respect to each such Foreclosed or Abandoned Home or
Residential Property purchased.
(d) If a Foreclosed or Abandoned Home or Residential Property is acquired from a mortgagee that foreclosed on such
Foreclosed or Abandoned Home or Residential Property,the Recipient shall, and shall require any Subrecipient to,seek
to obtain the maximum reasonable discount from the mortgagee, taking into consideration likely carrying costs
(including, but not limited to, property taxes, insurance, maintenance, marketing, overhead and insurance) of the
mortgagee, if the mortgagee were to refrain from selling such Foreclosed or Abandoned Home or Residential Property
to the Recipient or Subrecipient.
(e) The Recipient shall not provide,and shall prohibit any Subrecipient from providing,NSP funds to another party to
finance an acquisition of any property from itself. other than to pay necessary and reasonable costs related to the
appraisal of and transfer of title to such property. If NSP funds are used to pay such costs when property owned by a
Recipient or Subrecipient is conveyed to a Subrecipient,homebuyer,developer or other jurisdiction, such property shall
be considered NSP—assisted and be subject to all requirements of this contract and the NSP Program for NSP-eligible
use and benefit, including but not limited to continued affordablity requirements.
4.6 REHABILITATION. With respect to NSP funds allocated to rehabilitation as described in Section 2301(c)(3)(B)of
the Act,the following additional requirements shall apply:
(a) Rehabilitation shall be completed only with respect to Foreclosed or Abandoned Homes and Residential Properties.
(b) All multi-family Foreclosed or Abandoned Homes and Residential Properties requiring rehabilitation must, after
rehabilitation, meet all locally adopted and enforced building codes, standards and ordinances in the community in
which such Foreclosed or Abandoned Home or Residential Property is located. If the community in which such
Foreclosed or Abandoned Home or Residential Property is located has not adopted any such building codes, standards
or ordinances, all multi-family requiring rehabilitation must meet all requirements of the State Building Code Act, Iowa
Code Chapter 103A,as amended,and any administrative or other codes or rules adopted thereunder.
(c) All single-family Foreclosed or Abandoned Homes and Residential Properties requiring rehabilitation must, after
rehabilitation, meet all locally adopted and enforced building or housing codes, standards or ordinances. if the
community in which such Foreclosed or Abandoned Home or Residential Property is located has not adopted any such
building codes, standards or ordinances, all single-family housing requiring rehabilitation must meet all requirements of
the Iowa Minimum Housing Rehabilitation Standards.
(d) Prior to commencing rehabilitation of a Foreclosed or Abandoned Home or Residential Property, the Recipient
shall, and shall require any Subrecipient to verify with IDED that no contractor to be hired for such rehabilitation is
debarred from working on projects funded with funds provided by HUD, as further provided in Section 12.0 of
Attachment C.
(e) Prior to any disbursement of NSP funds, the Recipient shall, and shall require any Subrecipient to, provide lien
waivers from contractors and subcontractors completing the rehabilitation equal to at least 90% of the amount of the
immediately previous disbursement of NSP Funds.
Document prepared by:Elyse Shindelar NSP Contract
Format Approved August 2009
Contract Number:08-NSP-018
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4.7 LAND BANKS. With respect to NSP funds allocated to Land Banks as described in Section 2301(c)(3)(C) of the
Act,the following additional requirements shall apply:
(a) The Recipient shall, and shall require any Subrecipient to, operate only in a specific, defined geographic area as
described in the Recipient's NSP Plan and/or Application(the"Specified Area").
(b) The Recipient shall, and shall require any Subrecipient to, purchase Foreclosed Homes and Residential Properties
located in the Specified Area, and shall maintain, assemble, facilitate redevelopment of, market and dispose of the
Foreclosed Homes and Residential Properties so purchased.
(c) Within sixty (60) days of making an offer to purchase, but prior to the purchase of any Foreclosed Home or
Residential Property, the Recipient shall, and shall require any Subrecipient to, obtain an appraisal of the Foreclosed
Home or Residential Property. Such appraisal shall meet the requirement necessary to establish the Current Market
Appraised Value for such Foreclosed Home or Residential Property.
(d) The Recipient shall, and shall require any Subrecipient to, acquire any Foreclosed Home or Residential Property at
a contract price that is discounted from its Current Market Appraised Value a minimum of one (1%) of the Current
Market Appraised Value for such Foreclosed Home or Residential Property. Recipients and Subrecipients are
encouraged to seek additional discounts from the Current Market Appraised Value of Foreclosed Homes or Residential
Properties to be purchased. The Recipient shall, and shall require any Subrecipient to, maintain adequate records of
purchases including the address, appraised value, purchase offer amount and discount amount of each property
purchased and shall make such records available to the Department. Each contract to purchase a Foreclosed Home or
Residential Property shall require that such Foreclosed Home or Residential Property shall be sold and conveyed to the
Recipient or Subrecipient, as applicable, in fee simple, free and clear of liens, with marketable title. A Title Guaranty
Certificate or title opinion shall be obtained with respect to each such Foreclosed Home or Residential Property
purchased.
(e) The Recipient shall not,and shall prohibit any Subrecipient from,purchasing vacant land pursuant to the Land Bank
Activity;provided,however,that acquired Foreclosed Homes may be subsequently demolished and the resulting vacant
land may continue to be owned by the Recipient or applicable Subrecipient for the purposes described in this Section.
(f) The Recipient or a Subrecipient that is a governmental entity, may maintain Foreclosed Homes and Residential
Properties that it does not own, provided that the Recipient or Subrecipient, as applicable, charges the owner of such
Foreclosed Home or Residential Property the full cost of the services provided or places a lien on such Property for the
full cost of the services provided.
(g) The Recipient shall, and shall require any Subrecipient to, hold any property not more than ten (10) years without
obligating such property for a specific, eligible redevelopment of such property in accordance with the requirements of
the Act.
4.8 DEMOLITION. Demolition may occur only with respect to any Blighted Structure.
4.9 REDEVELOPMENT. With respect to redevelopment of demolished or vacant properties as described in Section
2301(c)(3)(E)of the Act,the following additional requirements shall apply:
(a) Any type of property may be purchased to be redeveloped, including but not limited to vacant land and land with
vacant structures located thereon; provided, however, that previously undeveloped land (e.g., greenfield sites) shall not
be eligible to be purchased for redevelopment.
(b) The proposed uses of the property to be redeveloped shall be as described in Attachment A.
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(c) If the Recipient intends to provide new housing construction to meet a portion of the Recipient's required activities
described in the second sentence of Section 4.1 hereof (regarding housing Low-Income Persons and Low-Income
Families),such new construction may be built only on land that was either Foreclosed or Abandoned.
(d) Construction of properties acquired for redevelopment should proceed expeditiously and without undue delay.
(e) Prior to any disbursement of NSP funds, the Recipient shall, and shall require any Subrecipient to, provide lien
waivers from contractors and subcontractors completing the rehabilitation equal to at least 90% of the amount of the
immediately previous disbursement of NSP Funds.
4.10 NEW CONSTRUCTION. With respect to NSP funds allocated to new construction, the following additional
requirements shall apply:
(a) NSP funds may be used for new construction only with respect to redevelopment of demolished or vacant
properties.
(b) All newly constructed multi-family and single-family housing must meet all locally adopted and enforced building
codes, standards and ordinances in the community in which such Property is located. If the community in which such
Property is located has not adopted any such building codes,standards or ordinances, all newly constructed multi-family
and single-family housing must meet all requirements of the State Building Code Act, Iowa Code Chapter 103A, as
amended, and any administrative or other codes or rules adopted thereunder. All newly constructed multi-family and
single-family housing must also meet the requirements of the 2006 International Enemy Efficiency Code.
(c) All newly constructed multi-family and single-family housing must meet the requirements of the Iowa Green Streets
criteria published by the Department.
(d) Prior to any disbursement of NSP funds, the Recipient shall, and shall require any Subrecipient to, provide lien
waivers from contractors and subcontractors completing the rehabilitation equal to at least 90% of the amount of the
immediately previous disbursement of NSP Funds.
4.11 PROPERTIES TO BE SOLD. The following requirements apply to property that is to be sold after acquisition as
described in Section 2301(c)(3)(A) of the Act, rehabilitation as described in Section 2301(c)(3)(B) of the Act and/or
redevelopment as described in Section 2301(c)(3)E)of the Act:
(a) The homebuyer must certify, that the property sold to such homebuyer will be the homebuyer's primary residence,
that the homebuyer will not lease the property, and will comply with the covenants required by the Department, and all
applicable laws, ordinances, rules and regulations applicable to the property, including but not limited to applicable
zoning and housing ordinances relating to the maximum number of residents who may occupy the Property.
(b) Upon the sale of property pursuant to this Section, the Recipient shall and shall require any Subrecipient to, as a
condition of such sale,record any continued affordability restrictions as provided in Section 4.2 hereof.
(c) The Recipient shall, and shall require any Subrecipient to, prohibit any homeowner of a NSP assisted Home or
Residential Property from refinancing
4.12 COUNSELING OF BENEFICIARIES. Unless otherwise permitted by the Department in writing, all homebuyers
assisted with NSP funds must enroll in and successfully complete at least eight (8) hours of home ownership and financial
counseling to be provided by a HUD-approved counseling agency prior to obtaining a mortgage loan. The Recipient or
Subrecipient, as applicable shall be responsible for arranging such counseling.
4.13 PERFORMANCE TARGETS. On the Contract End Date, the Recipient shall have accomplished the activities and
performance targets as described in Attachment A, "Program Description and Budget,"and as further elaborated in Attachment
B,NSP Plan and/or Application, as approved by the Department.
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4.14 CALCULATION OF ACTIVITY COMPLETION. The Department has the final authority to assess whether the
Recipient has met their performance targets at the Contract End Date. The Department shall determine completion according
to the performance targets set forth in Attachment A, "Program Description and Budget." The Department reserves the right to
monitor and measure at any time during the Contract term the achievement of the performance targets.
4.15 MORTGAGE REQUIREMENTS. The Recipient shall, and shall require any Subrecipient to, ensure that all
homebuyers obtain a mortgage loan from a lender who agrees to comply with the bank regulators' guidance for non-traditional
mortgages, as described in Statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency,
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury and
National Credit Union Administration. The Recipient shall maintain documents evidencing compliance with this requirement
for each homebuyer. The Recipient shall, and shall require any Subrecipient to, use its best efforts to prohibit any homebuyer
from obtaining a subprime mortgage for whom such mortgages are inappropriate, including a homebuyer who qualifies for a
traditional mortgage loan. The mortgage loan obtained by a homebuyer to purchase a Property shall be a conventional 30-year
fixed-rate financing, with a monthly mortgage payment (including principal, interest, community association dues, real
property taxes and insurance) that does not exceed thirty (30) percent of the homebuyer's monthly household income. Real
property taxes and insurance must be escrowed on a monthly basis by the qualified purchaser's lender.
4.16 TENANCY REQUIREMENTS. The following additional requirements shall apply to any Foreclosed Home or
Residential Property that was acquired by the Initial Successor in Interest pursuant to a foreclosure after February 17,2009 and
was occupied by a Bona fide Tenant at the time of such foreclosure. The use of NSP funds for acquisition of any such
Foreclosed Home or Residential Property is subject to a determination that the Initial Successor in Interest complies with the
requirements of this Section and the 2009 Notice.
(a) The Recipient shall not, and shall prohibit any Subrecipient from, refusing to lease a Home or Residential
Property to a participant under Section 8 of the Housing Act because of the status of the prospective tenant as such a
participant.
(b) The Recipient shall, and shall require any Subrecipient, or other recipient of a grant or loan of NSP funds to,
ensure the following requirements have been met with respect the acquisition of a Foreclosed Home or Residential
Property:
(1) The Initial Successor in Interest shall provide a notice to vacate to any Bona fide Tenant at least ninety
(90)days prior to the effective date of such notice(a"Ninety-Day Notice");
(2) The Initial Successor in Interest assumes such interest subject to the rights of any Bona fide Tenant, as
of the date of such notice of foreclosure: (A) under any Bona fide Lease entered into before the notice of
foreclosure to occupy the premises until the end of the remaining term of such lease, except that a successor
in interest may terminate a lease effective on the date of sale of such Foreclosed Home or unit thereof to a
purchaser who will occupy the unit as a primary residence, subject to the receipt by such Bona fide tenant of
a Ninety-Day Notice; or(B) without a lease or with a lease terminable at will under the laws of the State of
Iowa, subject to the receipt by such Bona fide tenant of a Ninety-Day Notice; provided that no provision of
this Section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of
any laws of the State of Iowa or any applicable unit of local government that provides for time periods longer
than the time periods set forth in this subsection(b)or other additional protections for tenants.
(c) The Recipient shall not refuse, and shall prohibit any Subrecipient or other recipient of a grant or loan of NSP
funds from refusing, to lease a Home assisted with NSP funds to a holder of a voucher or certificate of eligibility
under the Housing Act because of the status of the prospective tenant as such a holder.
(d) In the case of any Foreclosed Home or Residential Property assisted with NSP funds and in which a recipient of
assistance under Section 8 of the Housing Act resides at the time of foreclosure,the following shall apply:
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(1) The Initial Successor in Interest shall be subject to the lease of such tenant and to the housing
assistance payments contract for the occupied unit.
(2) Vacating any property prior to a sale thereof shall not constitute good cause for termination of any
tenancy in such property unless such property is unmarketable while occupied or unless the owner or
subsequent purchaser desires such property for personal or family use.
(3) If a public housing agency is unable to make payments under the applicable housing assistance
payments contract to the Initial Successor in Interest,due to
(A) an action or inaction by the Initial Successor in Interest, including the rejection of payments or
the failure of the successor in interest to maintain the Home or Residential Property in compliance
with Section 8 of the Housing Act;or
(B)an inability to identify such successor in interest,
such public housing agency may use funds that would have been used to pay the rental amount on behalf of
the recipient of assistance under Section 8 of the Housing Act
(X)to pay for utilities that are the responsibility of the owner of such Home or Residential Property
under the applicable lease or applicable law, after taking reasonable steps to notify the owner that it
intends to make payments to a utility provider in lieu of payments to the owner, except prior
notification shall not be required in any case in which the Home will be or has been rendered
uninhabitable due to the termination of threat of termination of such utility service in which case the
public housing agency shall notify the owner of such Home within a reasonable time after making
such payment;or
(Y) for reasonable moving costs of the tenant and the tenant's family, including security deposit
costs.
[(e) If the Recipient or the Subrecipient, as applicable, determines that the Initial Successor in Interest in a
Foreclosed Home or Residential Property failed to comply with the requirements set forth in this Section, the
Recipient shall not,and shall prohibit the Subrecipient from,expending NSP funds to finance the acquisition of
such Foreclosed Home or Residential Property unless the Recipient or the Subrecipient as applicable, assumes
the obligations of the Initial Successor in Interest set forth in this Section. If the Recipient or Subrecipient
elects to assume such obligations, it must provide the relocation assistance required pursuant to 24 CFR
570.606 to tenants displaced as a result of such activity assisted with NSP funds and maintain records in
sufficient detail to demonstrate compliance with the provisions thereof.]
(f) The Recipient shall, and shall require any Subrecipient to, maintain adequate records regarding compliance
with the provision of this Section and shall make such records available to the Department.
(g) Notwithstanding any provision to the contrary in this Section, the requirements set forth in this Section shall
not preempt any federal law or laws of the State of Iowa or any applicable unit of local government that provides more
protection for tenants of Homes and Residential Properties assisted with NSP funds.
ARTICLE 5
USE OF FUNDS
5.1 PROGRAM INCOME. Program Income received by the Recipient or any Subrecipient prior to the Contract End
Date, shall be expended prior to requesting any additional NSP funds. Program Income generated from the use of NSP funds
received by the Recipient or any Subrecipient after the Contract End Date shall be returned to the Department.
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5.2 BUDGET REVISIONS. Budget revisions that would result in increases of budgeted line item amounts in excess of
ten percent(10%)or ten thousand dollars(S10,000), whichever is less, shall be subject to approval of the Department through
the Contract amendment process. Budget line item decreases that would lower the Recipient's performance level required
under this Contract must be first approved by the Department through the amendment process. In no instance shall a budget
revision result in total costs exceeding the total Contract amount. Budget revisions shall be compatible with the terms of this
Contract and be of such a nature as to qualify as an allowable cost. These provisions shall not be construed as allowing general
administrative costs to exceed the limits provided in Section 5.3. Budget revisions requested during the final ninety(90)days
of the Contract period will be approved by the Department only if it determines that the revisions are necessary to complete all
activities.
5.3 GENERAL ADMINISTRATIVE COST LIMITATIONS. Federal funds used for reasonable general
administrative costs, as allowed under Federal and State regulations, shall be limited to six percent (6%) of the total NSP
Award. Program income received by the Recipient during the Contract period is also subject to the six percent(6%) general
administrative cost limitation.Project delivery costs are allowed in excess of the limitation for administrative costs.
ARTICLE 6
CONDITIONS TO DISBURSEMENT OF FUNDS
Unless and until the following conditions have been satisfied, the Department shall be under no obligation to disburse to the
Recipient any amounts under this Contract:
6.1 CONTRACT EXECUTED. The Contract shall have been properly executed and, where required, acknowledged.
6.2 COMPLIANCE WITH ENVIRONMENTAL AND HISTORIC PRESERVATION REQUIREMENTS. Funds
shall not be released under this Contract until the Recipient has satisfied the environmental review and release of funds
requirements set forth in 24 CFR Part 58, "Environmental Review Procedures for the Community Development Block Grant
Program,"and summarized in the Iowa Housing Fund Management Guide. In addition, construction contracts for non-exempt
activities shall not be executed and construction shall not begin prior to providing the Department with documentation of the
Recipient's compliance with Section 106 of the National Historic Preservation Act and 36 CFR Part 800, "Protection of
Historic Properties" And the Request for Release of Funds is issued. The Recipient shall comply with the Programmatic
Memorandum of Understanding between the Iowa Department of Economic Development and the Iowa State Historic
Preservation Office,applicable to any activities included in this Contract.
6.3 PERMITS AND LICENSES. The Department reserves the right to withhold funds until the Department has
reviewed and approved all documents, such as permits or licenses from other local, state or federal agencies, which may be
required prior to Activity commencement.
6.4 EXCESSIVE FORCE POLICY. The Department, prior to release of funds under this Contract, shall review and
approve the Recipient's policy on protecting individuals engaged in nonviolent civil rights demonstrations from the use of
excessive force by law enforcement agencies within its jurisdiction, and enforcing state and local laws against physically
barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within
its jurisdiction, consistent with the provisions of Section 906 of the National Affordable Housing Act of 1990 and Subsection
104(l)of the Housing and Community Development Act of 1974,as amended.
6.5 SUB-RECIPIENT AGREEMENT. If the Recipient intends to contract with a Subrecipient,prior to release of funds
under this Contract and prior to the Recipient entering into a Sub-Recipient Agreement, the Recipient shall seek and obtain the
Department's review and approval of the Recipient's proposed Sub-Recipient Agreement.
6.6 RESIDENTIAL ANTI-DISPLACEMENT AND RELOCATION ASSISTANCE PLAN APPROVAL. The
Department, prior to release of funds under this Contract, shall review and approve the Recipient's Residential Anti-
Displacement and Relocation Assistance Plan, consistent with the requirements of Section 104(d) of the Housing and
Community Development Act of 1974,as amended.
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6.7 TIME LIMIT FOR USE AND DISBURSEMENT OF FUNDS. No funds shall be distributed to the Recipient
unless such funds are obligated within eighteen (18) months after the date of execution of the grant agreement between the
State of Iowa and HUD regarding the Program for a specific NSP activity,including but not limited to placing orders,awarding
contracts, receiving services, and the occurrence of similar transactions that require payment by the Recipient or Subrecipient
during the same or a future period. The execution of this Contract or an award of a portion of the NSP funds subject to this
Contract to a Subrecipient does not constitute use of such funds. Any NSP funds not expended within four(4)years of receipt
of such funds shall be repaid to the Department.
ARTICLE 7
REPRESENTATIONS AND WARRANTIES OF RECIPIENT
To induce the Department to make the Grant referred to in this Contract,the Recipient represents,covenants and warrants that:
7.1 AUTHORITY. The Recipient is duly authorized and empowered to execute and deliver the Contract. All necessary
action on the Recipient's part, such as appropriate resolution of its governing board for the execution and delivery of the
Contract, has been effectively taken.
7.2 FINANCIAL INFORMATION. All financial statements and related materials concerning the Activity that have
been provided to the Department are true and correct in all material respects and completely and accurately represent the
subject matter thereof as of the Effective Date of the statements and related materials, and no material adverse change has
occurred since that date.
7.3 NSP PLAN AND/OR APPLICATION. The contents of the NSP Plan and/or Application the Recipient submitted to
the Department for funding is a complete and accurate representation of the Project as of the date of submission and there has
been no material adverse change in the organization, operation, or key personnel of the Recipient since the date the Recipient
submitted its NSP Plan and/or Application to the Department.
7.4 CLAIMS AND PROCEEDINGS. There are no actions, lawsuits or proceedings pending or,to the knowledge of the
Recipient,threatened against the Recipient affecting in any manner whatsoever their rights to execute the Grant or the ability of
the Recipient to make the payments required under the Grant, or to otherwise comply with the obligations of the Grant
contained under the Grant. There are no actions, lawsuits or proceedings at law or in equity, or before any governmental or
administrative authority pending or, to the knowledge of the Recipient, threatened against or affecting the Recipient or any
property involved in the Activity.
7.5 PRIOR AGREEMENTS. The Recipient has not entered into any verbal or written contracts, agreements, or
arrangements of any kind,which are inconsistent with the Contract.
7.6 EFFECTIVE DATE. The covenants, warranties and representations of this Article are made as of the Effective Date
of this Contract and shall be deemed to be renewed and restated by the Recipient at the time of each advance or request for
disbursement of funds.
ARTICLE 8
COVENANTS OF THE RECIPIENT
8.1 AFFIRMATIVE COVENANTS. Until the Activity has been closed out, audited, and approved by IDED, the
Recipient covenants with IDED that:
(a) WORK AND SERVICES. The Recipient shall perform work and services detailed in the approved NSP
Plan and/or Application and Attachment A of the Contract by the Contract End Date.
(b) REPORTS. The Recipient shall prepare, review and sign the requests and reports as specified below in the
form and content specified by the Department. The requests and reports shall be submitted to the Department by the
15th of the month when due, and for final reports, within sixty(60) days after the Contract End Date. The Recipient
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shall review all reimbursement requests and verify that claimed expenditures are allowable costs. The Recipient shall
maintain documentation adequate to support the claimed costs.
REPORT DUE DATE
Request for Payment—NSP Report As funds are needed(original and three copies)
NSP Recipient Quarterly Performance Report 15th of the month following the end of each quarter of
—Activity Status the Contract(original and one copy)
Final Request for Payment—NSP Report Within 60 days of Contract End Date
Final NSP Recipient Quarterly Performance Report Within 60 days of Contract End Date
—Activity Status
Section 3 Report Within 60 days of Contract End Date
Audit Report Within 30 days of Audit Completion
Certification of Income Rents and Inspection
with respect to rental property Annually throughout the Period of Affordability
The Department reserves the right to require more frequent submission of the NSP Recipient Quarterly Performance
Report—Activity Status than as shown above if, in the opinion of the Department, more frequent submissions would
help improve the Recipient's NSP program.
(c) RECORDS. The Recipient shall maintain books, records, documents and other evidence pertaining to all
costs and expenses incurred and revenues received under this Contract in sufficient detail to reflect all costs and
expenditures, direct and indirect, of labor, materials, equipment, supplies, services and other costs and expenses of
whatever nature, for which payment is claimed under this Contract. The Recipient shall maintain books, records and
documents in sufficient detail to demonstrate compliance with the Contract and shall maintain these materials for a
period of five (5)years beyond the date upon which the final audit of the Activity is accepted by IDED. Records for
non-expendable property acquired under this Contract shall be retained for a five (5) year period after the final
disposition of property. Records shall be retained beyond the prescribed period if any litigation or audit is begun or if
a claim is instituted involving the grant or agreement covered by the records. In these instances, the records shall be
retained until the litigation,audit or claim has been finally resolved.
(d) ACCESS TO RECORDS/INSPECTIONS. The Recipient shall, without prior notice and at any time,
permit HUD or its representatives, the General Accounting Office or its representatives, and the Department, its
representatives or the State Auditor to examine, audit and/or copy (i) any plans and work details pertaining to the
Activity,(ii)all of the Recipient's books,records and accounts,and(iii)all other documentation or materials related to
this Grant;the Recipient shall provide proper facilities for making such examination and/or inspection.
(e) USE OF GRANT FUNDS. The Recipient shall expend funds received under the Grant only for the
purposes and activities described in its NSP Plan and/or Application, this Contract and as approved by the
Department.
(1) DOCUMENTATION. The Recipient shall deliver to IDED, upon request, (i) copies of all contracts or
agreements relating to the Activity, (ii) invoices, receipts, statements or vouchers relating to the Activity, (iii)a list of
all unpaid bills for labor and materials in connection with the Activity, and (iv) budgets and revisions showing
estimated Activity costs and funds required at any given time to complete and pay for the Activity.
(g) NOTICE OF PROCEEDINGS. The Recipient shall promptly notify IDED of the initiation of any claims,
lawsuits or proceedings brought against the Recipient.
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(h) INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and
employees, from and against any and all losses, accruing or resulting from any and all claims subcontractors, laborers
and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection
with the performance of this Contract, and from any and all claims and losses accruing or resulting to any person, firm
or corporation who may be injured or damaged by the Recipient in the performance of this Contract.
(i) NOTICE TO DEPARTMENT. In the event the Recipient becomes aware of any material alteration in the
Activity, initiation of any investigation or proceeding involving the Activity, or any other similar occurrence, the
Recipient shall promptly notify the Department.
(j) CERTIFICATIONS. The Recipient certifies and assures that the Project will be conducted and
administered in compliance with all applicable Federal and State laws, regulations, orders and notices. Certain
statutes are expressly made applicable to activities assisted under CDBG and the Act pursuant to CDBG and the Act,
respectively while other laws not referred to in the Act may be applicable to such activities by their own terms. The
Recipient certifies and assures compliance with the applicable orders, laws and implementing regulations, including
but not limited to,the following:
(i) Financial Management guidelines issued by the U.S. Office of Management and Budget, OMB
Circular A-133 ("Single Audit Act Amendment of 1996"), OMB Circular A-122 ("Cost Principles for
Nonprofit Organizations"), OMB Circular A-87 ("Principles for Determining Costs Applicable to Grants and
Contracts with State, Local and Federally recognized Indian Tribal Governments").
(ii) Title I of the Housing and Community Development Act of 1974 as amended (42 U.S.C. 5301 et
seq.);and regulations which implement these laws,as modified by the Act.
(iii) Title VI of the Civil Rights Act of 1964 as amended(Public Law 88-352;42 U.S.C.2000d et seq.);
Title VIII of the Civil Rights Act of 1968 as amended(Public Law 90-284;42 U.S.C. 3601 et seq.);the Iowa
Civil Rights Act of 1965; Iowa Code Section 19B.7, and Executive Order #34, dated July 22, 1988; Iowa
Code Chapter 216, Presidential Executive Order 11063, as amended by Executive Order 12259; Presidential
Executive Order 11246, as amended; Section 504 of the Rehabilitation Act of 1973 as amended (29 U.S.C.
794); the Age Discrimination Act of 1975 as amended (42 U.S.C. 6101 et seq.); the Americans with
Disabilities Act, as applicable, (P. L. 101-336, 42 U.S.C. 12101-12213); and related Civil Rights and Equal
Opportunity statutes; and regulations which implement these laws.
(iv) Fair Housing Act, Public Law 90-284. The Fair Housing Act is part of Title VIII of the Civil
Rights Act of 1968 as amended (42 U.S.C. 3601 et seq.); Section 109 of the Title I of the Housing and
Community Development Act of 1974, as amended; Section 3 of the Housing and Urban Development Act
of 1968 as amended(12 U.S.C. 1701u);and regulations which implement these laws.
(v) Section 102 of the Department of Housing and Urban Development Reform Act of 1989
(P.L. 101-235),and implementing regulations.
(vi) Requirements for the Notification, Evaluation, and Reduction of Lead-Based Paint Hazards in
Federally Owned Residential Property and Housing Receiving Federal Assistance; Final Rule (24 CFR Part
35,et al.).
(vii) Davis-Bacon Act, as amended (40 U.S.C. 276a - 276a-5), where applicable under Section 110 of
the Housing and Community Development Act of 1974, as amended; Contract Work Hours and Safety
Standards Act (40 U.S.C. 327 et seq.); the Copeland Anti-Kickback Act(18 U.S.C. 874); the Department of
Defense Reauthorization Act of 1986; and regulations which implement these laws.
(viii) National Environmental Policy Act of 1969 and implementing regulations.
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(ix) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended,
(URA)(42 U.S.C. 4601 - 4655) and implementing regulations, as limited by the Act; Section 104(d) of the
Housing and Community Development Act of 1974,as amended,governing the residential anti-displacement
and relocation assistance plan; and Section 105(a)(11) of the Housing and Community Development Act of
1974.as amended, governing optional relocation assistance.
(x) Housing Fund Administrative rules adopted by the Iowa Department of Economic Development,
261 Iowa Administrative Code,Chapter 25,as applicable.
(xi) Financial and Program Management guidelines issued by the Iowa Department of Economic
Development;the Iowa Housing Fund Management Guide;the IDED Audit Guide,as applicable.
(xii) Government-wide Restriction on Lobbying Section 319 of Public Law 101-121 and implementing
regulations.
(xiii) Fair Labor Standards Act and implementing regulations.
(xiv) Hatch Act (regarding political partisan activity and federally funded activities) and implementing
regulations.
(xv) Citizen participation, hearing and access to information requirements found under sections
104(a)(2)and 104(a)(3)of Title I of the Housing and Community Development Act of 1974,as amended.
(xvi) Subsection 104(1) of Title I of the Housing and Community Development Act of 1974, as
amended,regarding the prohibition of the use of excessive force in nonviolent civil rights demonstrations and
the enforcement of state and local laws on barring entrance to or exit from facilities subject to such
demonstrations.
(xvii) Drug-Free Workplace Act.
(xviii) Housing and Economic Recovery Act of 2008, including but not limited to Sections 2301-2305
thereof, and the regulations promulgated thereunder.
(xix) Regulations promulgated under the Act, including but not limited to Department of Housing and
Urban Development Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and
Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed
Homes Grantees under the Act as reported in the October 6,2008 Federal Register at 58330.
(k) MAINTENANCE OF ACTIVITY PROPERTY AND INSURANCE. Except with respect to any portion of
the Project requiring demolition, the Recipient and any sub-recipient shall maintain the property in good repair and
condition,ordinary wear and tear excepted, and shall not suffer or commit waste or damage upon the property. At the
Department's request, the Recipient or sub-recipient shall pay for and maintain insurance as is customary in their
industry. This insurance shall be in an amount not less than the full insurable value of the property. The sub-recipient
shall name the Recipient and Department as a mortgagee and/or an additional loss payee, as appropriate, and the
Recipient shall name the Department as a mortgagee and/or an additional loss payee, as appropriate, and submit
copies of the policies to the Department.
8.2 NEGATIVE COVENANTS. During the Contract term the Recipient covenants with IDED that it shall not, without
the prior written disclosure to and prior written consent of IDED,directly or indirectly:
(a) ASSIGNMENT. Assign its rights and responsibilities under this Contract.
(b) ADMINISTRATION. Discontinue administration activities under the Contract.
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ARTICLE 9
DEFAULT AND REMEDIES
9.1 EVENTS OF DEFAULT. The following shall constitute Events of Default under this Contract:
(a) MATERIAL MISREPRESENTATION. If at any time any representation, warranty or statement made or
furnished to the Department by, or on behalf of the Recipient in connection with this Contract or to induce the
Department to make a grant to the Recipient shall be determined by the Department to be incorrect, false, misleading
or erroneous in any material respect when made or furnished and shall not have been remedied to the Department's
satisfaction within thirty(30)days after written notice by the Department is given to the Recipient.
(b) NONCOMPLIANCE. If there is a failure by the Recipient to comply with any of the covenants, terms or
conditions contained in this Contract.
(c) CONTRACT END DATE. If the Activity, in the sole judgment of the Department, is not completed on or
before the Contract End Date.
(d) MISSPENDING. If the Recipient expends Grant proceeds for purposes not described in the NSP Plan
and/or Application,this Contract, or as authorized by the Department.
(e) INSURANCE. If loss, theft, damage, or destruction of any substantial portion of the property of the
Recipient occurs for which there is either no insurance coverage or for which, in the opinion of the Department,there
is insufficient insurance coverage.
9.2 NOTICE OF DEFAULT. In the event of default, IDED shall issue a written notice of default providing therein a
fifteen(15)day period in which the Recipient shall have an opportunity to cure,provided that cure is possible and feasible.
9.3 REMEDIES UPON DEFAULT. If, after opportunity to cure, the default remains, IDED shall have the right, in
addition to any rights and remedies available to it,to do one or more of the following:
(a) exercise any remedy provided by law,
(b) cease providing additional funding from NSP funds,
(c) require immediate repayment of up to the full amount of funds disbursed to the Recipient under this Contract,plus
interest.
9.4 FAILURE TO MEET PERFORMANCE TARGETS. If the Recipient is determined by the Department to be in
default of this Contract due to meeting less than one hundred percent(100%) of its Performance Targets, the Department may
require full Grant repayment or, at its discretion, the Department may require partial repayment of Grant proceeds which
allows partial credit for the performance targets which have been met, or the Department may require other remedies that the
Department determines to be appropriate. Performance targets shall be set forth in Attachment A.
ARTICLE 10
INCORPORATED DOCUMENTS
10.1 DOCUMENTS INCORPORATED BY REFERENCE. The Recipient shall comply with the terms and conditions
of the following documents that are hereby incorporated by reference:
1.Attachment A,"Program Description and Budget."
2. Attachment B,"Approved NSP Plan and/or Application."
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3. Attachment C,"Neighborhood Stabilization Program General Provisions,"dated April 21,2009.
10.2 ORDER OF PRIORITY. In the event of a conflict between documents of this Contract, the following order of
priority shall govern:
1. Articles 1 through 11 herein.
2. Attachment C,"NSP Program General Provisions,"dated April 21,2009.
3. Attachment A,"Program Description and Budget."
4. Attachment B,"NSP Plan and/or Application."
ARTICLE 11
MISCELLANEOUS
11.1 LIMIT ON GRANT PROCEEDS ON HAND. The Recipient shall request funds only as needed and shall not have
more than five hundred dollars ($500.00) of Grant proceeds, including earned interest on hand for a period of longer than ten
(10)working days,after which time any surplus amount shall be returned to the Department.
11.2 BINDING EFFECT. This Contract shall be binding upon and shall inure to the benefit of the Department and
Recipient and their respective successors, legal representatives and assigns. The obligations, covenants, warranties,
acknowledgments, waivers, agreements, terms, provisions, and conditions of this Contract shall be jointly and severally
enforceable against the parties to this Contract.
11.3 SURVIVAL OF CONTRACT. If any portion of this Contract is held to be invalid or unenforceable, the remainder
shall be valid and enforceable. The provisions of this Contract shall survive the execution of all instruments herein mentioned
and shall continue in full force until the Activity is completed as determined by the Department.
11.4 GOVERNING LAW. This Contract shall be interpreted in accordance with the laws of the State of Iowa, and any
action relating to the Contract shall only be commenced in the Iowa District Court for Polk County or the United States District
Court for the Southern District of Iowa.
11.5 NOTICES. Whenever this Contract requires or permits any notice or written request by one party to another, it shall
be in writing, enclosed in an envelope, addressed to the party to be notified at the address heretofore stated (or at such other
address as may have been designated by written notice), properly stamped, sealed and deposited in the United States Mail.
Any such notice given hereunder shall be deemed delivered upon the earlier of actual receipt or two (2) business days after
posting. The Department may rely on the address of the Recipient set forth heretofore, as modified from time to time, as being
the address of the Recipient.
11.6 WAIVERS. No waiver by the Department of any default hereunder shall operate as a waiver of any other default or
of the same default on any future occasion. No delay on the part of the Department in exercising any right or remedy
hereunder shall operate as a waiver thereof. No single or partial exercise of any right or remedy by the Department shall
preclude future exercise thereof or the exercise of any other right or remedy.
11.7 LIMITATION. It is agreed by the Recipient that the Department shall not, under any circumstances, be obligated
financially under this Contract except to disburse funds according to the terms of the Contract.
11.8 HEADINGS. The headings in this Contract are intended solely for convenience of reference and shall be given no
effect in the construction and interpretation of this Contract.
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11.9 INTEGRATION. This Contract contains the entire understanding between the Recipient and the Department and
any representations that may have been made before or after the signing of this Contract, which are not contained herein, are
nonbinding,void and of no effect. None of the parties has relied on any such prior representation in entering into this Contract.
11.10 COUNTERPARTS. This Contract may be executed in any number of counterparts, each of which shall be deemed
to be an original,but all of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF,the parties have executed this Contract as of the Contract Effective Date first stated.
RECIPIENT: City of Waterloo
BY:
TIMOTHY J. HURLEY, MAYOR
Ma or 8.4-4,er11147Typed or Printed Name and Title
City of Waterloo
City Hall-715 Mulberry St.
Waterloo,IA 50703
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT:
BY:
Timothy R. Waddell, Division Administrator
Document prepared by:Elyse Shindelar NSP Contract
Format Approved August 2009
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ATTACHMENT C
GENERAL PROVISIONS
NEIGHBORHOOD STABILIZATION PROGRAM
April 21,2009
1.0 AMENDMENT.
(a) WRITING REQUIRED. The Contract may only be amended through written prior approval of IDED. Examples of
situations where amendments are required include extensions for completion of Activities, changes to the Activities
including, but not limited to, alteration of existing approved Activities and Performance Target Goals or inclusion of
new Activities.
(b) UNILATERAL MODIFICATION. Notwithstanding Paragraph (a) above, IDED may unilaterally modify the
Contract at will in order to accommodate any change in the Act or any change in the interpretation of the Act or any
applicable Federal, State or local laws, regulations, rules or policies. A copy of such unilateral modification will be
given to the Recipient as an amendment to this Contract.
(c) IDED REVIEW. IDED will consider whether an amendment request is so substantial as to necessitate reevaluating
IDED's original funding decision on the Activity. An amendment will be denied if it substantially alters the
circumstances under which the Activity funding was originally approved or if it does not meet requirements set forth
in 261 Iowa Administrative Code,Chapter 25.
2.0 AUDIT REQUIREMENTS.
(a) SINGLE AUDIT. The Recipient shall ensure that an audit is performed in accordance with the Single Audit Act
Amendment of 1996 and OMB Circular A-133, as applicable.
(b) ADDITIONAL AUDIT. As a condition of the grant to the Recipient, IDED reserves the right to require the
Recipient to submit to a post Activity completion audit and review in addition to the audit required above.
3.0 COMPLIANCE WITH LAWS AND REGULATIONS. The Recipient shall comply with all applicable State and
Federal laws,rules,ordinances,regulations and orders.
4.0 UNALLOWABLE COSTS. If IDED determines at any time, whether through monitoring, audit, closeout procedures or
by other means or process that the Recipient has expended funds which are unallowable, the Recipient will be notified of
the questioned costs and given an opportunity to justify questioned costs prior to IDED's final determination of the
disallowance of costs. Appeals of any determinations will be handled in accordance with the provisions of Chapter 17A,
Iowa Code. If it is IDED's final determination that costs previously paid by the IDED are unallowable under the terms of
the Contract,the expenditures will be disallowed and the Recipient shall repay to IDED any and all disallowed costs.
5.0 PROGRAM INCOME. All Program Income shall be expended or paid to the Department as provided in Section 5.1 of
the Contract.
6.0 INTEREST EARNED. To the extent that interest is earned on advances of NSP funds, this interest shall be returned to
IDED,except that the Recipient may keep interest amounts of up to$100 per year for administrative expenses.
7.0 SUSPENSION. When the Recipient has failed to comply with the Contract, award conditions or standards, IDED may,
on reasonable notice to the Recipient, suspend the Contract and withhold future payments, or prohibit the Recipient from
incurring additional obligations of NSP funds. Suspension may continue until the Recipient completes the corrective
action as required by IDED. IDED may allow such necessary and proper costs which the Recipient could not reasonably
avoid during the period of suspension provided IDED concludes that such costs meet the provisions of HUD regulations
issued pursuant to OMB Circular A-87.
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8.0 TERMINATION.
(a) FOR CAUSE. IDED may terminate the Contract in whole, or in part,whenever IDED determines that the Recipient
has failed to comply with the terms and conditions of the Contract.
(b) FOR CONVENIENCE. IDED and the Recipient may terminate the Contract in whole, or in part, when all parties
agree that the continuation of the Activity would not produce beneficial results commensurate with the future
disbursement of funds.
(c) DUE TO REDUCTION OR TERMINATION OF NSP FUNDING. At the discretion of IDED, the Contract may
be terminated in whole,or in part, if there is a reduction or termination of NSP funds to the State.
9.0 PROCEDURES UPON TERMINATION.
(a) NOTICE. IDED shall provide written notice to the Recipient of the decision to terminate, the reason(s) for the
termination, and the effective date of the termination. If there is a partial termination due to a reduction in funding,
the notice will set forth the change in funding and the changes in the approved budget. The Recipient shall not incur
new obligations beyond the effective date and shall cancel as many outstanding obligations as possible. IDED's share
of noncancellable obligations which IDED determines were properly incurred prior to notice of cancellation will be
allowable costs.
(b) RIGHTS IN PRODUCTS. All finished and unfinished documents, data, reports, or other material prepared by the
Recipient under the Contract shall, at IDED option,become the property of IDED.
(c) RETURN OF FUNDS. The Recipient shall return to IDED all unencumbered funds within one week of receipt of
the notice of termination. Any costs previously paid by IDED which are subsequently determined to be unallowable
through audit, monitoring, or closeout procedures shall be returned to IDED within thirty (30) days of the
disallowance.
10.0 ENFORCEMENT EXPENSES. The Recipient shall pay upon demand any and all reasonable fees and expenses of the
Department, including the fees and expenses of their attorneys, experts and agents, in connection with the exercise or
enforcement of any of the rights of the Department under this Contract.
11.0 CONFLICT OF INTEREST.
(a) GENERAL. Except for the use of NSP funds to pay salaries and other related administrative or personnel costs, no
persons identified in paragraph(b)below who exercise or have exercised any functions or responsibilities with respect
to NSP assisted Activities or who are in a position to participate in a decision making process or gain inside
information with regard to such Activities, may obtain a personal or financial interest or benefit from a NSP assisted
Activity,or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder,
either for themselves or those with whom they have family or business ties, during their tenure or for one year
thereafter.
(b) PERSONS COVERED. The conflict of interest provisions described above apply to any person who is an employee,
agent, consultant, officer, or elected or appointed official of the Recipient, or of any designated public agencies, or
sub-recipients which are receiving NSP funds.
(c) CONFLICTS OF INTEREST. Chapter 68B, Code of Iowa, the"Iowa Public Officials Act," shall be adhered to by
the Recipient, its officials and employees.
12.0 USE OF DEBARRED, SUSPENDED, OR INELIGIBLE CONTRACTORS OR SUB-RECIPIENTS. NSP funds
shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the service of, or fund any
contractor or sub-recipient during any period of debarment, suspension, or placement in ineligible status under the
provisions of 24 CFR Part 24 or any applicable law or regulation of the Department of Labor, nor shall NSP funds be
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made available to any organization which has been indicted for a violation under federal law relating to an election for
federal office or an organization which employs applicable individuals. For purposes of this section "applicable
individuals" means an individual who (a) is (1) employed by the organization in a permanent or temporary capacity, (2)
contracted or retained by the organization, or (3) acting on behalf of, or with the express or apparent authority of, the
organization.and(b)has been indicted for a violation under federal law relating to an election for federal office.
13.0 CIVIL RIGHTS.
(a) DISCRIMINATION IN EMPLOYMENT. The Recipient shall not discriminate against any qualified employee or
applicant for employment because of race, color, religion, sex, national origin, age, or physical or mental disability.
The Recipient may take affirmative action to ensure that applicants are employed and that employees are treated
without regard to their race, color, religion, sex, national origin, age, or disability. Such action shall include but may
not be limited to the following: employment, upgrading, demotion or transfers;recruitment or recruitment advertising;
lay-off or termination; rates of pay or other forms of compensation; and selection for training, including an
apprenticeship. The Recipient agrees to post notices setting forth the provisions of the nondiscrimination clause in
conspicuous places so as to be available to employees.
(b) CONSIDERATION FOR EMPLOYMENT. The Recipient shall, in all solicitations or advertisements for
employees placed by or on behalf of the Recipient, state that all qualified applicants will receive consideration for
employment without regard to race, color,religion, sex, national origin, age, disability, or familial status. Solicitation
and Advertisement- The Recipient shall list all suitable employment openings in the State Employment Service local
offices.
(c) CIVIL RIGHTS COMPLIANCE IN EMPLOYMENT. The Recipient shall comply with all relevant provisions of
the Iowa Civil Rights Act of 1965 as amended, Iowa Code Section 19B.7, Federal Executive Order 11246, as
amended; Title VI of the U.S. Civil Rights Act of 1964 as amended(42 U.S.C. Section 2000d et seq.), the Fair Labor
Standards Act (29 U.S.C. Section 201 et seq.), The Americans with Disabilities Act, as applicable, (P.L. 101-336,
42 U.S.C. 12101-12213), Section 504 of the Rehabilitation Act of 1973 as amended (29 U.S.C. Section 794), and the
Age Discrimination Act of 1975 as amended (42 U.S.C. Section 6101 et seq.). The Recipient will furnish all
information and reports requested by the State of Iowa or required by or pursuant to the rules and regulations thereof
and will permit access to payroll and employment records by the State of Iowa to investigate compliance with these
rules and regulations.
(d) CERTIFICATION REGARDING GOVERNMENT-WIDE RESTRICTION ON LOBBYING. The Recipient
certifies,to the best of his or her knowledge and belief,that:
i) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient,to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant,
loan,or cooperative agreement.
ii) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or
attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee, or
an employee of a Member of congress in connection with this Federal contract, grant, loan, or cooperative
agreement, the Recipient shall complete and submit Standard Form-LLL, "Disclosure Form to Report Federal
Lobbying" in accordance with its instruction.
iii) The Recipient shall require that the language of this certification be included in the award documents for all
subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative
agreements)and that all sub-recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was
made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction
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imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be
subject to a civil penalty of not less than$10,000 and not more than$100,000 for each such failure.
(e) PROGRAM NONDISCRIMINATION. The Recipient shall conform with requirements of Title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) and HUD regulations issued pursuant thereto contained in
24 CFR Part 1. No person in the United States shall on the basis of race, color, national origin, sex or religion or
religious affiliation be excluded from participation in, be denied the benefits of, or be subjected to discrimination
under any program or Activity funded in whole or in part with funds made available through this Contract. Any
prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975
(42 U.S.C.6101 et. seq.) or with respect to an otherwise qualified individual with a disability as provided in the
Americans with Disabilities Act, as applicable, (P.L. 101-336, 42 U.S.C. 12101-12213) or Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. Section 794)shall also apply to any such program or Activity.
(f) FAIR HOUSING. The Recipient shall comply with Title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601 et seq.), generally known as the Fair Housing Act, and with HUD regulations found at
24 CFR Part 107, issued in compliance with Federal Executive Order 11063, as amended by Federal Executive Order
12254. The recipient shall also comply with Section 109,Title I of the Housing and Community Development Act of
1974,as amended.
(g) SECTION 3 COMPLIANCE. The Recipient shall comply with provisions for training, employment, and
contracting in accordance with Section 3 of the Housing and Urban Development Act of 1968(12 U.S.C. 1701u).
(h) NONCOMPLIANCE WITH THE CIVIL RIGHTS LAWS. In the event of the Recipient's noncompliance with
the nondiscrimination clauses of this Contract or with any of the aforesaid rules,regulations,or requests,this Contract
may be canceled, terminated, or suspended either wholly or in part. In addition, the State of Iowa may take further
action, imposing other sanctions and invoking additional remedies as provided by the Iowa Civil Rights Act of 1965
(Chapter 216,Code of Iowa 2007)or as otherwise provided by law.
(i) INCLUSION IN SUBCONTRACTS. The Recipient will include the provisions of the preceding paragraphs of
Section 13 in every subcontract unless exempt by the State of Iowa, and said provisions will be binding on each
subcontractor. The Recipient will take such action with respect to any subcontract as the State of Iowa may direct as a
means of enforcing such provisions including sanctions for noncompliance. In the event the Recipient becomes
involved in or is threatened by litigation with a subcontractor or vendor as a result of such direction by the State of
Iowa, the Recipient may request the State of Iowa to enter into such litigation to protect the interests of the State of
Iowa.
14.0 POLITICAL ACTIVITY. No portion of program funds shall be used for any partisan political activity or to further the
election or defeat of any candidate for public office. Neither the program nor the funds provided therefore, nor the
personnel employed in the administration of this Contract, shall be in any way or to any extent, engaged in the conduct of
political activities in contravention of The Hatch Act(5 U.S.C. 15).
15.0 EMINENT DOMAIN. The Recipient shall not use NSP funds to fund any project that seeks to use the power of eminent
domain.
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Format Approved April 2009