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6 of 6 <br /> <br />for a Block Grant (attachment 2). Jurisdictions are highly encouraged to submit their <br />preference as soon as possible and before the deadline. <br />Contract Requirements <br />Participation in the state administered Rental Assistance Program through the <br />acceptance of a block grant will require a standard agreement with the HCD. <br />Agreements will include performance milestones for obligation and funding liquidation <br />as conditions of ongoing funding. <br />Funding provided through the State Block Grant will be subject to the same reporting <br />and verification requirements as provided under state and federal law. This includes <br />quarterly reporting requirements, income verification, prioritizing direct payments to <br />landlords and utility providers before directing funds to tenants, prioritizing arrears, <br />validating tenancy, prioritizing households at 50% or less of Area Median Income (AMI), <br />as determined by the Department of Housing and Urban Development, complying with <br />tenant and landlord notification requirements, and all other programmatic <br />requirements in the bill. Participating jurisdictions will be required to meet all of the <br />personal identifying information protections identified in the bill. Further, recipients of <br />Block Grants must also conform their UST allocation to the State Program rules in order <br />to be eligible for a Block Grant. <br />8.5% of the 10% Administration Fee allowable under federal law will be passed through <br />to the Jurisdiction to support implementation. <br />C. Non-Conforming Local Implementation of Federal Allocation. <br />If a Direct Allocation Jurisdiction will not conform to State Program rules, but chooses to <br />self-administer the Federal Allocation, the State will still serve its population via the State <br />Rental Assistance Program but will look to the local jurisdiction to ensure there is no <br />duplication of benefits checks between the two programs. <br /> <br />EXHIBIT 7EXHIBIT 1