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5/05 <br />reasonable period of time after being notified by the CITY, contract suspension or termination <br />procedures will be initiated. <br />III. NONDISCRIMINATION <br />SUBRECIPIENT agrees that no person on the ground of race, age, color, national origin, <br />religion or sex will be excluded from participation in, be denied the benefits of, or be subjected to <br />discrimination under any program or activity funded in whole or in part with CDBG funds. <br />IV. CONFLICT OF INTEREST <br />Pursuant to the conflict of interest requirements set forth in 24 CFR 576.57 and OMB <br />Circulars 1-102 and A-110, SUBRECIPIENT agrees that no officer, employee, agent or assignee of <br />CITY having direct or indirect control of any CDBG monies granted to the CITY, inclusive of the <br />subject CDBG FUNDS, shall serve as an officer of SUBRECIPIENT. Further, any conflict or <br />potential conflict of interest of any officer of SUBRECIPIENT shall be fully disclosed in writing <br />prior to the execution of this Agreement and said writing shall be attached and deemed fully <br />incorporated as a part hereof. Notice shall be sent by SUBRECIPIENT to CITY regarding any <br />changes or modifications to its board of directors and list of officers. <br />V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES <br />If SUBRECIPIENT is a religious entity, SUBRECIPIENT hereby agrees that in connection <br />with the provision of the services SUBRECIPIENT shall provide with CDBG funds, in accordance <br />with 24 CFR 570.2000): <br />A. SUBRECIPIENT shall not discriminate against any employee or applicant for <br />employment on the basis of religion and shall not limit employment or give preference in <br />employment to persons on the basis of religion. <br />B. SUBRECIPIENT shall not discriminate against any person applying for the services <br />SUBRECIPIENT agrees to provide under the terms of this Agreement on the basis of religion and <br />shall not limit such services or give preference to applicants for such services on the basis of <br />religion. <br />C. SUBRECIPIENT shall NOT provide religious instruction or counseling, conduct <br />any religious worship or services, or engage in any religious proselytizing, or exert any religious <br />influence in the provision of the services in said program. The parties agree that this covenant is <br />intended to and shall be construed for the limited purpose of assuring compliance with respect to the <br />use of CITY funds by SUBRECIPIENT with applicable constitutional limitations respecting the <br />establishment of religion as set forth in the establishment clause under the First Amendment of the <br />United States Constitution and Article 1, Section 4 of the California Constitution, and is not in any <br />manner intended to restrict other activities of SUBRECIPIENT. <br />9 <br />