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<br />5/05 <br /> <br />Pursuant to the conflict of interest requirements set forth in 24 CFR 576.5 and OMB <br />Circulars 1-102 and A-I 107, SUBRECIPIENT agrees that no officer, employee, agent or assignee <br />of CITY having direct or indirect control of any CDBG monies granted to the CITY, inclusive of <br />the subject CDBG FUNDS, shall serve as an officer of SUBRECIPIENT. Further, any conflict or <br />potential conflict of interest of any officer of SUB RECIPIENT 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 /> <br />V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES <br /> <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 570.200(j): <br /> <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 /> <br />8. SUB RECIPIENT shall not discriminate against any person applying for the services <br />SUB RECIPIENT 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 /> <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 SUB RECIPIENT 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 I, Section 4 of the California Constitution, and is not in any <br />manner intended to restrict other activities of SUBRECIPIENT. <br /> <br />D. Where the services to be provided under said program are rendered on property <br />owned by the primarily religious entity SUBRECIPIENT, CDBG funds may also be used for minor <br />repairs to such property which are directly related to the cost of rendering the services under said <br />program, where the cost constitutes in dollar terms only an incidental portion of the CDBG <br />expenditure for rendering the services under said program. <br /> <br />VI. PROHIBITION OF NEPOTISM <br /> <br />SUB RECIPIENT agrees not to hire or permit the hiring of any person to fill a position <br />funded through this Agreement if a member of that person's immediate family is employed in an <br />administrative capacity by SUBRECIPIENT. For the purposes of this section, the term "immediate <br />17 <br />