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• Projects with more than 11 (11) HOME Assisted units are subject to Davis Bacon <br />wage requirements. CDBG funded projects with more than seven (7) total units <br />are subject to Davis Bacon wage requirements. However, CDBG funds can be <br />used to pay for such non-construction items as property acquisition and <br />architectural fees without triggering Davis Bacon requirements. <br />• HUD regulations prohibit the use of federal funds to pay relocation costs for tenants <br />without a legal right to reside in the United States. State law requires that they be paid <br />for those costs. Consequently the City will require that they be paid out of a nonfederal <br />funding source. <br />• For acquisition/rehabilitation projects the City will require that the developer hire a <br />professional relocation firm to develop and implement a relocation plan. The selected <br />firm must be acceptable to the City. <br />• Federal regulations severely restrict the use of CDBG funds for new construction <br />projects. Certain support activities, including land acquisition can be funded by CDGB, <br />but only if those activities are carried out by a public agency or by a nonprofit entity. The <br />regulations do not address the eligibility of land acquisition carried out by a partnership <br />that includes a nonprofit corporation. <br />• Unless it will be rent and income restricted, HOME funds cannot be used to pay for the <br />development of a resident manager's unit. <br />II. DEVELOPER REQUIREMENTS AND RESPONSIBILITIES <br />A. INSURANCE <br />Prior to undertaking performance of work under this Agreement, Developer shall maintain and shall <br />require its subcontractors, if any, to obtain and maintain insurance as described below: <br />Commercial General Liability Insurance. Developer shall maintain commercial general liability <br />insurance which shall include, but not be limited to protection against claims arising from bodily <br />and personal injury, including death resulting there from and damage to property, resulting from <br />any act or occurrence arising out of Developer's operations in the performance of this <br />Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall <br />be not less than the following: single limit coverage applying to bodily and personal injury, <br />including death resulting there from, and property damage, in the total amount of $2,000,000 per <br />occurrence, $2,000,000 in the aggregate. <br />2. Business automobile liability insurance, or equivalent form, with a combined single limit of not <br />less than $2,000,000 per occurrence. Such insurance shall include coverage for owned, hired <br />and non-owned automobiles. <br />3. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the <br />Labor Code, Developer is required to be insured against liability for worker's compensation or to <br />undertake self-insurance. Prior to commencing the performance of the work under this <br />Agreement, Developer agrees to obtain and maintain any employer's liability insurance with <br />City of Santa Ana Community Development Agency <br />Request for Proposals for Affordable Housing Development <br />Page 13 <br />19E-16