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107A M IM No <br />Ineligible Uses and Activities <br />Funds may not be used for the following activities: <br />1. the construction of new rental housing or for any program to subsidize or assist such <br />housing, except when carried out by a CBDO, provided the construction activity is <br />carried out as part of a neighborhood revitalization, community economic development or <br />energy conservation project; <br />2. to provide income payments for rent or utilities, except in emergency situations for a <br />period not longer than three months; or, <br />3. to assist rental housing properties if less than 51 % of the units will be occupied by low <br />and moderate income households. <br />Compliance with Federal and Local Regulations <br />All projects must comply with all applicable federal requirements contained in 24 CFR Part 570 <br />Subpart K, including, but not limited to, standards of financial management, environmental <br />review, labor and wage requirements, debarred contractors, lead-based paint and equal <br />opportunity. Borrowers should note: <br />Contract Requirements: All work shall be completed by licensed contractors. All contracts must <br />comply with competitive bidding requirements. <br />Labor Standards: A project with eight or more residential units must comply with the Federal <br />Labor Standards, including the Davis -Bacon Act requirements, as promulgated by HUD, and set <br />forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction <br />work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity <br />Affirmative Action requirements of Section 3 of the Housing Urban Development Act of 1968. <br />All efforts shall be made to provide equal opportunity for employment without discrimination as <br />to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out <br />qualified local tradespeople for contracting and subcontracting bids. <br />Lead-based Paint: Housing assisted with CDBG funds constitutes HUD -associated housing for <br />the purpose of the Lead -Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, <br />and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are <br />responsible for testing and abatement. <br />Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility <br />regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. <br />Affordable Housing Funds Policies and Procedures <br />80A-37 <br />Page 33 <br />