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HomeMy WebLinkAboutSALVATION ARMY, THE (6)INSURANCE ON FILE A-2020-181-06 WORK MAY PROCEED UNTIL INSURANCE EXPIRES MAY O 3 2021 CLERK,OF COUNCIL DATE: AGREEMENT BETWEEN THE CITY OF SANTA ANA AND (Ki IL-Akt, THE SALVATION ARMY FOR USE OF 00k ty) fW EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS THIS GRANT AGREEMENT, is hereby made and entered into this February 1, 2021, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("CITY"), and The Salvation Army, a California nonprofit organization ("SUBRECIPIENT"). RECITALS: A. On March 27, 2020, a special allocation of Emergency Solutions Grant ("ESG") funds was authorized by the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), Public Law 116-136, to prevent, prepare for, and respond to the coronavinrs ("COVID-19") pandemic, The CARES Act made available an additional $4 billion in Emergency Solutions Grant Coronavirus ("ESG-CV") funds. Of this amount, the United States Department of Housing and Urban Development ("HUD") immediately allocated $1 billion based on the fiscal year 2020 ESG formula, B. On April 2, 2020, the CTPY received notice of an award of $1,727,403 in ESG-CV funds from TIM in response to the COVID-19 pandemic. On June 8, 2020, the C1TY received notice of a second award of $11,598,442 in ESG-CV funds from HUD in response to the COVID-19 pandemic. C. The CITY is the recipient of ESG funds from HUD pursuant to subtitle B of title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11371-11378], for the rehabilitation or conversion of buildings for use as emergency shelter for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re- housing assistance. Catalogue of Federal Domestic Assistance ("CFDA") 14.231 and Federal Award Identification Number (FAIN) E-20-MW-06-0508. D. On August 18, 2020, the Santa Ana City Council approved $5,514,747 in ESG-CV funds for an Eviction Program for very -low income residents, and $250,000 in ESG-CV funds for an Eviction Defense Fund for very -low income families qualified under the SAVES Program, a homelessness prevention program for very -low income families who have been impacted by the Coronavirus and notified in writing that their right to occupy their current housing will be terminated ("Program'), as further described by Exhibit A, Scope of Work, attached hereto, E. The SUBRECIPIENT represents that it has the requisite qualifications, expertise, and experience in the provision of emergency solutions programs for the homeless or at -risk of homelessness and is willing to use said federal funds to operate said Program. F. In response to the COVID-19 pandemic, SUBRECIPMNT meets the national objective for the use of ESG and ESG-CV funds. G. The SIIBRECIPIENT agrees to assist individuals and families that are homeless or at risk of homelessness in obtaining appropriate supportive services including, but not limited to: temporary and permanent housing, relocation and stabilization services, rapid re -housing assistance, medical and mental health treatment, counseling supervision, and other services essential for achieving independent living. H, SUBRECIPIENT has agreed to be reimbursed for the above services in an amount not to exceed $5,415,747 in grant funding for homelessness prevention, rapid re -housing assistance, housing relocation and stabilization services, short-term and medium -term rental assistance, and Homeless Management Information Systems ("HMIS") data contribution as set forth in 24 CFR § 576,101 — § 576.107. I. This AGREEMENT is contingent upon the award of ESG-CV funds from HUD. I. The CITY and the SUBRWIPIENT have duly executed this AGREEMENT for the expenditure and utilization of said ESG-CV funds. NOW THEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this AGREEMENT and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire AGREEMENT between the CITY and the SUBRECIPIENT: I. SCOPE OF PROGRAM A. General Admirdstration The SUBRECIPIENT agrees to implement this activity as set forth in detail in Exhibit A, Scope of Work, which shall provide a description of each activity, including the services to be performed, the person or entity providing the service, the estimated number of recipients of the service, and the manner and means of the services. B. Levels of Accomplishment— Goals and Performance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the CITY. If the SUBRECIPIENT estimates such goals will not be met, the. SUBRECIPIENT is to contact the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate, C. Staffrne The SUBRECIPIENT shall ensure adequate and appropriate staffing is allocated to each ESG-CV activity, Nothing contained in this AGREEMENT' is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. D. Grant Maximums Santa Ana households facing eviction due to a COVID-19 related hardship are eligible for up to twelve month's rent and six month's rental arrears since April 1, 2020, as stated in their lease agreement, up to the Fair Market Rent for their unit size. This assistance is not intended to provide long-term support or all of a family's supportive service needs. It is part of a plan made with the family to regain stability and prevent eviction and subsequent homelessness due to a COVID-19 related hardship, E. Grant Pa,, me Rental assistance is paid to the Landlord on behalf of the resident by the SUBRECIPIENT. IL TERM OF AGREEMENT This AGREEMENT shall take effect on February 1, 2021, and shall terminate on June 30, 2022, unless otherwise cancelled or modified according to the terms of this AGREEMENT. III. DISBURSEMENT AND FUNDS The City was allocated a second award of ESG-CV funds in the amount of $11,598,442 under the CARES Act from HUD in response to the COVID-19 pandemic, CITY agrees to pay to SUBRECIPIENT when, if and to the extent federal funds are received under provisions of the Act a sum not to exceed $5,415,747 for SUBRECIPIENT'S performance in accordance with the Budget attached hereto as Exhibit B during the period of this Agreement. Said sum shall be paid after CITY receives invoices submitted by SUBRECIPIENT as provided herein. A. Amount and Expenditure End Date The CITY agrees to reimburse the SUBRECIPIENT a maximum amount not to exceed $5,415,747 from ESG-CV funds for payroll expenses, rental assistance, and indirect/administrative expenses, among other expenses, as outlined in Exhibit B, Budget, and such Funds shall be expended by the SUBRECIPIENT on or before Jime 30, 2022. SUBRECIPIENT has the ability to adjust line item amounts in the Budget with the written approval of the CITY's Executive Director of the Community Development Agency, so long as the total Budget amount does not increase. B. Invoicing Procedures The SUBRECIPIENT shall submit quarterly invoices (on or before the 15°i day of April, July, October, and January) in a form prescribed by the CITY, detailing such expenses. Such schedule may be modified with the approval of the CITY. C. Pavrnent Payment is subject to the receipt and approval of such invoices and quarterly activity reports, as hereinafter more fully set forth below under Reporting, with the final payment subject to the satisfaction of the condition precedent of submittal of complete invoicing and reporting information due on or before July 15 of the applicable funding year. The CITY shall pay such invoices within thirty (30) days after receipt thereof provided the CITY is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that the SUBRECIPIENT is in compliance with the terms and conditions of this AGREEMENT, The thirty (30) day period will discontinue if the reimbursement request is determined to be incomplete and will restart the thirty (30) day timeline once the remaining required elements have been submitted, Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been revolved and approved by the CITY. D. Use of Funds The SUBRECIPIENT agrees to use said funds pursuant to this AGREEMENT to pay for necessary and reasonable costs allowable under federal law and regulations to operate said Program only. Said amotnts shall include and will be limited to, street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, housing relocation and stabilization services, short-term and medium -term rental assistance, and Homeless Management Information Systems ("HMIS") data contribution as set forth in 24 CFR § 576.101 — § 576.107. Allowable Program costs are detailed in the Budget, as set forth in Exhibit B, attached hereto. The SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this AGREEMENT, result in readjustment of the amount of funds the CITY is otherwise obligated to pay to the SUBRECIPMNTT pursuant to the terms hereof, E. Condition of Ftndine (1) The CITY advises the SUBRECIPIENT that a significant change in entitlement funding may result in a change in the current process utilized by the CITY to determine funding allocations. The SUBRECIPIENT acknowledges that the obligation of the CITY is contingent upon the availability of Federal, State or Local government funds, which are appropriated or allocated for the payment of such an obligation, If funding levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by the "RECIPIENT, this AGREEMENT may be terminated by the CITY at the end of the period for which funds are available. At the earliest opportunity, the CITY shall notify the SUBRECIPIENT of any service which may be affected by a shortage of funds. No penalty shall accrue to the CITY in the event this provision is exercised and the CITY shall not be liable for any damages as a result of termination under this provision of this AGREEMENT. Nothing herein shall be construed as obligating the CITY to expend funds in excess of appropriations authorized by law. (2) The SUBRECIPIENT shall allow representatives of the CITY or HUD to inspect facilities which are used in connection with the AGREEMENT or which implement programs funded trader this AGREEMENT. F, Matchine The ESG-CV funds are exempt from the ESG match requirements, including 24 CFR § 576.201. G. Program Income (1) Definition. Program income means, as provided by 2 CFR 200.80, gross income received by the SUBRECIPIENT directly generated by a grant supported activity, or earned only as a result of the grant agreement during the grant period. For purposes of ESG-CV, Program income will also include any amount of a security or utility deposit returned to the SUBRECIPIENT. (2) Use, The SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this AGREEMENT. . H. SeparationofAccounts All finds received by the SUBRECIPIENT from the CITY pursuant to this AGREEMENT shall be maintained separate and apart from any other funds of the SUBRECIPIENT, or of any principal or member of the SUBRECIPIENT, bi an account (the "Account") at a federally insured banking or savings and loan institution with record keeping of such Accounts maintained pursuant to applicable legal requirements. The SUBRECIPIENT shall keep all records of the Account in a manner that is consistent with generally accepted accounting principles. No monies shall be withdrawn from the Account except for expenditures relating to essential services, homeless prevention, and/or operations costs, as authorized hereunder. Ali disbursements from the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be supported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure, The CITY may withhold payment allocation requests if the SUBRECIPIENT fails to comply with the above requirements until such compliance is demonstrated. I. Expenditure of Funds Much like how HUD requires the CITY, pursuant to 24 CFR 576,203, to expend all of the grant funds for eligible activity costs within 24 months after the date that HUA signs the grant agreement with the CITY, it is a requirement for the SUBRECIPIENT to expend all of the grant funds for eligible activity costs within the designated period. All funds awarded to the City through the first and second allocations of ESG-CV finds must be expended for eligible activity costs by September 30, 2022. To ensure that ESG-CV funds are spent quickly on eligible activities to address the public health and economic crises caused by coronavnrus, (i) HUD may recapture up to 20 percent of a recipient's total award, including first and second allocation amounts, if the recipient has not expended at least 20 percent of that award by September 30, 2021. (ii) HUD may recapture up to 80 percent of a recipient's total award, including fast and second allocation amounts if the recipient has not expended at least 80 percent of that award by March 31, 2022. For the purposes of this paragraph, expenditure means either an actual cash disbursement for a direct charge for a good/service or an indirect cost, or the accrual of a direct charge for a good/service or an indirect cost. Failure to expend said funds within said timeframe can result in a reallocation of funds. J. Prohibited Use (1) Generally. The SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this AGREEMENT to pay for meals for persons other than those identified as homeless or at risk of homelessness. Said funds shall not be used for entertainment purposes or for gifts. The SUBRECIPIENT certifies that it will not use said funds for illegal or dishonest conduct, rather, fund use will remain in compliance with all applicable federal, state, slid local laws, including applicable laws not outlined in this AGREEMENT. (2) Lobbying, The SUBRECIPIENT certifies and agrees that it will comply with federal law (31 U.S.C, 1352) and regulations found at 24 CFR Fart 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in connection with awarding of any federal contract, the malting of any Federal grant or Ion, entering into any cooperative agreement and the extension, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. The SUBRECIPIENT shall sign a certification to that effect in a form as set forth in Exhibit C, attached hereto. The "RECIPIENT shall submit said signed certification to the CITY prior to performing any of its obligations under this AGREEMENT and prior to any obligation arising on the part of the CITY to pay any sums to the SUBRECIPIENT under the terms and conditions of this AGREEMENT. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member.of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (see Rxhibit D). Iv. NOTICES The SUBRECIPIENT and the CITY agree that all notices required by this AGREEMENT shall be made in writing and delivered via mail (postage prepaid); commercial courier; personal delivery; or sent by facsimile or other electronic means (provided that receipt is confirmed). Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this AGREEMENT shall be addressed to the individuals in the capacities indicated below, unless modified by subsequent written notice. Communication and details concerning the AGREEMENT shall be delivered to the office of, and directed to, the following representatives; CITY: Miltelle Daily Community Development Analyst City of Santa Ana Community Development Agency (M-25) 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702-1988 (714) 667-2256 (714) 647-6549 FAX mdailyLsaata-ana.org SUBRECIPIENT: The Salvation Army California South Division Divisional Secretary for Business 16941 Keegan Avenue Carson, CA 90746 With copy to: The Salvation Army Orange County Divisional Secretary Orange County 10200 Pioneer Rd Tustin, CA 92782 V. GENERAL CONDITIONS A. Coordination with Continuum of Care The SUBRECIPIENT must work with the Continuum of Care ("CoC") to ensure the screening, assessment, and referral of Program participants are consistent with the CITy's written standards for providing ESG-CV assistance as described in its consolidated plan. The SUBRECIPIENT must keep documentation evidencing the use of, and written intake procedures for, the centralized or coordinated assessment system(s) developed by the CoC in accordance with the requirements established by HUD, See 24 CFR 576.400. B, Evaluation of Program Participants Eligibility and Needs The SUBRECIPIENT must conduct evaluations and re-evaluations to determine the eligibility of each individual or family's eligibility for ESG-CV assistance in accordance with 24 CFR 576.401. C, Terminating Assistance If a Program participant violates Program requirements, the SUBRECIPIENT may terminate the assistance in accordance with a formal process established by the SUBRECIPIENT that recognizes the rights of individuals affected. See 24 CFR 576.402 D, Shelter and Housing Standards The SUBRECIPIENT certifies that shelters and housing supported by ESG-CV funds and used by ESG-CV beneficiaries will conform to 24 CFR 576,403. E. Homeless Involvement The SUBRECIPIENT certifies that it will involve, to the maximum extent practicable, homeless individuals and families in constructing, renovating, maintaining, and operating facilities assisted under the, ESG-C.V program, and in providing services for occupants of these facilities. See 24 CFR 576.405(c) and 42 USC 11375(d). F. Independent Contractor Nothing contained in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties, The SU13RECIPMNT and its subcontractors shall at all times remain independent contractors with respect to the services to be performed under this AGREEMENT. The CITY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the SUBRECIPIENT is an independent contractor. G. Subcontracts (1) Content Requirements. The SUBRECIPIENT will include all relevant provisions of this AGREEMENT in all subcontracts entered into as part of the activities undertaken in fiutherance of this AGREEMENT and will take appropriate action pursuant to any subcontract upon a finding that the subcontractor is in violation of regulations issued by any federal agency. The SUBRECIPIENT will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 (Economic Opportunities for Low- and Very Low -Income Persons) and will not allow any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. (2) Submission to the CITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the CITY, H. Licensine The SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation, and inspections from all agencies governing its operations, The SUBRECIPIENT shall ensure that its staff and subcontractors shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing the SUBRECIPIENT's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. I. Responsibilities Toward Em llooye The SUBRECIPIENT accepts full responsibility for payment of any and all unemployment compensation, insurance premiums, workers' compensation premiums, income tax withholdings, social security withholdings, and any and all other taxes or payroll withholdings required for all employees engaged in the performance of the work and activities authorized by the AGREEMENT. The SUBRECIPIENT accepts fall responsibility for providing workers with proper safety equipment and taking any and all necessary precautions to guarantee the safety of workers or persons otherwise affected. 1. Insurance and Bonding (1)Generally. The SUBRECIPIENT shall maintain liability and property insurance to cover actionable legal claims for liability or loss which are the result of injury to or death of any person, or damage to property (including property of Grantee) caused by the negligent acts or omissions, or negligent conduct of the SUBRECIPIENT, its employees, agents or subcontractors, to the extent permitted by law, in connection with the activities pursuant to this AGREEMENT. The SUBRECIPIENT shall comply with the bonding and insurance requirements of 2 CFR 200,427, and 2 CFR 200.447. The SUBRECIPIENT shall undertake self-insurance, or shall obtain, at its sole cost, a policy or, policies of commercial general liability insurance, or equivalent form, Such insurance shall: (1) name the City of Santa Ana, its officers, agents, employees and volunteers as additional insureds; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of insureds provisions; and (4) give to the CITY prompt and timely notice of claim made or suit instituted arising out of the SUBRECIPIENT's operations hereunder. (2) Limits. The SUBRECIPIENT shall maintain, at all times, the following minimum levels of Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the coverages and amounts of coverage not less than those set forth below: a. Workers' Compensation. Amount must comply with State and Federal Laws b, Comprehensive General Liability. $1,000,000 combined single limit of liability for bodily injuries, death, and property damage resulting from any one occurrence, . including the following coverages: Premises and Operations; and ii. Broad Form Commercial General Liability Endorsement to include blanket contractual liability (specifically covering, but not limited to, the contractual obligations assumed by the SUBRECIPIENT); Personal Injury (with employment and contractual exclusions deleted); and Broad Form Property Damage coverage. C. The SUBRECIPIENT's self -insured retention or deductible per line of coverage shall not exceed $25,000 without the permission of the CITY. (3) Proof of Insurance. The SUBRECIPIENT shall furnish the My's Clerk of the Council with an insurance certificate from insurance carrier certifying that it carries such insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior notice to the CITY, The SUBRECIPIENT shall, prior to exercising any right under this AGREEMENT: a. furnish properly executed certificates of insurance and additional insured endorsement to the CITY which shall clearly evidence all coverage required above; b. provide that such insurance shall not be materially changed or terminated except on thirty (30) days prior written notice to the CITY; c. maintain such insurance for the period covered by this AGREEMENT; and d, replace such certificates for policies expiring prior to the expiration of this AGREEMENT. (4) Company Rating. All insurance coverage shall be written with a company having an A.M. Best Rating of "A" or better and financial size of VIII or larger. (5) Failure to Comply. In the event of any failure by the SUBRECIPIENT to comply with these provisions, the CITY may, after notice to the SUBRECIPIENT, suspend the Program for cause Lentil there is full compliance, K. Zonin&. The SUBRECIPIENT agrees that any facility/property used in fiutherance of said Program shall be specifically zoned and permitted for such use(s) and activity(ics), Should the SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state, or federal rules and regulations relating thereto, the SUBRECIPIENT shall immediately make good -faith efforts to gain compliance with local, state, or federal rules and regulations following written notification of said violation(s) from the CITY or other authorized citing agency, The SUBRECIPIENT shall notify the CITY immediately of any pending violations. Failure to notify the CITY of pending violations, or to remedy such known violation(s), shall result in tennination of grant funding hereunder. The SUBRECIPIENT must make all corrections required to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in termination of grant funding hereunder, L. Displacement and Relocation. The SUBRECIPIENT must assure that it has taken all reasonable steps to minimize displacement of persons. Relocation must be consistent with requirements as set forth in 24 CFR § 576.408. M, Provisions Required by Law Deemed Inserted. Each and every provision of law and clause required by law to be inserted in this contract shall be deemed to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction. VI. ASSURANCES AND CERTIFICATIONS A, Non -Profit Status The SUBRECIPIENT certifies that: (1) The SUBRECIPIENT is a duly organized and existing non-profit corporation in good standing and authorized to do business under the laws of the State of California and in possession of required non-profit status under the United States Internal Revenue Code [for example, 26 USC § 501(c)(3)]. The SUBRECIPIWF has full right, power, and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance, and delivery of this AGREEMENT by the SUBRECIPIENT has been fully authorized by all requisite actions on the part of the SUBRECIPIENT. (2) If the SUBRECIPIENT's non-profit. status changes at anytime during this AGREEMENT, it will advise the CITY within 15 days. 10 (3) If the SUBRECIPIENT is a private non-profit, it hereby agrees that the members of its Board of Directors will receive no compensation, directly or indirectly, other than reimbursement for expenses, from any funds generated from or because of the ESG-CV program, for their services. (4) As a non-profit, the SUBRECIPTENT acknowledges that administration of its operation and services are subject to the requirements as established in 2 CFR 200. B. Adherence to Federal, State, and Local Laws and Regulations (1) General. The SUBRECIPIENT agrees to comply with all requirements of the ESG-CV program and applicable cross -cutting Federal, State, and Local requirements. (2) Economic Opportunities for Low- and Very Low-income Persons. The SUBRECIPIENT shall ensure that employment slid other economic opportunities generated by the Program shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of govermnent assistance for housing. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u, and regulations at 24 CFR part 135 apply, except that homeless individuals have priority over other Section 3 residents in accordance with § 576.405(c). (3) Civil Rights. The "RECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing slid Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, and 41 CFR Chapter 60, (4) Nondiscrimination and Equal Employment Opportunity. During the performance under this AGREEMENT, the SUBRECIPIENT shall not discriminate against any employee or applicant for employment based on race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIENT shall take affirmative action to ensure that all applicants and employees are treated without regard to race, color, creed, religion, sex, ago, handicap, disability, ancestry, national origin, marital status, familial status, and sexual orientation. The SUBRECIPIENT shall comply with all provisions of Executive Order 11246, Equal Employment Opportunity, as amended by Executive Orders 11375 and 12086, (5) Nondiscrimination and Equal Opportunity in Participation. The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 CFR 5,105(a). The SUBRECIPIENT shall not discriminate against any participant on the ground of race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familiar status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIENT shall, through affirmative outreach, make known that use of the facilities, assistance, and services are available to all on a nondiscriminatory basis, The 11 SUBRECIPIENT must take appropriate steps to ensure effective communication with persons with disabilities. (6) Americans with Disabilities Act. The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and Local government services, and public accommodations. (7) Fair Housing. Under section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing —HUD requires the same of its funded sub -recipients. The SUBRECIPIENT has a duty to affirmatively further fair housing opportunities for classes protected under the Fair Housing Act. C. Falsification of Information The SUBRECIPIENT represents and warrants that it has made no false statements to the CTTT in the process of obtaining this award of the ESG-CV Funds. D. Drug Free Workplace The SUBRECIPIENT represents and warrants that it has established the following drug -free workplace policy: (1) The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program, (2) As an employee working in conjunction with a federally funded program, the employees of the SUBRECIPIENT will be required to: a. . Abide by the terms above in statement (1), and b. Notify the appropriate SUBRECIPIENT authorities and CITY officials of any criminal drug statute conviction for a violation occurring in the workplace. Such notification shall be made no later than five (5) days after conviction. (3) The CITY and FRM will be notified within ten days after receiving notice of any such violation. (4) Within thirty (30) days of receiving such notice; appropriate personnel action will be taken against such employee, up to and including termination. (5) Each such employee shall. be required to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or Local health, law enforcement, or other appropriate agency. 12 E. Vcligious Organization The SUBRECIPIENT may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of said Program or services. If the SUBRECIPIENT conducts such activities, the activities must be offered separately, in time or location, from said Programs or services, and participation must be voluntary for the Program participants. The SUBRECBIENT shall not, in providing Program assistance, discriminate against a Program participant or prospective Program participant on the basis of religion or religious belief, If the SUBRECIPIENT is a religious organization, it retains its independence from Federal, State, and Local governments, and mqy continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that the religious organization does not use direct ESG or ESG-CV funds to support any inherently religious activities. The SUBRECIPIENT agrees that rehabilitation of structures by the religious organization in connection with said Program must be in sound accord with the provisions under 24 CFR § 576,406. F. Additional Terms between the CITY and HUD The SUBRECIPIENT agrees further that it shall be bound by the standard terms and conditions (see Exhibit G) used in the Grant Agreement between HUD and the CITY and such other rules, regulations, or requirements as HUD may reasonably impose in addition to the aforementioned assurances at or subsequent to the execution of this AGREEMENT by the parties hereto, G. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous, or dangerous to the participants' health or safety. H. Hatch Act The SUBRECIPIENT agrees that no funds provided, nor personnel employed under this AGREEMENT, shall be in any way or to any extent engaged in the conduct of political activities in violation of the Hatch Act, 5 U.S.C. Section 1501 et seq. I. Davis -Bacon Act All laborers and mechanics employed by contractors or subcontractors in the performance of construction work, including alterations and repairs, in excess of $2,000.00, financed in whole or in part with federal funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U.S.C, sections 276a - 276a-5. Any such construction contract shall include and comply with the required contract provisions and rules set forth in 29 C.F.R. §5,5. Further, the payroll reports (along with the "Statement of Compliance") and basic records are required to be maintained and 13 submitted, or made available, pursuant to 29 C.F.R. §5.5(a)(3). No payment, advance, grant, loan or guarantee of funds shall be approved by the federal agency unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of 29 C.F.R. §5.5. A breach of the contract clauses in 29 C.F.R. §5.5 may be grounds for termination of the contract, and for debarment as a contractor/subcontractor, as provided in 29 C.F.R. §5.12. Labor standards interviews/investigations shall be made as necessary to assure compliance. See 29 C.F.R. §5.6(a)(3). VII. ADMINISTRATIVE REQUIREMENTS A. Generallv The following requirements and standards must be complied with: 2 CFR Part 200, et al. SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of 2 CFR 200,318-326. B. Procurement (1) Compliance. The SUBRECIPIENT shall comply with current HUD and CITY policies concerning the procurement of equipment, goods, and services, and shall maintain inventory records of all non -expendable personal property as defined by such policy as may be procured with funds provided herein. The SUBRECIPIENT shall report to the CITY all Program assets (unexpended Program income, property, equipment, etc.), and upon the CITY'S request, such assets shall revert to the CITY upon termination of this AGREEMENT. (2) Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized cost rate negotiated between the SUBRECIPIENT and the Federal government, or, if no cost rate exists, the de minims indirect cost rate as defined in 2 CFR 200.414(b) Indirect (F & A) costs shall be used. For this agreement, the de minims indirect cost of 10% will apply. (3) Use and Reversion of Assets. The use and disposition of equipment under this AGREEMENT shall be in compliance with the requirements of 2 CFR Part 200. (4) Pursuant to the CARES Act, SUBRECIPIENT may deviate from applicable procurement standards when using these funds to procure goods and services to prevent, prepare for, and respond to cownavirus, notwithstanding 24 CPR 576.407(f) and 2 CFR 200,317-200.326, C. Reporting Reporting requirements must conform to the policies and procedures as established by the CITY and 24 CFR § 576.500, The SUBRECIPIENT shall submit to the CITY, on or before the 15s' day of October, January, April, and July, as part of the Quarterly Report: (1) Payment Request. An original request for reimbursement and true copies of invoices, receipts, agreements, or other documentation supporting and evidencing how the ESG-CV Funds have been expended during the applicable quarter. 14 (2) Quarterly Activities and written cumulative (year-to-date) reports of activities, Program accomplishments, new Program information, and up-to-date Program statistics on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the CITY. (3) Any other such reports as the CITY (or HUD) shall reasonably require and/or request, including but not limited to the following information: monthly records of all ethnic and racial statistics of persons and families benefited by the SUBRECIPIENT in the performance of its obligations trader this AGREEMENT. D. Record Keeninu Sufficient records must be established and maintained to enable the CITY and HUD to determine whether the ESG-CV requirements are being met. Record keeping requirements must conform to the policies and procedures as established by the CITY. All accounting records, reports, all evidence pertaining to costs, expenses, and ESG-CV Funds of the SUBRECIPIENT, and all documents related to this AGREEMENT shall be maintained and kept available at the SUBRECIPIENT'S office or place of business for the duration of the AGREEMENT and thereafter for five (5) years post -completion of an audit in conformity with the ESG-CV requirements, except as hereinafter provided relating to retention of any records or documentation existing, created, or maintained in compliance with Lead -based Paint regulations, which likely require longer retention as outlined below. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this AGREEMENT, or (b) costs and expenses of this AGREEMENT to which the CITY or any other governmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or exceptions. All said records must be retained for the greater of the aforementioned duration or the periods specified in 24 CFR 576.500(y). All records relating to, or created or maintained in compliance with, the Lead -Based Paint regulations shall be retained and maintained by the SUBRECIPIENT indefinitely, including without. limitation, all inspection report(s), disclosure statement(s), and clearance report(s). Copies made by microfilming, photocopying, or similar methods may be substituted for the original records. The CITY, HUD and auditors shall have the right to access all the SUBRECIPIENT records for as long as the records are, retained by the "RECIPIENT. In the event the SUBRECIPIENT does not make the above -referenced documents available within the City of Santa Ana, California, the SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by the CITY in conducting any audit at the location where said records and books of account are maintained. The SUBRECIPIENT agrees to meet the requirements set forth in 24 CFR § 576.500. E. Homeless Manaeement Information Systems (HMIS) (1) Generally, The SUBRECIPIENT must ensure that data on all persons served and all activities assisted under ESG-CV are entered into the applicable eommumity-wide HMIS in the area in which those persons and activities are located, or with the express knowledge and written 15 consent of the CITY, a comparable database, in accordance with HUD's standards on participation, data collection, and reporting under a local HMIS. (2) HMIS Agency Agreement. The SUBRECIPIENT shall have an agreement in place with the HMIS lead agency to participate in the regionally HMIS system. A copy of the SUBRECIPIENTS agreement with the HMIS lead agency shall be attached to this agreement as Exhibit F. In the case of Domestic Violence service providers or other agencies prohibited from entering data into HMIS, documentation from the HMIS lead agency certifying that the SUBRECIPIENT is using a comparable database shall be attached to this agreement as Exhibit E. (3) HMIS Interagency Data Sharing Agreement, The SUBRECIPIENT shall enter into an Interagency Data Sharing Agreement with the HMIS Lead Agency where the SUBRECIPIENT agrees to share HMIS data with other ESG-CV flinded agencies regarding clients that are served in ESG.CV funded programs, unless prohibited by law. A copy of such agreement shall be attached as Exhibit F-1. (A.) The SUBRECIPIENT agrees to provide 2-1-1 Orange County with all required data needed to complete data analysis regarding project performance, data timeliness, or data quality. F. Audit Report Requirements The SUBRECIPIENT agrees that if the SUBRECIPIENT expends Seven hundred Fifty Thousand Dollars ($750,000.00) or more in federal funds, the SUBRECIPIENT shall have an annual audit conducted by a certified public accountant in accordance with the standards as set forth and published by the United States Office of Management and Budget (2 CFR 200.501a). The SUBRECIPIENT shall provide the CITY with a copy of said audit by April 1 of the year following the Program year in which this AGREEMENT is executed. Further, the SUBRECIPIENT shall comply and/or cause compliance with audit report(s) required by applicable provisions of the Lead - Based Paint Regulations as fiuther detailed below. VIII. EVALUATION AND MONITORING A. Generallv The CITY will monitor the performance of the SUBRECIPIENT against goals and performance standards as required herein. The SUBRECIPIENT shall provide the CITY all necessary reporting information as required by the CITY in the administration and review of the Program, Substandard performance as determined by the CITY will constitute noncompliance with this AGREEMENT. If action to correct such substandard performance is not taken by the SUBRECIPIENT within a reasonable period of time after being notified by the CITY; contract suspension or termination procedures will be initiated. 16 B• Access to Records The SUBRECIPIENT gives the CITY and HUD, including their authorized representative, access to and the right to examine all records, books, papers, items, emails, and documents, both physical and electronic, relating to the Program, C. Audi The CITY shall have the right to audit and monitor any Program income as a result of an ESG- CV activity. Upon request by the CITY and for audit purposes, the SUBRECIPIENT further agrees to provide all files, records, and documents pertaining to related activities and olientele demographic data. IX. LIABILITY A. Generally Each party to this AGREEMENT acknowledges that it will be liable for its own negligent acts or negligent omissions by or through itself, its employees, agents, and subcontractors, Each party farther agrees to defend itself and themselves, and to pay any judgments and costs arising out of such negligent acts or omissions, and nothing in this AGREEMENT shall impute or transfer any such liability from one to the other. In other words, the SUBRECIPIENT agrees to be fully responsible for its negligent acts or omissions, or any intentional tortuous acts which result in claims or suits against the CITY, and agrees to be liable for any damages proximately caused by said acts or omissions, Nothing herein shall be construed as consent by a State or CITY agency or subdivision to be, sued by third parties in any matter arising out of any contract, and nothing herein is intended to serve as a waiver of sovereign immunity where sovereign immunity applies. B. CITY not Liable for Funds The SUBRECIPIENT further acknowledges that the source of the ESG-CV Funds is a federal pass -through grant to the SUBRECIPIENT. The CITY shall have no obligation to advance or pay the SUBRECIPIENT with any funds other than the ESG-CV Funds the CITY receives from HUD. C. Hold Harmlcss The SUBRECIPIENT shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the CITY, and shall defend, indemnify and save harmloss the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and attorney fees/expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of the SUBRECIPIENT, its officers, directors, employees, agents, subcontractors, and suppliers arising out of the SUBRECIPIENT's performance of this AGREEMENT. 17 X. ENVIRONMENTAL CONDITIONS A, Generallv ESG-CV activities are subject to environmental review by HUD under the environmental regulations in 24 CFR 50. The SUBRECIPIENT, or any contractor of the SUBRECIPIENT, may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an'enviromnental review under 24 CFR part 50 and the recipient has received MOD approval of the property. The SUBRECIPIENT agrees to comply with all applicable environmental requirements insofar as they apply to the performance of this AGREEMENT, including but not limited to the Clean Air Act, the Federal Water Pollution Control Act and the Fhiod Disaster Protection Act. If applicable, the SUBRECIPIENT also shall comply with the Historic Preservation requirements of National Historic Preservation Act of 1966. B. Lead -based paint remediation and disclosure The Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead - Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851--4856), and implementing regulations in 24 CFR part 35, subparts A, B, H, J, K, M, and R apply to all shelters assisted under ESG program and all housing occupied by Program participants that were built before 1978. C. Assignment of Responsibilities By this AGREEMENT, the SUBRECIPIFNT will accept assignment from the CITY of all responsibilities set forth in Subpart K of 24 CFR 35, D. Compliance with Subpart K The purpose of Subpart K is to establish procedures to eliminate as far as practicable lead -based paint ("LBP") hazards in a residential property that receives Federal assistance under certain HUD programs for acquisition, leasing, support services, or operation. in connection with the grant funds under this AGREEMENT, the CITY requires that the SUBRECIPIENT comply and show evidence of compliance with, all applicable subparts of 24 CFR 35, and especially, Subpart K ("LBP Regs"). The SUBRECIPIENT shall conduct the following activities for the dwelling unit, common areas servicing the dwelling unit, and the exterior surfaces of the building in which the dwelling unit is located: (1) A visual assessment of all painted surfaces in order to identify deteriorated paint; (2) Paint stabilization of each deteriorated paint surface, and clearance, in accordance with §§ 35.1330(a) and (b), before occupancy of a vacant dwelling nut or, where a unit is occupied, immediately after receipt of Federal assistance; and 18 (3) Ongoing lead -based paint maintenance activities into regular building operations, in accordance with § 35,1355(a), if the dwelling unit has a continuing, active financial relationship with a Federal housing assistance program, except that mortgage insurance or loan guarantees are not considered to constitute an active programmatic relationship for the purposes of this part, (4) And, notice to occupants in accordance with §§ 35.125(b)(1) and (c), describing the results of the clearance examination. E. Notification of LBP Hazard The SUBRECIPIENT shall provide to all occupants of housing: (1) In accordance with Section 35,130 of the LBP Regs - the LBP hazard information pamphlet. The pamphlet shall be the EPA/I-=/Consumcr Product Safety Commission lead hazard information pamphlet or an EPA -approved equivalent. The current form and version of the pamphlet can be found at: http://www.h ud.gov/offices/lead/I i bra ry/enforcement/fs-disci.pdf (2) In accordance with 24 CPR 35, Subpart A, all available information and knowledge regarding the presence of LBP and LBP hazards prior to leasing a housing unit. (3) In accordance with 24 CFR 35, Subpart A, notification in writing of the results of the presumption of LBP and/or LBP hazards, results of any lead hazard evaluation, and any lead hazard reduction work. F. LBP Information Sunnuary For purposes of information only and in no respect intended to be a representation or warranty of the provisions of the LBP Regulations, the CITY has caused to be prepared an information summary relating to the LBP Regulations and Application to dwelling units that may be occupied by recipients of services and/or funding from the SUBRECrPIENT under this AGREEMENT, CITY staff will cooperate with and be available to the SUBRECIPIENT to assist in implementation of compliance with the LBP Regs as to residential dwelling units to be assisted by the SUBRECIPIENT. The parties acknowledge and agree the CITY shall not be liable or responsible for the accuracy of such summary, and the SUBRECIPENT is directed to the LBP Regulations and implementing guidance published and provided by Hill) relating to compliance with such LBP Regulations, G. Exemption Section 35.115(a) provides exemptions from Subparts B through R. For example, lead -based paint requirements do not apply to housing assistance if the assistance lasts less than one hundred (100) days, 19 XI. CONFLICTS OF INTEREST The SUBRECIPIENT shall comply with 2 CFR 200.112 with respect to the use of Program funds to procure services, equipment, supplies, or other property. With respect to all other decisions involving the use of Program funds, the following restriction shall apply: No person who is an employee, agent, consultant, officer, or elected or appointed official of the SUBRECIPIENT and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds there under, either for himself or herself, or for those with who he or she has family or business ties, during his or her tenure or for one (1) year thereafter. The SUBRECIPIENT agrees to abide by the ESG-CV Program's Conflict of Interest provisions as expressly detailed in 24 CFR § 576.404 regarding Organizational Conflicts of Interest and Personal Conflicts of Interest. All contractors of the SUBRECIPIENT must comply with the same requirements that apply to the SUBRECIPIENT under this section. XII. ASSIGNABILITY None of the duties of, or work to be performed by, the SUBRECIPIENT under this AGREEMENT shall be, subcontracted or assigned to any agency, consultant, or person without the prior written consent of the CITY, The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the CITY, No subcontract or assignment shall terminate or alter the legal obligations of the SUBRECIPIENT pursuant to this AGREEMENT. XHL EXCLUSIVITY OF AGREEMENT This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of the CITY's ESG-CV Funds by the SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such ESG-CV Funds in any manner whatsoever. Each party to this AGREEMENT acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both the CITY and the SUBRECIPIENT. XIV. AMENDMENTS OR MODIFICATIONS The SUBRECIPIENT shall not obligate, encumber, spend, or otherwise utilize Program funds for any activity or purpose not included or not in conformance with the budget as apportioned and as submitted to the CITY unless: ( 1) The SUBRECIPIENT has received explicit written approval from the CITY to undertake such actions, or 20 (2) Budget changes may be made among approved Program activities and among approved budget categories so long as the specific project activity has been approved, there is no change to the total grant amount, and the changes to the budget are documented. Any Program modification request by the SUBRECIPIENT must be requested at least forty-five (45) days prior to the end of the term of this AGREEMENT. No modification to this AGREEMENT shall be binding by either party unless in writing and signed by both parties, In the event that the CITY approves any amendment to the fanding allocation, the SUBRECIPIENT shall be notified in writing and such notification shall constitute an official amendment, The CITY may, at its discretion and upon provision of proper notice to the SUBRECIPIENT, amend this AGREEMENT to conform with changes in Federal, State, and/or the CITY laws, regulations, guidelines, directives, and objectives. Such amendments shall be incorporated by written amendment as a part of this AGREEMENT. XV. VIOLATION OF TERMS AND CONDITIONS A. Termination If, due to any cause, the SUBRECIPIENT fails to comply with the terms, conditions or requirements of this AGREEMENT, or any prior AGREEMENT whereby ESG-CV funds were received.by the SUBRECIPIENT, whether stated in a Federal statute or regulation, an assurance, a State plan or application, a notice of award, or elsewhere, the CITY may terminate or suspend this AGREEMENT in accordance with 2 CFR 200,339 and in accordance with 2 CFR 200.340 by giving written notice, and the CITY may request in writing that all or some of the grant funds be returned even if the SUBRECIPIENT has expended the funds. If the SUBRECIPMNT reports inaccurately, or if on audit there is a disallowance of certain expenditures, the SUBRECIPIENT agrees to remedy the acts or omissions causing the disallowance and repay the CITY all amounts spent in violation thereof. If the SUBRECIPIENT engaged in fraudulent activity to obtain and/or justify expenditure of the ESG-CV funds granted hereunder, the SUBRECIPIENT shall be required to reimburse the CITY of all such finds that were obtained and/or spent under fraudulent circumstances, and the CITY reserves the right to take other remedies that may be legally available. The SUBRECIPIENT agrees to return all finds as requested by the CITY under this section within thirty (30) days of receipt of the written request. Any objections regarding terminations or suspensions shall be made by the SUBRECIPIENT in writing and mailed to the CITY pursuant to the above NOTICES section. XVI. CLOSE-OUT The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR 200.343, including the following: 21 I . SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award; 2. Unless the CITY authorizes an extension, SUBRECE?IENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award; 3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMG Circular A-129 and 2 CFR 200.345); 4. SUBRECIPIENT must account for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR 200.310-200,316 and 200.329; and, 5, The CITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports. XVH. VALIDITY AND SEVERABILII Y The invalidity in whole or in part of any provision of this ARGREEMENT shall not void or affect the validity of any other provision of this AGREEMENT. Whenever possible, each provision of this AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT, XVIII. LAWS GOVERNING THIS AGREEMENT This AGREEMENT shall be governed by and construed in accordance with the taws of the State of California, and all applicable federal laws and regulations, XIX. WAIVER No delay or omission by the CITY hereto to exercise any right or power accruing upon any noncompliance or default by the SUBRECIPIENT with respect to any of the terms of this AGREEMENT shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition, or agreement herein contained. 22 XX. AGREEMENT DOCUMENT, EXHIBITS, AND ATTACHMENTS All of the attachments and exhibits attached to this AGREEMENT are deemed incorporated by reference. This document may be executed in three (3) counterparts, each of which shall be deemed to be an original. Each undersigned represents and warrants that its signature hereiribelow has the power, authority and right to bind their respective parties to each of the terms of this AGREEMENT, and shall indemnify the CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to the CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. (Signatures on following page) 23 A-2020-181-06 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA CARVALHO City .�}t� By: R HODGE Assistan City Attorney RECOMMENDED FOR APPROVAL: ��-NA� STEVEN A. MENDOZA Executive Director Community Development Agency 24 CITY OF SAN7rA AINA a municipal corporation KRISTINE RIDGE City Manager The Salvation Army, a California corporation SUBREECIPIENT `\J: O •.JJ� By: TER UGHES The Salvation try s SECRETARY Tar ID: 94-1156347 DUNS #:074629460 Sl IBRECIPIENT: By: The Salvation Arnry's Divisional Secretary Orange County Tax ID: 94-1156347 DUNS #074629460 -1 Exhibit Ai ,Page 1 of 1; City of Santa Ana Scope of Work Name of Organization The Salvation Army Name of Funded Program SAVES Program Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the funded program, named above, during the 18-month contract period. 750 Persons 11. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 18-month contract Period. 777750 , .750 Persons Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 18•month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable SMOG a. �,;v .aw i; 51.1 ariv vu,IvuuvLl,I"l,l uy Y/ V1.44Vit/ylalllvVlll, plVVnd C' d,[IYJISUG. ua Ion prcyes.un ena e:'Eachresident Will e screened to ensure eligibility requirements are met and' `s messed for case managbment services for those that;heed more intense services to; remain housed : ase Managers.will provide housing -focused case hib.gbgemenf that will include an (ti tial assessment;'< `> atermination of fi.nancial'assistance needed;.establish goals.and:a plan for housing stabilization aft will work with each landlord to:provide housing stabilization for 'each tenant and: if housing; relocation rVlees, are deemed appropriate and are des.iCed staff Will additionally help with housing search, incldding`. sistai ce witk.applications and landlord negotiations, :and targeted financial assistance to hel.p.wlth location (including moving costs, security deposlts, dtilityassistanee, rerjtel appliCatian fees;; nd last onfh's rent) d (r goal is :to ensure zero evictions for -Santa Ana renters impacted_iiy the pandemic Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 18-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter) FY 20-21: Quarter 3: January 4 - March 31 t` 50 Persons FY 20-21: Quarter 4: April 1 -June 30 220 FY 21-22: Quarter 1: July 1 - September 30 125 FY 21-22: Quarter 2: October 1 - December 31 150 FY 21-22: Quarter 3: January 4 - March 31 150 FY 21-22: Quarter 4: April 1 -June 30 .... '. 55 Schedule of Invoicing Estimate the amount of grant funds to be FY 20-21: Quarter 3: January 4 - March 3 FY 20-21: Quarter 4: April 1 -June 30 FY 21-22: Quarter 1: July 1 - September: FY 21-22: Quarter 2: October 1 - Decemb FY 21-22: Quarter 3: January 4 - March 3 FY21.22: Quarter 4: April 1 -June 30 77�Total unduplicated Santa Ana Residents to be served. Exhibit A Page 1 of 1 contract period on a quarterly basis. Total Grant ,Exhibit B' gage 1 Of 2 ESG Final Budget Organization Name The Salvation Amy Program Name SAVES Program 18 Months' Expenditures category Expenses Funded liSanta Ana Expenses Funded b Other Sources I Total Program I Budget Total Organizational Budget Housing Relocation and Stabilization Services Program Staff Salaries 1 $ 779,008 $ 779008 Program Staff Fringe Benefits $ 336597 $ 335.597 Staff Cell Phone Usage $ 8,100 $ 8,100 Transportation $ 9,000 $ 9,00o StaffTrairing $ 5,000 $ 5,000 Supplies (PPE, gen'I office: paper, ink, coffee, etc) $ 18,000 $ 18.000 Sub -reel lentagreement: Mediationi $ 09,000 $ 99,000 $ Direct Assistance Rent (Current, Future, Arrears, Last Month's Rent) $ 3,660,000 $ 3,660.000 $ 4,880.000 760 persons asserted; per person estimate Client Utilities (Payments, De oslls $ 225,000 $ 225,000 $ 300.000 Not actual pp; prorated to 750 people $ 42.667 Not actual pp; prorated to 750 people $ 94.667 Not actual pp; prorated to 750 people $ 8,667 Not actual pi created to 750 people Moving Costs $ 32,000 $ 32,000 Security Deposits $ 71.000 $ 71,000 Credit Repair $ 6500 $ 6.600 $ Other Assistance HMIS License Fees $ 1250 $ 1,250 Remaining In contract $ 0.00 Direct &Other $ 4,036.672 Housing Relocation & Stabilization $ 1,263.705 Adminl0%o(HR&S $ 125,370 Total $ 5,415,747 Landlord Incentives $ 22,922 $ 22.922 Facility Use 'up to' 1 $ 18,000 $ 18000 Indirect Indirscl Cost to%of HR&8 $ 125370.47 $ 125,370 Total $5,416,747 $0.00 $5,416.747.00 $63,246,875.00 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (total Funds for Program must equal Total Pro in Budget above Funding SourcelDalall I Amount Santa Ana ESG-CV Funds - $ 5.514,747 Less reduction to fund sub-recl ienl a reemenl vqm OC-211 $ 99 OOD Total Funds for the ProgramI $ 5,416,747 Exhibit B Page 1 of 2 (Exhibit B` Page 2 of 2) ESG Funded Personnel Name of Organirttion: The Salvation Army Name of Program SAVES Program Program Staff Position Title (only list funded positions) Budget Category Annual Salary Hourly Rate Approximate 9 of Hours per month serving Santa Ana Total Amount Requested over contract Senior Manager of Homeless Services (0.1 FTE EX) $ 79,165 $38.06 17.33 $ 11,874.72 SAVES Program Manager(1.0 FTE EX) $ 70,000 $33.65 173.33 $ 105,000.00 Case Managers (4 FTE) $ 183,040 $22.00 693.33 $ 259,306.67 Case Managers (1 FTE) $ 45,760 $22.00 173.33 $ 61,013.33 Admin Assistant(1 FTE) $ 41,600 $20.00 173.33 $ 58,933. 33 Intake Coordinators (2,0 FTE) $ 79,040 $19.00 346.67 $ 111,973.33 Finance Assistant (2.0 FTE) $ 83,200 $20.00 346.67 $ 117,866. 77 Program Aide (1.0 FTE) $ 37,440 $18.00 173.33 $ 53,040. 00 Total ESG Requested $ 779,008.05 Exhibit C Page 1 of 2 Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CPR Part 98, Section 98.510, Participants' responsibilities. The regulations were published as Part V11 of the May 26,1988 Federal ReLStcr (pages 1916049211), (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached) (1) The prospective recipient of federal assistance funds certifies, by submission of this proposal, tliat neither it not its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. (2) Where the prospective recipient of federal assistance funds is unable to certify to any of the statements in drs certification, such prospective participant shall attach an explanation to this proposal. TERRY HUGHES SECRETARY Name and Title of Authorized Representative APB — 1 i021 Uate EXHIBIT C Page 1 of 2 Exhibit 6 Page 2 of 2 INSTRUCTIONS FOR CERTIFICATION 1, By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into, If it is later determined that the prospective recipient of federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. 3. The prospective recipient of federal assistance fiends shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances, 4. The terns "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549, You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations, 5, The prospective recipient of federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL. 6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous, A participant may decide the method and frequency by which it determines the eligibility of its principals, Each participant may, but is not required to check the List of Parties Excluded from Procurement or Non - Procurement Programs. 8, Nothing contained in the foregoing shall be, construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment. EXHIBIT C Page 2 of 2 Exhibit D Rage 1 of 2 Certification Regarding Lobbying Certification for Contracts Grants. Loans and Cooperative A . •cements The undersigned certifies, to the best of his or her Imowledge and belief, that; (1) No Federal appropriated fiords have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contact, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or omployce of Congress, or an employee of a Member of Congress in connection with this Federal contraot, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontract, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for maldng or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The Salvation Army, a California corporation Granteo/Contactor Organization Name Santa Ana Vital Eviction Solution "SAVES" FXi3Ii3IT D Pagel oft Program Title Date Exhibit D'; Page 2 q 2+ SUBRECIPIENT warrants the following: 1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights Act of 1964 (42 U. S. C, section 2000 et seq.) and implementing regulation in 24 CFR Part 1. 2, No person in the United States shall on the ground of race, color, religion, national origin, or sex, be excluded from participation in, or be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds made available pursuant to the ACT. 3. All Iaborers and mechanics, employed by contractors or subcontractors in the performance of construction work financed in whole or in part with community development funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for which they volunteered; do not receive compensation for such services; or are paid expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise employed at any time in construction work. 4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded with community development funds, except that (a) SUBRECIPIENT does not assume CITY'S environmental responsibilities described at 24 CFR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372. EXHIBIT D Page 2 of 2 Exhibit E a Page 1 Of 3 11 OC HMIS Participating Agency Agreement Purpose The HMIS (Homeless Management Information System) Is a HUD -mandated Information technology system that is designed to capture client -level information over time, on the characteristics and service needs of homeless persons. Client data is maintained on a central server, which will contain all client Information in an encrypted state, HMIS Integrates data from all homeless service providers and organizations In the community and captures basic descriptive information on every person served. Participation in the OC HMIS allows organizations to share information with other participating organizations to create a more coordinated and effective service delivery system. The OC HMIS is the secured electronic database for Orange County and Is a valuable resource for local communities. Agreement and Understanding This Agreement authorizes this Participating Agency (Agency) to designate HMIS Users (User). A User Is a staff person entrusted to enter Protected Personal Information (PPI) into the OC HMIS, on behalf of this Agency. In order to allow a User to access the OC HMIS, a User Agreement must be signed by the User and stored electronically in the HMIS. Confidentiality and Informed Consent Confidentiality. This Agency must require all Users to abide by its organization's policies and procedures; uphold all privacy protection standards established by the OC HMIS Policies and Procedures; and comply with all relevant federal and State of California confidentiality laws and regulations that protect client records. Except where otherwise provided for by law, this Agency shall ensure that confidential client records are released with the client's written consent. Written Consent: To obtain written consent, prior to each client's assessment, each client must be informed that the client's information will be entered into an electronic database called HMIS. The terms of the Consent to Share Protected Personal Information form must also be explained to each client. Clients who agree to have their PPI entered Into the OC HMIS must sign the Consent to Share Protected Personal Information form. Verbal Consent: Verbal consent to enter PPI into the OC HMIS may be obtained during circumstances such as phone screenings, street outreach, or community access center sign -ins. Each client must be informed that their information will be entered into the HMIS database. The terms of the Consent to Share Protected Personal Information form must also be explained to each client. The client's written consent must be obtained once the client appears for their Initial assessment. Updated 8/24/1e ;Exhibit E,j Rage of 3) Client's Rights The client has a right to receive a copy of this Agency Agreement at the time of request. Each client has the right to'receive the following, no later than five (5) business days of a written request: • A correction of inaccurate or incomplete PPI • A copy of their consent form • A copy of their HMIS records • A current list of participating agencies that have access to HMIS data Data Use This Agency must protect HMIS data by ensuring that: • A link to the Privacy Notice is accessed from the Organizatlon's website. • OC HMIS is not accessible to unauthorized users • OC HMIS is only accessed by computers approved by the Organization • HMIS Users are trained regarding user responsibilities and conduct • HMIS Users sign and comply with the OC HMIS User Agreement • HMIS Users forward a copy of a client's Revocation of Consent to the HMIS System Administrator, 2-1- 1 Orange County (2110C), within 24 hours of receipt Responsibilities This Agency is responsible to ensure that: • The Notice Regarding Collection of Personal Information is posted at each Intake desk or comparable location • HMIS Users do not misuse the system • Clients are notified if a breach of their PPI is discovered • Any HMIS User who finds a possible security lapse on the system is obligated to immediately report it to 2110C • A signed copy of the Consent to Share Protected Personal Information Is retained for a period of seven (7) years after the PPI was created or last changed, Rights and Privileges OC HMIS data is stored in one central database and is managed by 2110C. While each agency owns their own data within the database, the Orange County Continuum of Care (CoC) may release aggregate data about its own continuum at the program, sub -regional, and regional level. Aggregate data may be released without organization permission at the discretion of the Continuum. Use of the OC HMIS is a privilege and is assigned and managed by 2110C. Updated 8/24/18 Exhibit E Page 3 of 3 Copyright The OC HMIS and other CoC-provlded software are protected by copyright and are not to be copied, except as permitted by law or by contract with the owner of the copyright, The number and distribution of copies of any CoC provided software are at the sole discretion of 2110C. Violations Any violations or suspected violations of any of the terms and conditions of this agreement, the HMIS User Agreement, and/or the HMIS Policies and Procedures, must be immediately and confidentially reported to 2110C and the Executive Director or other authorized representative of this Agency. Term This Participating Agency Agreement becomes effective on the date of final execution and shall remain in effect unless terminated pursuant to paragraph XI, Termination, below. Amendment and Termination • The OC CoC reserves the right to amend this agreement by providing a 3-day notice to this Agency, + Either party has the right to terminate this agreement, with or without cause, by providing a 3-day written notice to the other party, If this agreement Is terminated, this Agency shall no longer have access to HMIS or any information therein. The CoC shall retain the right to use all client data previously entered by this Agency, subject to any restrictions requested by the client. All agencies that sign this agreement and are granted access to the OC HMIS agree to abide by OC HMIS, Policies and Procedures. The signature of the Executive Director or other authorized representative of this Agency indicates acceptance of all terms and conditions set forth In this agreement. This Agreement is executed between the CoC and the Participating Organization, Upon final execution, this Agency will be given access to the OC HMIS. Agency Name The Salvation Army Executive Director/Authorized Representative Name (Print) TERRY HUGHES __RETARY _--� Executive (Wet sign Date AR � Representative Signature DO NOT WRITE IN THIS SECTION — 2110C USE ONLY HMISSystem Administrator Name (Print) HMIS System Administrator Signature ( Wet signature only) Date Updated 8/24/M 3 Exhibit F-1 ;Page 1 of 2, Orange County CoC Inter -Agency Data Sharing Memorandum of Agreement The Salvation Army — agency agrees to share client data among participating agencies via the OC HMIS (Orange County Homeless Management Information System) for the purposes outlined below. Each participating agency must complete and comply with the Agency Agreement. Each individual HMIS user must complete and comply with the HMIS User Agreement. This document is available on the OCHMIS website. Uses of HMIS Data: • Coordinate housing services for families and Individuals experiencing homelessness or facing a housing crisis in Orange County o Understand the extent and the nature of homelessness in Orange County • Evaluate performance and progress toward community benchmarks • Improve the programs and services available to Orange County residents experiencing homelessness or a housing crisis • Improve access to services for all Orange County homeless and at -risk populations • Reduce inefficiencies and duplication of services within our community • Ensure that services are targeted to those most in need, including "hard to serve" populations • Ensure that clients receive the amount and type of services that "best fits" their needs and preferences • Pursue additional resources for ending homelessness • 'Advocate for policies and legislation that will support efforts to end homelessness in Orange County Client Protection: • Informed consent must be given by clients in order for their identifying Information to be shared among agencies in the OC HMIS (see Orange County HMIS participating agencies on OCHMIS.org), If the client does not give consent, their Identifying information can still be entered into HMIS, but the record should only be visible to the agency entering the data, • All agencies participating in HMIS must sign this agreement, The client has the right to see a current list of the OC HMIS participating agencies, As part of the informed consent process, clients must be informed that additional agencies may Join the OC HMIS at any time and will have access to their information, • HMIS Users will maintain HMIS data in such a way as to protect against revealing the identity of clients to unauthorized agencies, individuals, or entities. Last Updated:8/28/2018 Exhibit F-1 Page 2 of 2 • Clients may not be denied services based on their choice to withhold their consent, Each party to this memorandum of agreement shall defend, Indemnify, and hold all other parties harmless from any and all claims arising out of that party's negligent performance of this agreement, Any loss or liability to third parties resulting from negligent acts, errors, or omissions of an OC HMIS user while acting within the scope of their authority under this Agreement shall be borne by that user exclusively. Agreed to and signed by the following agency representative (Executive Director or equivalent only): Printed Name : TERRY HUGHES SECRETARY Agency Name: The Saly tion Army Signatu Last Updated:8/28/2018 EXHIBIT G Q � wkD.DP a `^ U.S. DEPARTMENT Or HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-7000 .4` DV�M DEVk�D� ASSISTANT SECRETARY FOR COMMUNITY PLANNINO AND DEVELOPMENT June 9, 2020 The Honorable Miguel A. Pulido Mayor of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701-4058 Dear Mayor Pulido: I am pleased to inform you of the second allocation of Emergency Solutions Grants (ESG) Program funds HUD is awarding to yourjurisdiction in the amount of $11,598,442, as authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136. These special ESG-CV funds are to be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19) among individuals and families who are homeless or receiving homeless assistance; and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of CO VID-19. President Trump signed the CARES Act on March 27, 2020 to help the Nation respond to the eoronavi us outbreak. The CARES Act made available an additional $4 billion in ESG-CV funds to supplement the Fiscal Year (FY) 2020 ESG funding provided under the Further Consolidated Appropriations Act, 2020 (Public Law 116-94), Of this amount; the Department previously allocated $1 billion for ESG-CV grants based on theFY 2020 ESG formula and set aside $40 million for technical assistance. An additional $2.96 billion in funding for ESG-CV grants is now being allocated directly to States or units of local government by a separate formula developed by the Secretary. The formula approved by the Secretary includes variables that quantify the population currently experiencing and at risk of homelessness, including: • Total Homeless Population • Unsheltered Homeless Population • Total Very Low Income (VLI) Renters • VLI Renters that are Overcrowded or without a Kitchen or Plumbing The variables were further weighted to adjust for fair market rents. HUD's formula methodology for this second allocation can be found at https://www.litid.gov/sites/ctfiles/CPD/doctimetits/ESGPCARES Act Round 2 Allocation Metho doloev revndf vnmhud.gov espanol.hud.guv 2 As with the first allocation, this second allocation of ESG-CV funds is subject to the following flexibilities and conditions provided by the CARES Act: • The funds may be used to cover or reimburse allowable costs incurred by a State or locality before the award of funding (including prior to the signing of the CARES Act) to prevent, prepare for; and respond to COVID-19; • The funds are not subject to the spending cap on emergency shelter and outreach under 24 CFR 576 1 00(b)(1); • Up to 10 percent of funds may be used for administrative costs, as opposed to 7.5 percent as provided by 24 CFR 576.108(a); • The funds are exempt from the ESG match requirements, including 24 CFR 576.201; • The funds are not subj ect to the consultation and citizen participation requirements that otherwise apply to the Emergency Solutions Grants, however each recipient must publish how its allocation has and will be used, at a minimum, on the Internet at the appropriate Government web site or through other electronic media; • The funds may be used to provide homelessness prevention assistance (as authorized under 24 CFR 576.103 or subsequent MUD notices) to any individual or family who does not have income higher than HUD's Very Low -Income Limit for the area and meets the criteria in paragraphs (1)(ii) and (1)(iii) of the "at risk of homelessness" definition in 24 CFR 576.3; • That recipients may deviate from applicable procurement standards when using these funds to procure goods and services to prevent, prepare for, and respond to coronavirus, notwithstanding 24 CFR 576.407(f) and 2 CFR 200,317-200,326; • While we encourage you to offer ueannent and supportive services when necessary to assist vulnerable homeless populations, individuals and families experiencing homelessness must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services for which these funds are used, notwithstanding 24 CFR 576.401(e). In addition, the Act authorizes the Secretary to grant waivers of and specify alternative requirements for statutes and regulations the Secretary administers in connection with the use of ESG funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment). These waivers and alternative requirements can be issued when necessary to expedite and facilitate the use of funds to prevent, prepare for, and respond to coronavirus. HUD has made available the following waivers that are applicable to ESG-CV funding: + CPD Memo Availability of Additional Waivers for CPD Grant Programs to Prevent the Spread of COVID-19 andMfiigate Economic Impacts Caused by COVID-19 (5/22/2020) o Waiver Applicability to ESG-CV -Made all ESG waivers provided in 3/31/2020 memo applicable to ESG-CV o Housing Stability Case Management —Original waiver (see below) is extended an additional 3 months beginning on the date of the memorandum (5/22/2020) 0 CPD Memo: Availability of Waivers of CPD Grant P.roeram and Consolidated Plan Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts Caused by COVID-19 for CoC. ESG, and HOP WA (3/31/2020) o HMIS Lead Activities - Allows any recipient to use ESG funds to pay costs of upgrading or enhancing its local HMIS to incorporate data on ESG Program participants and ESG activities related to COVID-19 o Re-evaluations for Homelessness Prevention Assistance - For up to the 2-year period beginning on the date of the waiver memorandum (3/31/2020), the required frequency of re-evaluations for homelessness prevention assistance under section 576.401(b) is waived n Housing Stability Case Management - For the 2-month period beginning on the date of the waiver memorandum (3/31/2020), the required frequency of housing stability case management for homelessness prevention and rapid re -housing assistance is waived o Restriction of Rental Assistance to Units At, or Below FMR - For the 6-month period beginning on the date of the waiver memorandum (3/31/2020), the FMR restriction is waived for any individual or family receiving Rapid Re -housing or Homelessness Prevention assistance who executes a lease for a unit The Department is developing a notice that will further lay out the CARES Act provisions and other waivers and requirements to enable swift implementation of ESG-CV grants. This notice and any subsequent notices of waivers and alternative requirements will be made available on HUD's website and distributed to recipients, The Department will also support recipients with technical assistance. As your jurisdiction continues to develop its plan to use these grant funds, HUD encourages approaches that prioritize the unique needs of persons experiencing homelessness and the development of partnerships between all levels of government and the private for -profit and non- profit sectors. Your jurisdiction should coordinate with State and local health authorities as you support state or local pandemic response. HUD encourages you to share successes that may help other recipients. Like other supplemental funding, ESG-CV grants are subject to oversight and tracking. We look forward to working with you to achieve the best possible outcomes for people experiencing and at risk of homelessness and to prevent fraud, waste, and abuse. Importantly, proper reporting in the Integrated Disbursement and Information System (IDIS) and Homeless Management Information Systems (HMIs) is critical to ensuring recipients are complying with program requirements and policies, providing demographic and income information about the persons who benefit from funded activities, and allowing HUD to monitor recipients. Your jurisdiction's ongoing attention is essential to ensuring complete and accurate reporting of performance measurement data. All ESG recipients must ensure they maintain active Dun and Bradstreet Numbering System (DUNS) numbers in the System for Award Management (SAM) system, Entities must have an active and unexpired DUNS before execution of grant agreements to avoid delays in the obligation of funds which will delay your ability to drawdown hinds in IDIS. Recipients are required to maintain an active SAMs registration by re -activating their DUNS number annually in the SAM system for the entire drawdown period of their grants. DUNS numbers can be registered and renewed each year at the following website: https://www.sam,aov/SAMl. HUD's Office of Community Planning and Development (CPD) is looldng forward to working with your jurlsdiction to successfully meet the urgent and complex challenges faced by our counnunitics. If you or your staff have questions, please contact your local CPD Field Office Director or CPD uestionsAnswered huc• i.gov, Sincerely, A461-- John Gibbs Acting Assistant Secretary for Cormnunity Planning and Development U.S. Department of Housing and Urban Development 3/10/2021 Electronic Code of Federal Regulations (eCFR) ELECTRONIC CODE OF FEDERAL REGULATIONS �. t Title 24 - Subtitle B —> Chapter V —> Subchapter C —> Part 576 Title 24: Housing and Urban Development PART 576—EMERGENCY SOLUTIONS GRANTS PROGRAM Contents Subpart A —General Provisions §576.1 Applicability and purpose. §576.2 Definitions. §576.3 Allocation of funding. §576.100 General provisions and expenditure limits. §576.101 Street outreach component. §576.102 Emergency shelter component. §576.103 Homelessness prevention component. §576.104 Rapid re -housing assistance component. §576.105 Housing relocation and stabilization services. §576.106 Short-term and medium -term rental assistance §576.107 HMIS component. §576.108 Administrative activities. §576.109 Indirect costs. Subpart C—Award and Use of Funds §576.200 Submission requirements and grant approval. §576.201 Matching requirement. §576.202 Means of carrying out grant activities. §576.203 Obligation, expenditure, and payment requirements. •. ', §576.300 In general. §576.301 Metropolitan cities and urban counties. §576.302 States. §576.303 Territories. Subpart E—Program Requirements https:l/www.eefr.gov/rgi-bin/text-idx?node=pt24.3.576&rgn=div5 1/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) §576.400 Area -wide systems coordination requirements. §576.401 Evaluation of program participant eligibility and needs. §576.402 Terminating assistance. §576.403 Shelter and housing standards. §576.404 Conflicts of interest. §576.405 Homeless participation. §576.406 Equal participation of faith -based organizations. §576.407 Other Federal requirements. §576.408 Displacement, relocation, and acquisition. §576.409 Protection for victims of domestic violence, dating violence, sexual assault, or stalking. Subpart F—Grant Administration §576.500 Recordkeeping and reporting requirements. §576.501 Enforcement. AUTHORITY: 12 U.S.C. 1701x, 1701 x-1; 42 U.S.C. 11371 etseq., 42 U.S.C. 3535(d). SOURCE: 76 FIR 75974, Dec. 5, 2011, unless otherwise noted. t Back to Top Subpart A —General Provisions t Back to Top §576.1 Applicability and purpose. This part implements the Emergency Solutions Grants (ESG) program authorized by subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371- 11378). The program authorizes the Department of Housing and Urban Development (HUD) to make grants to States, units of general purpose local government, and territories for the rehabilitation or conversion of buildings for use as emergency shelter for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re -housing assistance. t Back to Top §576.2 Definitions. At risk of homelessness means: (1) An individual or family who: (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD; (ii) Does not have sufficient resources or support networks, e.g., family, friends, faith - based or other social networks, immediately available to prevent them from moving to an hitps://www.ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 2168 3/10/2021 Electronic Code of Federal Regulations (eCFR) emergency shelter or another place described in paragraph (1) of the "homeless" definition in this section; and (iii) Meets one of the following conditions: (A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance; (D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals; (E) Lives in a single -room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 persons reside per room, as defined by the U.S. Census Bureau; (F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or (G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan; (2) A child or youth who does not qualify as "homeless" under this section, but qualifies as "homeless" under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(m) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(m)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or (3) A child or youth who does not qualify as "homeless" under this section, but qualifies as "homeless" under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him. Consolidated plan means a plan prepared in accordance with 24 CFR part 91. An approved consolidated plan means a consolidated plan that has been approved by HUD in accordance with 24 CFR part 91. Continuum of Care means the group composed of representatives of relevant organizations, which generally includes nonprofit homeless providers; victim service providers; faith -based organizations; governments; businesses; advocates; public housing https://www.eefr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 3158 3/10/2021 Electronic Code of Federal Regulations (eCFR) agencies; school districts; social service providers; mental health agencies; hospitals; universities; affordable housing developers; law enforcement; organizations that serve homeless and formerly homeless veterans, and homeless and formerly homeless persons that are organized to plan for and provide, as necessary, a system of outreach, engagement, and assessment; emergency shelter; rapid re -housing; transitional housing; permanent housing; and prevention strategies to address the various needs of homeless persons and persons at risk of homelessness for a specific geographic area. Emergency shelter means any facility, the primary purpose of which is to provide a temporary shelter for the homeless in general or for specific populations of the homeless and which does not require occupants to sign leases or occupancy agreements. Any project funded as an emergency shelter under a Fiscal Year 2010 Emergency Solutions grant may continue to be funded under ESG. Homeless means: (1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (i) An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground; (ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or (iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution; (2) An individual or family who will imminently lose their primary nighttime residence, provided that: (i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance; (ii) No subsequent residence has been identified; and (iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith -based or other social networks, needed to obtain other permanent housing; (3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who: https://w .eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 4/58 3/1012021 Electronic Code of Federal Regulations (eCFR) (i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)) or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a); (ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance; (iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and (iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment; or (4) Any individual or family who: (i) Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life -threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual's or family's primary nighttime residence or has made the individual or family afraid to return to their primary nighttime residence; (ii) Has no other residence; and (iii) Lacks the resources or support networks, e.g., family, friends, faith -based or other social networks, to obtain other permanent housing. Homeless Management Information System (HMIS) means the information system designated by the Continuum of Care to comply with the HUD's data collection, management, and reporting standards and used to collect client -level data and data on the provision of housing and services to homeless individuals and families and persons at -risk of homelessness. Metropolitan city means a city that was classified as a metropolitan city under 42 U.S.C. 5302(a) for the fiscal year immediately preceding the fiscal year for which ESG funds are made available. This term includes the District of Columbia. Private nonprofit organization means a private nonprofit organization that is a secular or religious organization described in section 501(c) of the Internal Revenue Code of 1986 and which is exempt from taxation under subtitle A of the Code, has an accounting system and a https://www,ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 5/58 OIJ1 {'.U➢il Electronic Code of Federal Regulations (eCFR) voluntary board, and practices nondiscrimination in the provision of assistance. A private nonprofit organization does not include a governmental organization, such as a public housing agency or housing finance agency. Program income shall have the meaning provided in 2 CFR 200.80. Program income includes any amount of a security or utility deposit returned to the recipient or subrecipient. Program participant means an individual or family who is assisted under ESG program. Program year means the consolidated program year established by the recipient under 24 CFR part 91. Recipient means any State, territory, metropolitan city, or urban county, or in the case of reallocation, any unit of general purpose local government that is approved by HUD to assume financial responsibility and enters into a grant agreement with HUD to administer assistance under this part. State means each of the several States and the Commonwealth of Puerto Rico. Subrecipient means a unit of general purpose local government or private nonprofit organization to which a recipient makes available ESG funds. Territory means each of the following: the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. Unit of general purpose local government means any city, county, town, township, parish, village, or other general purpose political subdivision of a State. Urban county means a county that was classified as an urban county under 42 U.S.C. 5302(a) for the fiscal year immediately preceding the fiscal year for which ESG funds are made available. Victim service provider means a private nonprofit organization whose primary mission is to provide services to victims of domestic violence, dating violence, sexual assault, or stalking. This term includes rape crisis centers, battered women's shelters, domestic violence transitional housing programs, and other programs. (76 FIR 75974, Dec. 5, 2011, as amended at 80 FIR 75939, Dec. 7, 2015] t Back to Top §576.3 Allocation of funding. (a) Territories. HUD will set aside for allocation to the territories up to 0.2 percent, but not less than 0.1 percent, of the total amount of each appropriation under this part in any fiscal year. HUD will allocate this set -aside amount to each territory based on its proportionate share of the total population of all territories and its rate of compliance with the most recent expenditure deadline under §576.203. https://wn ,ecfr.gov/cgl-binitext-idx?node=pt24.3.576&rgn=div5 6/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (b) States, metropolitan cities, and urban counties. HUD will allocate the amounts that remain after the set -aside to territories under paragraph (a) of this section to States, metropolitan cities, and urban counties, as follows: (1) HUD will provide that the percentage of the total amount available for allocation to each State, metropolitan city, or urban county is equal to the percentage of the total amount available under section 106 of the Housing and Community Development Act of 1974 for the prior fiscal year that was allocated to that State, metropolitan city, or urban county. (2) Except as otherwise provided by law, if the amount a metropolitan city or urban county would be allocated under paragraph (b)(1) is less than 0.05 percent of the total fiscal year appropriation for ESG, that amount will be added to the allocation for the State in which the city or county is located. (c) Notification of allocation amount. HUD will notify each State, metropolitan city, urban county, and territory that is eligible to receive an allocation under this section of the amount of its allocation. t Back to Top Subpart B—Program Components and Eligible Activities t Back to Top §576.100 General provisions and expenditure limits. (a) ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, and HMIS; as well as administrative activities. The five program components and the eligible activities that may be funded under each are set forth in §576.101 through §576.107. Eligible administrative activities are set forth in §576.108. (b) The total amount of the recipient's fiscal year grant that may be used for street outreach and emergency shelter activities cannot exceed the greater of: (1) 60 percent of the recipient's fiscal year grant; or (2) The amount of Fiscal Year 2010 grant funds committed for homeless assistance activities. (c) The total amount of ESG funds that may be used for administrative activities cannot exceed 7.5 percent of the recipient's fiscal year grant. (d) Subject to the cost principles in 2 CFR part 200, subpart E, and other requirements in this part, employee compensation and other overhead costs directly related to carrying out street outreach, emergency shelter, homelessness prevention, rapid re -housing, and HMIS are eligible costs of those program components. These costs are not subject to the expenditure limit in paragraph (c) of this section. https:llwww.eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 7/56 3/10/2021 Electronic Code of Federal Regulations (eCFR) [76 FIR 75974, Dec. 5, 2011, as amended at 80 FIR 75939, Dec. 7, 2015] t Back to Top §576.101 Street outreach component. (a) Eligible costs. Subject to the expenditure limit in §576.100(b), ESG funds may be used for costs of providing essential services necessary to reach out to unsheltered homeless people; connect them with emergency shelter, housing, or critical services; and provide urgent, nonfacility-based care to unsheltered homeless people who are unwilling or unable to access emergency shelter, housing, or an appropriate health facility. For the purposes of this section, the term "unsheltered homeless people" means individuals and families who qualify as homeless under paragraph (1)(i) of the "homeless" definition under §576.2. The eligible costs and requirements for essential services consist of: (1) Engagement. The costs of activities to locate, identify, and build relationships with unsheltered homeless people and engage them for the purpose of providing immediate support, intervention, and connections with homeless assistance programs and/or mainstream social services and housing programs. These activities consist of making an initial assessment of needs and eligibility; providing crisis counseling; addressing urgent physical needs, such as providing meals, blankets, clothes, or toiletries; and actively connecting and providing information and referrals to programs targeted to homeless people and mainstream social services and housing programs, including emergency shelter, transitional housing, community -based services, permanent supportive housing, and rapid re- housing programs. Eligible costs include the cell phone costs of outreach workers during the performance of these activities. (2) Case management. The cost of assessing housing and service needs, arranging, coordinating, and monitoring the delivery of individualized services to meet the needs of the program participant. Eligible services and activities are as follows: using the centralized or coordinated assessment system as required under §576.400(d); conducting the initial evaluation required under §576.401(a), including verifying and documenting eligibility; counseling; developing, securing and coordinating services; obtaining Federal, State, and local benefits; monitoring and evaluating program participant progress; providing information and referrals to other providers; and developing an individualized housing and service plan, including planning a path to permanent housing stability. (3) Emergency health services. (i) Eligible costs are for the direct outpatient treatment of medical conditions and are provided by licensed medical professionals operating in community -based settings, including streets, parks, and other places where unsheltered homeless people are living. (ii) ESG funds may be used only for these services to the extent that other appropriate health services are inaccessible or unavailable within the area. (iii) Eligible treatment consists of assessing a program participant's health problems and developing a treatment plan; assisting program participants to understand their health needs; ht(ps:llw .ecfr.gov/egi-bin/text-idx?node=pt24.3.576&rgn=div5 8168 3/1012021 Electronic Code of Federal Regulations (eCFR) providing directly or assisting program participants to obtain appropriate emergency medical treatment; and providing medication and follow-up services. (4) Emergency mental health services. (i) Eligible costs are the direct outpatient treatment by licensed professionals of mental health conditions operating in community - based settings, including streets, parks, and other places where unsheltered people are living. (ii) ESG funds may be used only for these services to the extent that other appropriate mental health services are inaccessible or unavailable within the community. (iii) Mental health services are the application of therapeutic processes to personal, family, situational, or occupational problems in order to bring about positive resolution of the problem or improved individual or family functioning or circumstances. (iv) Eligible treatment consists of crisis interventions, the prescription of psychotropic medications, explanation about the use and management of medications, and combinations of therapeutic approaches to address multiple problems. (5) Transportation. The transportation costs of travel by outreach workers, social workers, medical professionals, or other service providers are eligible, provided that this travel takes place during the provision of services eligible under this section. The costs of transporting unsheltered people to emergency shelters or other service facilities are also eligible. These costs include the following: (i) The cost of a program participant's travel on public transportation; (ii) If service workers use their own vehicles, mileage allowance for service workers to visit program participants; (iii) The cost of purchasing or leasing a vehicle for the recipient or subrecipient in which staff transports program participants and/or staff serving program participants, and the cost of gas, insurance, taxes and maintenance for the vehicle; and (iv) The travel costs of recipient or subrecipient staff to accompany or assist program participants to use public transportation. (6) Services for special populations. ESG funds may be used to provide services for homeless youth, victim services, and services for people living with HIV/AIDS, so long as the costs of providing these services are eligible under paragraphs (a)(1) through (a)(5) of this section. The term victim services means services that assist program participants who are victims of domestic violence, dating violence, sexual assault, or stalking, including services offered by rape crisis centers and domestic violence shelters, and other organizations with a documented history of effective work concerning domestic violence, dating violence, sexual assault, or stalking. (b) Minimum period of use. The recipient or subrecipient must provide services to homeless individuals and families for at least the period during which ESG funds are https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 9/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) provided. (c) Maintenance of effort. (1) If the recipient or subrecipient is a unit of general purpose local government, its ESG funds cannot be used to replace funds the local government provided for street outreach and emergency shelter services during the immediately preceding 12-month period, unless HUD determines that the unit of general purpose local government is in a severe financial deficit. (2) Upon the recipient's request, HUD will determine whether the unit of general purpose local government is in a severe financial deficit, based on the recipient's demonstration of each of the following: (i) The average poverty rate in the unit of general purpose local government's jurisdiction was equal to or greater than 125 percent of the average national poverty rate, during the calendar year for which the most recent data are available, as determined according to information from the U.S. Census Bureau. (ii) The average per -capita income in the unit of general purpose local government's jurisdiction was less than 75 percent of the average national per -capita income, during the calendar year for which the most recent data are available, as determined according to information from the Census Bureau. (iii) The unit of general purpose local government has a current annual budget deficit that requires a reduction in funding for services for homeless people. (iv) The unit of general purpose local government has taken all reasonable steps to prevent a reduction in funding of services for homeless people. Reasonable steps may include steps to increase revenue generation, steps to maximize cost savings, or steps to reduce expenditures in areas other than services for homeless people. t Back to Top §576.102 Emergency shelter component. (a) General. Subject to the expenditure limit in §576.100(b), ESG funds may be used for costs of providing essential services to homeless families and individuals in emergency shelters, renovating buildings to be used as emergency shelter for homeless families and individuals, and operating emergency shelters. (1) Essential services. ESG funds may be used to provide essential services to individuals and families who are in an emergency shelter, as follows: (i) Case management. The cost of assessing, arranging, coordinating, and monitoring the delivery of individualized services to meet the needs of the program participant is eligible. Component services and activities consist of: (A) Using the centralized or coordinated assessment system as required under §576.400(d); https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 10158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (B) Conducting the initial evaluation required under §576.401(a), including verifying and documenting eligibility; (C) Counseling; (D) Developing, securing, and coordinating services and obtaining Federal, State, and local benefits; (E) Monitoring and evaluating program participant progress; (F) Providing information and referrals to other providers; (G) Providing ongoing risk assessment and safety planning with victims of domestic violence, dating violence, sexual assault, and stalking; and (H) Developing an individualized housing and service plan, including planning a path to permanent housing stability. (ii) Child care. The costs of child care for program participants, including providing meals and snacks, and comprehensive and coordinated sets of appropriate developmental activities, are eligible. The children must be under the age of 13, unless they are disabled. Disabled children must be under the age of 18. The child-care center must be licensed by the jurisdiction in which it operates in order for its costs to be eligible. (iii) Education services. When necessary for the program participant to obtain and maintain housing, the costs of improving knowledge and basic educational skills are eligible. Services include instruction or training in consumer education, health education, substance abuse prevention, literacy, English as a Second Language, and General Educational Development (GED). Component services or activities are screening, assessment and testing; individual or group instruction; tutoring; provision of books, supplies and instructional material; counseling; and referral to community resources. (iv) Employment assistance and job training. The costs of employment assistance and job training programs are eligible, including classroom, online, and/or computer instruction; on-the-job instruction; and services that assist individuals in securing employment, acquiring learning skills, and/or increasing earning potential. The cost of providing reasonable stipends to program participants in employment assistance and job training programs is an eligible cost. Learning skills include those skills that can be used to secure and retain a job, including the acquisition of vocational licenses and/or certificates. Services that assist individuals in securing employment consist of employment screening, assessment, or testing; structured job skills and job -seeking skills; special training and tutoring, including literacy training and prevocational training; books and instructional material; counseling or job coaching; and referral to community resources. (v) Outpatient health services. Eligible costs are for the direct outpatient treatment of medical conditions and are provided by licensed medical professionals. Emergency Solutions Grant (ESG) funds may be used only for these services to the extent that other appropriate health services are unavailable within the community. Eligible treatment consists of https:liwww.eofr.gov/ogi-bin/text-idx?node=pt24.3.576&rgn=div5 11/58 3/1012021 Electronic Code of Federal Regulations (eCFR) assessing a program participant's health problems and developing a treatment plan; assisting program participants to understand their health needs; providing directly or assisting program participants to obtain appropriate medical treatment, preventive medical care, and health maintenance services, including emergency medical services; providing medication and follow-up services; and providing preventive and noncosmetic dental care. (vi) Legal services. (A) Eligible costs are the hourly fees for legal advice and representation by attorneys licensed and in good standing with the bar association of the State in which the services are provided, and by person(s) under the supervision of the licensed attorney, regarding matters that interfere with the program participant's ability to obtain and retain housing. . (B) Emergency Solutions Grant (ESG) funds may be used only for these services to the extent that other appropriate legal services are unavailable or inaccessible within the community. (C) Eligible subject matters are child support, guardianship, paternity, emancipation, and legal separation, orders of protection and other civil remedies for victims of domestic violence, dating violence, sexual assault, and stalking, appeal of veterans and public benefit claim denials, and the resolution of outstanding criminal warrants. (D) Component services or activities may include client intake, preparation of cases for trial, provision of legal advice, representation at hearings, and counseling. (E) Fees based on the actual service performed (i.e., fee for service) are also eligible, but only if the cost would be less than the cost of hourly fees. Filing fees and other necessary court costs are also eligible. If the subrecipient is a legal services provider and performs the services itself, the eligible costs are the subrecipient's employees' salaries and other costs necessary to perform the services. (F) Legal services for immigration and citizenship matters and issues relating to mortgages are ineligible costs. Retainer fee arrangements and contingency fee arrangements are ineligible costs. (vii) Life skills training. The costs of teaching critical life management skills that may never have been learned or have been lost during the course of physical or mental illness, domestic violence, substance use, and homelessness are eligible costs. These services must be necessary to assist the program participant to function independently in the community. Component life skills training are budgeting resources, managing money, managing a household, resolving conflict, shopping for food and needed items, improving nutrition, using public transportation, and parenting. (viii) Mental health services. (A) Eligible costs are the direct outpatient treatment by licensed professionals of mental health conditions. (B) ESG funds may only be used for these services to the extent that other appropriate mental health services are unavailable or inaccessible within the community. https:liw ..ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 12158 3110/2021 Electronic Code of Federal Regulations (eCFR) (C) Mental health services are the application of therapeutic processes to personal, family, situational, or occupational problems in order to bring about positive resolution of the problem or improved individual or family functioning or circumstances. Problem areas may include family and marital relationships, parent -child problems, or symptom management. (D) Eligible treatment consists of crisis interventions; individual, family, or group therapy sessions; the prescription of psychotropic medications or explanations about the use and management of medications; and combinations of therapeutic approaches to address multiple problems. (ix) Substance abuse treatment services. (A) Eligible substance abuse treatment services are designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors and are provided by licensed or certified professionals. (B) ESG funds may only be used for these services to the extent that other appropriate substance abuse treatment services are unavailable or inaccessible within the community. (C) Eligible treatment consists of client intake and assessment, and outpatient treatment for up to 30 days. Group and individual counseling and drug testing are eligible costs. Inpatient detoxification and other inpatient drug or alcohol treatment are not eligible costs. (x) Transportation. Eligible costs consist of the transportation costs of a program participant's travel to and from medical care, employment, child care, or other eligible essential services facilities. These costs include the following: (A) The cost of a program participant's travel on public transportation; (B) If service workers use their own vehicles, mileage allowance for service workers to visit program participants; (C) The cost of purchasing or leasing a vehicle for the recipient or subrecipient in which staff transports program participants and/or staff serving program participants, and the cost of gas, insurance, taxes, and maintenance for the vehicle; and (D) The travel costs of recipient or subrecipient staff to accompany or assist program participants to use public transportation. (xi) Services for special populations. ESG funds may be used to provide services for homeless youth, victim services, and services for people living with HIV/AIDS, so long as the costs of providing these services are eligible under paragraphs (a)(1)(i) through (a)(1)(x) of this section. The term victim services means services that assist program participants who are victims of domestic violence, dating violence, sexual assault, or stalking, including services offered by rape crisis centers and domestic violence shelters, and other organizations with a documented history of effective work concerning domestic violence, dating violence, sexual assault, or stalking. (2) Renovation. Eligible costs include labor, materials, tools, and other costs for renovation (including major rehabilitation of an emergency shelter or conversion of a building https://www.eefr.govlcgi-binitext-idx?node=pt24.3.576&rgn=div5 13158 3/10/2021 Electronic Code of Federal Regulations (eCFR) into an emergency shelter). The emergency shelter must be owned by a government entity or private nonprofit organization. (3) Shelter operations. Eligible costs are the costs of maintenance (including minor or routine repairs), rent, security, fuel, equipment, insurance, utilities, food, furnishings, and supplies necessary for the operation of the emergency shelter. Where no appropriate emergency shelter is available for a homeless family or individual, eligible costs may also include a hotel or motel voucher for that family or individual. (4) Assistance required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA). Eligible costs are the costs of providing URA assistance under §576.408, including relocation payments and other assistance to persons displaced by a project assisted with ESG funds. Persons that receive URA assistance are not considered "program participants" for the purposes of this part, and relocation payments and other URA assistance are not considered "rental assistance" or "housing relocation and stabilization services" for the purposes of this part. (b) Prohibition against involuntary family separation. The age, of a child under age 18 must not be used as a basis for denying any family's admission to an emergency shelter that uses Emergency Solutions Grant (ESG) funding or services and provides shelter to families with children under age 18. (c) Minimum period of use. (1) Renovated buildings. Each building renovated with ESG funds must be maintained as a shelter for homeless individuals and families for not less than a period of 3 or 10 years, depending on the type of renovation and the value of the building. The "value of the building" is the reasonable monetary value assigned to the building, such as the value assigned by an independent real estate appraiser. The minimum use period must begin on the date the building is first occupied by a homeless individual or family after the completed renovation. A minimum period of use of 10 years, required for major rehabilitation and conversion, must be enforced by a recorded deed or use restriction. (i) Major rehabilitation. If the rehabilitation cost of an emergency shelter exceeds 75 percent of the value of the building before rehabilitation, the minimum period of use is 10 years. (ii) Conversion. If the cost to convert a building into an emergency shelter exceeds 75 percent of the value of the building after conversion, the minimum period of use is 10 years. (iii) Renovation other than major rehabilitation or conversion. In all other cases where ESG funds are used for renovation, the minimum period of use is 3 years. (2) Essential services and shelter operations. Where the recipient or subrecipient uses ESG funds solely for essential services or shelter operations, the recipient or subrecipient must provide services or shelter to homeless individuals and families at least for the period during which the ESG funds are provided. The recipient or subrecipient does not need to limit these services or shelter to a particular site or structure, so long as the site or structure serves the same type of persons originally served with the assistance (e.g., families with rhildran i inacemmnnniari vni ith riicahlari inrlivirh ialc nr %/irltimc of rinmasfir•. vinlannal nr https:/lw .ecfr.govlcgi-bin/text-idx?node=pl24.3.576&rgn=div5 14158 3/10/2021 Electronic Code of Federal Regulations (eCFR) serves homeless persons in the same area where the recipient or subrecipient originally provided the services or shelter. (d) Maintenance of effort. The maintenance of effort requirements under §576.101(c), which apply to the use of ESG funds for essential services related to street outreach, also apply for the use of such funds for essential services related to emergency shelter. Back to Top §576.103 Homelessness prevention component. ESG funds may be used to provide housing relocation and stabilization services and short- and/or medium -term rental assistance necessary to prevent an individual or family from moving into an emergency shelter or another place described in paragraph (1) of the "homeless" definition in §576.2. This assistance, referred to as homelessness prevention, may be provided to individuals and families who meet the criteria under the "at risk of homelessness" definition, or who meet the criteria in paragraph (2), (3), or (4) of the "homeless" definition in §576.2 and have an annual income below 30 percent of median family income for the area, as determined by HUD. The costs of homelessness prevention are only eligible to the extent that the assistance is necessary to help the program participant regain stability in the program participant's current permanent housing or move into other permanent housing and achieve stability in that housing. Homelessness prevention must be provided in accordance with the housing relocation and stabilization services requirements in §576.105, the short-term and medium -term rental assistance requirements in §576.106, and the written standards and procedures established under §576.400. t Back to Top §576.104 Rapid re -housing assistance component. ESG funds may be used to provide housing relocation and stabilization services and short- and/or medium -term rental assistance as necessary to help a homeless individual or family move as quickly as possible into permanent housing and achieve stability in that housing. This assistance, referred to as rapid re -housing assistance, may be provided to program participants who meet the criteria under paragraph (1) of the "homeless" definition in §576.2 or who meet the criteria under paragraph (4) of the "homeless" definition and live in an emergency shelter or other place described in paragraph (1) of the "homeless" definition. The rapid re -housing assistance must be provided in accordance with the housing relocation and stabilization services requirements in §576.105, the short- and medium -term rental assistance requirements in §576.106, and the written standards and procedures established under §576.400. t Back to Top §576.105 Housing relocation and stabilization services. (a) Financial assistance costs. Subject to the general conditions under §576.103 and §576.104, ESG funds may be used to pay housing owners, utility companies, and other third https:llw .ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 15158 3/10/2021 Electronic Code of Federal Regulations (eCFR) parties for the following costs: (1) Rental application fees. ESG funds may pay for the rental housing application fee that is charged by the owner to all applicants. (2) Security deposits. ESG funds may pay for a security deposit that is equal to no more than 2 months' rent. (3) Last month's rent. If necessary to obtain housing for a program participant, the last month's rent may be paid from ESG funds to the owner of that housing at the time the owner is paid the security deposit and the first month's rent. This assistance must not exceed one month's rent and must be included in calculating the program participant's total rental assistance, which cannot exceed 24 months during any 3-year period. (4) Utility deposits. ESG funds may pay for a standard utility deposit required by the utility company for all customers for the utilities listed in paragraph (5) of this section. (5) Utility payments. ESG funds may pay for up to 24 months of utility payments per program participant, per service, including up to 6 months of utility payments in arrears, per service. A partial payment of a utility bill counts as one month. This assistance may only be provided if the program participant or a member of the same household has an account in his or her name with a utility company or proof of responsibility to make utility payments. Eligible utility services are gas, electric, water, and sewage. No program participant shall receive more than 24 months of utility assistance within any 3-year period. (6) Moving costs. ESG funds may pay for moving costs, such as truck rental or hiring a moving company. This assistance may include payment of temporary storage fees for up to 3 months, provided that the fees are accrued after the date the program participant begins receiving assistance under paragraph (b) of this section and before the program participant moves into permanent housing. Payment of temporary storage fees in arrears is not eligible. (7) If a program participant receiving short- or medium -term rental assistance under §576.106 meets the conditions for an emergency transfer under 24 CFR 5.2005(e), ESG funds may be used to pay amounts owed for breaking a lease to effect an emergency transfer. These costs are not subject to the 24-month limit on rental assistance under §576.106. (b) Services costs. Subject to the general restrictions under §576.103 and §576.104, ESG funds may be used to pay the costs of providing the following services: (1) Housing search and placement. Services or activities necessary to assist program participants in locating, obtaining, and retaining suitable permanent housing, include the following: (i) Assessment of housing barriers, needs, and preferences; (ii) Development of an action plan for locating housing; https://www.ecfr.gov/cgi-bin/text-ldx?node=pt24.3.576&rgn=div5 16158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (iii) Housing search; (iv) Outreach to and negotiation with owners; (v) Assistance with submitting rental applications and understanding leases; (vi) Assessment of housing for compliance with Emergency Solutions Grant (ESG) requirements for habitability, lead -based paint, and rent reasonableness; (vii) Assistance with obtaining utilities and making moving arrangements; and (viii) Tenant counseling. (2) Housing stability case management. ESG funds may be used to pay cost of assessing, arranging, coordinating, and monitoring the delivery of individualized services to facilitate housing stability for program participant who resides in permanent housing or to assist a program participant in overcoming immediate barriers to obtaining housing. This assistance cannot exceed 30 days during the period the program participant is seeking permanent housing and cannot exceed 24 months during the period the program participant is living in permanent housing. Component services and activities consist of: (A) Using the centralized or coordinated assessment system as required under §576.400(d), to evaluate individuals and families applying for or receiving homelessness prevention or rapid re -housing assistance; (B) Conducting the initial evaluation required under §576.401(a), including verifying and documenting eligibility, for individuals and families applying for homelessness prevention or rapid re -housing assistance; (C) Counseling; (D) Developing, securing, and coordinating services and obtaining Federal, State, and local benefits; (E) Monitoring and evaluating program participant progress; (F) Providing information and referrals to other providers; (G) Developing an individualized housing and service plan, including planning a path to permanent housing stability; and (H) Conducting re-evaluations required under §576.401(b). (3) Mediation. ESG funds may pay for mediation between the program participant and the owner or person(s) with whom the program participant is living, provided that the mediation is necessary to prevent the program participant from losing permanent housing in which the program participant currently resides. https:iiw .eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 17158 01AIR 4110Al Electronic Code of Federal Regulations (eCFR) (4) Legal services. ESG funds may pay for legal services, as set forth in §576.102(a)(1) (vi), except that the eligible subject matters also include landlord/tenant matters, and the services must be necessary to resolve a legal problem that prohibits the program participant from obtaining permanent housing or will likely result in the program participant losing the permanent housing in which the program participant currently resides. (5) Credit repair. ESG funds may pay for credit counseling and other services necessary to assist program participants with critical skills related to household budgeting, managing money, accessing a free personal credit report, and resolving personal credit problems. This assistance does not include the payment or modification of a debt. (c) Maximum amounts and periods of assistance. The recipient may set a maximum dollar amount that a program participant may receive for each type of financial assistance under paragraph (a) of this section. The recipient may also set a maximum period for which a program participant may receive any of the types of assistance or services under this section. However, except for housing stability case management, the total period for which any program participant may receive the services under paragraph (b) of this section must not exceed 24 months during any 3-year period. The limits on the assistance under this section apply to the total assistance an individual receives, either as an individual or as part of a family. (d) Use with other subsidies. Financial assistance under paragraph (a) of this section cannot be provided to a program participant who is receiving the same type of assistance through other public sources or to a program participant who has been provided with replacement housing payments under the URA, during the period of time covered by the URA payments. (e) Housing counseling. Housing counseling, as defined in §5.100, that is funded with or provided in connection with ESG funds must be carried out in accordance with §5.111. When recipients or subrecipients provide housing services to eligible persons that are incidental to a larger set of holistic case management services, these services do not meet the definition of housing counseling, as defined in §5.100, and therefore are not required to be carried out in accordance with the certification requirements of §5.111 [76 FIR 75974, Dec. 5, 201 % as amended at 81 FIR 80808, Nov. 16, 2016; 81 FR 90659, Dec. 14, 2016] IL Back to Top §576.106 Short-term and medium -term rental assistance. (a) General provisions. Subject to the general conditions under §576.103 and §576.104, the recipient or subrecipient may provide a program participant with up to 24 months of rental assistance during any 3-year period. This assistance may be short-term rental assistance, medium -term rental assistance, payment of rental arrears, or any combination of this assistance. (1) Short-term rental assistance is assistance for up to 3 months of rent. https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 18/56 3/1012021 Electronic Code of Federal Regulations (eCFR) (2) Medium -term rental assistance is assistance for more than 3 months but not more than 24 months of rent. (3) Payment of rental arrears consists of a one-time payment for up to 6 months of rent in arrears, including any late fees on those arrears. (4) Rental assistance may be tenant -based or project -based, as set forth in paragraphs (h) and (i) of this section. (b) Discretion to set caps and conditions. Subject to the requirements of this section, the recipient may set a maximum amount or percentage of rental assistance that a program participant may receive, a maximum number of months that a program participant may receive rental assistance, or a maximum number of times that a program participant may receive rental assistance. The recipient may also require program participants to share in the costs of rent. (c) Use with other subsidies. Except for a one-time payment of rental arrears on the tenant's portion of the rental payment, rental assistance cannot be provided to a program participant who is receiving tenant -based rental assistance, or living in a housing unit receiving project -based rental assistance or operating assistance, through other public sources. Rental assistance may not be provided to a program participant who has been provided with replacement housing payments under the URA during the period of time covered by the URA payments. (d) Rent restrictions. (1) Rental assistance cannot be provided unless the rent does not exceed the Fair Market Rent established by HUD, as provided under 24 CFR part 888, and complies with HUD's standard of rent reasonableness, as established under 24 CFR 982.507. (2) For purposes of calculating rent under this section, the rent shall equal the sum of the total monthly rent for the unit, any fees required for occupancy under the lease (other than late fees and pet fees) and, if the tenant pays separately for utilities, the monthly allowance for utilities (excluding telephone) established by the public housing authority for the area in which the housing is located. (e) Rental assistance agreement. The recipient or subrecipient may make rental assistance payments only to an owner with whom the recipient or subrecipient has entered into a rental assistance agreement. The rental assistance agreement must set forth the terms under which rental assistance will be provided, including the requirements that apply under this section. The rental assistance agreement must provide that, during the term of the agreement, the owner must give the recipient or subrecipient a copy of any notice to the program participant to vacate the housing unit or any complaint used under State or local law to commence an eviction action against the program participant. Each rental assistance agreement that is executed or renewed on or after December 16, 2016 must include all protections that apply to tenants and applicants under 24 CFR part 5, subpart L, as supplemented by §576.409, except for the emergency transfer plan requirements under 24 CFR 5.2005(e) and 576.409(d). If the housing is not assisted under another "covered https:/AArwu.eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 19158 3/10/2021 Electronic Code of Federal Regulations (eCFR) housing program", as defined in 24 CFR 5.2003, the agreement may provide that the owner's obligations under 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), expire at the end of the rental assistance period. (f) Late payments. The recipient or subrecipient must make timely payments to each owner in accordance with the rental assistance agreement. The rental assistance agreement must contain the same payment due date, grace period, and late payment penalty requirements as the program participant's lease. The recipient or subrecipient is solely responsible for paying late payment penalties that it incurs with non-ESG funds. (g) Lease. Each program participant receiving rental assistance must have a legally binding, written lease for the rental unit, unless the assistance is solely for rental arrears. The lease must be between the owner and the program participant. Where the assistance is solely for rental arrears, an oral agreement may be accepted in place of a written lease, if the agreement gives the program participant an enforceable leasehold interest under state law and the agreement and rent owed are sufficiently documented by the owner's financial records, rent ledgers, or canceled checks. For program participants living in housing with project -based rental assistance under paragraph (i) of this section, the lease must have an initial term of 1 year. Each lease executed on or after December 16, 2016 must include a lease provision or incorporate a lease addendum that includes all requirements that apply to tenants, the owner or lease under 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), as supplemented by 24 CFR 576.409, including the prohibited bases for eviction and restrictions on construing lease terms under 24 CFR 5.2005(b) and (c). If the housing is not assisted under another "covered housing program," as defined in 24.CFR 5.2003, the lease provision or lease addendum may be written to expire at the end of the rental assistance period. (h) Tenant -based rental assistance. (1) A program participant who receives tenant -based rental assistance may select a housing unit in which to live and may move to another unit or building and continue to receive rental assistance, as long as the program participant continues to meet the program requirements. (2) The recipient may require that all program participants live within a particular area for the period in which the rental assistance is provided. (3) The rental assistance agreement with the owner must terminate and no further rental assistance payments under that agreement may be made if: (i) The program participant moves out of the housing unit for which the program participant has a lease; (ii) The lease terminates and is not renewed; or (iii) The program participant becomes ineligible to receive ESG rental assistance. (i) Project -based rental assistance. If the recipient or subrecipient identifies a permanent housina unit that meets ESG reauirements and becomes available before a oroaram https:llw .ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 20/58 311012021 Electronic Code of Federal Regulations (eCFR) participant is identified to lease the unit, the recipient or subrecipient may enter into a rental assistance agreement with the owner to reserve the unit and subsidize its rent in accordance with the following requirements: (1) The rental assistance agreement may cover one or more permanent housing units in the same building. Each unit covered by the rental assistance agreement ("assisted unit") may only be occupied by program participants, except as provided under paragraph (i)(4) of this section. (2) The recipient or subrecipient may pay up to 100 percent of the first month's rent, provided that a program participant signs a lease and moves into the unit before the end of the month for which the first month's rent is paid. The rent paid before a program participant moves into the unit must not exceed the rent to be charged under the program participant's lease and must be included when determining that program participant's total rental assistance. (3) The recipient or subrecipient may make monthly rental assistance payments only for each whole or partial month an assisted unit is leased to a program participant. When a program participant moves out of an assisted unit, the recipient or subrecipient may pay the next month's rent, i.e., the first month's rent for a new program participant, as provided in paragraph (i)(2) of this section. (4) The program participant's lease must not condition the term of occupancy to the provision of rental assistance payments. If the program participant is determined ineligible or reaches the maximum number of months over which rental assistance can be provided, the recipient or subrecipient must suspend or terminate the rental assistance payments for the unit. If the payments are suspended, the individual or family may remain in the assisted unit as permitted under the lease, and the recipient or subrecipient may resume payments if the individual or family again becomes eligible and needs further rental assistance. If the payments are terminated, the rental assistance may be transferred to another available unit in the same building, provided that the other unit meets all ESG requirements. (5) The rental assistance agreement must have an initial term of one year. When a new program participant moves into an assisted unit, the term of the rental assistance agreement may be extended to cover the initial term of the program participant's lease. If the program participant's lease is renewed, the rental assistance agreement may be renewed or extended, as needed, up to the maximum number of months for which the program participant remains eligible. However, under no circumstances may the recipient or subrecipient commit ESG funds to be expended beyond the expenditure deadline in §576.203 or commit funds for a future ESG grant before the grant is awarded. 0) Changes in household composition. The limits on the assistance under this section apply to the total assistance an individual receives, either as an individual or as part of a family. [76 FIR 75974, Dec. 5, 2011„ as amended at 81 FIR 80808, Nov. 16, 2016] t, Back to Top https:/An ..ecfr.gov/cgi-bin/text-idx?node=pt24,3.576&rgn=div5 21158 3/10/2021 Electronic Code of Federal Regulations (eCFR) §576.107 HMIS component. (a) Eligible costs. (1) The recipient or subrecipient may use ESG funds to pay the costs of contributing data to the HMIS designated by the Continuum of Care for the area, including the costs of: (i) Purchasing or leasing computer hardware; (ii) Purchasing software or software licenses; (iii) Purchasing or leasing equipment, including telephones, fax machines, and furniture; (iv) Obtaining technical support; (v) Leasing office space; (vi) Paying charges for electricity, gas, water, phone service, and high-speed data transmission necessary to operate or contribute data to the HMIS; (vii) Paying salaries for operating HMIS, including: (A) Completing data entry; (B) Monitoring and reviewing data quality; (C) Completing data analysis; (D) Reporting to the HMIS Lead; (F) Training staff on using the HMIS or comparable database; and (G) Implementing and complying with HMIS requirements; (viii) Paying costs of staff to travel to and attend HUD -sponsored and HUD -approved training on HMIS and programs authorized by Title IV of the McKinney-Vento Homeless Assistance Act; (ix) Paying staff travel costs to conduct intake; and (x) Paying participation fees charged by the HMIS Lead, if the recipient or subrecipient is not the HMIS Lead. The HMIS Lead is the entity designated by the Continuum of Care to operate the area's HMIS. (2) If the recipient is the HMIS lead agency, as designated by the Continuum of Care in the most recent fiscal year Continuum of Care Homeless Assistance Grants Competition, it may also use ESG funds to pay the costs of: (i) Hosting and maintaining HMIS software or data; (ii) Backina uo. recoverina. or renairina HMIS software or data: https://w .ecfr.gov/cgi-bin/text-ldx?node=pt24.3.576&rgn=div5 22/58 3/1012021 Electronic Code of Federal Regulations (eCFR) V-I __._.....0 _.r, ...V ...... _ (iii) Upgrading, customizing, and enhancing the HMIS; (iv) Integrating and warehousing data, including development of a data warehouse for use in aggregating data from subrecipients using multiple software systems; (v) Administering the system; (vi) Reporting to providers, the Continuum of Care, and HUD; and (vii) Conducting training on using the system or a comparable database, including traveling to the training. (3) If the subrecipient is a victim services provider or a legal services provider, it may use ESG funds to establish and operate a comparable database that collects client -level data over time (i.e., longitudinal data) and generates unduplicated aggregate reports based on the data. Information entered into a comparable database must not be entered directly into or provided to an HMIS. (b) General restrictions. Activities funded under this section must comply with HUD's standards on participation, data collection, and reporting under a local HMIS. ,t Back to Top §576.108 Administrative activities. (a) Eligible costs. The recipient may use up to 7.5 percent of its ESG grant for the payment of administrative costs related to the planning and execution of ESG activities. This does not include staff and overhead costs directly related to carrying out activities eligible under §576.101 through §576.107, because those costs are eligible as part of those activities. Eligible administrative costs include: (1) General management, oversight and coordination. Costs of overall program management, coordination, monitoring, and evaluation. These costs include, but are not limited to, necessary expenditures for the following: (i) Salaries, wages, and related costs of the recipient's staff, the staff of subrecipients, or other staff engaged in program administration. In charging costs to this category, the recipient may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involve program administration assignments, or the pro rata share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The recipient may use only one of these methods for each fiscal year grant. Program administration assignments include the following: (A) Preparing program budgets and schedules, and amendments to those budgets and schedules; (B) Developing systems for assuring compliance with program requirements; hUps://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 23158 3/1012021 Electronic Code of Federal Regulations (eCFR) (C) Developing interagency agreements and agreements with subrecipients and contractors to carry out program activities; (D) Monitoring program activities for progress and compliance with program requirements; (E) Preparing reports and other documents directly related to the program for submission to HUD; (F) Coordinating the resolution of audit and monitoring findings; (G) Evaluating program results against stated objectives; and (H) Managing or supervising persons whose primary responsibilities with regard to the program include such assignments as those described in paragraph (a)(1)(i)(A) through (G) of this section. (ii) Travel costs incurred for monitoring of subrecipients; (iii) Administrative services performed under third -party contracts or agreements, including general legal services, accounting services, and audit services; and (iv) Other costs for goods and services required for administration of the program, including rental or purchase of equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space. (2) Training on ESG requirements. Costs of providing training on ESG requirements and attending HUD -sponsored ESG trainings. (3) Consolidated plan. Costs of preparing and amending the ESG and homelessness - related sections of the consolidated plan in accordance with ESG requirements and 24 CFR part 91. (4) Environmental review. Costs of carrying out the environmental review responsibilities under §576.407. (b) Sharing requirement. (1) States. If the recipient is a State, the recipient must share its funds for administrative costs with its subrecipients that are units of general purpose local government. The amount shared must be reasonable under the circumstances. The recipient may share its funds for administrative costs with its subrecipients that are private nonprofit organizations. (2) Territories, metropolitan cities, and urban counties. If the recipient is a territory, metropolitan city, or urban county, the recipient may share its funds for administrative costs with its subrecipients. t Back to Top 4576.109 Indirect costs. https://www.eefr.gov/ogi-bin/text-idx?node=pt24.3.576&rgn=div5 24158 3/1012021 Electronic Code of Federal Regulations (eCFR) (a) In general. ESG grant funds may be used to pay indirect costs in accordance with 2 CFR part 200, subpart E. (b) Allocation. Indirect costs may be allocated to each eligible activity under §576.101 through §576.108, so long as that allocation is consistent with 2 CFR part 200, subpart E. (c) Expenditure limits. The indirect costs charged to an activity subject to an expenditure limit under §576.100 must be added to the direct costs charged for that activity when determining the total costs subject to the expenditure limit. [76 FR 75974, Dec. 5, 2011, as amended at 80 FR 75939, Dec. 7, 2015] t Back to Top Subpart C—Award and Use of Funds 4 Back to Top §576.200 Submission requirements and grant approval. (a) Application submission and approval. In addition to meeting the application submission requirements in 24 CFR part 5, subpart K, each State, urban county, or metropolitan city must submit and obtain HUD approval of a consolidated plan in accordance with the requirements in 24 CFR part 91, and each territory must submit and obtain HUD approval of a consolidated plan in accordance with the requirements that apply to local governments under 24 CFR part 91. As provided under 2 CFR 200.207, HUD may impose special conditions or restrictions on a grant, if the recipient is determined to be high risk. (b) Amendments. The recipient must amend its approved consolidated plan in order to make a change in its allocation priorities; make a change in its method of distributing funds; carry out an activity not previously described in the plan; or change the purpose, scope, location, or beneficiaries of an activity. The amendment must be completed and submitted to HUD in accordance with the requirements under 24 CFR 91.505. [76 FR 75974, Dec. 5, 2011, as amended at 80 FR 75939, Dec. 7, 2015] t Back to Top §576.201 Matching requirement. (a) The recipient must make matching contributions to supplement the recipient's ESG program in an amount that equals the recipient's fiscal year grant for ESG. This amount may include contributions to any project under the recipient's ESG program, including any subrecipient's ESG project, if the requirements in this section are met. The first $100,000 of a State's fiscal year grant is not required to be matched, but the benefit of this exception must pass to the state's subrecipients that are least capable of providing matching contributions. The match requirements under this section do not apply if the recipient is a territory. https://www.eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 25158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (b) To be recognized as match for ESG, each contribution must meet the requirements under 2 CFR 200.306, except that: (1) Notwithstanding 2 CFR 200.306(b)(4), matching contributions are not subject to the expenditure limits in §576.100; and (2) Notwithstanding 2 CFR 200.306(b)(5), the recipient may use funds from another Federal program as match for ESG, unless doing so would violate a specific statutory prohibition or the recipient or subrecipient counts ESG funds as match for that program. (c) The recipient may count as match the value specified in 2 CFR 200.306(d) for any building the recipient or subrecipient donates for long-term use in the recipient's ESG program, provided that depreciation on the building is not counted as match or charged to any Federal award. If a third party donates a building to the recipient or subrecipient, the recipient may count as match either depreciation of the building and fair rental charges for the land for each year the building is used for the recipient's ESG program or, if the building is donated for long-term use in the recipient's ESG program, the fair market value of the capital assets, as specified in 2 CFR 200.306(h)(2), (i), and 0). To qualify as a donation for long-term use, the donation must be evidenced by a recorded deed or use restriction that is effective for at least 10 years after the donation date. If the donated building is renovated with ESG funds, the minimum period of use under §576.102(c) may increase the period for which the building must be used in the recipient's ESG program. (d) Eligible types of matching contributions. The matching requirement may be met by one or both of the following: (1) Cash contributions. Cash expended for allowable costs, as defined in OMB Circulars A-87 (2 CFR part 225) and A-122 (2 CFR part 230), of the recipient or subrecipient. (2) Noncash contributions. The value of any real property, equipment, goods, or services contributed to the recipient's or subrecipient's ESG program, provided that if the recipient or subrecipient had to pay for them with grant funds, the costs would have been allowable. Noncash contributions may also include the purchase value of any donated building. (e) Calculating the amount of noncash contributions. (1) To determine the value of any donated material or building, or of any lease, the recipient must use a method reasonably calculated to establish the fair market value. (2) Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the recipient's or subrecipient's organization. If the recipient or subrecipient does not have employees performing similar work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor market. (3) Some noncash contributions are real property, equipment, goods, or services that, if the recipient or subrecipient had to pay for them with grant funds, the payments would have been indirect costs. Matching credit for these contributions must be given only if the recipient https://vnaia.ecfr.gov/cgi-bin/text-idx?node=pt24,3.576&rgn=div5 26158 3/10/2021 Electronic Code of Federal Regulations (eCFR) or subrecipient has established, along with its regular indirect cost rate, a special rate for allocating to individual projects or programs the value of those contributions. (f) Costs paid by program income. Costs paid by program income shall count toward meeting the recipient's matching requirements, provided the costs are eligible ESG costs that supplement the recipient's ESG program. [76 FIR 75974, Dec. 5, 2011, as amended at 80 FR 75939, Dec. 7, 2015] t Back to Top §576.202 Means of carrying out grant activities. (a) States. If the recipient is a State, the recipient may use an amount consistent with the restrictions in §576.100 and §576.108 to carry out administrative activities through its employees or procurement contracts. If the recipient is a State, and has been identified as the HMIS lead by the Continuum of Care, the State may use funds to carry out HMIS activities set forth in §576.107(a)(2). The recipient must subgrant the remaining funds in its fiscal year grant to: (1) Units of general purpose local government in the State, which may include metropolitan cities and urban counties that receive ESG funds directly from HUD; or (2) Private nonprofit organizations, provided that for emergency shelter activities the recipient obtains a certification of approval from the unit of general purpose local government for the geographic area in which those activities are to be carried out. (b) Recipients other than States; subrecipients. The recipient, if it is not a State, and all subrecipients may carry out all eligible activities through their employees, procurement contracts, or subgrants to private nonprofit organizations. If the recipient is an urban county, it may carry out activities through any of its member governments, so long as the county applies to its members the same requirements that are applicable to local government subrecipients under this part. §576.203 Obligation, expenditure, and payment requirements. (a) Obligation of funds. (1) Funds allocated to States. (i) Within 60 days from the date that HUD signs the grant agreement with the State (or grant amendment for reallocated funds), the recipient must obligate the entire grant, except the amount for its administrative costs. This requirement is met by a subgrant agreement with, or a letter of award requiring payment from the grant to, a subrecipient. (ii) Within 120 days after the date that the State obligates its funds to a unit of general purpose local government, the subrecipient must obligate all of those funds by a subgrant agreement with, or a letter of award requiring payment to, a private nonprofit organization; a hlips:/Ary ..ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 27158 3/1012021 Electronic Code of Federal Regulations (eCFR) procurement contract; or the written designation of a department within the government of the subrecipient to directly carry out an eligible activity. (2) Funds allocated to metropolitan cities, urban counties, and territories. Within 180 days after the date that HUD signs the grant agreement (or a grant amendment for reallocation of funds) with the metropolitan city, urban county, or territory, the recipient must obligate all the grant amount, except the amount for its administrative costs. This requirement is met by an agreement with, or a letter of award requiring payment to, a subrecipient; a procurement contract; or a written designation of a department within the government of the recipient to directly carry out an eligible activity. If the recipient is an urban county, this requirement may also be met with an agreement with, or letter of award requiring payment to, a member government, which has designated a department to directly carry out an eligible activity. (b) Expenditures. The recipient must draw down and expend funds from each year's grant not less than once during each quarter of the recipient's program year. All of the recipient's grant must be expended for eligible activity costs within 24 months after the date HUD signs the grant agreement with the recipient. For the purposes of this paragraph, expenditure means either an actual cash disbursement for a direct charge for a good or service or an indirect cost or the accrual of a direct charge for a good or service or an indirect cost. (c) Payments to subrecipients. The recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient's complete payment request. This requirement also applies to each subrecipient that is a unit of general purpose local government. t Back to Top Subpart D—Reallocations Back to Top §576.300 In general. (1) Funds not awarded by HUD due to failure by the recipient to submit and obtain HUD approval of a consolidated plan will be reallocated in accordance with §§576.301 through 576.303. (2) Recaptured funds will be awarded by formula. In October and April each year, HUD will determine if the amount of recaptured funds is at least 30 percent of the most recent fiscal year appropriation. If so, HUD will amend all existing grants and reallocate the funds. If the amount is less than 30 percent of the most recent fiscal year appropriation, the funds will be reallocated in conjunction with the next fiscal year's allocation of funding. i Back to Top §576.301 Metropolitan cities and urban counties. https://www.ecfr.gov/cgi-bin/text-ldx?node=pt24.3.576&rgn=div6 28/50 3/1012021 Electronic Code of Federal Regulations (eCFR) Grant funds returned by a metropolitan city or urban county will be reallocated as follows: (a) Eligible recipient. HUD will make the funds available to the State in which the city or county is located. (b) Notification of availability. HUD will promptly notify the State of the availability of the amounts to be reallocated. (c) Application requirement. Within 45 days after the date of notification, the State must submit to HUD a substantial amendment to its consolidated plan in accordance with 24 CFR part 91. (d) Restrictions that apply to reallocated amounts. The same requirements that apply to grant funds allocated under §576.3 apply to grant funds reallocated under this section, except that the State must distribute the reallocated funds: (1) To private nonprofit organizations and units of general purpose local government in the geographic area in which the metropolitan city or urban county is located; (2) If funds remain, to private nonprofit organizations and units of general purpose local government located throughout the State. t Back to Top §576.302 States. Grant funds returned by a State will be reallocated as follows: (a) Eligible recipients. HUD will make the funds available: (1) To metropolitan cities and urban counties in the State that were not allocated funds under §576.3 because the amount they would have been allocated did not meet the minimum requirement under §576.3(b)(2); (2) If funds remain, to county governments in the State other than urban counties; (3) Then, if funds remain, to metropolitan cities and urban counties in the State that were allocated funds under §576.3. (b) Notification of availability. HUD will notify eligible recipients of the availability of the funds by a notification letter or FEDERAL REGISTER notice, which will specify how the awards of funds will be made. (c) Application requirements. Within 45 days after the date of notification, the eligible recipient must submit to HUD: (1) A substantial amendment to its approved consolidated plan in accordance with 24 CFR part 91; or https://w .aefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 29/58 Electronic Code of Federal Regulations (eCFR) (2) If the eligible recipient does not have an approved consolidated plan, an abbreviated consolidated plan that meets the requirements in the FEDERAL REGISTER notice or notification letter from HUD. (d) Restrictions that apply to reallocated amounts. The same requirements that apply to grant funds allocated under §576.3 apply to grant funds reallocated under this section. t Back to Top §576.303 Territories. (a) General. Grant funds returned by a territory will be reallocated to other territories, then if funds remain, to States. (b) Allocation method. The funds will be allocated as follows: (1) For territories, the funds will be allocated among the territories in direct proportion with each territory's share of the total population of all of the eligible territories. If HUD determines that a territory failed to spend its funds in accordance with ESG requirements, then HUD may exclude the territory from the allocation of reallocation amounts under this section. (2) For States, the funds will be allocated to each State in direct proportion with each State's share of the total amount of funds allocated to States under §576.3. (c) Notification of availability. HUD will notify eligible recipients of the availability of the fund by a letter or FEDERAL REGISTER notice, which will specify how the awards of funds will be made. (d) Application requirements. Within 45 days after the date of notification, the eligible recipient must submit to HUD a substantial amendment to its consolidated plan in accordance with 24 CFR part 91. (e) Restrictions that apply to reallocated amounts. The same requirements that apply to grant funds allocated under §576.3 apply to grant funds reallocated under this section. IL Back to Top Subpart E—Program Requirements t Back to Top §576.400 Area -wide systems coordination requirements. (a) Consultation with Continuums of Care. The recipient must consult with each Continuum of Care that serves the recipient's jurisdiction in determining how to allocate ESG funds each program year; developing the performance standards for, and evaluating the outcomes of, projects and activities assisted by ESG funds; and developing funding, policies, and procedures for the administration and operation of the HMIS. https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 30/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (b) Coordination with other targeted homeless services. The recipient and its subrecipients must coordinate and integrate, to the maximum extent practicable, ESG-funded activities with other programs targeted to homeless people in the area covered by the Continuum of Care or area over which the services are coordinated to provide a strategic, community -wide system to prevent and end homelessness for that area. These programs include: (1) Shelter Plus Care Program (24 CFR part 582); (2) Supportive Housing Program (24 CFR part 583); (3) Section 8 Moderate Rehabilitation Program for Single Room Occupancy Program for Homeless Individuals (24 CFR part 882); (4) HUD —Veterans Affairs Supportive Housing (HUD-VASH) (division K, title II, Consolidated Appropriations Act, 2008, Pub. L. 110-161 (2007), 73 FIR 25026 (May 6, 2008)); (5) Education for Homeless Children and Youth Grants for State and Local Activities (title VII-B of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.)); (6) Grants for the Benefit of Homeless Individuals (section 506 of the Public Health Services Act (42 U.S.C. 290aa-5)); (7) Healthcare for the Homeless (42 CFR part 51 c); (8) Programs for Runaway and Homeless Youth (Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.)); (9) Projects for Assistance in Transition from Homelessness (part C of title V of the Public Health Service Act (42 U.S.C. 290cc-21 at seq.)); (10) Services in Supportive Housing Grants (section 520A of the Public Health Service Act); (11) Emergency Food and Shelter Program (title III of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11331 et seq.)); (12) Transitional Housing Assistance Grants for Victims of Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (section 40299 of the Violent Crime Control and Law Enforcement Act (42 U.S.C. 13975)); (13) Homeless Veterans Reintegration Program (section 5(a)(1)) of the Homeless Veterans Comprehensive Assistance Act (38 U.S.C. 2021); (14) Domiciliary Care for Homeless Veterans Program (38 U.S.C. 2043); (15) VA Homeless Providers Grant and Per Diem Program (38 CFR part 61); (16) Health Care for Homeless Veterans Program (38 U.S.C. 2031); https:l/v v ,,ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 31/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (17) Homeless Veterans Dental Program (38 U.S.C. 2062); (18) Supportive Services for Veteran Families Program (38 CFR part 62); and (19) Veteran Justice Outreach Initiative (38 U.S.C. 2031). (c) System and program coordination with mainstream resources. The recipient and its subrecipients must coordinate and integrate, to the maximum extent practicable, ESG-funded activities with mainstream housing, health, social services, employment, education, and youth programs for which families and individuals at risk of homelessness and homeless individuals and families may be eligible. Examples of these programs include: (1) Public housing programs assisted under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (24 CFR parts 905, 968, and 990); (2) Housing programs receiving tenant -based or project -based assistance under section 8 of the U.S. Housing Act of 1937 (42 U.S.C. 1437f) (respectively 24 CFR parts 982 and 983); (3) Supportive Housing for Persons with Disabilities (Section 811) (24 CFR part 891); (4) HOME Investment Partnerships Program (24 CFR part 92); (5) Temporary Assistance for Needy Families (TANF) (45 CFR parts 260-265); (6) Health Center Program (42 CFR part 51c); (7) State Children's Health Insurance Program (42 CFR part 457): (8) Head Start (45 CFR chapter XIII, subchapter B); (9) Mental Health and Substance Abuse Block Grants (45 CFR part 96); and (10) Services funded under the Workforce Investment Act (29 U.S.C. 2801 et seq.). (d) Centralized or coordinated assessment. Once the Continuum of Care has developed a centralized assessment system or a coordinated assessment system in accordance with requirements to be established by HUD, each ESG-funded program or project within the Continuum of Care's area must use that assessment system. The recipient and subrecipient must work with the Continuum of Care to ensure the screening, assessment and referral of program participants are consistent with the written standards required by paragraph (e) of this section. A victim service provider may choose not to use the Continuum of Care's centralized or coordinated assessment system. (e) Written standards for providing ESG assistance. (1) If the recipient is a metropolitan city, urban county, or territory, the recipient must have written standards for providing Emergency Solutions Grant (ESG) assistance and must consistently apply those standards for all program participants. The recipient must describe these standards in its consolidated plan. https://w .eefr.govicgi-bin/text-idx?node=pt24.3.576&rgn=div5 32158 Electronic Code of Federal Regulations (eCFR) (2) If the recipient is a state: (i) The recipient must establish and consistently apply, or require that its subrecipients establish and consistently apply, written standards for providing ESG assistance. If the written standards are established by the subrecipients, the recipient may require these written standards to be: (A) Established for each area covered by a Continuum of Care or area over which the services are coordinated and followed by each subrecipient providing assistance in that area; or (B) Established by each subrecipient and applied consistently within the subrecipient's program. (ii) Written standards developed by the state must be included in the state's Consolidated Plan. If the written standards are developed by its subrecipients, the recipient must describe its requirements for the establishment and implementation of these standards in the state's Consolidated Plan. (3) At a minimum these written standards must include: (i) Standard policies and procedures for evaluating individuals' and families' eligibility for assistance under Emergency Solutions Grant (ESG); (ii) Standards for targeting and providing essential services related to street outreach; (iii) Policies and procedures for admission, diversion, referral, and discharge by emergency shelters assisted under ESG, including standards regarding length of stay, if any, and safeguards to meet the safety and shelter needs of special populations, e.g., victims of domestic violence, dating violence, sexual assault, and stalking; and individuals and families who have the highest barriers to housing and are likely to be homeless the longest; (iv) Policies and procedures for assessing, prioritizing, and reassessing individuals' and families' needs for essential services related to emergency shelter; (v) Policies and procedures for coordination among emergency shelter providers, essential services providers, homelessness prevention, and rapid re -housing assistance providers; other homeless assistance providers; and mainstream service and housing providers (see §576.400(b) and (c) for a list of programs with which ESG-funded activities must be coordinated and integrated to the maximum extent practicable); (vi) Policies and procedures for determining and prioritizing which eligible families and individuals will receive homelessness prevention assistance and which eligible families and individuals will receive rapid re -housing assistance (these policies must include the emergency transfer priority required under §576.409); (vii) Standards for determining what percentage or amount of rent and utilities costs each program participant must pay while receiving homelessness prevention or rapid re- https:/twww.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 33158 3/10/2021 Electronic Code of Federal Regulations (eCFR) housing assistance; (viii) Standards for determining how long a particular program participant will be provided with rental assistance and whether and how the amount of that assistance will be adjusted overtime; and (ix) Standards for determining the type, amount, and duration of housing stabilization and/or relocation services to provide to a program participant, including the limits, if any, on the homelessness prevention or rapid re -housing assistance that each program participant may receive, such as the maximum amount of assistance, maximum number of months the program participant receive assistance; or the maximum number of times the program participant may receive assistance. (f) Participation in HMIS. The recipient must ensure that data on all persons served and all activities assisted under ESG are entered into the applicable community -wide HMIS in the area in which those persons and activities are located, or a comparable database, in accordance with HUD's standards on participation, data collection, and reporting under a local HMIS. If the subrecipient is a victim service provider or a legal services provider, it may use a comparable database that collects client -level data over time (i.e., longitudinal data) and generates unduplicated aggregate reports based on the data. Information entered into a comparable database must not be entered directly into or provided to an HMIS. [76 FIR 75974, Dec. 5, 2011, as amended at 81 FR 80808, Nov. 16, 2016] t. Back to Top §576.401 Evaluation of program participant eligibility and needs. (a) Evaluations. The recipient or its subrecipient must conduct an initial evaluation to determine the eligibility of each individual or family's eligibility for ESG assistance and the amount and types of assistance the individual or family needs to regain stability in permanent housing. These evaluations must be conducted in accordance with the centralized or coordinated assessment requirements set forth under §576.400(d) and the written standards established under §576.400(e). (b) Re-evaluations for homelessness prevention and rapid re -housing assistance. (1) The recipient or subrecipient must re-evaluate the program participant's eligibility and the types and amounts of assistance the program participant needs not less than once every 3 months for program participants receiving homelessness prevention assistance, and not less than once annually for program participants receiving rapid re -housing assistance. At a minimum, each re-evaluation of eligibility must establish that: (i) The program participant does not have an annual income that exceeds 30 percent of median family income for the area, as determined by HUD; and (ii) The program participant lacks sufficient resources and support networks necessary to retain housing without ESG assistance. https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 34158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (2) The recipient or subrecipient may require each program participant receiving homelessness prevention or rapid re -housing assistance to notify the recipient or subrecipient regarding changes in the program participant's income or other circumstances (e.g., changes in household composition) that affect the program participant's need for assistance under ESG. When notified of a relevant change, the recipient or subrecipient must re-evaluate the program participant's eligibility and the amount and types of assistance the program participant needs. (c) Annual income. When determining the annual income of an individual or family, the recipient or subrecipient must use the standard for calculating annual income under 24 CFR 5.609. (d) Connecting program participants to mainstream and other resources. The recipient and its subrecipients must assist each program participant, as needed, to obtain: (1) Appropriate supportive services, including assistance in obtaining permanent housing, medical health treatment, mental health treatment, counseling, supervision, and other services essential for achieving independent living; and (2) Other Federal, State, local, and private assistance available to assist the program participant in obtaining housing stability, including: (i) Medicaid (42 CFR chapter IV, subchapter C): (ii) Supplemental Nutrition Assistance Program (7 CFR parts 271-283); (iii) Women, Infants and Children (WIC) (7 CFR part 246); (iv) Federal -State Unemployment Insurance Program (20 CFR parts 601-603, 606, 609, 614-617, 625, 640, 650); (v) Social Security Disability Insurance (SSDI) (20 CFR part 404); (vi) Supplemental Security Income (SSI) (20 CFR part 416); (vii) Child and Adult Care Food Program (42 U.S.C. 1766(t) (7 CFR part 226)); (viii) Other assistance available under the programs listed in §576.400(c). (e) Housing stability case management. (1) While providing homelessness prevention or rapid re -housing assistance to a program participant, the recipient or subrecipient must: (i) Require the program participant to meet with a case manager not less than once per month to assist the program participant in ensuring long-term housing stability; and (ii) Develop a plan to assist the program participant to retain permanent housing after the ESG assistance ends, taking into account all relevant considerations, such as the program participant's current or expected income and expenses; other public or private assistance for https://www.ecfr.gov/cgi-bin/text-idx?node=pt24,3.576&rgn=dlv5 35/58 [ciilIMI it Electronic Code of Federal Regulations (eCFR) which the program participant will be eligible and likely to receive; and the relative affordability of available housing in the area. (2) The recipient or subrecipient is exempt from the requirement under paragraph (e)(1) (i) of this section if the Violence Against Women Act of 1994 (42 U.S.C. 13701 at seq.) or the Family Violence Prevention and Services Act (42 U.S.C. 10401 at seq.) prohibits that recipient or subrecipient from making its shelter or housing conditional on the participant's acceptance of services. t Back to Top §576.402 Terminating assistance. (a) In general. If a program participant violates program requirements, the recipient or subrecipient may terminate the assistance in accordance with a formal process established by the recipient or subrecipient that recognizes the rights of individuals affected. The recipient or subrecipient must exercise judgment and examine all extenuating circumstances in determining when violations warrant termination so that a program participant's assistance is terminated only in the most severe cases. (b) Program participants receiving rental assistance or housing relocation and stabilization services. To terminate rental assistance or housing relocation and stabilization services to a program participant, the required formal process, at a minimum, must consist of: (1) Written notice to the program participant containing a clear statement of the reasons for termination; (2) A review of the decision, in which the program participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and (3) Prompt written notice of the final decision to the program participant. (c) Ability to provide further assistance. Termination under this section does not bar the recipient or subrecipient from providing further assistance at a later date to the same family or individual. 'k Back to Top §576.403 Shelter and housing standards. (a) Lead -based paint remediation and disclosure. The Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations in 24 CFR part 35, subparts A, B, H, J, K, M, and R apply to all shelters assisted under ESG program and all housing occupied by program participants. https:/Agww.ecfr.gov/ogi-bin/text-idx?node=pt24.3.576&rgn=div5 36/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (b) Minimum standards for emergency shelters. Any building for which Emergency Solutions Grant (ESG) funds are used for conversion, major rehabilitation, or other renovation, must meet state or local government safety and sanitation standards, as applicable, and the following minimum safety, sanitation, and privacy standards. Any emergency shelter that receives assistance for shelter operations must also meet the following minimum safety, sanitation, and privacy standards. The recipient may also establish standards that exceed or add to these minimum standards. (1) Structure and materials. The shelter building must be structurally sound to protect residents from the elements and not pose any threat to health and safety of the residents. Any renovation (including major rehabilitation and conversion) carried out with ESG assistance must use Energy Star and WaterSense products and appliances. (2) Access. The shelter must be accessible in accordance with Section 504 of the Rehabilitation Act (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; the Fair Housing Act (42 U.S.C. 3601 at seq.) and implementing regulations of 24 CFR part 100; and Title II of the Americans with Disabilities Act (42 U.S.C. 12131 et seq.) and 28 CFR part 35; where applicable. (3) Space and security. Except where the shelter is intended for day use only, the shelter must provide each program participant in the shelter with an acceptable place to sleep and adequate space and security for themselves and their belongings. (4) Interior air quality. Each room or space within the shelter must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of residents. (5) Water supply. The shelter's water supply must be free of contamination. (6) Sanitary facilities. Each program participant in the shelter must have access to sanitary facilities that are in proper operating condition, are private, and are adequate for personal cleanliness and the disposal of human waste. (7) Thermal environment. The shelter must have any necessary heating/cooling facilities in proper operating condition. (8) Illumination and electricity. The shelter must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances in the shelter. (9) Food preparation. Food preparation areas, if any, must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner. (10) Sanitary conditions. The shelter must be maintained in a sanitary condition. (11) Fire safety. There must be at least one working smoke detector in each occupied unit of the shelter. Where possible, smoke detectors must be located near sleeping areas. The fire alarm system must be designed for hearing -impaired residents. All public areas of https:ily .ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 37/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) the shelter must have at least one working smoke detector. There must also be a second means of exiting the building in the event of fire or other emergency. (c) Minimum standards for permanent housing. The recipient or subrecipient cannot use ESG funds to help a program participant remain or move into housing that does not meet the minimum habitability standards provided in this paragraph (c). The recipient may also establish standards that exceed or add to these minimum standards. (1) Structure and materials. The structures must be structurally sound to protect residents from the elements and not pose any threat to the health and safety of the residents. (2) Space and security. Each resident must be provided adequate space and security for themselves and their belongings. Each resident must be provided an acceptable place to sleep. (3) Interior air quality. Each room or space must have a natural or mechanical means of ventilation. The interior air must be free of pollutants at a level that might threaten or harm the health of residents. (4) Water supply. The water supply must be free from contamination. (5) Sanitary facilities. Residents must have access to sufficient sanitary facilities that are in proper operating condition, are private, and are adequate for personal cleanliness and the disposal of human waste. (6) Thermal environment. The housing must have any necessary heating/cooling facilities in proper operating condition. (7) Illumination and electricity. The structure must have adequate natural or artificial illumination to permit normal indoor activities and support health and safety. There must be sufficient electrical sources to permit the safe use of electrical appliances in the structure. (8) Food preparation. All food preparation areas must contain suitable space and equipment to store, prepare, and serve food in a safe and sanitary manner. (9) Sanitary conditions. The housing must be maintained in a sanitary condition. (10) Fire safety. (i) There must be a second means of exiting the building in the event of fire or other emergency. (ii) Each unit must include at least one battery -operated or hard -wired smoke detector, in proper working condition, on each occupied level of the unit. Smoke detectors must be located, to the extent practicable, in a hallway adjacent to a bedroom. If the unit is occupied by hearing impaired persons, smoke detectors must have an alarm system designed for hearing -impaired persons in each bedroom occupied by a hearing -impaired person. (iii) The public areas of all housing must be equipped with a sufficient number, but not less than one for each area, of battery -operated or hard -wired smoke detectors. Public areas https://www,ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 38/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) include, but are not limited to, laundry rooms, community rooms, day care centers, hallways, stairwells, and other common areas. t Back to Top §576.404 Conflicts of interest. (a) Organizational conflicts of interest. The provision of any type or amount of ESG assistance may not be conditioned on an individual's or family's acceptance or occupancy of emergency shelter or housing owned by the recipient, the subrecipient, or a parent or subsidiary of the subrecipient. No subrecipient may, with respect to individuals or families occupying housing owned by the subrecipient, or any parent or subsidiary of the subrecipient; carry out the initial evaluation required under §576:401 or administer homelessness prevention assistance under §576.103. Recipients and subrecipients must also maintain written standards of conduct covering organizational conflicts of interest required under 2 CFR 200.318. (b) Individual conflicts of interest. For the procurement of goods and services, the recipient and its subrecipients must comply with 2 CFR 200.317 and 200.318. For all other transactions and activities, the following restrictions apply: (1) Conflicts prohibited. No person described in paragraph (b)(2) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted under the ESG program, or who is in a position to participate in a decision -making process or gain inside information with regard to activities assisted under the program, may obtain a financial interest or benefit from an assisted activity; have a financial interest in any contract, subcontract, or agreement with respect to an assisted activity; or have a financial interest in the proceeds derived from an assisted activity, either for him or herself or for those with whom he or she has family or business ties, during his or her tenure or during the one-year period following his or her tenure. (2) Persons covered. The conflict -of- interest provisions of paragraph (b)(1) of this section apply to any person who is an employee, agent, consultant, officer, or elected or appointed official of the recipient or its subrecipients. (3) Exceptions. Upon the written request of the recipient, HUD may grant an exception to the provisions of this subsection on a case -by -case basis, taking into account the cumulative effects of the criteria in paragraph (b)(3)(ii) of this section, provided that the recipient has satisfactorily met the threshold requirements of paragraph (b)(3)(i) of this section. (i) Threshold requirements. HUD will consider an exception only after the recipient has provided the following documentation: (A) If the recipient or subrecipient is a government, disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and https://ww ..ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 39158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (B) An opinion of the recipient's attorney that the interest for which the exception is sought would not violate state or local law. (ii) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient has satisfactorily met the threshold requirements under paragraph (b)(3)(i) of this section, HUD must conclude that the exception will serve to further the purposes of the ESG program and the effective and efficient administration of the recipient's or subrecipient's program or project, taking into account the cumulative effect of the following factors, as applicable: (A) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project that would otherwise not be available; (B) Whether an opportunity was provided for open competitive bidding or negotiation; (C) Whether the affected person has withdrawn from his or her functions, responsibilities or the decision -making process with respect to the specific activity in question; (D) Whether the interest or benefit was present before the affected person was in the position described in paragraph (b)(1) of this section; (E) Whether undue hardship results to the recipient, the subrecipient, or the person affected, when weighed against the public interest served by avoiding the prohibited conflict; and (F) Any other relevant considerations. (c) Contractors. All contractors of the recipient or subrecipient must comply with the same requirements that apply to subrecipients under this section. [76 FIR 75974, Dec. 5, 2011, as amended at 80 FIR 75939, Dec. 7, 2015] Back to Top §576.405 Homeless participation. (a) Unless the recipient is a State, the recipient must provide for the participation of not less than one homeless individual or formerly homeless individual on the board of directors or other equivalent policy -making entity of the recipient, to the extent that the entity considers and makes policies and decisions regarding any facilities, services, or other assistance that receive funding under Emergency Solutions Grant (ESG). (b) If the recipient is unable to meet requirement under paragraph (a), it must instead develop and implement a plan to consult with homeless or formerly homeless individuals in considering and making policies and decisions regarding any facilities, services, or other assistance that receive funding under Emergency Solutions Grant (ESG). The plan must be included in the annual action plan required under 24 CFR 91.220. https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 40/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (c) To the maximum extent practicable, the recipient or subrecipient must involve homeless individuals and families in constructing, renovating, maintaining, and operating facilities assisted under ESG, in providing services assisted under ESG, and in providing services for occupants of facilities assisted under ESG. This involvement may include employment or volunteer services. t Back to Top §676.406 Equal participation of faith -based organizations. The HUD program requirements in §5.109 of this title apply to the ESG program, including the requirements regarding disposition and change in use of real property by a faith -based organization. [81 FIR 19418, Apr. 4, 2016] t Back to Top . §576.407 Other Federal requirements. (a) General- The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 CFR 5.105(a) and the housing counseling requirements at 24 CFR 5.111. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701 u, and implementing regulations at 24 CFR part 75apply, except that homeless individuals have priority over other Section 3 residents in accordance with §576.405(c). (b) Affirmative outreach. The recipient or subrecipient must make known that use of the facilities, assistance, and services are available to all on a nondiscriminatory basis. If it is unlikely that the procedures that the recipient or subrecipient intends to use to make known the availability of the facilities, assistance, and services will to reach persons of any particular race, color, religion, sex, age, national origin, familial status, or disability who may qualify for those facilities and services, the recipient or subrecipient must establish additional procedures that ensure that those persons are made aware of the facilities, assistance, and services. The recipient and its subrecipients must take appropriate steps to ensure effective communication with persons with disabilities including, but not limited to, adopting procedures that will make available to interested persons information concerning the location of assistance, services, and facilities that are accessible to persons with disabilities. Consistent with Title VI and Executive Order 13166, recipients and subrecipients are also required to take reasonable steps to ensure meaningful access to programs and activities for limited English proficiency (LEP) persons. (c) Uniform requirements. The requirements of 2 CFR part 200 apply to the recipient and subrecipients, and: (1) Program income may be used as matching contributions, subject to the requirements in §576.201; https:t/ n ..eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 41158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (2) The disposition of real property for which ESG funds are used for major rehabilitation, conversion, or other renovation under §576.102 is governed by the minimum period of use requirements under §576.102(c). (d) Environmental review responsibilities. (1) Activities under this part are subject to environmental review by HUD under 24 CFR part 50. The recipient shall supply all available, relevant information necessary for HUD to perform for each property any environmental review required by 24 CFR part 50. The recipient also shall carry out mitigating measures required by HUD or select alternate eligible property. HUD may eliminate from consideration any application that would require an Environmental Impact Statement (EIS). (2) The recipient or subrecipient, or any contractor of the recipient or subrecipient, may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an environmental review under 24 CFR part 50 and the recipient has received HUD approval of the property. (e) Davis -Bacon Act. The provisions of the Davis -Bacon Act (40 U.S.C. 276a to 276a-5) do not apply to the ESG program. (f) Procurement of Recovered Materials. The recipient and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. [76 FR 75974, Dec. 5, 2011, as amended at 80 FIR 75939, Dec. 7, 2015; 81 FIR 90660, Dec. 14, 2016; 85 FIR 61568, Sept. 29, 2020] t Back to Top §576.408 Displacement, relocation, and acquisition. (a) Minimizing displacement. Consistent with the other goals and objectives of Emergency Solutions Grant (ESG), the recipient and its subrecipients must assure that they have taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of a project assisted under Emergency Solutions Grant (ESG). (b) Temporary relocation not permitted. No tenant -occupant of housing (a dwelling unit) that is converted into an emergency shelter may be required to relocate temporarily for a project assisted with ESG funds, or be required to move to another unit in the same building/complex. When a tenant moves for a project assisted with ESG funds under https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3,576&rgn=div5 42/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) conditions that trigger the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), 42 U.S.C. 4601-4655, as described in paragraph (c) of this section, the tenant should be treated as permanently displaced and offered relocation assistance and payments consistent with that paragraph. (c) Relocation assistance for displaced persons. (1) In general. A displaced person (defined in paragraph (c)(2) of this section) must be provided relocation assistance at the levels described in, and in accordance with, the URA and 49 CFR part 24. A displaced person must be advised of his or her rights under the Fair Housing Act (42 U.S.C. 3601 et seq.). Whenever possible, minority persons shall be given reasonable opportunities to relocate to comparable and suitable decent, safe, and sanitary replacement dwellings, not located in an area of minority concentration, that are within their financial means. This policy, however, does not require providing a person a larger payment than is necessary to enable a person to relocate to a comparable replacement dwelling. (See 49 CFR 24.205(c)(2)(ii)(D).) As required by Section 504 of the Rehabilitation Act (29 U.S.C. 794) and 49 CFR part 24, replacement dwellings must also contain the accessibility features needed by displaced persons with disabilities. (2) Displaced Person. (i) For purposes of paragraph (c) of this section, the term "displaced person" means any person (family, individual, business, nonprofit organization, or farm, including any corporation, partnership, or association) that moves from real property, or moves personal property from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a project assisted under the ESG program. This includes any permanent, involuntary move for an assisted project, including any permanent move from the real property that is made: (A) After the owner (or person in control of the site) issues a notice to move permanently from the property or refuses to renew an expiring lease, if the move occurs on or after: (1) The date of the submission by the recipient (or subrecipient, as applicable) of an application for assistance to HUD (or the recipient, as applicable) that is later approved and funded if the recipient (or subrecipient, as applicable) has site control as evidenced by a deed, sales contract, or option contract to acquire the property; or (11) The date on which the recipient (or subrecipient, as applicable) selects the applicable site, if the recipient (or subrecipient, as applicable) does not have site control at the time of the application, provided that the recipient (or subrecipient, as applicable) eventually obtains control over the site; (B) Before the date described in paragraph (c)(2)(i)(A) of this section, if the recipient or HUD determines that the displacement resulted directly from acquisition, rehabilitation, or demolition for the project; or (C) By a tenant -occupant of a dwelling unit and the tenant moves after execution of the agreement covering the acquisition, rehabilitation, or demolition of the property for the project. hitps://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=dlv5 43/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (ii) Notwithstanding paragraph (c)(2)(i) of this section, a person does not qualify as a. displaced person if: (A) The person has been evicted for cause based upon a serious or repeated violation of the terms and conditions of the lease or occupancy agreement; violation of applicable Federal, State or local law, or other good cause; and the recipient determines that the eviction was not undertaken for the purpose of evading the obligation to provide relocation assistance. (B) The person moved into the property after the submission of the application but, before signing a lease and commencing occupancy, was provided written notice of the project, its possible impact on the person (e.g., the person may be displaced), and the fact that the person would not qualify as a "displaced person" (or for any assistance under this section) as a result of the project; (C) The person is ineligible under 49 CFR 24.2(a)(9)(ii); or (D) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition for the project. (iii) The recipient or subrecipient may, at any time, request that HUD to determine whether a displacement is or would be covered by this rule. (3) Initiation of negotiations. For purposes of determining the type of replacement housing payment assistance to be provided to a displaced person pursuant to this section: (i) If the displacement is the direct result of privately undertaken rehabilitation, demolition, or acquisition of the real property, "initiation of negotiations" means the execution of the agreement between the recipient and the subrecipient or the agreement between the recipient (or subrecipient, as applicable) and the person owning or controlling the property; (ii) If site control is only evidenced by an option contract to acquire the property, the "initiation of negotiations" does not become effective until the execution of a written agreement that creates a legally enforceable commitment to proceed with the purchase, such as a sales contract. (d) Real property acquisition requirements. The acquisition of real property, whether funded privately or publicly, for a project assisted with Emergency Solutions Grant (ESG) funds is subject to the URA and Federal governmentwide regulations at 49 CFR part 24, subpart B. (e) Appeals. A person who disagrees with the recipient's (or subrecipient's, if applicable) determination concerning whether the person qualifies as a displaced person, or the amount of relocation assistance for which the person may be eligible, may file a written appeal of that determination with the recipient under 49 CFR 24.10. A low-income person who disagrees with the recipient's determination may submit a written request for review of that determination by the appropriate HUD field office. https://viww.ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 44/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) +. Back to Top §576.409 Protection for victims of domestic violence, dating violence, sexual assault, or stalking. (a) Applicability of VAWA protections. The core statutory protections of VAWA that prohibit denial or termination of assistance or eviction solely because an applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking applied upon enactment of VAWA 2013 on March 7, 2013. The VAWA regulatory requirements under 24 CFR part 5, subpart L, as supplemented by this section, apply to all eligibility and termination decisions that are made with respect to ESG rental assistance on or after December 16, 2016. The recipient must ensure that the requirements under 24 CFR part 5, subpart L, are included or incorporated into rental assistance agreements and leases as provided in §576.106(e) and (g). (b) Covered housing provider. For the ESG program, "covered housing provider," as such term is used in HUD's regulations in 24 CFR part 5, subpart L, refers to: (1) The recipient or subrecipient that administers the rental assistance for the purposes of 24 CFR 5.2005(e); (2) The housing owner for the purposes of 24 CFR 5.2005(d)(1), (d)(3), and (d)(4) and 5.2009(a); (3) The housing owner and the recipient or subrecipient that administers the rental assistance for the purposes of 24 CFR 5.2005(d)(2); and (4) The housing owner and the recipient or subrecipient that administers the rental assistance for the purposes of 24 CFR 5.2007. However, the recipient or subrecipient may limit documentation requests under 24 CFR 5.2007 to only the recipient or subrecipient, provided that: (i) This limitation is made clear in both the notice described under 24 CFR 5.2005(a)(1) and the rental assistance agreement; (ii) The entity designated to receive documentation requests determines whether the program participant is entitled to protection under VAWA and immediately advise the program participant of the determination; and (iii) If the program participant is entitled to protection, the entity designated to receive documentation requests must notify the owner in writing that the program participant is entitled to protection under VAWA and work with the owner on the program participant's behalf. Any further sharing or disclosure of the program participant's information will be subject to the requirements in 24 CFR 5.2007. (c) Notification. As provided under 24 CFR 5.2005(a) each recipient or subrecipient that determines eligibility for or administers ESG rental assistance is responsible for ensuring that the notice and certification form described under 24 CFR 5.2005(a)(1) is provided to each https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 45/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) applicant for ESG rental assistance and each program participant receiving ESG rental assistance at each of the following times: (1) When an individual or family is denied ESG rental assistance; (2) When an individual or family's application for a unit receiving project -based rental assistance is denied; (3) When a program participant begins receiving ESG rental assistance; (4) When a program participant is notified of termination of ESG rental assistance; and (5) When a program participant receives notification of eviction. (d) Emergency transfer plan. (1) The recipient must develop the emergency transfer plan under 24 CFR 5.2005(e) or, if the recipient is a state, require its subrecipients that administer ESG rental assistance to develop the emergency transfer plan(s) required under 24 CFR 5.2005(e). If the state's subrecipients are required to develop the plan(s), the recipient must specify whether an emergency transfer plan is to be developed for: (i) The state as a whole; (ii) Each area within the state that is covered by a Continuum of Care; or (iii) Each subrecipient that administers ESG rental assistance. (2) Once the applicable plan is developed in accordance with this section, the recipient and each subrecipient that administers ESG rental assistance must implement the plan in accordance with 24 CFR 5.2005(e). (3) Each emergency transfer plan must meet the requirements in 24 CFR 5.2005(e) and include the following program requirements: (i) For families living in units receiving project -based rental assistance (assisted units), the required policies must provide that if a program participant qualifies for an emergency transfer, but a safe unit is not immediately available for an internal emergency transfer, that program participant shall have priority over all other applicants for tenant -based rental assistance, utility assistance, and units for which project -based rental assistance is provided. (ii) For families receiving tenant -based rental assistance, the required policies must specify what will happen with respect to the non -transferring family member(s), if the family separates in order to effect an emergency transfer. (e) Bifurcation. For the purposes of this part, the following requirements shall apply in place of the requirements at 24 CFR 5.2009(b): (1) When a family receiving tenant -based rental assistance separates under 24 CFR 5.2009(a), the family's tenant -based rental assistance and utility assistance, if any, shall continue for the familv member(s) who are not evicted or removed. https://www,ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 46/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (2) If a family living in a unit receiving project -based rental assistance separates under 24 CFR 5.2009(a), the family member(s) who are not evicted or removed can remain in the assisted unit without interruption to the rental assistance or utility assistance provided for the unit. (f) Emergency shelters. The following requirements apply to emergency shelters funded under §576.102: (1) No individual or family may be denied admission to or removed from the emergency shelter on the basis or as a direct result of the fact that the individual or family is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the individual or family otherwise qualifies for admission or occupancy. (2) The terms "affiliated individual," "dating violence," "domestic violence," "sexual assault," and "stalking" are defined in 24 CFR 5.2003. [81 FR 80808, Nov. 16, 2016] t Back to Top Subpart F—Grant Administration Back to Top §576.500 Recordkeeping and reporting requirements. (a) in general. The recipient must have policies and procedures to ensure the requirements of this part are met, including those required by 2 CFR part 200. The policies and procedures must be established in writing and implemented by the recipient and its subrecipients to ensure that ESG funds are used in accordance with the requirements. In addition, sufficient records must be established and maintained to enable the recipient and HUD to determine whether ESG requirements are being met. (b) Homeless status. The recipient must maintain and follow written intake procedures to ensure compliance with the homeless definition in §576.2. The procedures must require documentation at intake of the evidence relied upon to establish and verify homeless status. The procedures must establish the order of priority for obtaining evidence as third -party documentation first, intake worker observations second, and certification from the person seeking assistance third. However, lack of third -party documentation must not prevent an individual or family from being immediately admitted to emergency shelter, receiving street outreach services, or being immediately admitted to shelter or receiving services provided by a victim service provider. Records contained in an HMIS or comparable database used by victim service or legal service providers are acceptable evidence of third -party documentation and intake worker observations if the HMIS retains an auditable history of all entries, including the person who entered the data, the date of entry, and the change made; and if the HMIS prevents overrides or changes of the dates on which entries are made. https://www.ecfr.gov/cgi-bin/text-ldx?node=pt24.3.576&rgn=div5 47/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) (1) If the individual or family qualifies as homeless under paragraph (1)(i) or (ii) of the homeless definition in §576.2, acceptable evidence includes a written observation by an outreach worker of the conditions where the individual or family was living, a written referral by another housing or service provider, or a certification by the individual or head of household seeking assistance. (2) If the individual qualifies as homeless under paragraph (1)(iii) of the homeless definition in §576.2, because he or she resided in an emergency shelter or place not meant for human habitation and is exiting an institution where he or she resided for 90 days or less, acceptable evidence includes the evidence described in paragraph (b)(1) of this section and one of the following: (i) Discharge paperwork or a written or oral referral from a social worker, case manager, or other appropriate official of the institution, stating the beginning and end dates of the time residing in the institution. All oral statements must be recorded by the intake worker; or (ii) Where the evidence in paragraph (b)(2)(i) of this section is not obtainable, a written record of the intake worker's due diligence in attempting to obtain the evidence described in paragraph (b)(2)(i) and a certification by the individual seeking assistance that states he or she is exiting or has just exited an institution where he or she resided for 90 days or less. (3) If the individual or family qualifies as homeless under paragraph (2) of the homeless definition in §576.2, because the individual or family will imminently lose their housing, the evidence must include: (i)(A) A court order resulting from an eviction action that requires the individual or family to leave their residence within 14 days after the date of their application for homeless assistance; or the equivalent notice under applicable state law, a Notice to Quit, or a Notice to Terminate issued under state law; (B) For individuals and families whose primary nighttime residence is a hotel or motel room not paid for by charitable organizations or federal, state, or local government programs for low-income individuals, evidence that the individual or family lacks the resources necessary to reside there for more than 14 days after the date of application for homeless assistance; or (C) An oral statement by the individual or head of household that the owner or renter of the housing in which they currently reside will not allow them to stay for more than 14 days after the date of application for homeless assistance. The intake worker must record the statement and certify that it was found credible. To be found credible, the oral statement must either: (1) be verified by the owner or renter of the housing in which the individual or family resides at the time of application for homeless assistance and documented by a written certification by the owner or renter or by the intake worker's recording of the owner or renter's oral statement; or (11) if the intake worker is unable to contact the owner or renter, be documented by a written certification by the intake worker of his or her due diligence in attempting to obtain the owner or renter's verification and the written certification by the https://www,eefr,gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 48/53 3/10/2021 Electronic Code of Federal Regulations (eCFR) individual or head of household seeking assistance that his or her statement was true and complete; (ii) Certification by the individual or head of household that no subsequent residence has been identified; and (iii) Certification or other written documentation that the individual or family lacks the resources and support networks needed to obtain other permanent housing. (4) If the individual or family qualifies as homeless under paragraph (3) of the homeless definition in §576.2, because the individual or family does not otherwise qualify as homeless under the homeless definition but is an unaccompanied youth under 25 years of age, or homeless family with one or more children or youth, and is defined as homeless under another Federal statute or section 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a(2)), the evidence must include: (i) For paragraph (3)(i) of the homeless definition in §576.2, certification of homeless status by the local private nonprofit organization or state or local governmental entity responsible for administering assistance under the Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.), the Head Start Act (42 U.S.C. 9831 et seq.), subtitle N of the Violence Against Women Act of 1994 (42 U.S.C. 14043e et seq.), section 330 of the Public Health Service Act (42 U.S.C. 254b), the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), or subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.), as applicable; (ii) For paragraph (3)(ii) of the homeless definition in §576.2, referral by a housing or service provider, written observation by an outreach worker, or certification by the homeless individual or head of household seeking assistance; (iii) For paragraph (3)(iii) of the homeless definition in §576.2, certification by the individual or head of household and any available supporting documentation that the individual or family moved two or more times during the 60-day period immediately preceding the date of application for homeless assistance, including: recorded statements or records obtained from each owner or renter of housing, provider of shelter or housing, or social worker, case worker, or other appropriate official of a hospital or institution in which the individual or family resided; or, where these statements or records are unobtainable, a written record of the intake worker's due diligence in attempting to obtain these statements or records. Where a move was due to the individual or family fleeing domestic violence, dating violence, sexual assault, or stalking, then the intake worker may alternatively obtain a written certification from the individual or head of household seeking assistance that they were fleeing that situation and that they resided at that address; and (iv) For paragraph (3)(iv) of the homeless definition in §576.2, written diagnosis from a professional who is licensed by the state to diagnose and treat that condition (or intake staff - recorded observation of disability that within 45 days of date of the application for assistance is confirmed by a professional who is licensed by the state to diagnose and treat that condition); employment records; department of corrections records; literacy, English https:itw ..ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 49/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) proficiency tests; or other reasonable documentation of the conditions required under paragraph (3)(iv) of the homeless definition. (5) If the individual or family qualifies under paragraph (4) of the homeless definition in §576.2, because the individual or family is fleeing domestic violence, dating violence, sexual assault, stalking, or other dangerous or life -threatening conditions related to violence, then acceptable evidence includes an oral statement by the individual or head of household seeking assistance that they are fleeing that situation, that no subsequent residence has been identified and that they lack the resources or support networks, e.g., family, friends, faith -based or other social networks, needed to obtain other housing. If the individual or family is receiving shelter or services provided by a victim service provider, the oral statement must be documented by either a certification by the individual or head of household; or a certification by the intake worker. Otherwise, the oral statement that the individual or head of household seeking assistance has not identified a subsequent residence and lacks the resources or support networks, e.g., family, friends, faith -based or other social networks, needed to obtain housing must be documented by a certification by the individual or head of household that the oral statement is true and complete, and, where the safety of the individual or family would not be jeopardized, the domestic violence, dating violence, sexual assault, stalking, or other dangerous or life -threatening condition must be verified by a written observation by the intake worker or a written referral by a housing or service provider, social worker, legal assistance provider, health-care provider, law enforcement agency, legal assistance provider, pastoral counselor, or any other organization from whom the individual or head of household has sought assistance for domestic violence, dating violence, sexual assault, or stalking. The written referral or observation need only include the minimum amount of information necessary to document that the individual or family is fleeing, or attempting to flee domestic violence, dating violence, sexual assault, and stalking. (c) At risk of homelessness status. For each individual or family who receives Emergency Solutions Grant (ESG) homelessness prevention assistance, the records must include the evidence relied upon to establish and verify the individual or family's "at risk of homelessness" status. This evidence must include an intake and certification form that meets HUD specifications and is completed by the recipient or subrecipient. The evidence must also include: (1) If the program participant meets the criteria under paragraph (1) of the "at risk of homelessness" definition in §576.2: (i) The documentation specified under this section for determining annual income; (ii) The program participant's certification on a form specified by HUD that the program participant has insufficient financial resources and support networks; e.g., family, friends, faith -based or other social networks, immediately available to attain housing stability and meets one or more of the conditions under paragraph (1)(iii) of the definition of "at risk of homelessness" in §576.2; (iii) The most reliable evidence available to show that the program participant does not have sufficient resources or support networks; e.g., family, friends, faith -based or other social https://www.ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 50/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the "homeless" definition. Acceptable evidence includes: (A) Source documents (e.g., notice of termination from employment, unemployment compensation statement, bank statement, health-care bill showing arrears, utility bill showing arrears); (B) To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., former employer, public administrator, relative) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party that the applicant meets one or both of the criteria under paragraph (1)(ii) of the definition of "at risk of homelessness" in §576.2; or (C) To the extent that source documents and third -party verification are unobtainable, a written statement by the recipient's or subrecipient's intake staff describing the efforts taken to obtain the required evidence; and (iv) The most reliable evidence available to show that the program participant meets one or more of the conditions under paragraph (1)(iii) of the definition of "at risk of homelessness" in §576.2. Acceptable evidence includes: (A) Source documents that evidence one or more of the conditions under paragraph (1) (iii) of the definition (e.g., eviction notice, notice of termination from employment, bank statement); (B) To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., former employer, owner, primary leaseholder, public administrator, hotel or motel manager) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party that the applicant meets one or more of the criteria under paragraph (1)(iii) of the definition of "at risk of homelessness"; or (C) To the extent that source documents and third -party verification are unobtainable, a written statement by the recipient's or subrecipient's intake staff that the staff person has visited the applicant's residence and determined that the applicant meets one or more of the criteria under paragraph (1)(iii) of the definition or, if a visit is not practicable or relevant to the determination, a written statement by the recipient's or subrecipient's intake staff describing the efforts taken to obtain the required evidence; or (2) If the program participant meets the criteria under paragraph (2) or (3) of the "at risk of homelessness" definition in §576.2, certification of the child or youth's homeless status by the agency or organization responsible for administering assistance under the Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.), the Head. Start Act (42 U.S.C. 9831 et seq.), subtitle N of the Violence Against Women Act of 1994 (42 U.S.C. 14043e et seq.), section 330 of the Public Health Service Act (42 U.S.C. 254b), the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) or subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.), as nnnlir,nhla https:/Aw .eefr.gov/egi-bin/text-idx?node=pt24.3.576&rgn=div5 51158 3/10/2021 Electronic Code of Federal Regulations (eCFR) wrr„Mw.,. (d) Determinations of ineligibility. For each individual and family determined ineligible to receive Emergency Solutions Grant (ESG) assistance, the record must include documentation of the reason for that determination. (e) Annual income. For each program participant who receives homelessness prevention assistance, or who receives rapid re -housing assistance longer than one year, the following documentation of annual income must be maintained: (1) Income evaluation form containing the minimum requirements specified by HUD and completed by the recipient or subrecipient; and (2) Source documents for the assets held.by the program participant and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement); (3) To the extent that source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or the written certification by the recipient's or subrecipient's intake staff of the oral verification by the relevant third party of the income the program participant received over the most recent period for which representative data is available; or (4) To the extent that source documents and third party verification are unobtainable, the written certification by the program participant of the amount of income the program participant received for the most recent period representative of the income that the program participant is reasonably expected to receive over the 3-month period following the evaluation. (f) Program participant records. In addition to evidence of homeless status or "at risk of homelessness" status, as applicable, records must be kept for each program participant that document: (1) The services and assistance provided to that program participant, including, as applicable, the security deposit, rental assistance, and utility payments made on behalf of the program participant; (2) Compliance with the applicable requirements for providing services and assistance to that program participant under the program components and eligible activities provisions at §576.101 through §576.106, the provision on determining eligibility and amount and type of assistance at §576.401(a) and (b), and the provision on using appropriate assistance and services at §576.401(d) and (e); and (3) Where applicable, compliance with the termination of assistance requirement in §576.402. (g) Centralized or coordinated assessment systems and procedures. The recipient and its subrecipients must keep documentation evidencing the use of, and written intake https://www,eefr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 52/58 3/10/2021 Electronic Code of Federal Regulations (eCFR) procedures for, the centralized or coordinated assessment system(s) developed by the Continuum of Care(s) in accordance with the requirements established by HUD. (h) Rental assistance agreements and payments. The records must include copies of all leases and rental assistance agreements for the provision of rental assistance, documentation of payments made to owners for the provision of rental assistance, and supporting documentation for these payments, including dates of occupancy by program participants. (i) Utility allowance. The records must document the monthly allowance for utilities (excluding telephone) used to determine compliance with the rent restriction. Q) Shelter and housing standards. The records must include documentation of compliance with the shelter and housing standards in §576.403, including inspection reports. (k) Emergency shelter facilities. The recipient must keep records of the emergency shelters assisted under the ESG program, including the amount and type of assistance provided to each emergency shelter. As applicable, the recipient's records must also include documentation of the value of the building before the rehabilitation of an existing emergency shelter or after the conversion of a building into an emergency shelter and copies of the recorded deed or use restrictions. (1) Services and assistance provided. The recipient must keep records of the types of essential services, rental assistance, and housing stabilization and relocation services provided under the recipient's program and the amounts spent on these services and assistance. The recipient and its subrecipients that are units of general purpose local government must keep records to demonstrate compliance with the maintenance of effort requirement, including records of the unit of the general purpose local government's annual budgets and sources of funding for street outreach and emergency shelter services. (m) Coordination with Continuum(s) of Care and other programs. The recipient and its subrecipients must document their compliance with the requirements of §576.400 for consulting with the Continuum(s) of Care and coordinating and integrating ESG assistance with programs targeted toward homeless people and mainstream service and assistance programs. (n) HMIS. The recipient must keep records of the participation in HMIS or a comparable database by all projects of the recipient and its subrecipients. (o) Matching. The recipient must keep records of the source and use of contributions made to satisfy the matching requirement in §576.201. The records must indicate the particular fiscal year grant for which each matching contribution is counted. The records must show how the value placed on third -party, noncash contributions was derived. To the extent feasible, volunteer services must be supported by the same methods that the organization uses to support the allocation of regular personnel costs. (p) Conflicts of interest. The recipient and its subrecipients must keep records to show compliance with the oraanizational conflicts -of -interest reauirements in W6.404(a). a coov https:/tv ..ecfr.govtcgl-bin/text-idx?node=pt24.3.576&rgn=div5 53/58 3/1012021 Electronic Code of Federal Regulations (eCFR) of the personal conflicts of interest policy or codes of conduct developed and implemented to comply with the requirements in §576.404(b), and records supporting exceptions to the personal conflicts of interest prohibitions. (q) Homeless participation. The recipient must document its compliance with the homeless participation requirements under §576.405. (r) Faith -based activities. The recipient and its subrecipients must document their compliance with the faith -based activities requirements under §576.406. (s) Other Federal requirements. The recipient and its subrecipients must document their compliance with the Federal requirements in §576.407 and §576.409, as applicable, including: (1) Records demonstrating compliance with the nondiscrimination and equal opportunity requirements under §576.407(a) and the affirmative outreach requirements in §576.407(b), including: (i) Data concerning race, ethnicity, disability status, sex, and family characteristics of persons and households who are applicants for, or program participants in, any program or activity funded in whole or in part with ESG funds; and (ii) Documentation that the recipient submitted a certification that it will affirmatively further fair housing, consistent with §§5.150 and 5.151 of this title. (2) Records demonstrating compliance with the uniform administrative requirements in 2 CFR part 200. (3) Records demonstrating compliance with the environmental review requirements, including flood insurance requirements. (4) Certifications and disclosure forms required under the lobbying and disclosure requirements in 24 CFR part 87. (5) Data on emergency transfers requested under §576.409, pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of such requests. (t) Relocation. The records must include documentation of compliance with the displacement, relocation, and acquisition requirements in §576.408. (u) Financial records. (1) The recipient must retain supporting documentation for all costs charged to the ESG grant. (2) The recipient and its subrecipients must keep documentation showing that ESG grant funds were spent on allowable costs in accordance with the requirements for eligible activities under "§§576.101 through 576.109, financial management in 2 CFR 200.302, and the cost principles in 2 CFR part 200, subpart E. https://w .eefr.gov/cg1-bin/text-idx?node=pt24.3.576&rgn=div5 54158 3/10/2021 Electronic Code of Federal Regulations (eCFR) (3) The recipient and its subrecipients must retain records of the receipt and use of program income. (4) The recipient must keep documentation of compliance with the expenditure limits in §576.100 and the expenditure deadline in §576.203, (v) Subrecipients and contractors. (1) The recipient must retain copies of all solicitations of and agreements with subrecipients, records of all payment requests by and dates of payments made to subrecipients, and documentation of all monitoring and sanctions of subrecipients, as applicable. If the recipient is a State, the recipient must keep records of each recapture and distribution of recaptured funds under §576.501. (2) The recipient and its subrecipients must retain copies of all procurement contracts and documentation of compliance with the procurement requirements in 2 CFR part 200, subpart D. (3) The recipient must ensure that its subrecipients comply with the recordkeeping requirements specified by the recipient and HUD notice or regulations. (w) Other records specified by HUD. The recipient must keep other records specified by HUD. (x) Confidentiality. (1) The recipient and its subrecipients must develop and implement written procedures to ensure: (i) All records containing personally identifying information (as defined in HUD's standards for participation, data collection, and reporting in a local HMIS) of any individual or family who applies for and/or receives ESG assistance will be kept secure and confidential; (ii) The address or location of any domestic violence, dating violence, sexual assault, or stalking shelter project assisted under the ESG will not be made public, except with written authorization of the person responsible for the operation of the shelter; and (iii) The address or location of any housing of a program participant will not be made public, except as provided under a preexisting privacy policy of the recipient or subrecipient and consistent with state and local laws regarding privacy and obligations of confidentiality. (2) The confidentiality procedures of the recipient and its subrecipients must be in writing and must be maintained in accordance with this section. (y) Period of record retention. All records pertaining to each fiscal year of ESG funds must be retained for the greater of 5 years or the period specified below. Copies made by microfilming, photocopying, or similar methods may be substituted for the original records. (1) Documentation of each program participant's qualification as a family or individual at risk of homelessness or as a homeless family or individual and other program participant records must be retained for 5 years after the expenditure of all funds from the grant under which the program participant was served; hitps://www.ecfr.gov/cgl-bin/text-idx?node=pt24.3.576&rgn=div5 55158 3/1012021 Electronic Code of Federal Regulations (eCFR) (2) Where ESG funds are used for the renovation of an emergency shelter involves costs charged to the ESG grant that exceed 75 percent of the value of the building before renovation, records must be retained until 10 years after the date that ESG funds are first obligated for the renovation; and (3) Where ESG funds are used to convert a building into an emergency shelter and the costs charged to the ESG grant for the conversion exceed 75 percent of the value of the building after conversion, records must be retained until 10 years after the date that ESG funds are first obligated for the conversion. (z) Access to records. (1) Federal Government rights. Notwithstanding the confidentiality procedures established under paragraph (x) of this section, the recipient and its subrecipients must comply with the requirements for access to records in 2 CFR 200.336. (2) Public rights. The recipient must provide citizens, public agencies, and other interested parties with reasonable access (consistent with state and local laws regarding privacy and obligations of confidentiality and the confidentiality requirements in this part) to records regarding any uses of ESG funds the recipient received during the preceding 5 years. (aa) Reports. The recipient must collect and report data on its use of ESG funds in the Integrated Disbursement and Information System (IDIS) and other reporting systems, as specified by HUD. The recipient must also comply with the reporting requirements in 2 CFR part 200 and 24 CFR part 91 and the reporting requirements under the Federal Funding Accountability and Transparency Act of 2006, (31 U.S.C. 6101 note), which are set forth in appendix A to 2 CFR part 170. [76 FR 75974, Dec. 5, 2011, as amended at 80 FR 42368, July 16, 2015; 80 FR 75939, Dec. 7, 2015; 81 FR 80809, Nov. 16, 2016; 85 FR 47911, Aug. 7, 2020] t Back to Top §576.501 Enforcement. (a) Performance reviews. (1) HUD will review the performance of each recipient in carrying out its responsibilities under this part whenever determined necessary by HUD, but at least annually. In conducting performance reviews, HUD will rely primarily on information obtained from the records and reports from the recipient and, when appropriate, its subrecipients, as well as information from onsite monitoring, audit reports, and information from IDIS and HMIS. Where applicable, HUD may also consider relevant information pertaining to the recipient's performance gained from other sources, including citizen comments, complaint determinations, and litigation. Reviews to determine compliance with specific requirements of this part will be conducted as necessary, with or without prior notice to the recipient. (2) If HUD determines preliminarily that the recipient or one of its subrecipients has not complied with an ESG program requirement, HUD will give the recipient notice of this determination and an opportunity to demonstrate, within the time prescribed by HUD and on https://www.eefr,gov/cgi-bin/text-idx?node=pt24,3.576&rgn=div5 56158 3110/2021 Electronic Code of Federal Regulations (eCFR) the basis of substantial facts and data, that the recipient has complied with Emergency Solutions Grant (ESG) requirements. HUD may change the method of payment to require the recipient to obtain HUD's prior approval each time the recipient draws down Emergency Solutions Grant (ESG) funds. To obtain prior approval, the recipient may be required to manually submit its payment requests and supporting documentation to HUD in order to show that the funds to be drawn down will be expended on eligible activities in accordance with all ESG program requirements. (3) If the recipient fails to demonstrate to HUD's satisfaction that the activities were carried out in compliance with ESG program requirements, HUD will take one or more of the remedial actions or sanctions specified in paragraph (b) of this section. (b) Remedial actions and sanctions. Remedial actions and sanctions for a failure to meet an ESG program requirement will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. (1) HUD may instruct the recipient to submit and comply with proposals for action to correct, mitigate, and prevent noncompliance with ESG requirements, including: (i) Preparing and following a schedule of actions for carrying out activities affected by the noncompliance, including schedules, timetables, and milestones necessary to implement the affected activities; (ii) .Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions; (iii) Canceling or revising activities likely to be affected by the noncompliance, before expending ESG funds for the activities; (iv) Reprogramming ESG funds that have not yet been expended from affected activities to other eligible activities; (v) Suspending disbursement of ESG funds for some or all activities; (vi) Reducing or terminating the remaining grant of a subrecipient and reallocating those funds to other subrecipients; and (vii) Making matching contributions before or as draws are made from the recipient's ESG grant. (2) HUD may change the method of payment to a reimbursement basis. (3) HUD may suspend payments to the extent HUD deems it necessary to preclude the further expenditure of funds for affected activities. (4) HUD may remove the recipient from participation in reallocations of funds under subpart D of this part. https:lhw .ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 57/58 3110/2021 Electronic Code of Federal Regulations (eCFR) (5) HUD may deny matching credit for all or part of the cost of the affected activities and require the recipient to make further matching contributions to make up for the contribution determined to be ineligible. (6) HUD may require the recipient to reimburse its line of credit in an amount equal to the funds used for the affected activities. (7) HUD may reduce or terminate the remaining grant of a recipient and reallocate those funds to other recipients in accordance with subpart D of this part. (8) HUD may condition a future grant. (9) HUD may take other remedies that are legally available. (c) Recipient sanctions. If the recipient determines that a subrecipient is not complying with an ESG program requirement or its subgrant agreement, the recipient must take appropriate actions, as prescribed for HUD in paragraphs (a) and (b) of this section. If the recipient is a State and funds become available as a result of an action under this section, the recipient must reallocate those funds to other subrecipients as soon as practicable. If the recipient is a unit of general purpose local government of territory, it must either reallocate those funds to other subrecipients or reprogram the funds for other activities to be carried out by the recipient as soon as practicable. The recipient must amend its Consolidated Plan in accordance with its citizenship participation plan if funds become available and are reallocated or reprogrammed under this section. The reallocated or reprogrammed funds must be used by the expenditure deadline in §576.203. IL Back to Top Need assistance? https://w .ecfr.govlcgi-bin/text-idx?node=pt24.3.576&rgn=div5 58/58 Francine R. Villareal Page I of 2 AcoRt7" CERTIFICATE OF LIABILITY INSURANCE DATE (Mla/o2/2020 /2ozo THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsements). PRODUCER Willis Towers Watson Insurance Services West, Inc. c/o 2fi Century Blvd P.O. Box 305191 CONTACT Willis Towers Watson Certificate Center NAME: PHONE 1-877-945-7378 AX No: 1-888-467-2378 -MAIL certificataa@willia.com ADD E S: Nashville, TN 372305191 USA INSURERS AFFORDING COVERAGE HAIG INSURERA: Westchester Surplus Lines Insurance Compan 10172 IThe Salvation Army - Division 11 NSURED INSURER B: Greenwich Insurance Company 22322 INSURER C: XL Specialty Insurance Company 37885 30040 Hawthorne Blvd., Bldg D INSURER D: Rancho Palos Verdes, CA 90275 INSURER E INSURER F: CUVtRAGE5 CERTIFICATE NUMBER: Wl H1H3077 RFVIRIOTd NIIMRFR• THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILTR TYPE OF INSURANCE INRP SUBR POLICY NUMBER POLICY EFF MMIDDIYYYY POLICY EXP MMIDDIYYYY LIMITS X COMMERCIALGENERAL LIABILITY CLAIMS -MADE 1XI OCCUR EACH OCCURRENCE $ 2,000,000 DAMAGE PREMIRENTED PREMISESS Ea occurrence $ 1,000,000 X MED EXP (Any one person) $ 0 A .If Inauxed Retention: 7 G7183119A001 10/01/2020 10/01/2021 X $1,000,000 PERSONAL &ADV INJURY $ 21000,000 GENT AGGREGATE LIMIT APPLIES PER: PRO- POUCV JECT LOG GENERALAGGREGATE $ 4,000,000 PRODUCTS - COMPIOPAGG $ 4,000,000 $ OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea RCCldenl $ 5,000,000 X BODILY INJURY (Per person) $ ANY AUTO H OWNED SCHEDULED AUTOS ONLY AUTOS y RAD500021910 10/01/2020 10/01/2021 BODILY INJURY Pareecldenl ( ) $ HIRED NON -OWNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE Peraccident $ UMBRELLA Lb1B OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DEO I I RETENTION$ I $ C WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANYPROPRIETORIPARTNERIEXECUTIVE OFFICERIMEMBEREXCLUDED7 No (Mandatory In NH) yasRIPTION ur NIA y gWO500021710 10/01/2020 10/01/2021 I X STATUTE FORTH- E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E, L. DISEASE -POLICY LIMIT $ 1,000, 000 DESCIf IPTI Nantler DESCRIPTION OPERATIONS below H Excess Auto Liability - CA RAE500021810 10/01/2020 10/01/2021 Any Auto / GEL $3,000,000 Sal£-Insd Retention $2,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 701, Additional Remarks Schedule, maybe attached if more space is required) Division (111-148 Workers Compensation: Policy No. RWD500021710 provides coverage in the following states: III, ID, MT ,Ni Nv, UT Policy No. RWR300094405 provides coverage in the following states: AX SEE ATTACHED City of Santa Ana Risk Management Division 20 Civic Center Plaza Santa Ana, CA 92702 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD SR ID: 20160526 H&TcR: 1836068 s9 XlekMatmgt7nentDNielnn 4V REUIEV/ED & APPROVe7 BY. :1:11 RNk Management Analyss AGENCY CUSTOMER ID: LOC #: Aco a ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY NAMED INSURED Willis Towexa Watson Insurance Services West, Inc. The Salvation Army - Division 11 30840 Hawthorne Blvd., Bldg D Rancho Palos Verdes, CA 90275 POLICY NUMBER See Page 1 CARRIER NAIL CODE See Page 1 See Page 1 EFFECTIVE DATE: See Page 1 THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance Excess Workers Compensation Policy No. RWE500021610 provides coverage in the following states: AZ,CO,OR Policy No. RWE500047505 provides coverage in the following states: CA CA -Business Auto is fully Self -Insured per the attached State Certificate. City of Santa Ana, its officers, employees, agents, and representatives are included as an Additional Insured as respects to General Liability and Auto Liability as required by written contract or agreement. General Liability pol shall be Primary and Non -Contributory with any other insurance in force for or which may be purchased by Additional Insureds as required by written contract or agreement. Waiver of Subrogation applies in favor of Additional Insureds with respects to Workers Compensation as permitted by law. INSURER AFFORDING COVERAGE: XL Specialty Insurance Company POLICY NUMBER: RWR300094405 EFF DATE: 10/01/2020 EXP DATE: 10/01/2021 TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Workers Compensation fi E.L. Each Accident $1,000,000 Employers Liability E.L. Disease Pol Lim $1,000,000 WC - Per Statute E.L. Disease - Ea Emp $1,000,000 INSURER AFFORDING COVERAGE: XL Specialty Insurance Company POLICY NUMBER: RWE500047505 EFF DATE: 10/01/2020 EXP DATE: 10/01/2021 TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Excess Workers Compensation E.L. Each Accident $1,000,000 CA EL Each Employee $1,000,000 Retention: $1,000,000 ADDITIONAL REMARKS: CA -Workers Compensation is fully Self -Insured per the attached State Certificate. INSURER AFFORDING COVERAGE: XL Specialty Insurance Company POLICY NUMBER: RWE500021610 EFF DATE: 10/01/2020 EXP DATE: 10/01/2021 TYPE OF INSURANCE: LIMIT DESCRIPTION: LIMIT AMOUNT: Excess Work Comp- EL Each Accident $1,000,000 AZ/CO/OR EL Each Disease $1,000,000 Retention $750,000 © 2008 ACORD C The ACORD name and logo are registered marks of ACORD SR ID: 20160526 BATCH: 1836068 CERT: W18183077 NAIC#: 37885 NAIC#: 37885 NAIC#: 37885 RAManrgenentDhblon RREmEWED&gqAPPROVED BY: 8 �• � F9Af+4�A�C Fes, �h� �'-- Ruk.ManagetrentAnalyst STATE OF CALIFORNIA Edmund G. Brown Jr., Governor DEPARTMENT OF INDUSTRIAL RELATIONS 0 V ST", OFFICE OF SELF-INSURANCE PLANS 11050 Olson Drive, Suite 230 ig Rancho Cordova,CA 95670 Phone No. (916) 464-7000 FAX (916) 464-7007 OF SELF-INSURANCE OF WORKERS' COMPENSATION TO WHOM IT MAY CONCERN: This certifies that Certificate of Consent to Self -Insure No. 0566 was issued by the Director of Industrial Relations to: The Salvation Army under the provisions of Section 3700, Labor Code of California with an effective date of November 15, 1933. The certificate is currently in full force and effective. Dated at Sacramento, California This day the 20th of April 2017 Lyn Asio Booz, Chief ORIG: Craig Nicles Director Of Claims Management The Salvation Army 180 East Ocean Boulevard, loth Floor Long Beach, Ca 90802 �}r�, R[ekMxnegnnatDMs1an y REVAEWED&/NPROV<D BY: An '' a�wr A,-----M Risk Manager nt Analyst A Pubtfo Sendce Agency CERTIFICATE OF SELF-INSURANCE This is to certify that: The Salvation Army zwOPSELF-MURER 30840 Hawthorne Boulevard, Rancho Palos Verde, California 80275 AOEREE9,Orte kep has been approved as a Self -insurer under the Calffomia Compulsory Financial Responsibility Law and assigned Self -Insurance # 202 pursuant to Section 16053 of the CoNfornla Vehicle Code for the period August 19, 2020 through August 18, 2021 WALII�x� MA ER _ Fin in lal Responsibility Unit Department of Motor Vehicles OR 27 (REV iM UK au,.ro, RiskMana}MmdDMz1m REVIEWED & APPROVED BY: RuWanagementanrysS