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HomeMy WebLinkAboutItem 08 - Appropriation Adjustment for Emergency Housing Voucher Service Fees Community Development Agency www.santa-ana.org/community-development Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 2, 2023 TOPIC: Appropriation Adjustment for Emergency Housing Voucher Service Fees AGENDA TITLE Approve Appropriation Adjustment Recognizing the Remaining Balance of Emergency Housing Voucher Service Fees RECOMMENDED ACTION Approve an appropriation adjustment for Emergency Housing Voucher Service Fees in the amount of $155,750. (requires five affirmative votes) DISCUSSION On July 20, 2021, the City Council approved an appropriation adjustment recognizing Emergency Housing Voucher (EHV) service fees in the amount of $311,500. The City Council also authorized the City Manager to execute a future agreement with a designated service provider to utilize EHV service fees to provide housing search assistance for EHVs issued by the Housing Authority (Exhibit 1). Following this approval on January 20, 2022, the City entered into an agreement with Mercy House Living Centers (Mercy House) to administer this $311,500 in EHV service fees (Exhibit 2). In the Fiscal Year 2022-23, staff carried over only 50 percent (50%) of the $311,500 in EHV service fees. However, during FY 2022-23 Mercy House will expend more than 50 percent (50%) of the $311,500 balance. Therefore, staff is seeking approval from the City Council to appropriate the remaining balance of EHV Service Fees. FISCAL IMPACT Approval of the appropriation adjustment will recognize $155,750 in EHV service fees in Federal Grant – ARPA EHV Service Fees account (18018002-52014) and appropriate same to the EHV – Administrative Fees expenditure account below. Any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carryovers to FY 2023-24. Fiscal Year Accounting Unit-Account # Fund Description Accounting Unit, Account Description Amount FY 22-23 18018760-69135 Emergency Housing Vouchers EHV – Admin Fees, Payment to Subagent $155,750 Appropriation Adjustment for Emergency Housing Voucher Service Fees May 2, 2023 Page 2 3 4 1 9 EXHIBIT(S) 1.July 20, 2021 Staff Report 2. January 20, 2022 Agreement with Mercy House Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AND MERCY HOUSE LIVING CENTERS FOR USE OF EMERGENCY HOUSING VOUCHER (EHV) SERVICES FEES THIS GRANT AGREEMENT, is hereby made and entered into this January 20, 2022, by and between the Housing Authority of the City of Santa Ana (''AUTHORITY"), a public body, corporate and politic ("Contractor"), and Mercy House Living Centers, a California nonprofit organization ("Subrecipient"). RECITALS: A.On March 11, 2021, the American Rescue Plan Act of 2021 ("ARPA") was signed into law andappropriated $5 billion for new incremental Emergency Housing Vouchers ("ERVs") across thenation. ARPA included funding for the renewal of these ERVs and fees for the cost ofadministering the ERVs and other eligible expenses to prevent, prepare, and respond to thecoronavirus and facilitate the leasing of the ERVs, such as security deposit assistance and othercosts related to the retention and support of participating owners.B.On June 10, 2021, the AUTHORITY received notice ofan award of$311,500 in ERV ServicesFees from HUD to support its efforts in implementing and operating an effective ERV ServicesFee program that will best address the needs of ERV eligible individuals and families in itsjurisdiction and to assist ERV eligible individuals and families that are homeless successfullylease units with the ERVs.C.The AUTHORITY is the recipient of Emergency Housing Voucher funds from the United StatesDepartment of Housing and Urban Development ("HUD"), pursuant to Section 3202 of theARP A, for new incremental ERV s, the renewal of those ERV s, and fees for the cost ofadministering the ERVs and other eligible expenses defined by notice to prevent, prepare, andrespond to coronavirus to facilitate the leasing of the emergency vouchers, such as securitydeposit assistance and other costs related to retention and support of participating owners. ACatalogue of Federal Domestic Assistance ("CFDA") number for these ERV funds will not beissued.D.The AUTHORITY has approved the provision of ERV Services Fees funds to be used in theoperation of the Landlord Engagement program ("program"), which matches voucher holderswith available units and provides voucher holders with housing search assistance, as furtherdescribed by Exhibit A, Scope of Work, attached hereto and by this reference incorporatedherein.E.The SUBRECIPIENT represents that it has the requisite qualifications, expertise, and experiencein the provision of housing search assistance programs for the homeless and is willing to use saidfederal funds to operate said program.F.The SUBRECIPIENT agrees to assist individuals and families that are homeless to successfullylease units with the ERVs by providing housing search assistance, security deposit/utilitydeposit/rental application/holding fees, owner recruitment and outreach, owner incentive and/orretention payments, moving expenses, tenant-readiness services, essential household items, andrenter's insurance ifrequired by the lease.Page 1 EXHIBIT 2 H.SUBRECIPIENT has agreed to be reimbursed for the above services in an amount not to exceed $311,500 in grant funding. I.This AGREEMENT is contingent upon the award of EHV Services Fee funds from the UnitedStates Department of Housing and Urban Development. J.The AUTHORITY and the SUBRECIPIENT have duly executed this AGREEMENT for the expenditure and utilization of said 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 AUTHORITY and the SUBRECIPIENT: I.SCOPE OF PROGRAM A.General Administration 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 Perfonnance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of perfonn.ance as set forth in Exhibit A and repor t such measures quarterly to the AUTHORITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact the AUTHORITY, at which time the AUTHORITY will detennine if any adjustments to the grant award is appropriate. C.Staffing The SUBRECIPIENT shall ensure adequate and appropriate staffing is allocated to each EHV Services Fee 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. II.TERM OF AGREEMENT This AGREEMENT shall take effect on December 2, 2021, and shall terminate on December 31, 2022, unless otherwise cancelled or modified according to the terms of this AGREEMENT. III.DISBURSEMENT AND FUNDS The AUTHORITY was allo cated $311,500 in EHV Services Fee funds from HUD in response tothe COVID-19 pandemic. AUTHORITY 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 $311,500 for SUB RECIPIENT'S perfonnance in accordance with the Budget attached hereto as Exhibit B during the period of this Agreement. Said sum shall be paid after AUTHORITY receives invoices submitted by SUBRECIPIENT as provided hereinabove. Page2 EXHIBIT 2 A.Amount and Expenditure End Date The AUTHORITY agrees to reimburse the SUBRECIPIENT a maximum amount not to exceed $311,500 from ERV Services Fee funds, as outlined in Exhibit B, Final Budget, and such funds shall be expended by the SUBRECIPIENT on or before December 3 !, 2022. SUBRECIPIENT has the ability to adjust line item amounts in the Budget with the written approval of the AUTHORITY'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 1h day of April, July, October, and January) in a form prescribed by the AUTHORITY, detailing such expenses. ·Such schedule may be modified with the approval of the AUTHORITY. C.Payment 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 AUTHORITY shall pay such invoices within thirty (30) days after receipt thereof, provided the AUTHORITY 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-day timeline once the remaining required elements have been submitted. Failure to provide any of the required documentation and reporting will cause the AUTHORITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the AUTHORITY. 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 amounts shall include and will be limited to housing search assistance, security deposit/utility deposit/rental application/holding fees, owner recruitment and outreach, owner incentive and/or retention payments, moving expenses, tenant-readiness services, essential household items, and renter's insurance ifrequired by the lease as set forth in the ERV operating requirements in PIH Notice 2021-15. Allowable program costs are detailed in the Budget, as set forth in Exhibit B, attached· hereto and by this reference incorporated herein. The SUBRECIPIENT'S failure to perform as required may, in add ition to other remedies set forth in this AGREEMENT, result in readjustment of the amount of funds the AUTHOR ITY is otherwise obligated to pay to the SUBRECIPIENT pursuant to the terms hereof. Page 3 EXHIBIT 2 E.Condition of Funding (!) The AUTHORITY advises the SUBRECIPIENT that a significant change in entitlement funding may result in a change in the current process utilized by the AUTHORITY to determine funding allocations. The SUBRECIPIENT acknowledges that the obligation of the AUTHORITY is contingent upon the availability of Federal, State or Local govermnent 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 SUBRECIPIENT, this AGREEMENT may be terminated by the AUTHORITY at the end of the period for which funds are available. At the earliest opportunity, the AUTHORITY shall notify the SUBRECIPIENT of any service which may be affected by a shortage of funds. No penalty shall accrue to the AUTHORITY in the event this provision is exercised and the AUTHORITY 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 AUTHORITY to expend funds in excess of appropriations authorized by law. (2)The SUB RECIPIENT shall allow representatives of the AUTHORITY or HUD to inspect facilities which are used in connection with the AGREEMENT or which implement programs funded under this AGREEMENT. F.Reserved. 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 EHV Services Fees, 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.Separation of Accounts All funds received by the SUBRECIPIENT from the AUTHORITY 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, in 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 hereW1der. All disburseme nts from the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be snpported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure. The AUTHORITY may withhold payment allocation requests if the SUBRE CIPIENT fails to comply with the above requirements until such compliance is demonstrated. Page4 EXHIBIT 2 IV. I.Expenditure of FundsMuch like how HUD requires the AUTHORITY, to expend all of the grant funds for eligibleactivity, it is a requirement for the SUBRECIPIENT to expend all of the grant funds for eligibleactivity costs within the designated period. For the purposes of this paragraph, expenditure meanseither an actual cash disbursement for a direct charge for a good/service or an indirect cost, or theaccrual of a direct charge for a good/service or an indirect cost..}. Prohibited Use (I)Generally. The SUBRECIPIENT hereby certifies and agrees that it will not use fundsprovided through this AGREEMENT to pay for. meals for persons other than those identified. ashomeless. Said funds shall not be used for entertainment purposes or for gifts. The SUBRECIPIENTcertifies that it �II not use said funds for illegal or dishonest conduct, rather, fund use will remain incompliance with all applicable federal, state, and local laws, including applicable laws not outlined inthis AGREEMENT.(2)Lobbying. The SUBRECIPIENT certifies and agrees that it will comply with federal law (3 IU.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated fundsmay be expended by the recipient of a federal contract, grant, loan, or cooperative agreement to payany person for influencing or attempting to influence an officer or employee of any agency, Memberof Congress, or an officer or employee of a Member of Congress in connection with awarding of anyfederal contract, the making of any federal grant or loan, entering into any cooperative agreementand the extension, renewal, amendment, or modification of any federal contract, grant, loan, orcooperative agreement. The SUBRECIPIENT shall sign a certification to that effect in a form as setforth in Exhibit C, attached hereto and by this reference incorporated herein. The SUBRECIPIENTshall submit said signed certification to the AUTHORITY prior to performing any of its obligationsunder this AGREEMENT and prior to any obligation arising on the part of the AUTHORITY to payany sums to the SUBRECIPIENT under the terms and conditions of this AGREEMENT. If anyfunds other than Federal appropriated funds have been paid or will be paid to any person forinfluencing 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 withthis Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete andsubmit a "Disclosure Form to Report Lobbying," in accordance with its instructions (see Exhibit D). NOTICES The SUBRECIPIENT and the AUTHORITY 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: Page 5 EXHIBIT 2 AUTHORITY: Hongloan Hull Operations Supervisor City of Santa Ana Community Development Agency 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702-1988 (714)667-2247 hhull@santa-ana.org V.GENERAL CONDITIONS A. Coordination with Continuum of Care SUBRECrPIENT: Mercy House Living Centers PO Box 1905 Santa Ana, CA 926702 (714)836-7188 Attn: Larry Haynes Chief Executive Officer (714)836-7188 x!Ol I a rryh@mercyhouse.net The SUBRECJPIENT must work with the Continuum of Care ("CoC"') to ensure the screening, assessment, and referral of program participants are consistent with the AUTHORITY's written standards for providing EHV Services Fees assistance. B.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. C.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 SUBRECIPIENT and its subcontractors shall at all times remain independent contractors with respect to the services to be perfonned under this AGREEMENT. The AUTHORITY 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. D.Subcontracts (I)Content Requirements. The SUBRECIPIENT will include all relevant provisions of this AGREEMENT in all subcontracts entered into as part of the activities undertaken in furtherance 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 AUTHORITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the AUTHORITY. Page 6 EXHIBIT 2 E.LicensingThe SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation,and inspections from all agencies governing its operations. The SUBRECIPIENT shall ensure that itsstaff and subcontractors shall also obtain and maintain all required licenses,. registrations,accreditation and inspections from all ageucies governing the SUBRECIPIENT's operationshereunder. Such licensing requirements include obtaining a AUTHORITY business license, asapplicable.F.Responsibilities Toward EmployeesThe SUBRECIPIENT accepts full responsibility for payment of any and all unemploymentcompensation, insurance premiums, workers' compensation premiums, income tax withholdings,social security withholdings, and any and all other taxes or payroll withholdings required for allemployees engaged in the performance of the work and activities authorized by theAGREEMENT. The SUBRECIPIENT accepts full responsibility for providing workers withproper safety equipment and taking any and all necessary precautions to guarantee the safety ofworkers or persons otherwise affected.G.Insurance and Bonding(!)Generally. The SUBRECIPIENT shall maintain liability and property insurance to coveractionable 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 theextent permitted by law, in connection with the activities pursuant to this AGREEMENT.The SUBRECIPIENT shall comply with the bonding and insurance requirements of 2 CFR200.427, and 2 CFR 200.447.The SUBRECIPIENT shall undertake self-insurance, or shall obtain, at its sole cost, a policy orpolicies of commercial general liability insurance, or equivalent form.Such insurance shall: (I) name the City of Santa Ana, its officers, agents, employees andvolunteers as additional insureds; (2) be primary with respect to insurance or self-insuranceprograms maintained by the AUTHORITY; (3) contain standard separation of insuredsprovisions; and (4) give Jo the AUTHORITY prompt and timely notice of claim made or suitinstituted arising· out of the SUBRECIPIENT's operations hereunder.(2)Limits. The SUBRECIPIENT shall maintain, at all times, the following minimum levels ofInsurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurancefor the coverages and amounts of coverage not less than those set forth below:a.Workers' Compensation. Amount must comply with State and Federal LawsPage 7 EXHIBIT 2 b.Comprehensive General Liability. $1,000,000 combined single limit of liability forbodily injuries, death, and property damage resulting from any one occurrence,including the following coverages:i.Premises and Operations; andii.Broad Form Commercial General Liability Endorsement to include blanketcontractual liability (specifically covering, but not limited to, the contractualobligations assumed by the SUBRECIPIENT); Personal Injury (withemployment and contractual exclusions deleted); and Broad Form PropertyDamage coverage.c.The SUBRECIPIENT's self-insured retention or deductible per line of coverageshall not exceed $25,000 without the permission of the AUTHORITY.(3)Proof of Insurance. The SUBRECIPIENT shall furnish the AUTHORITY's Clerk of theCouncil with an insurance certificate from insurance carrier certifying that it carries suchinsurance and that the policy shall not be canceled nor the coverage reduced except upon thirty(30)days prior notice to the AUTHORITY.The SUBRECIPIENT shall, prior to exercising any right under this AGREEMENT: a.furnish properly executed certificates of insurance and additional insuredendorsement to the AUTHORITY which shall clearly evidence all coverage requiredabove;b.provide that such insurance shall not be materially changed or terminated except onthirty (30) days prior written no tice to the AUTHORITY;c.maintain such insurance for the period covered by this AGREEMENT; andd.replace such certificates for policies expiring prior to the expiration of thisAGREEMENT.(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 withthese provisions, the AUTHORITY may, after notice to the SUBRECIPIENT, suspend theprogram for caus.e until there is full complia nce.H.Zoning.The SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall bespecifically zoned and permitted for such use(s) and activity(ies). Should the SUBRECIPIENT fail tohave the required land entitlement and/or permits, thus violating any local, state; or federal rules andregulations relating thereto, the SUBRECIPIENT .shall immediately make good-faith efforts to gaincompliance with local, state, or federal rules and regulations following written notification of saidviolation(s) from the AUTHORITY or other authorized citing agency. The SUBRECIPIENT shallnotify the AUTHORITY immed iately of any pending violations. Failure to notify the AUTHORITYof pending violations, or to remedy such known violation(s), shall result in termination of grantPage8 EXHIBIT 2 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. I.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 Statos The SUBRECIPIENT certifies that: (]) 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 statos under the United States Internal Revenue Code [for example, 26 USC§ 50l{c)(3)]. The SUBRECIPIENT has full right, power, and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execut ion, performance, and delivery of this AGREEMENT by the SUBRECIPIENT has been fully authorized by all requisite actions on the part of the SUB RECIPIENT. (2)If the SUBRECIPIENT' s non-profit statos changes at anytime during this AGREEMENT, it will advise the AUTHORITY within 15 days. (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 EHV Services Fee program, fortheir services. (4)As a non-profit, the SUBRECIPIENT acknowledges that administration of its oper ation and services are subject to the requirements as established in 2 CFR 200. B.Adherence to Federal, State, and Local Laws and Regulations {I) General. The SUBRECIPIENT agrees to comply with all requirements of the EHV Services Fee 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 and 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 government 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· Page 9 EXHIBIT 2 that homeless individuals have priority over other Section 3 residents in accordance with § 576.405(c). (3)Civil Rights. The SUBRECIPIENT agrees to comply with Title VI of the Civil RightsAct of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 ofthe Title I of the Housing and Community Development Act of 1974, Section 504 of theRehabilitation Act of I 973, the Americans with Disabilities Act of 1990, the Age DiscriminationAct of 1975, and 41 CFR Chapter 60.(4)Nondiscrimination and Equal Employment Opportunity. During the performance underthis AGREEMENT, the SUBRECIPIENT shall not discriminate against any employee orapplicant for employment based on race, color, creed, religion, sex, age, handicap, disability,ancestry, national origin, marital status, familial status, sexual orientation, or any other basisprohibited 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, age, handicap, disability, ancestry, national origin, marital status, familial status, and sexual orientation. The SUBRECIPIENT shall comply with all provisions of Executive Order I 1246, Equal Employment Opportunity, as amended by Executive Orders 11375 and 12086. (5)Nondiscrimination and Equal Opportunit y in Participation. The requirements in 24 CFRpart 5, subpart A are applicable, including the nondiscrimination and equal opportunityrequirements at 24 CFR 5.105(a). The SUBRECIPIENT shall not discriminate against anyparticipant 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 byapplicable law. The SUBRECIPIENT shall, through affirmative outreach, make known that useof the facilities, assistance, and services are available to all on a nondiscriminatory basis. TheSUBRECIPIENT must take appropriate steps to ensure effective communication with personswith disabilities.(6)Americans with Disabilities Act. The SUBRECIPIENT agrees to comply with anyfederal regulations issued pursuant to compliance with the Americans with Disabilities Act whichprohibits discrimination and ensures equal opportunity for persons with disabilities inemployment, State and Local govermnent services, and public accommodations.(7)Fair Housing. Under section 808(e)(5) of the Fair Housing Act, HUD has a statutory dutyto affirmatively further fair housing. HUD requires the same of its funded sub-recipients. TheSUBRECIPIENT has a duty to affirmatively further fair housing opportunities for classesprotected under the Fair Housing Act.C.Falsification of InformationThe SUBRECIPIENT represents and warrants that it has made no false statements to theAUTHORITY in the process of obtaining this award of the EHV Services Fee Funds.Page 10 EXHIBIT 2 D.Drug Free WorkplaceThe SUBRECIPIENT represents and warrants that it has established the following drug-freeworkplace policy:(1)The unlawful manufacture, distribution, dispensing, possession, or use of a controlledsubstance is prohibited in the workplace for any employee involved in a federally fundedprogram.(2)As an employee working in conjunction with a federally funded program, the eni.ployees ·of the SUB RECIPIENT will be required to:(3) (4) (S) a.Abide by the terms above in statement (1), andb.Notify the appropriate SUBRECIPIENT authorities and AUTHORITY officialsof 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.The AUTHORITY and the United States Department of Housing and Urban Development will be notified within ten days after receiving notice of any such violation. Within thirty (30) days of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination. 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. E.Religious OrganizationThe SUBRECIPIENT may not engage in inherently religious activities, such as worship, religiousinstruction, or proselytization as part of said program or services. If the SUBRECIPIENTconducts such activities, the activities must be offered separately, in time or location, from saidprograms or services, and participation must be voluntary for the program participants.The SUBRECIPIENT shall not, in providing program assistance, discriminate against a programparticipant 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 govermuents, and may continue to carry out its mission, including the definition,practice, and expression of its religious beliefs, provided that the religious organization does notuse direct EHV Services Fee funds to support any inherently religious activities.The SUBRECIPIENT agrees that rehabilitation of structures by the religious organization inconnection with said program must be in sound accord with the provisions under 24 CFR §576.406.Page 11 EXHIBIT 2 F.Additional Terms between the AUTHORITY and HUDThe SUBRECIPIENT agrees further that it shall be bound by the standard terms and conditionsused in the Grant Agreement between HUD and the AUTHORITY and such other rules,regulations, or requirements as HUD may reasonably impose in addition to the aforementionedassurances at or subsequent to the execution of this AGREEMENT by the parties hereto.G.OSHAWhere employees are engaged in activities not covered under. the Occupational Safety and HealthAct of 1970, they shall not be required or permitted to work, be trained, or receive services inbuildings or surroundings or under working conditions which are unsanitary, hazardous, ordangerous to the participants'· health or safety.H.Hatch Act.The SUBRECIPIENT agrees that no ·funds provided, nor personnel employed under thisAGREEMENT, shall be in any way or to any extent engaged in the conduct of political activitiesin violation of the Hatch Act, 5 U.S.C. Section 1501 et seq.I.Davis-Bacon ActAll laborers and mechanics employed by contractors or subcontractors in the performance ofconstruction work, including alterations and repairs, in excess of $2,000.00, financed in whole orin part with federal funds shall be paid wages at rates not less than those prevailing on similarconstruction 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 withthe 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 andsubmitted, or made available, pursuant to 29 C.F.R. §5.5(a)(3). No payment, advance, grant, loanor guarantee of funds shall be approved by the federal agency unless there is on file with theagency a certification by the contractor that the contractor and its subcontractors have compliedwith the provisions of29 C.F.R. §5.5. A breach of the contract clauses in 29 C.F.R. §5.5 may begrounds for termination of the contract, and for debarment as a contractor/subcontractor, asprovided in 29 C.F.R. §5.12. Labor standards inter.views/investigations shall be made asnecessary to assure compliance. See 29 C.F.R. §5.6(a)(3).VII.ADMINISTRATIVE REQUIREMENTSA.GenerallyThe 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 therequirements of2 CFR 200.318:326.B.Procurement(!) Compliance. The SUBRECIPIENT shall comply with current HUD and AUTHORITYpolicies concerning the procurement of equipment, goods, and services, and shall maintainPage 12 EXHIBIT 2 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 AUTHORITY all program assets (unexpended program income, property, equipment, etc.), and upon the AUTHORITY'S request, such assets shall revert to the AUTHORITY upon termination of this AGREEMENT. (2)Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the SUBRECIPIENT'saward shall be an approved federally recognized cost rate negotiated between theSUBRECIPIENT and the Federal government, or, if no cost rate exists, the de minims indirectcost 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 thisAGREEMENT shall be in compliance with the requirements of2 CFR Part 200.( 4)Pursuant to the CARES Act, SUBRECIPIENT may deviate from applicable procurementstandards when using these funds to procure goods and services to prevent, prepare for, andrespond to coronavirns, notwithstanding 24 CFR 576.407(±) and 2 CFR 200.317-200.326.C.ReportingReporting requirements must conform to the policies and procedures as established by theAUTHORITY and 24 CFR § 576.500. The SUBRECIPIENT shall submit to the AUTHORITY,on or before the 15th day of October, January, April, and July, as part of the Quarterly Report:(I)Payment Request. An original request for reimbursement and true copies of invoices,receipts, agreements, or other documentation supporting and evidencing how theEHV Services Fee Funds have been expended during the applicable quarter.(2)Quarterly Activities and written cumulative (year-to-date) reports of activities,program accomplishments, new program information, and up -to-date programstatistics on expenditures, caseload and activities. Failure to provide any of therequired documentation and reporting will cause the AUTHORITY to withhold all ora portion of a request for reimbursement until such documentation and reporting hasbeen received and approved by the AUTHORITY.(3)Any other such reports as the AUTHORITY (or HUD) shall reasonably requireand/or request, including but not limited to the following ·information: monthly .records of all ethnic and racial statistics of persons and families benefited by theSUB RECIPIENT in the performance of its obligations under this AGREEMENT.D.Record KeepingSufficient records must be established and maintained to enable the AUTHORITY and HUD todetermine whether the EHV Services Fee requirements are being met. Record keepingrequirements must conform to the policies and procedures as established by the AUTHORITY.All accounting records, reports, all evidence pertaining to costs, expenses, and EHV Services FeeFunds of the SUBRECIPIENT, and all documents related to this AGREEMENT shall bemaintained and kept available at the SUBRECIPIENT'S office or place of business for thePage 13 EXHIBIT 2 duration of the AGREEMENT and thereafter for five (5) years post-completion of an audit in conformity with the EHV Services Fee 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 AUTHORITY 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 AUTHORITY, HUD and auditors shall have the right to access all the SUBRECIPIENT records for as long as the records are retained by the SUBRECIPIENT. 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 AUTHORITY in co nducting 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. VIII.EVALUATION AND MONITORING A.Generally The AUTHORITY will monitor the performance of the SUBRECIPIENT against goals and performance standards as required herein. The SUBRECIPIENT shall provide the AUTHORITY all necessary reporting information as required by the AUTHORITY in the administration and review of the Program. Substandard performance as determined by the AUTHORITY 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 bein g notified by the AUTHORITY, contract suspension or termination procedures will be initiated. B.Access to Records The SUBRECIPIENT gives the AUTHORITY 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.Audit The AUTHORITY shall have the right to audit and monitor any program income as a result of an EHV Services Fee activity. Upon request by the AUTHORITY and for audit purposes, the SUBRECIPIENT further agrees to provide all files, records, and documents pertaining to related activities and clientele demographic data. Page 14 EXHIBIT 2 IX. x. 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 further 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 AUTHORITY, 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 AUTHORITY 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.AUTHORITY not Liable for Funds The SUBRECIPIENT further acknowledges that the source of the EHV Services Fee Funds is a federal pass-through grant to the SUBRECIPIENT. The AUTHORITY shall have no obligation to advance or pay the SUBRECIPIENT with any funds other than the EHV Services Fee Funds the AUTHORITY receives from HUD. C.Hold Harmless The SUBRECIPIENT shall defend, indemnify and save harmless the AUTHORITY, 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 AUTHORITY, and shall defend, indemnify and save harmless the AUTHORITY, 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. CONFLICTS OF INTEREST The SUBRECIPIENT shall comply with 2 CFR 200.112 with respect to Jhe 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(!) year thereafter. Page 15 EXHIBIT 2 XI.ASSIGNABILITYNone 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 AUTHORITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the AUTHORITY. No subcontract or assignment shall terminate or alter the legal obligations of the SUBRECIPIENT pursnant to this AGREEMENT. XII.EXCLUSIVITY OF AGREEMENTThis AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of the AUTHORITY's EHV Services Fee Funds by the SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such EHV Services Fee Funds iu 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 AUTHORITY and the SUBRECIPIENT. XIII.AMENDMENTS OR MODIFICATIONSThe 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 AUTHORITY unless: ( 1)The SUBRECIPIENT has received explicit written approval from the AUTHORITY toundertake such actions, or( 2)Budget changes may be made among approved program activities and among approvedbudget categories so long as the specific project activity has been approved, there is nochange to the total grant amount, and the changes to the budget are documented.Any program mo dification 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 thisAGREEMENT shall be binding by either party unless in writing and signed by both parties.In the event that the AUTHORITY approves any amendment to !lie funding allocation, the SUBRECIPIENT shall be notified in writing and such notification shall constitute an official. amendment. The AUTHORITY may, at its discretion and upon prov1s10n of proper notice to the SUBRECIPIENT, amend this AGREEMENT to conform with changes in Federal, State, and/or the AUTHORITY laws, regulations, guidelines, directives, and objectives. Such amendments shall be incorporated by written amendment as a part of this AGREEMENT. Page 16 EXHIBIT 2 XIV.VIOLATION OF TERMS AND CONDITIONSA.TerminationIf, due to any cause, the SUBRECIPIENT fails to comply with the terms, conditions orrequirements of this AGREEMENT, or any prior AGREEMENT whereby EHV Services Fee fundswere received by the SUBRECIPIENT, whether stated in a Federal statute or regulation, anassurance, a State plan or application, a notice of award, or elsewhere, the AUTHORITY mayterminate or suspend this AGREEMENT in accordance with 2 CFR 200.339 and in accordancewith 2 CFR 200.340 by giving written notice, and the AUTHORITY may request in writing thatall or some of the grant funds be returned even if the SUB RECIPIENT has expended the funds.If the SUBRECIPIENT reports inaccurately, or if on audit there is a disallowance of certainexpenditures, the SUBRECIPIENT agrees to remedy the acts or omissions causing the disallowanceand repay the AUTHORITY all amounts spent in violation thereof. If the SUB RECIPIENT engagedin fraudulent activity to obtain and/or justify expenditure of the EHV Services Fee funds grantedhereunder, the SUBRECIPIENT shall be required to reimburse the AUTHORITY of all such fundsthat were obtained and/or spent under fraudulent circumstances, and the AUTHORITY reserves theright to take other remedies that may be legally available.The SUBRECIPIENT agrees to return all funds as requested by the AUTHORITY under thissection within thirty (30) days of receipt of the written request.Any objections regarding terminations or suspensions shall be made by the SUBRECIPIENT inwriting and mailed to the AUTHORITY pursuant to the above NOTICES section.XV.CLOSE-OUTThe SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR 200.343,including the following:I.SUBRECIPIENT must submit, no later than ninety (90) calendar days after the enddate of the period of performance, all financial, performance, and other reports asrequired by the terms and conditions of the Federal award;2.Unless the AUTHORITY authorizes an extension, SUBRECIPIENT must liquidateall obligations incurred under the Federal award not later than ninety (90) calendardays after the end date of the period of performance as specified in the terms andconditions of the Federal award;3.SUBRECIPIENT must promptly refund any balances of unobligated cash that theAUTHORITY paid in advance or paid and that is not authorized to be retained bySUBRECIPIENT for use in other projects (See OMG Circular A-129 and 2 CFR200.345);4.SUBRECIPIENT must account. for any real and personal property acquired withFederal funds or received from the Federal government in accordance with 2 CFR200.310-200.316 and 200.329; and,Page 17 EXHIBIT 2 5.The AUTHORITY should complete all closeout actions for the Federal award nolater than one year after receipt and acceptance of all required final reports.XVI.VALIDITY AND SEVERABILITYThe invalidity in whole or in part of any provision of this ARGREEMENT shall not void or affectthe validity of any other provision of this AGREEMENT. Whenever possible, each provision ofthis AGREEMENT shall be interpreted in such manner as to be effective and valid underapplicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalidunder applicable law, such provision shall be ineffective.only to the extent of such prohibition orinvalidity, without invalidating the remainder of such provisions of this AGREEMENT.XVII.LAWS GOVERNING THIS AGREEMENTThis AGREEMENT shall .be governed by and construed in accordance with the laws of the Stateof California, and all applicable federal laws and regulations.XVIII.W AIYERNo delay or omission by the AUTHORITY hereto to exercise any right or power accruing uponany noncompliance or default by the SUBRECIPIENT with respect to any of the terms o.f thisAGREEMENT shall impair any such right or power or be construed to be a waiver thereof. Awaiver by either of the parties hereto of any of the covenants, conditions, or agreements to beperformed by the other shall not be construed to be a waiver of any succeeding breach thereof orof any other covenant, condition, or agreement herein contained.XIX.AGREEMENT DOCUMENT, EXHIBITS, AND ATTACHMENTSAll of the attachments and exhibits attached to this AGREEMENT are deemed incorporated byreference. This document may be executed in three (3) counterparts, each of which shall bedeemed to be an original.Page 18 EXHIBIT 2 Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the tenns of this AGREEMENT, and shall indemnify the AUTHORJTY fully, including reasonable costs and attorney's fees, for any injuries or damages to the AUTHORJTY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. IN WITNE SS WHEREOF, the parties hereto have executed this AGREEMENT on the date and year first above written. ATTEST APPROVED AS TO FORM SONIA R. ARV ALHO Page 19 HOUSING AUTHORITY OF THE CITY OF SANTA ANA STEVEN A. MENDOZA Executive Director MERCY HOUSE LIVING CENTERS Chief Executive Officer DUNS #:879797165 EXHIBIT 2 EXHIBIT 2 Name of Organization Name of Funded Program Annual Accomplishment Goal Housing Authority of the City of Santa Ana Scope of Work Mercy House Living Centers Landlord Engagement Program 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 contract period. I 89 I Persons 11.Number of unduplicated Santa Ana residents expected to be served by the funded program during the contract period.I 89!Persons • Program and Funding Description Ill. Description of Work -In the space below, describe the program to be.funded during the contract period. What specific activities will be undertaken durinn the contract neriod. Please be concise in vol.Jr resoonse. OnlV the viewable soace will orint. The Mercy House Landlord Engagement Program (Program) will provide housing support assistance and housing stabilization services to Participants who are.issued an Emergency Housing Voucher (EHV) by the Santa Ana Housing Authority (SAHA). The Program will focus on identifying rental units and making these available to households looking to become safely and stably housed during the COVID-19 pandemic in coordination and collaboration with housing service providers. The Program will focus on assisting eligible households with securing long-term stable rental housing that meets the minimum standards required of EHV vouchers. Services provided include: housing search assistance, housing navigation and stabilization services, funding for security deposits, holding fees, application fees, ren tal insurance, landlord incentives , recruitment and outreach to property owners, and other direct and indirect costs of the Program as outlined in the Program Budget attached herein. Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter) FY 21-22: Quarter 2: October 1 -December 31 O FY 21-22: Quarter 3: January 1 -March 31 30 FY 21-22: Quarter 4: April 1 -June 30 30 FY 22-23: Quarter 1: July 1 -September 30 29 89 Total unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requests FY 21-22: Quarter 2: October 1 -December 31 FY 21-22: Quarter 3: January 1 -March 31 FY 21-22: Quarter 4: April 1 -June 30 FY 22-23: Quarter 1: July 1 -September 30 d dunno the 12-mont $ $0.00 $103,833.33 $103,833.33 $103,833.33 311,500.00 Exhibit A Page 1 of 1 h contract period on a quarterly basis. Total Grant EXHIBIT 2 Organization Name Program Name Cateaorv Final Budget Expenditures Expenses Funded bv Santa Ana -EHV Mercy House Living Centers Landlord Engagement Program Expenses Funded Total Program by Other Sources Budget Housing Relocation and Stabilization Services Proqram Staff Salaries $ 159,547 $ Proaram Staff Fringe Benefits $ 15 868 $ Direct Assistance Security Deposit/Utility Depesit/Rental Application/Hold Fees $ 12,500 $ Utility Payments Movina Costs Renter's Insurance Reauired by the Lease Mltiaation Fund Fumishinas Transnnrtalion Assistance Other Assistance Landlord Incentive Indirect Indirect Cost Total $ - $ 350 $ 82 000 $ 10,085 $ 31,150 $ - $311,500 $0.00 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source $ $ $ $ $ $ $ $ $ $ Santa Ana EHV S ecial Fees $ Exhibit B Page 1 of 1 $ $ 159,547 15,868 12,500 - - 350 - 82,000 10,085 --- 31,150 $311,500 Amount 311,500 311500 311,500 Total Organizational Budget $0.00 EXHIBIT 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 CF R Part 98, Section 98."510, Participants' responsibilities. The regulations were published as Part VII of the May 26, 1988 Federal Register (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached) (I)The prospective recipient of federal assistance funds certifies, by submission of this proposal, that neither it nor 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 this certification, such prospective participant shall attach an explanation to this proposal. Larry Haynes, Chief Executive Officer Name and Title of Authorized Representative 'J-P-1/21/2022 Sigiia(ure EXHIBITC Page 1 of2 EXHIBIT 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 (DO L) may pursue available remedies, including suspension and/or debarment. 3.· .Tue prospective recipient of federal assistance funds shall provide immediate written notice to the 4. 5. 6. 7. 8. 9. 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. The terms "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. 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. 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 tra nsactions 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. 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. 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. EXHIBITC Page 2 of2 EXHIBIT 2 Certification Regarding Lobbying Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (I)No Federal appropriated funds 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, continu ation, 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 employee of Congress, or an employee of a Member ofCongress·in connection with this Federal contract, 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 ohhis certification is a prerequisite for making 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. Mercy House Living Centers Grantee/Contactor Organization Larry Haynes, Chief Executive Officer Name of Certifying Officer EXHIBITD Page I of2 Landlord Engagement Program Program Title 1/21/2022 Date EXHIBIT 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 CPR Part 1. 2.No person iri the United States shall on the ground ofrace, 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 laborers and mechanics, employed by contractors or subcontractors iri 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 CPR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372. EXHIBITD Page 2 of2 EXHIBIT 2