HomeMy WebLinkAbout06 052013 JT CC-HA DEPOT AT SANTIAGO EX 3OMS Approval No. 2577-0169
(exp. 0 4/3012 0 1 4}
Exhibit 3
This Agreement to Enter in#o Housing Assistance Payments Contract ("Agreement") is
entered into between: Housing Authority o£ the City. of:: Santa- Ana ("PHA") and
Depot at Santiago, LP
1.2 Purpose
("owner").
The owner agrees to develop the I-Iausing Assistance Payments Contract ("HAP
......_..._........
-- ------- - - --contract") units to in accordance with Exhibit B-to comply-with-I-Iousing Quality
______._._ _._ ......,.Standards ("I-IQS"), and the PHA agrees that, upon_timely completion of such
. __...
development in accordance with the terms of the Agreement, the PHA will enter into a
HAP contract with the owner of the contract units:
1.3 Contents of Agreement
This Agreement eansists of Part I, Part II and the following Exhibits:
EXHIBIT A: The approved owner's PBV proposal. (Selection of proposals must be in
accordance with 24 CPR 983.51.)
... ... _........._.... .
_ Page 1 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
Exhibit 3
This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information
unless that collection displays a valid OMB confrol number. Assurances of confidentiality are not provided
under this collection.
1.1 Parties
EXHIBIT B: Description of work to be performed under this Agreement, including:
• if the Agreement is for rehabilitation of units, this exhibit must include the
rehabilitation work write-up and, where the PI-iA has determined necessary,
specifications and plans.
• if the Agreement is for new construction of units, the work descriptson must
include the working drawings and specifications.
• any additional requirements beyond HQS relating to quality, design and
architecture that the PI-IA requires.
• work items resulting from compliance with the design and construction
requirements of the Fair Housing Act and implementing regulations at 24 CFR
100.205 and the accessibility requirements under section 504 of the Rehabilitation
Act of 1973 and implementing regulations at 24 CFR 8.22 and 8.23,
EXHIBIT C: Description of housing, including:
• project site.
• total number of units in project covered by this Agreement.
• location of contract units on site.
• number of contract units by area (size) and number of bedrooms and bathrooms.
• services, maintenance, or equipment to be supplied by the owner without charges
in addition to the rent to owner.
• utilities available to the contract units, including a specification of utility services
to be paid by owner (without charges in addition to rent) and utility services to be
paid by the tenant.
• estimated initial rent to owner for the contract units.
EXI-IIBI1' D: The HAP contract.
__ 14_ __Sig»iificant-Dates _._._ __._ .... _
A. Effective Date of the. Agreement: The Agreement must be executed
promptly after PHA notice of proposal selection to the owner has been
given. The PHA. may not enter this Agreement with the owner until any
required subsidy layering review has been performed and an
environmental review has been satisfactorily completed in accordance
with I-IUD requirements.
B. A project may either be a single-stage ar multi-stage project. A single-
. stage project will have the same Agreement effective data for all contract
units. A multi-stage project will have separate effective dates for each
stage.
------
Page 2 of 17 HUD 5253IA
Agreement, Part I of 2
Previous Editions are obsolete
Project-based Voucher Program
Single-stage projcct
i. Effective Date for a[l contract units:
ii. Date of Commencement of the Work: The date for commencement of work is not
later than calendar days after the effective date of this
Agreement.
iii. Time for Completion of Work: The date for completion of the work is not later
than calendar days after the effective date of this Agreement.
Multi-Stage Project
Enter the information for each stage upon execution of the Agreement for the
corresponding stage.
STAGE NUMBER
OF UNITS EFFECTIVE
DATE DATE OF
COMMENCEMENT
OF WORK TIME FOR
COMPLETION
OF WORK
1.5 Nature of the Work
This Agreement is far New Construction of units to be assisted by the
project-based voucher program.
This Agreement is for Rehabilitation of units to be assisted by the
project-based voucher program.
Page 3 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
1.6 Schedule of Completion
A. Timely Performance of Work: The owner agrees to begin work no later than the
date for commencement of work as stated in section l .4. In the event the work is
not commenced, diligently continued and completed as required under this
Agreement, the PI-IA may terminate this Agreement or take other appropriate
action. The owner agrees to report promptly to the PHA the date work is
commenced and furnish the PHA with progress reports as required by the PHA.
B. Time for Completion: All work must be completed no later than the end ofthe
period stated in section 1.4. Where completion in stages is provided for, work
related to units included in each stage shall be completed by the stage completion
date and all work on all stages must be completed no Iater than the end of the
period stated in section 1.4.
C. Delays: Ifthere is a delay in the completion due to unforeseen factors beyond the
owner's control as determined by the PHA, the PHA agrees to extend the time for
completion for an appropriate period as determined by the PHA in accordance
with HUD requirements.
l..'1 Changes in Work
A. The owner must obtain prior PHA approval for any change from the work
specified in Exhibit B which would alter the design or quality of the rehabilitation
or construction. The PHA is not required to approve any changes requested by
the owner. PHA approval of any change may be conditioned on establishment-af.-..
a lower initial rent to owner as determined by PHA in accordance with HUD
requirements.
B. If the owner makes any changes in the work without prior PHA approval, the
PHA may establish lower initial rents to owner as determined by the PHA in
accordance with HUD requirements.
C. The PHA may inspect the work during rehabilitation ar construction to ensure that
work is proceeding on schedule, is being accomplished in accordance with the
terms of the Agreement, meets the level of material described in Exhibit B and
meets typical levels ofworkmanship for the area.
Page 4 of l7 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
I'~•oject-based Voucher Program
1.e8 Work Completion
A. Conformance with Exhibit B: The work must be completed in accardance with
Exhibit I3. The owner is solely responsible for completion of the work.
B. Evidence of Completion: When the work in completed, the owner must provide
the PHA with the following:
1. A certification by the owner that the work has been completed in
accordance with the 1-1QS and all requirements of this Agreement.
2. A certification by the owner that the owner has complied with labor
standards and equal opportunity requirements in the development of the
housing. (See 24 CPR 983.1 SS(b)(1)(ii).)
3. Additional Evidence of Completion: At the discretion ofthe PHA, or as
required by HUD, the owner may be required to submit additional
documentation as evidence of completion of the housing. Check the
following that apply:
A certificate of occupancy or other evidence that the contract units
comply with local requirements.
An architect or developer's certification that the housing complies
with:
~`
1_.J.
!~.
the HQS;
_...._ .
State, local or other building codes;
Zoning;
The rehabilitation work write-up for rehabilitated housing;
The work description far newly constructed housing; or
Any additional design or quality requirements pursuant to
this Agreement.
Page S of 17 HUD S2S31A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
l.9 Inspection and Acceptance by the 1'IiA of Completed
Contract Units
A. Completion of Contract Units: Upon receipt of owner notice of completion of
contract units, the PHA shall take the following steps:
1. Review all evidence of completion submitted by owner.
2. Inspect the units to determine if the housing has been completed in
accordance with this Agreement, including compliance with the HQS and
any additional requirements imposed by the PHA under this Agreement.
B. Non-Acceptance: Ifthe PHA determines the work has not been completed in
accordance with this Agreement, including non-compliance with the HQS, the
PI-IA shall promptly notify the owner of this decision and the reasons for the non-
accepfiance. The parties must not enter into the I-IAP contract at this point.
However, work deficiencies may be corrected in accordance with Section 1.10 of
this Agreement.
C. Acceptance: If the PHA determines that the work has been cocnpieted in
accordance with fihis Agreement, and that tlae owner has submitted all required
evidence of completion, the PHA must submit the HAP contract for execution by
the owner and must then execute the HAP contract.
1.10 Acceptance Where 'Work Deficiencies Exist
A. If the PI~IA determines that work deficiencies exist, the PHA shall determine
-- ----- - whether and to what extent the deficiencies are-correctable;-whether the-units will
-,, .. be. accepted after correction of the deficiencies, and the requirements and
procedures (consistent with HUD requirements) for such correction and
acceptance of contract units. The PHA shall notify the owner of the PHA's
decision.
B. Completion in Stages: When the units will be completed in stages, the procedures
of this section shall apply to each stage.
1.11 Execution of HAP Contract
A. Time and l xecutian: Upon acceptance of the units by the PHA, the owner and the
PHA execute the HAP contract.
Page G of 17 HUD 52S31A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
B. Completion in Stages: When the units will be completed in stages, the number
and types of units in each stage, and the initial rents to owner for such units, shall
be separately shown in the HAP contract for each stage. Upon acceptance of the
first stage, the owner shall execute the HAP contract and the signature block
provided in the HAP contract for that stage. Upon acceptance of each subsequent
stage, the owner shall execute the signature block provided in the HAP contract
for such siage.
C. corm of HAP contract: The terms of the HAP contract shall be provided in
Exhibit D of this Agreement. There shall be no change in the terms of the HAP
contract unless such change is approved by HUD headquarters. Prior to execution
by the owner, all black spaces in the HAP contract shall be completed by the
PHA..
D. Survival of Owner Obligations: Even after execution of the HAP contract, the
owner shall continue to be bound by all owner obligations under the Agreement.
1..12 Initial Determination of Rents
A. The estimated initial rent to owner shall be established in Exhibit C of this
Agreement.
l3. The initial rent to owner is established at the beginning of the HAP contract term.
C. The estimated and initial contract rents for each unit may in no event exceed the
amount authorized in accordance with I-IUD requirements. Where the estimated or
the initial rent to owner exceeds the amount authorized under HUD requirements,
--the--PHA-shaiI-establish a lower estimated or initial rent to-owner (as applicable},
_.in..aecordance.wlth HUD requirements. _ ._. _
1..13 Uniform Relocation Act
A. A displaced person must be provided relocation assistance at the levels described
in and in accordance with the requirements of the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 {URA) (42 U.S.C. 4201-
4d55} and implementing regulations at 49 CP'R part 24.
B. The cast of required relocation assistance may be paid with funds provided by the
owner, or with local public funds, or with funds available from other sources.
Payment of relocation assistance must be irz accordance with HUD require,x,ents.
Page 7 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
C The acquisition of real property for a project to be assisted under the project-
based voucher program is subject to the URA and 49 CPR part 24, subpart B.
D. The PHA must require the owner to comply with the URA and 49 CFR part 24.
E. In computing a replacement housing payment to a residential tenant displaced as a
direct result of privately undertaken rehabilitation or dcznolition of the real
property, the term "initiation of negotiations" means the execution of the
Agreement between the owner and the PHA.
1.14 Protection of In-Place Families
A. In order to minimize displacement of in-place families, if a unit to be placed
under HAP contract is occupied by an eligible family on the proposal selection
date, the in-place family must he placed on the PHA's waiting Iist {if it is not
already an the list} and, once its continued eligibility is determined, given an
absolute selection preference and referred to the project owner for an
appropriately sized unit in the project.
B. This protection does not apply to families that are not eligible to participate in the
program on the proposal selection date.
C. The term "in-place fatnily" means an eligible family residing in a proposed
contract unit on the proposal selection date.
D. Assistance to in-place families znay only be provided in accordance with I-tUD
requirements.
_..
- -
7..15 Termination of Agreement and HAP Contract
The Agreement or HAP contract may be terminated upon at least 30 days notice to the
owner by the PI-IA or HUD if the PHA or HUD determines that the contract units were
not eligible fox selection in conformity with HUD requirements.
1.16 Rights of IIUD if PHA. Defaults Under Agreement
If HUD determines that the PI-IA has failed to comply with this Agreement, ar has failed
to take appropriate action, to HUD's satisfaction or as directed by I-IUD, for enforcement
of the PHA's rights under this Agreement, HUD may assume the PHA's rights and
abligatioz~s ~~nr~ar fhe AgrePinent~ and may perform t_he obligations and enforce the rights
of the PHA under the Agreement. I-IUD will, if it determines that the owner is not in
Page 8 of 17 HUD 52531 A
Agreeznezlt, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
default, pay annual contributions for the purpose of providing housing assistance
payments with respect to the dwelling unit(s) under this Agreement for the duration of the
I-IAP contract.
1.17 Owner Default and PHA Remedies
A. Owner Default
Any of the following is a default by the owner under the Agreement:
1. The owner has failed to comply with any obligation under the Agreement.
2. The owner has violated any obligation under any other housing assistance
payments contract under Section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f).
3. The owner has committed any fraud or made any false statement to the
PHA or HUD in connection with the Agreement.
4. The owner has committed fraud, bribery or any other corrupt or criminal
act in connection with any Federal housing assistance program.
5. If the property where the contract units are located is subject to a lien or
security interest securing a I-IUD loan or a mortgage insured by HUD and:
A. The owner has failed to comply with the regulations for the
applicable mortgage insurance or loan program, with the mortgage
or mortgage ziote; or with~the regu atory agreement; or _ ..............
__-__ _. .
B. The owner has committed fraud, bribery or any other corrupt or
crimina[ actin connection with the HUD loan ar HUD-insured
mortgage.
G. The owner has engaged in any drug-related criminal activity or any violent
criminal activity.
B. PHA Remedies
1. If the PI-IA determines that a breach has occurred, the PHA may exercise
airy of its rights or remedies under tho Agreement.
Page 9 of 17 HUD 52531 A
Agreemen#, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
3
2. The I'HA must notify the owner in writing of such determination. The
notice by the PHA to the owner may require the owner to take corrective
action (as verihed by the PHA) by a time prescribed in the notice.
3. The PHA's rights and remedies under the Agreement include, but are not
limited to: (i) terminating the Agreement; and {ii} declining to execute the
kIAP contract for some or al[ of the units.
C. PHA Remedy is not Waived
The PHA's exercise or non-exercise of any remedy for owner breach of the
Agreement is not a waiver of the right to exercise. that remedy ar any other right
or remedy at any time.
1.1$ PHA and Owner Relation to Thud Parties
A. Selection and Performance of Contractor
1. The PHA has not assumed any responsibility or liability to the owner, or any
other party for performance of any contractor, subcontractor ar supplier, whether
or not listed by the PHA as a qualified contractor or supplier under the program.
The selection of a contractor, subcontractor or supplier is the sole responsibility of
the owner and the FHA is not involved in any relationship between the owner and
any contractor, subcontractor or supplier.
2. The owner must select a competent contractor to undertake rehabilitation or
construction. The owner agrees to require from each prospective contractor a
_._..._ ......... _ -- certification that neither the contractar-nar its principals is presently debarred, -~---
--..- suspended, proposed for debarment,..declared ineligible, or otherwise excluded
from participation in contracts by any Federal department or agency or the
Comptroller General. The owner agrees not to award contracts to, otherwise
engage in the service af, or fund any contractor that does not provide this
certification.
B. Injury Resulting from Work under the Agreement: The PHA has not assumed
any respansibiIity far or liability to any person, including a worker or a resident of
the unit undergoing work pursuant to this Agreement, injured as a result of the
work or as a result of any other action or failure to act by the owner, or any
contractor, subcontractor or supplier.
Page 10 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
C. Legal Relationship: The owner is not the agent of the PHA and this Agreement
does not create or affect any relationship between the Pl-IA and any lender to the
owner or any suppliers, employees, contractor or subcontractors used by the
owner in the implementation of the Agreement.
D. Exclusion of Third Party Claims: Nothing in this Agreement shall be construed
as creating any right of any third party {other than HUD} to enforce any provision
of this Agreement or the HAP contract, or to assert any claim against HUD, the
PHA or the owner under the Agreement or the HAP contract.
E. Exclusion of Owner Claims against HUD: Nothing in this Agreement shall be
construed as creating any right of the owner to assert any claim against HUD.
1.19 PHA.-Owned Units
Notwithstanding Section i.18 of this Agreement, a PHA may own units assisted under
the project-based voucher program, subject to the special requirements in 24 CFR 983.59
regarding PHA.-owned units.
1.20 Conflict of Interest
A. Interest of Members, Officers, or Employees of PH.A, Members of Local
Governing Body, or Other Public Officials
1. No present or farmer member or officer of the PHA (except tenant-
commissioners}, no employee of the P1~A who formulates policy ar influences
decisions with respect to the housing choice voucher program or project-based
..
voucher program, and no public official or member of a governing body or State
- -- - or local legislator who exercises functions ar responsibilities with respect to these
programs, shall have any direct or indirect interest, .during his or her tenure or for
one year thereafter, in the Agreement or HAP contract.
2. HUD may waive this provision for good cause.
B. Disclosure
The owner has disclosed to the PHA any interest that would be a violation of the
Agreement or HAP contract. The owner must fully and promptly update such
disclosures.
Page 11 of 17 HUI7 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
3
1.21 Interest of Member or Delegate to Congress
Na member of or delegate to the Congress of the United States of America or resident-
commissioner shall be admitted to any share or part of the Agreement or HAP contract
or to any benefits arising from the Agreement or HAP contract.
1.22 Transfer of the Agreement, HAP Contract or Property
A. PHA Consent to Transfer
The owner agrees that the owner has not made and wilt not make any transfer in
any form, including any sale or assignment, of the Agreement, HAP contract or
the property without the prior written consent of the PHA. A change in ownership
in the owner, such as a stock transfer or transfer of the interest of a limited
partner, is not subject to the provisions of this section. Transfer of the interest of a
general partner is subject to the provisions of this section.
B. Procedure for PHA Acceptance of Transferee
Where the owner requests the consent of the PHA for a transfer in any form,
including any sale or assignment, of the Agreement, the HAP contract or the
property, the PI-lA must consent to a transfer of the Agreement or HAP contract if
the transferee agrees in writing (in a form acceptable to the PHA) to comply with
ail the terms of the Agreement and HAP contract, and if the transferee is
acceptable to the PHA. The PHA's criteria for acceptance of the transferee must
be in accordance with HUD requirements.
-_ C. When Transfer is Prohibited- ____....__ __.
The PI-lA will not consent to the transfer if any transferee, or any principal or
interested-party is debarred, suspended subject to a limited denial of
participation, or otherwise excluded under 2 CFR part 2424, or is listed on the
U.S. General Services Administration list of parties excluded from Federal
procurement or nonprocurement programs.
1.23 Exclusion Pram Federal Programs
A. Federal Requirements
The owner::~ust comply vrith and is subject to requ:reanents of 2 CFR part 2424.
Page 12 of 1'1 HUD 52531A
Agreement, Part i of 2
Previous Editions are obsolete
Project-based Voucher Program
B. Disclosure
The owner certifies that:
1. The owner has disclosed to the PHA the identity of the owner and any
principal or interested party.
2. Neither the owner nor any principal or i~rterested party is listed on the U.S.
General Services Administration list of parties excluded from Federal
procurement and nonprocurement programs; and none of such parties are
debarred, suspended, subject to a limited denial of participation or
otherwise excluded under 2 CFR part 2424.
1.24 Lobbying Certifications
A. The owner certifies, to the best of owner's knowledge and belief, that:
No Federally appropriated funds have been paid or will be paid, by or on
behalf of the owner, 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 the Agreement or HAP
contract, or the extension, continuation, renewal, amendment, or
modification of the HAP contract.
2. if any funds other than Federally appropriated funds have been paid or
will be paid to any person for influencing or attempting to influence an
-- - officer or employee of anyagency, a Member of Congress, an officer-or- --
_. eznployee_of.Congress, ox.an employee of a Member of Congress in .............__ .
connection with the Agree-nenfi or HAP contract, the owner must complete
and submit Standard Form-LLL, "Disclosure Form to Report Lobbyirig~"
in accordance with its instructions.
B. This certification by fihe owner is a prerequisite for making or entering into this
transaction imposed by 31 U.S.C. 1352.
..........
Page 13 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
1.25 Subsidy ]Layering
A. Owner Disclosure
The owner must disclose to the PHA, in accordance with HUD requirements,
information regarding any related assistance from the Federal Government, a
State, or a unit of genera[ local government, or any agency or instrumentality
thereof, that is made available or is expected to be made available with respect to
the contract units. Such related assistance includes, but is not limited to, any loan,
grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any
other form of direct or indirect assistance.
B. Limit of Payments
Housing assistance payments under the HAP contract must not be more than is
necessary, as determined in accordance with I-lUD requirements, to provide
affordable housing after taking account of such related assistance. The PHA will
adjust in accordance with HUD requirements the amount of the housing
assistance payments to the owner to compensate in whole or in part for such
related assistance.
1.26 Prohibition of Discrimination
A. The owner may not refuse to lease contract units to, or otherwise discriminate
against, any person or family in leasing of a contract unit, because of race, color,
religion, sex, national origin, disability, age or familial status.
_ ..................~....._B~ --- --The owner must comply with the following-requirements:..-The Fair Housing Act
(42 U.S.C. 3501-19} and implementing regulations at 24 CFR part 100 et seq. ;
----. __
Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-
1963 Camp., p. 652 and 3 CFR, 1980 Comp.; p. 307) (Equal Opportunity in
Housing Programs) and implementing regulations at 24 CFR part 107; title VI of
the Civil Rights Act of 1964 (42 U.S.C. 20004-20004-4) (Nondiscrimination in
Federally Assisted Programs} and implementing regulations at 24 CFR part 1; the
Age Discrimination Act of 1975 {42 U.S.C. 6101-6107) and implementing
regulations at 24 CFR part 146; section 504 of the Rehabilitation Act of 1973 {29
U.S.C. 794) and implementing regulations at part $ of this title; title II of the
Americans with Disabilities Act, 42 U.S.C. 12101 et seq. ; 24 CFR part 8; section
3 afthe Housing and Urban Development Act of 1968 {12 U.S.C. 1701u) and
implementing regulations at 24 CFR part 135; Executive Order 11246, as
amended by Executive Orders 11375, 11478, ] 2086, and 12107 (3 CFR, 1964-
Page 14 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
1965 Comp., p. 339; 3 CFR, 1966-1970 Comp., p. 684; 3 CFR, 1966-1970
Comp., p. 803; 3 CFR, 1978 Comp., p. 230; and 3 CFR, 1978 Comp., p. 264,
respectively} {Equal Employment Opportunity Programs) and implernentulg
regulations at 41 CPR chapter 60; Executive Order 11625, as amended by
Executive Order 12007 {3 CFR, 1971-1975 Comp., p. 6I6 and 3 CFR, 1977
Comp., p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CFR,
1983 Comp., p. 198) (Minority Business Enterprise Development); and Executive
Order 12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp., p. 393
and 3 CFR, 1987 Comp., p. 245} (Women's Business Enterprise}.
C. The Pl-lA and the owner must cooperate with 1-1UD in the conducting of
compliance reviews and complaint investigations pursuant to all applicable civil
rights statutes, Executive Orders, and all related rules and regulations.
1.27 PHA and HUD Access to Premises and Owner Records
A. The owner must furnish any information pertinent to this Agreement as may be
reasonably required from time to time by the PHA or 1-IUD. The owner shall
furnish such information in the farm and manner required by the PHA or HUD.
B. The owner must permit the PHA or HUD or any of their authorized
representatives to have access to the premises during normal business hours and,
far the purpose of audit and examination, to have access to any books, documents,
papers and records of the owner to the extent necessary to determine compliance
with the Agreement.
1.2$ Notices and Owner Certifications ._.._ _ .. _ _ .._.__...
A. Where the owner is required to give any notice to the PH,A pursuant to this
--- Agreement, such notice shall be in writing and shall be given in the manner
designated by the PHA.
B. Any certification or warranty by the owner pursuant to the Agreement shall be
- deemed a material representation of fact upon which reliance was placed when
this.transaction was entered into.
Page i 5 of 17 HUD 52531 A
Agreement, Part 1 of 2
Previous Editions are obsolete
Project-based Voucher Program
~'.
L29 HUD Requirements
A. The Agreement and the HAP contract shah be interpreted and implemented in
accordance with all statutory requirements, and with all HUD requirements,
including amendments or changes in HUD requirements. The owner agrees to
comply with aii such laws and HUD requirements
13. HUD requirements are requirements that apply to the project-based voucher
program. HUD requirements are issued by HUD Headquarters as regulations,
Federal Register notices or other binding program directives.
1.30 Applicability of Part XI pa-ovisions -Check all that apply
^ Trainin~Emplo~ment and Contracting Opportunities
Section 2.1 applies if the total of the contract rents for all units under the proposed
HAP contract, over the maximum term of the contract, is more than $200,000.
^ I; uac~ 1 Employment Opportunity
Section 2.2 only applies to construction contracts ofmore than $10,000.
^ Labor Standards Requirements
Sections 2.4, 2.$ and 2.10 apply when this Agreement covers nine or more units.
^ F'lood Insurance
Section 2.11 applies if units are located in areas having special flood hazards and
in which flood insurance is available under the National Flood Insurance
Program. _.__.._ ....... ......
Page 16 of 17 HUD 52531A
Agreement, Part 1 of 2
Previous Ed€tions are obsolete
Project-based Voucher Program
3
EXECUTION OF THE AGREEMENT
PUBLIC HOUSING AGENCY
Name (Print)
sy:
Signature of Authorized Representative
Official title (Print):
Date:
OWNER
Name (Print)
By:
Signature of Authorized Representative
Official Title {Print):
Date:
Previous Editions are obsolete
Page 17 of i7 HUD 5253iA
Agreement, Part 1 of 2
Project-based Voucher Program
OM8 Approval tJo. 2577-0169
{exp. OG/30/201Qj
2.1 T><•ainin E><n to ><nen# and Contractin O vrtunities
(a) The project assisted under this Agreement is subject to the requirements of section
3 of the Housing Urban Development Act of 1968, as amended, 12 U.S.C. 1701u.
The owner shall carry out the provisions of section 3 and the regulations issued by
HUD as set forth in 24 CFR part 13S and all applicable rules and orders of HUD
issued thereunder prior to the execution of this Agreement. This shall be a
condition of the Federal financial assistance provided to the project, binding upon
the owner, the owner's contractors and subcontractors, successors and assigns.
Failure to fulfill these requirements shall subject the owner, the owner's
contractors and subcontractors, successors and assigns to the sanctions specified
by this Agreement, and to sucli sanctions as are specified by 24 CFR part
{b) The owner shall incorporate or cause to be incorporated into any contract or
subcontract for work pursuant to this Agreement in excess of $100,000 the
following clause:
(1} The work to be performed under this contract is subject to the requirements of
section 3 of the Housing Urban Development Act of 1968, as amended, 12 U.S.C.
1701u. The purpose of section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance ar HUD-assisted projects
covered by section 3 shall, to the greatest extent feasible, be directed to low- and
very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
Page 1 of 15
Previous Editions are obsolete
HUD 52531B
Agreement, Part 2 of 2
Project-based Voucher Program
~,_...
~.
This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information
unless that collection displays a valid OMB control number. Assurances of confidentiality are not provided under
this colleciion.
{2) The parties to this Agreement agree to comply with HUD's regulations in 24 CFR
part 135, which implement section 3. As evidenced by their execution of this
Agreement, the patties to this Agreement certify that they are under no
contractual or other impediment that would prevent them from complying with
the part i 35 regulations.
{3} The contractor agrees to send to each labor organization or representative of
workers with which the contractor has a collective bargaining agreement or other
understanding, if any, a notice advising the labor organization or workers'
representative of the contractor's commitments under this section 3 clause, and
will post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the
notice. The notice shall describe the section 3 preference, and shall set forth
minimum number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; the name and location of the
person{s} taking applications for each of the positions; and the anticipated date the
work shall begin.
{4} The contractor agrees to include this section 3 clause in every subcontract subject
to compliance with regulations in 24 CFR part 135, and agrees to take appropriate
action, as provided in an applicable provision of the subcontract or in this section
3 clause, upon a finding that the subcontractor is in violation of the regulations in
24 CFR part 135. The contractor will not subcontract with any subcontractor
where the contractor has notice or knowledge that the subcontractor has been
found in violation of the regulations in 24 CFR part 135.
(5) The contractor will certify that any vacant employment positions, including
,.,.,..training positions, that are filled {1} after the contractor is_selected but.before the
contract is executed, and (2} with persons other than those to whom the
regulations of 24 CFR part 13S require employment opportuinties to be directed,
were not filled to circumvent the contractor's obligations under 24 CFR part 135.
{6) Noncompliance with HUD's regulations in 24 CFR part 135 may result in
sanctions, termination of this Agreement for default, and debarment or suspension
from fixture HUD assisted contracts.
{7) With respect to work performed in connection with section 3 covered Indian
housing assistance, section 7(b} of the Indian Self Determination and Education
Assistance Act (25 U.S.C. 40Se} also applies to the work to be performed under
this contraot. Section 7(b} requires that to the greatest extent feasible:
(i} preference and opportunities far training and employment shall be given to
--
Page 2 of 15 .........HUD 525318
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
Indians, and {ii} preference in the award of contracts and subcontracts shall be
given to Indian organizations and Indian-owned Economic Enterprise. Parties to
this contract that are subject to the provisions of section 3 and section 7(b) agree
to comply with section 3 to the maximum extent feasible, but not in derogation
of compliance with section 7(b).
.2 EQUAL EMPLOYMENT OPPORTUNIT
(a) The owner shall incorporate or cause to be incorporated into any contract in
excess of $10,000 for eonstxuction work, ar modification thereof, as defined in the
regulations of the Secretary of Labor at 41 CFR chapter 60, which is to be
performed pursuant to this Agreement, the following nondiscrimination clause:
During the performance of this contract, the contractor agrees as follows:
{1) The contractor will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, sex, or national origin. The
contractor will take affirmative action to ensure that applicants are employed, and
that employees are treated during employment, without regard to their race, color,
religion, creed, sex, or national origin. Such action shall include, but not be
limited to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoffs or termination; rates of pay or
other forms of compensation; and selection fox training, including apprenticeship.
The contractor agrees to post inconspicuous places, available to employees and
applicants for empioyrnent, notices to be provided by the contracting officer
setting forth the provisions of this nondiscrimination clause.
--- - -- - - (2) The contractor with in-all-solicitations ar advertisements for employees-placed by --- -- -
or on behalf_of the contractox, state that all qualified applicants will receive
consideration for employment without regard to race, color, religion, creed, sex,
or national origin.
(3) The contractor will send to each labor union or representative of workers with
which the contractor has a collective bargaining agreement or other contract or
understanding, a notice to be provided by or at the direction of the Government
advising the labor union or workers representative of the contractor's
commitments under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants fox employment.
- - Page 3 of 15 HUD 52531B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
;~
,,.:~.
(4) The contractor of will comply with all provisions of Executive Order No. 11246
of September 24, 1965, and with the rules, regulations, and relevant orders of the
Secretary of Lobar.
(5} The contractor will furnish all information and reports required by Executive
Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders
of the Secretary of Labor, or pursuant thereto, and will permit access to its books,
records, and accounts by IiUD and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations and orders.
(6} In the event of the eontxactor's noncompliance with the nondiscrimination clauses
of this contract or with any of the rules, regulations, or orders, the contract maybe
canceled, terminated, or suspended in whole or in part and the contractor maybe
declared ineligible for further contracts in accordance with procedures authorized
in Executive Order No. 11246 of September 24, 1965, and such other sanctions as
maybe imported and remedies invoked as provided in Executive Order No.
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of
Labor or as otherwise provided by law.
{7) The contractor will include the provisions of paragraphs (1}through (7) in every
subcontract or purchase order unless exempted by the rules, regulations, or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order No.
11246 of September 24, 1965, so that such provisions will be binding upon each
subcontractor or vendor. The contractor will take such action with respect to any
subcontract or purchase order as the Government may direct as a means of
enforcing such provisions including sanctions for noncompliance; provided,
however, that in the event a contractor becomes involved in, or is threatened with,
,...litigation with a subcontractor or vendor as a result of such direction by the
Government, the contractor may request the United States to enter into such
-- litigation to protect the interest of the United States.
(b) The owner agrees to be bound by the above nondiscrimination clause with respect
to his or her own employment practices when participating in federally assisted
constzuction work.
(e) The owner agrees to assist and cooperate actively with IiUD and the Secretary of
Labor in obtaining the compliance of contractors and subcontractors with the
nondiscrimination clause and the rules, regulations, and relevant orders of the.
Secretary of Labor, to furnish HUD and the Secretary of Labor such information
Page 4 of 15 HUD 52531 B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
as they may require for the supervision of such compliance, and to otherwise
assist HUD in the discharge of HUD's primary responsibility for securing
compliance.
{d} The owner further agrees to refrain from entering into any contract or contract
modification subject to Executive Order No. 11246 of September 24, 1965, with a
contractor debarred from, or who has not demonstrated eligibility for,
Government contracts and federally assisted construction contracts pursuant to the
Executive Order and will carry out such sanctions and penalties for violation of
the nondiscrimination clause as may be imposed upon contractors and
subcontractors by HUD or the Secretary of Lobar pursuant to the Executive
Order. In addition, if the owner fails or refuses to comply with these undertakings,
HUD may take any or all of the following actions; cancel, terminate, or suspend
in whole or in part this Agreement; refrain from extending any further assistance
to the owner under the program with respect to which the failure or refusal
occurred until satisfactory assurance of future compliance has been received frown
the owner, and refer the case to the Department of Justice for appropriate legal
proceedings.
.3 RESERVED
.4 HUD-FEDERAL LABOR STANDARDS PROVISION
The owner is responsible for inserting the entire text of section 2.4 of this Agreement in
all construction contracts and, if the owner performs any rehabilitation work on the
project, the owner must comply with all provisions of section 2.4. (Note: Sections 2.4(b}
and (c) apply only when the amount of the prime contract exceeds $140,000.)
(a}(-1)(i) Minimum Wa es. All laborers and mechanics employed-or warking.upon the
site of the work (or under the United States Housing Act of 1937 or under the Housing
Act of 1949 in the construction or development of the project} will be paid
unconditionally and not less often than once a week, and without subsequent deduction or
rebate on any account (except such payroll deductions as are permitted by regulations
issued by the Secretary of Labor under the Copeland Act (29 Cl{R part 3)), the full
amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time
of payment computed at rates not less than those contained in the wage determination of
the Secretary of Labor which is attached hereto and made parr hereof regardless of any
contractual relationship which inay be alleged to exist between the contractor and such
laborers and mechanics. Contributions made or costs reasonably anticipated far bona fide
fringe benefits under section l(b}(2} of the Davis-Bacon Act on behalfof laborers or
Page S of 15 HUD 52S31B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
~~,~
inechazzics are considered wages paid to such laborers or mechanics, subject to the
provisions of 29 CPR 5.5(a}(1)(iv); also, regular contributions made or costs incurred for
more than a weekly period (but not less often than quarterly} under plans, funds, or
programs, which cover the particular weekly period, are deemed to be constructively
made or incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits
on the wage determination for the classification of work actually performed, without
regard to skill, except as provided in 29 CPR S.S(a){4}. Laborers or mechanics
performing work in more than one classification may be compensated at the rate
specified for each classification for the time actually worked therein: Provided, That the
employer's payroll records accurately set forth the tune spent in each classification in
which work is performed. The wage determination (including any additional
classification and wage rates conformed under 29 CPR S.S(a){1}{ii) and the Davis-Bacon
poster {WH-I321}} shall be posted at all times by the contractor and its subcontractors at
the site of the work in a prominent and accessible place where it can be easily seen by the
workers.
{ii)(A) Any class of laborers or mechanics which is not listed in the wage determination
and which is to be employed under the contract shall be classified in conformance with
the wage determination. HUD shall approve an additional classification and wage rate
and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a
classification in the wage determination;
(2) The classification is utilized in the area by the construction industry; and
_ _..
_ __
{3} The proposed wage rate, including any bona fide fringe benefits, bears a reasonable
relationship to the wage rates contazzed iri the wage determination. ~ " "
(B) If the contractor and the laborers and mechanics to be employed in the classification
(if known), ox their representatives, and HUD ox its designee agree on the classification
and wage rate (including the amount designated for fringe benefits where appropriate), a
report of the action taken shall be sent by HUD or its designee to the Administrator of the
Wage and Hour Division, Employment Standards Administration, U.S. Department of
Labor, Washington, D. C. 20210. The Administrator, or an authorized representative, will
approve, modify, ox disapprove evexy additional classification action within 30 days of
xeceipt and so advise HUD or its designee or will notify HUD or its designee within the
30-day period that additional time is necessary.
Pa e b of.15 HUD 52531E
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
(C} In the event the contractor, the laborers or mechanics to be employed in the
classification or (heir representatives, and HUD or its designee do not agree on the
proposed classification and wage rata (including the amount designated for fringe
benefits, where appropriate), HUD or its designee shall refer the questions, including the
views of all interested parties and the recommendation of HUD or its designee, to the
Administrator for determination. The Administrator, or an authorized representative, will
issue a determination within the 30 days of receipt and so advise HUD or its designee or
will notify HUD or its designee within 30-tiay period that additional time is necessary.
{D} The wage rate (including fringe benefits where appropriate) determined pursuant to
subparagraphs (1}{B} or (C) of this paragraph, shall be paid to ail workers performing
work in the classification under this contract from the first day on which work is
perfornzed in the classification.
(iii} Whenever the minimum wage rate prescribed in the contract for a class of laborers ar
mechanics includes a fringe benefit which is not expressed as an hourly rate, the
contractor shall either pay the benefit as stated in the wage determinations or shall pay
another bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the
contractor may consider as part of the wages of any laborer or mechanic the amount of
any costs reasonably anticipated in providing bona fide fringe benefits under a plan or
program: Provided, That the Secretary of Labor has found, upon the written request of
the contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the contractor to set aside in a separate account assets for
the meeting of obligations under the plan or program.
.._.......-.- .. (2) -W-ithholdin .-HUD or its designee shall upon..its.own action or.upon written request
__ _ of an authorized representative of the Depaz-txnent of Labor withhold or cause to be
withheld from the contractors under this contract or any other Federal contract vent e
- same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon
prevailing wage requirements, which is held by the same prime contractor so much of the
accrued payments or advances as may be considered necessary to pay laborers and
mechanics, including apprentices, trainees and helpers, employed by the contractor or any
subcontractor the full amount of wages required by the contract. In the event of failure to
pay any laborer or mechanic, including any apprentice, trainee or helper, employed or
working on the site of the work (ar under the United States Housing Act of 1937 or under
the Housing Act of 1949 in the construction or development of the project}, ali or part of
the wages required by the contract, HUD or its designee may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as maybe necessary to cause
the suspension of any further payment, advance, or guarantee of funds until such
Page 7 of 15 HUD 52531E
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
~.~
violations have ceased. HUD or its designee may, after written notice to the contractor,
disburse such amounts withheld for and on account of the contractor or subcontractor to
the respective employees to whom they are due.
(3)(i} Payrolls and Basic Records. Payrolls and basic records relating thereto shall be
maintained by the contractor during the course of the work and preserved for a period of
three years thereafter for all laborers and mechanics working at the site of the work (or
under the United States Housing Act of 1937, or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name,
address, and social security number of each such worker, his or her correct classification,
hourly rates of wages paid (including rates of contributions or costs anticipated for bona
fide fringe benefits or cash equivalents thereof of the types described in section 1{b){2){B)
of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR S.S
(a)(1}{iv) that the wages of any laborer or mechanic include the amount of any costs
reasonably anticipated izz providing benefits under a plan or program described in section
1(b}(2)(B} of the Davis-Bacon Act, the contractor shall maintain records which show that
the commitment to provide such benefits is enforceable, that the plan or program is
financially responsible, and that the plan or program has been communicated in writing to
the laborers or mechanics affected, and records which show the costs anticipated or the
actual cost incurred in providing such benefits. Contractors employing apprentices or
trainees under approved programs shall maintain written evidence of the registration of
apprenticeship programs and certification of trainee programs, the registration of the
apprentices and trainees, and the ratios and wage rates prescribed in the applicable
programs.
(ii)(A} The contractor shall submit weekly for each week in which any contract work is
___ _ performed a copy of all payrolls. to HUD or._ts designee if the agency is a parry to the
comtract, but if floe agency is not such a party, the contractor will submit the payrolls to
the applicant, sponsor, or ovvnex, as the case zmay be, -for transmission to HUD or its ~-
designee. The payrolls submitted shall set out accurately and completely all of the
information required to be maintained under 29 CFR 5.5(a)(3)(i). This information may
be submitted in any form desired. Optional Fozm Wli-347 is available for this purpose
and znay be purchased from the Superintendent of Documents (Federal Stock Number
029-005-OOOi4-1), U.S. Government Printing Office, Washington, DC 20402. The prune
contractor is responsible for the submission of copies of payrolls by all subcontractors.
(B) Each payroll submitted shall be accompanied by a "Statement of Compliance,"
signed by the contractor or subcontractor or his or her agent who pays or supervises the
payment of the persons employed under the contract and shall certify the following:
....Page 8 of 15
Previous Editions are obsolete
_---...
HtJD 52531B _..
Agreement, Part 2 of 2
Project-based Vouchex Program
,'
(1}That the payroll for the payroll period contains the information required to be
maintained under 29 CFR S.S (a}{3){i) and that such information is cozxect and complete;
(2) That each laborer ar mechanic (including each helper, apprentice, and trainee}
employed on the contract during the payroll period has been paid the full weekly wages
earned, without rebate, either directly or indirectly, and that no deductions have been
made either directly or indirectly from the full wages earned, other than permissible
deductions as set forth in 29 CFR part 3;
{3}That each laborer or mechanic has been paid not less than the applicable wage rates
and fringe benefits or cash equivalents for the classification of work performed, as
specified in the applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse
side of Optional Form WH-347 shall satisfy the requirement for submission of the
"Statement of Compliance" required by paragraph (a)(3)(ii){B) ofthis section.
(D} The falsification of any of the above certifications may subject the contractor ar
subcontractor to civil or criminal prosecution under section IQ41 of Title i8 and section
23 i of Title 3 i of the United States Code.
{iii} The contractor or subcontractor shall make the records required under paragraph
(a}{3)(i) of this section available for inspection, copying, or transcription by authorized
representatives of HUD or its designee or the Department of Labor, and shall permit such
representatives to interview employees during working hours on the job. If the contractor
or subcontractor fails to submit the required records or to make them available, HUD or
its designee may, after written notice to the contractor, sponsor, applicant, or owner, take
.........._.._...
__.___... _ ...such action as may be necessary to cause_ihe susponsiora of any further payment, advance, _
ar guarantee of funds. Furthermore, failure to submit the required records upon request or
___
to make such records available maybe grounds for-debarment action pursuant to 29 CFR
5.12.
{4}(i) A reprices and Trainees. Apprentices. Apprentices will be permitted to work at
less than the predetermined rate for the work they performed when they are employed
pursuant to and individually registered in a bona fide apprenticeship program registered
with the U.S. Department of Labor, Employment and Training Administration, Bureau of
Apprenticeship and Training, ar with a Stale Apprenticeship Agency recognized by the
Bureau, or if a person is employed in his or her first 90 days of probationary employment
as an apprentice in such an apprenticeship program, who is mat individually registered in
the program, but who has been certified by the Bureau of Apprenticeship and Training or
a State Apprenticeship Agency (where appropriate} to be eligible for probationary
__ . Page 9 of-1S HUD S2S31
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
employment as an apprentice. The allowable ratio of apprentices to jouzxieymen on the
job site in any craft classification shall not be greater than the ratio permitted to the
contractor as to the entire work force under the registered program. Any worker listed on
a payroll at an apprentice wage rate, who is not registered or otherwise employed as
stated above, shall be paid not less than the applicable wage rate on the wage
determination for the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the ratio permitted under the
registered program shall be paid not less than the applicable wage rate on the wage
determination for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its program is registered,
the ratios and wage rates {expressed in percentages of the journeymen's hourly rate)
specified in the contractor's or subcontractor's registered program shall be observed.
Every apprentice must be paid at not less than the rate specified in the registered program
for the apprentice's level of progress, expressed as a percentage of the journeymen hourly
rate specified in the applicable wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the apprenticeship program. If the
apprenticeship program does not specify fringe benefits, apprentices must be paid the full
amount of fringe benefits listed on the wage determination far the applicable
classification. If the Administrator determines that a different practice prevails for the
applicable apprentice classification, fringes shall be paid in accordance with that
determination. In the event the Bureau of Apprenticeship and Training, or a State
Apprenticeship Agency recognized by the Bureau, withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to utilize apprentices
at less than the applicable predetermined rate for the work performed until an acceptable
program is approved.
{ii} Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work
at less than the predetermined rate fax the work performed unless they are employed
pursuant to and individually registered in a program which has received prior approval,
evidenced by formial certification by the U.S. Department of Labor;~mplayment and
Training Administration. The ratio of trainees to journeymen on ihe_ job site shall not be
greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the
approved program for the trainee's level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable wage determination. Trainees shall be
paid fringe benefits in accordance with the provisions of the trainee program. If the
trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed on the wage determination unless the Administrator of the Wage
and Hour Division determines that there is an apprenticeship program associated with the
corresponding journeyman wage rate on the wage determination which provides for lass
tliarz full fringe benefits for apprentices. Any employee listed on the payroll at a trainee
Page 10 of 1S HUD S2S3IB
Agreement, Part 2 of 2
Previaus Editions are obsolete
Project-based Voucher Program
rate who is not registered and participating in a training plan approved by the
Employment and Training Administration shall be paid not less than the applicable wage
rate on the wage determination far the classification of work actually performed. In
addition, any trainee performing work on the job site in excess of the ratio permitted
under the registered program shall be paid not less than the applicable wage rate on the
wage determination for the work actually performed. In the event the Employment and
Training Administration withdraws approval of a program, the contractor will no longer
be permitted to utilize trainees at less than the applicable predetermined rate far the work
performed until an acceptable program is appraved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees and
journeymen under this part shall be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended, and 29 CFR part 30.
(S) Compliance with Copeland Act Requirements. The contractor shall comply with the
requirements of 29 CFR part 3 which are incorporated by reference in this Agreement.
(6) Subcontracts. The contractor or subcontractor will insert in any subcontracts the
clauses contained in section 2.4{a)(1) through {l l} and such other clauses as HUD or its
designee may by appropriate instructions require, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime
contractor shall be responsible for the compliance by any subcontractor or lower tier
subcontractor with all the contract clauses in this section 2.4(a).
(7} Contract Terminations• Debarment. A breach of the contract clauses in 29 CFR S.S
may be grounds for termination of the contract, and fox debarment as a contractor and a
subcontractor as provided in 29 CFR 5.12.
.............. .
(8) Compliance with Davis-Bacon and Related Act Requirements. Ali rulings and
interpretations ofthe Davis-Bacon and related Acts contained in 29 CFR parts ~1 3, and S
are herein incorporated by reference in this contract.
(9) Disputes Concerning Labor Standards. Disputes arising out of the labor standards
provisions of this contract shall not be subject to the general disputes clause of this
contract. Suclx disputes shall be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR parts S, 6, and 7. Disputes within the meaning
of this clause include disputes between the contractor (or any of its subcontractors} and
HUD or its designee, the U. S. Deparirnent of Labor, or the employees or their
representatives.
-- -- Page 11 of 1S HUD S2S31B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
(10)(i) Certification of Edibility. By entering into this Agreement, the contractor
certifies that neither it (nor he or she} nor any person or firm who has an interest in the
contractox's fzrm is a person ar f irm ineligible to be awarded Government contracts by
virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded
HUD contracts or participate in HUD programs pursuant to 24 CFR part 24.
{ii) No part of this Agreement shall be subcontracted to any person or firm ineligible for
award of a Government contract by virtue of section 3 (a) of the Davis-Bacon Act or 29
CFR 5.12(a}{l) or to be awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR part 24.
(iii} The penalty far making false statements is prescribed in the U.S. Criminal Code, 18
U.S.C. lflfll. Additionally, U.S. Criminal Code, section 1010, Title 18, U.S.C., "Federal
Housing Administration transactions, provides in part: "Whoever, for the purpose of
...influencing in any way the action of such Administration...makes, utters or publishes
any statement, knowing the same to be false... shall be fined not more than $5,400 or
imprisoned not more than two years, or both."
11. Coin faints Proceedin s or Testimon b Em to ees. No laborer or mechanic to
whom the wage, salary, ox other labor standards provisions of this Agreement are
applicable shall be discharged or in any other manner discriminated against by the
Contractor or any subcontractor because such employee has filed any complaint or
instituted or caused to be instituted any proceeding or has testified or is about to testify in
any proceeding under or relating to the labor standards applicable under this Agreement
to his employer.
(b} ,Contract Work Hours and Safet~tandards Act. The provisions of this paragraph (b)
are applicable only where the amount of the prime contract exceeds $100,000. As used
in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards.
(1) Overtime Requirements. No contractor or subcontractor contracting for any part of
the contract work which may require or involve the employment of laborers or mechanics
shall require or permit any such laborer or mechanic in any workweek in which. he or she
is employed an such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rata not less than one and one-half times
the basic rate of pay far all hours worked in excess of forty hours in such workweek.
(2) Violation• Liability for Un,~aid Wazres• Liquidated Damages. In the event of any
violation of the clause set forth izz subparagraph (1} ofthis paragraph, the contractor and
any subcontractor responsible therefore shaIl be liable for the unpaid wages. In addition,
such contractor and subcontractor sliali be liable to the U;,ited States (in the case of work
-T_.:..
_... _._ g ------_ .
Pa e 12 of 15 HUD 52531B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
done under contract for the District of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated damages shall be computed with
respect to each individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the
suzn of $10 for each calendar day on which such individual was required or pezrnitted to
work in excess of the standard workweek of forty hours without payment of the ovez-tizne
wages required by the clause set forth in subparagraph {1} of this paragraph.
(3) Withholding for Unpaid Wages and Liquidated Damages. HUD or its designee shall
upon its own action or upon written request of an authorized representative of the
Department of Labor withhold or cause to be withheld, from any monies payable on
account of work perfozmed by the contractor or subcontractor under any such contract or
any other Federal contract with the same prune contractor, or any other Federally-assisted
contract subject to the Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor such sums as maybe determined to be necessary to satisfy any
liabilities of such contractor or subcontractor fox unpaid wages and liquidated damages as
provided in the clause set forth in subparagraph (2} of this paragraph.
(4) Subcontractors. The contractor or subcontractor shall insert in any subcontracts the
clauses set Earth in subparagraph (1}through (4} of this paragraph and also a clause
requiring the subcontractors to include Yhese clauses in any lower tier subcontracts. The
prime contractor shall be responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in subparagraphs (1) through {4} of this
paragraph.
(c} Health and Safety. The provisions of this paragraph (c) are applicable only where the
amount of the prune contract exceeds $100,000.
(1) No laborer or mechanic shall be required to work in surroundings or under
working conditions which are unsanitary, hazardous or dangerous to his health
and safety as determined under construction safety and health standards
promulgated by the Secretary of Labor by regulation.
(2) The contractor shall comply with all regulations issue by the Secretary of Labor
pursuant to Title 29 part 1926 and failure to comply may result in imposition of
sanctions pursuant to the Contract Work Hours and Safety Standards Act, 40 USC
3701 et seq.
(3) The contractor shall izaclude the provisions of this paragraph iza every subcontract
so that such provisions will be binding on each subcontractor. The contractor shall
take such action with respect to any subcontract as the Secretary of Housing and
- .- Page 13 of 1S -- HUD S2S31B
Agreement, Part 2 of 2
Previous Bditions are obsolete
Project-based Voucher Progzarn
t
Urban Development or the Secretary of Lobar shall direct as a means of enforcing
such provisions.
2.5-2.7 RESERVE
2.8 WAGE AND CLAIMS ADJUSTMENT
The owner shall be responsible for the correction of all violations under section 2.4,
including violations committed by other contractors. Incases where there is evidence of
underpayment of salaries or wages to any laborers or mechanics (including apprentices
and trainees) by the owner or other contractor or a failure by the owner or other
contractor to submit payrolls and related reports, the owner shall be required to place an
amount in escrow, as determined by HUD sufficient to pay persons employed on the
work covered by the Agreement the difference between the salaries or wages actually
paid such employees far the total number of hours worked and the full amount of wages
required under this Agreement, as well as an amount determined by HUD to be sufficient
to satisfy any liability of the owner or other contractor for liquidated damages pursuant to
section 2.4. The amounts withheld may be disbursed by HUD for and on account of the
owner or other contractor to the respective employees to whom they are due, and to the
Federal Government in satisfaction of liquidated damages under section 2.~4.
2.9 RESERVED
.10 EVIDENCE OF UNIT S COMPLETION; ESCRO
(a) The owner shall evidence the completion of the units} by fiurnishing the PHA, in
..addition to the requirements listed in.Part..I of.this_Agreement, a cert~cation of
compliance with the provisions of sections 2.4 and 2.8 of this Agreement, and that to the
best of the owner's knowledge and belief there are no claims of underpayment to Iabarers
or mechanics in alleged violation of these provisions of the Agreement. In the eventthere -
are any such pending claims to the knowledge of the owner, the PHA, or HUD, the owner
will place a sufficient amount in escrow, as directed by the PHA or HUD, to assure such
payments.
(b) The escrows required under this section and section 2.8 of shall be paid to HUD, as
escrowee, or to an escrowee designated by HUD, and the conditions and manner of
releasing such escrows shall be designated and approved by HUD.
Page 14...af 15 HUD 52531 B
......._...
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program
2.11 FLQUD INSURANC
If the project is located in an area that has been identified by the Federal Emergency
Management Agency as an area having special flood hazards and if the sale of flood
insurance has been made available under the National Flood Insurance Program, the
owner agrees that: (1) the project will be covered, during the life of the property, by flood
insurance in an amount at least equal to its development or project cost (less estimated
land cost) or to the limit of coverage made available with respect to the particular type of
property under the National Flood Insurance Act of 1968, whichever is less; and (2) that
it will advise any prospective purchaser or transferee of the property in writing of the
continuing statutory requirement to maintain such flood insurance during the life of the
property.
Page 1S of 1S
HUD S2S31B
Agreement, Part 2 of 2
Previous Editions are obsolete
Project-based Voucher Program