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MEETING DATE:
MAY 5, 2015
TITLE:
PROJECT BASED VOUCHERS
ALLOCATIONS
(STRATEGIC PLAN NO, 5,3)
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1. Approve allocations of project based vouchers based on the two recommended projects
located at 815 N. Harbor Boulevard by 815 N. Harbor, LP and 1440 E. First Street by AMCAL
Multi -Housing Two, LLC.
2. Authorize the Executive Director of the Housing Authority or designee, contingent upon
approval by the U.S. Department of Housing and Urban Development, to complete and
execute the Project Based Vouchers Agreement to Enter into Housing Assistance Payments
Contract once the awarded projects have received Planning Approval within 24 months of
May 5, 2015.
3. Authorize the Executive Director of the Housing Authority or designee, to complete and
execute the Project Based Vouchers Housing Assistance Payments Contract between the
Housing Authority of the City of Santa Ana and the awarded Developers after construction of
each awarded project, and other necessary documents for the implementation of project -
based vouchers for the awarded projects.
DISCUSSION,
Project -based vouchers (PBVs) are a component of the Housing Authority of the City of Santa
Ana's (Authority) housing choice voucher program. PBVs differ from conventional tenant -based
vouchers (Section 8) in that they are limited to units located in a specific residential facility; rental
assistance is tied to the unit rather than being tied to the tenant. Project based vouchers (PBVs)
work towards the City's objective to facilitate diverse housing opportunities and support efforts to
preserve and improve the livability of Santa Ana neighborhoods by creating new affordable units
within the City.
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May 5, 2015
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Between October 6, 2014 and February 2, 2015, the City of Santa Ana ("City") distributed a
Request for Qualifications (RFQ) to solicit proposals for a project -based contract between the
Authority and one or more developers. Outreach included a published notice in the Orange
County Register and posting to the City's website. Staff also communicated electronically to 129
individuals and firms who had previously requested to be notified on development opportunities.
Following the release of the RFQ, three applications were received. Staff from the Community
Development Agency reviewed and scored the proposals based upon eight criterions: Owner's
experience and capability to build rental housing; Extent to which the project furthers the
Authority's goal of de -concentrating poverty and expanding housing and economic opportunities;
Extent to which projects have completed, or are in the process of completing, the entitlement
process with the City; Consistency with the City's General Plan and Housing Element, as well as
alignment with the City's Strategic Plan; Developer's experience and capability to manage the
kind of rental property that is proposed; The developer's experience and demonstrated ability to
comply fully with the requirement of the Authority; Evidence of site control and firm
commitment(s) for all financial assistance required for the project; Estimated timeline for
completion of the proposed project.
The projects with average scores above 80 points are recommended for allocations of PBVs,
contingent on planning approval within 24 months. The two projects recommended had complete
applications including site control, solidified project financing, and an estimated timeline for
project completion. The third application was in the conceptual phase of the project and did not
have site control, other financial commitments or an estimated timeline for project completion.
The three applicants and their project's average scores are outlined in the table below:
Applicant 1 Project
Average Score
C&C Development / Orange Housing Development Corp.
93 points/ 100 points
815 N. Harbor Blvd.
Request: 8 Project Based Vouchers
AMCAL Multi -Housing, Inc
89 points / 100 points
First Street Apartments —1440 E. First Street
Request: 8 Project Based Vouchers
Mercy House
20 points / 100 points
Request; 5 Project Based Vouchers
Once awarded, and the project receives planning approval within 24 months, or May 5, 2017, the
Authority will enter into a PBV Agreement to Enter into Housing Assistance Contract (PBV
Agreement). Awarded projects that do not receive planning approval within 24 months will no
longer be eligible to enter into the PBV Agreement with the Authority.
The U.S. Department of Housing and Urban Development (HUD) regulations require that the
Housing Authority enter into a PBV Agreement to Enter into Housing Assistance Payments
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Contract (Exhibit 1) prior to the start of construction, and a PBV Housing Assistance Payments
Contract (Exhibit 2) after the completion of construction. Neither document can be executed until
a subsidy layering analysis has been performed. This analysis will review the project's financing
structure to ensure that the public funds being committed are not excessive. Under current HUD
guidelines, this analysis must be conducted by HUD after the Authority has approved the project;
or, for projects requesting tax credits in California, the analysis is to be conducted by the
California Tax Credit Allocation Committee.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #5 Community Health, Livability, Engagement
& Sustainability), Objective #3 (Facilitate diverse housing opportunities and support efforts to
preserve and improve the livability of Santa Ana neighborhoods),
FISCAL IMPACT
There is no fiscal impact associated with this action.
Keller Ree ddrs' U
Executive `rector
Housing Authority of the City of Santa Ana
KR/NV/sb
Exhibits: 1. PBV Agreement Template
2. HAP Contract Agreement Template
3. Maps of Proposed Project Locations
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OMB Approval No. 2577-0169
(exp. 04/30/2018)
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 collection.
1.1 Parties
This Agreement to Enter into Housing Assistance Payments Contract ("Agreement") is
entered into between: ("PHA") and
1.2 Purpose
The owner agrees to develop the Housing Assistance Payments Contract ("HAP
contract") units to in accordance with Exhibit B to comply with Housing Quality
Standards ("HQS"), 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 consists 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 CFR 983.5 1.)
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EXHIBIT 1
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("owner")
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 PHA has determined necessary,
specifications and plans.
• if the Agreement is for new construction of units, the work description must
include the working drawings and specifications.
• any additional requirements beyond HQS relating to quality, design and
architecture that the PHA 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.
EXHIBIT D: The HAP contract.
1.4 Significant 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 HUD requirements.
B. A project may either be a single -stage or multi -stage project. A single -
stage project will have the same Agreement effective date for all contract
units. A multi -stage project will have separate effective dates for each
stage.
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Single -stage project
i. Effective Date for all 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
F-1 This Agreement is for New Construction of units to be assisted by the
project -based voucher program.
F-1 This Agreement is for Rehabilitation of units to be assisted by the
project -based voucher program.
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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 1.4. In the event the work is
not commenced, diligently continued and completed as required under this
Agreement, the PHA 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 of the
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 later than the end of the
period stated in section 1.4.
C. Delays: If there 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.
1.7 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 of
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 or 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 of workmanship for the area.
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1.8 Work Completion
A. Conformance with Exhibit B: The work must be completed in accordance with
Exhibit B. 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 HQS 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 CFR 983.155(b)(1)(ii).)
3. Additional Evidence of Completion: At the discretion of the 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:
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the HQS;
State, local or other building codes;
Zoning;
The rehabilitation work write-up for rehabilitated housing;
The work description for newly constructed housing; or
Any additional design or quality requirements pursuant to
this Agreement.
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1.9 Inspection and Acceptance by the PITA 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: If the PHA determines the work has not been completed in
accordance with this Agreement, including non-compliance with the HQS, the
PHA shall promptly notify the owner of this decision and the reasons for the non-
acceptance. The parties must not enter into the HAP 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 completed in
accordance with this Agreement, and that the 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 PHA 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 Execution: Upon acceptance of the units by the PHA, the owner and the
PHA execute the HAP contract.
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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 stage.
C. Form 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 blank 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.
B. 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 HUD requirements. Where the estimated or
the initial rent to owner exceeds the amount authorized under HUD requirements,
the PHA shall establish a lower estimated or initial rent to owner (as applicable),
in accordance with 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-
4655) and implementing regulations at 49 CFR part 24.
B. The cost 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 in accordance with HUD requirements.
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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 CFR 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 demolition 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 be placed on the PHA's waiting list (if it is not
already on 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 family" means an eligible family residing in a proposed
contract unit on the proposal selection date.
D. Assistance to in-place families may only be provided in accordance with HUD
requirements.
1.15 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 PHA or HUD if the PHA or HUD determines that the contract units were
not eligible for selection in conformity with HUD requirements.
1.16 Rights of HUD if PHA Defaults Under Agreement
If HUD determines that the PHA has failed to comply with this Agreement, or has failed
to take appropriate action, to HUD's satisfaction or as directed by HUD, for enforcement
of the PHA's rights under this Agreement, HUD may assume the PHA's rights and
obligations under the Agreement, and may perform the obligations and enforce the rights
of the PHA under the Agreement. HUD will, if it determines that the owner is not in
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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
HAP 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 HUD 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 note, or with the regulatory agreement; or
B. The owner has committed fraud, bribery or any other corrupt or
criminal act in connection with the HUD loan or HUD -insured
mortgage.
6. The owner has engaged in any drug-related criminal activity or any violent
criminal activity.
B. PHA Remedies
If the PHA determines that a breach has occurred, the PHA may exercise
any of its rights or remedies under the Agreement.
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2. The PHA 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 verified 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
HAP contract for some or all of the units.
C. PHA Remedy is not Waived
'Ma -DU A-erciSe or n^n-exercise of arty remedy fnr owner breach of the
111V 1 11L 1 J
Agreement is not a waiver of the right to exercise that remedy or any other right
or remedy at any time.
1.18 PHA and Owner Relation to Third 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 or 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 PHA 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 contractor nor 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 of, or fund any contractor that does not provide this
certification.
B. Injury Resulting from Work under the Agreement: The PHA has not assumed
any responsibility for 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.
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C. Legal Relationship: The owner is not the agent of the PHA and this Agreement
does not create or affect any relationship between the PHA 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 1.18 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 PHA, Members of Local
Governing Body, or Other Public Officials
No present or former member or officer of the PHA (except tenant -
commissioners), no employee of the PHA who formulates policy or 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 or 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.
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1.21 Interest of Member or Delegate to Congress
No 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 will 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 PHA 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
all 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 PHA 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 from Federal Programs
A. Federal Requirements
The owner must comply with and is subject to requirements of 2 CFR part 2424.
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B. Disclosure
The owner certifies that:
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 interested 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 any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the Agreement or HAP contract, the owner must complete
and submit Standard Form -LLL, "Disclosure Form to Report Lobbying,"
in accordance with its instructions.
B. This certification by the owner is a prerequisite for making or entering into this
transaction imposed by 31 U.S.C. 1352.
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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 general 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 HUD 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. 3601-19) and implementing regulations at 24 CFR part 100 et seq. ;
Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-
1963 Comp., 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. 2000d -2000d-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 8 of this title; title Il of the
Americans with Disabilities Act, 42 U.S.C. 12101 et seq. ; 24 CFR part 8; section
3 of the 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, 12086, and 12107 (3 CFR, 1964—
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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 implementing
regulations at 41 CFR chapter 60; Executive Order 11625, as amended by
Executive Order 12007 (3 CFR, 1971-1975 Comp., p. 616 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 PHA and the owner must cooperate with HUD 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 HUD. The owner shall
furnish such information in the form 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,
for 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.
1.28 Notices and Owner Certifications
A. Where the owner is required to give any notice to the PHA 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.
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1.29 HUD Requirements
A. The Agreement and the HAP contract shall 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 all such laws and HUD requirements
B. 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 II provisions — Check all that apply
❑ Training Employment 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.
❑ Equal Employment Opportunity
Section 2.2 only applies to construction contracts of more than $10,000.
❑ Labor Standards Requirements
Sections 2.4, 2.8 and 2.10 apply when this Agreement covers nine or more units.
❑ Flood 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.
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EXECUTION OF THE AGREEMENT
PUBLIC HOUSING AGENCY
Name (P
By:
Signature of Authorized Representative
Official title (Print):
Date:
OWNER
Name (Print
By:
Signature of Authorized Representative
Official Title (Print):
Date:
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This page left blank intentionally.
OMB Approval No. 2577-0169
(exp. 04/30/2018)
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 collection.
2.1 Training, Employment and Contracting Opportunities
(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 135 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 such sanctions as are specified by 24 CFR part 135.
(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 or 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.
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(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 parties to this Agreement certify that they are under no
contractual or other impediment that would prevent them from complying with
the part 135 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
1 t fth �• s lanes of the war— site where both
Will post copies of ui� notice in voiispicii`v'uo places uo the vii site
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 13 5, 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 135 require employment opportunities 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 future 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. 405e) also applies to the work to be performed under
this contract. Section 7(b) requires that to the greatest extent feasible:
(i) preference and opportunities for training and employment shall be given to
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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).
2.2 EQUAL EMPLOYMENT OPPORTUNITY
(a) The owner shall incorporate or cause to be incorporated into any contract in
excess of $10,000 for construction work, or 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 for training, including apprenticeship.
The contractor agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the contracting officer
setting forth the provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by
or on behalf of the contractor, 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 for employment.
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(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 Labor.
(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 HUD and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations and orders.
(6) In the evert of the contractor's non compliance t ifil the nond.scrimination cla73Ps
of this contract or with any of the rules, regulations, or orders, the contract may be
canceled, terminated, or suspended in whole or in part and the contractor may be
declared ineligible for further contracts in accordance with procedures authorized
in Executive Order No. 11246 of September 24, 1965, and such other sanctions as
may be 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
construction work.
(c) The owner agrees to assist and cooperate actively with HUD 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
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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 Labor 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 from
the owner, and refer the case to the Department of Justice for appropriate legal
proceedings.
2.3 RESERVED
2.4 HUD -FEDERAL LABOR STANDARDS PROVISIONS
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 $100,000.)
(a)(1)(i) Minimum Wages. All laborers and mechanics employed or working 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 CFR 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 part hereof regardless of any
contractual relationship which may be alleged to exist between the contractor and such
laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide
fringe benefits under section l(b)(2) of the Davis -Bacon Act on behalf of laborers or
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mechanics are considered wages paid to such laborers or mechanics, subject to the
provisions of 29 CFR 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 CFR 5.5(a)(4). Laborers or mechanics
performing work in more than one classification may be compensated at the rate
Specified �iir each ciassiEcatlon ivr the time
A a�fi�allc worked therein: Provided That the
j 1111V "ct u11� ,
employer's payroll records accurately set forth the time spent in each classification in
which work is performed. The wage determination (including any additional
classification and wage rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis -Bacon
poster (WH -1321)) 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 contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification
(if known), or their representatives, and HUD or 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, or disapprove every additional classification action within 30 days of
receipt and so advise HUD or its designee or will notify HUD or its designee within the
30 -day period that additional time is necessary.
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(C) In the event the contractor, the laborers or mechanics to be employed in the
classification or their representatives, and HUD or its designee do not agree on the
proposed classification and wage rate (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 -day 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 all workers performing
work in the classification under this contract from the first day on which work is
performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or
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) Withholding. 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 the contractors under this contract or any other Federal contract with the
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 (or under the United States Housing Act of 1937 or under
the Housing Act of 1949 in the construction or development of the project), all 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 may be necessary to cause
the suspension of any further payment, advance, or guarantee of funds until such
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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,
hhourly c__. _ a +oma f b ,+;. "o . r ensts antle.paterl fnr bnnn
ourly rates of wages paid kfriciudlilg raL%, L � nr�iivL�1M.— -1
fide fringe benefits or cash equivalents thereof of the types described in section l(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 5.5
(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs
reasonably anticipated in 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 its designee if the agency is a party to the
contract, but if the agency is not such a party, the contractor will subinit the payrolls to
the applicant, sponsor, or owner, as the case may 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 Form WH -347 is available for this purpose
and may be purchased from the Superintendent of Documents (Federal Stock Number
029-005-00014-1), U.S. Government Printing Office, Washington, DC 20402. The prime
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:
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(1) That the payroll for the payroll period contains the information required to be
maintained under 29 CFR 5.5 (a)(3)(i) and that such information is correct and complete;
(2) That each laborer or 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) of this section.
(D) The falsification of any of the above certifications may subject the contractor or
subcontractor to civil or criminal prosecution under section 1001 of Title 18 and section
231 of Title 31 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 the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the required records upon request or
to make such records available may be grounds for debarment action pursuant to 29 CFR
5.12.
(4)(i) Apprentices 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, or with a State 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 not 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
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employment as an apprentice. The allowable ratio of apprentices to journeymen 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 journeytneri'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 for 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 for the work performed unless they are employed
pursuant to and individually registered in a program which has received prior approval,
evidenced by formal certification by the U.S. Department of Labor, Employment and
Training Administration. The ratio of trainees to journeymen on the 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 less
than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee
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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 for 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 for the work
performed until an acceptable program is approved.
(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.
(5) 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 (11) 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 5.5
may be grounds for termination of the contract, and for debarment as a contractor and a
subcontractor as provided in 29 CFR 5.12.
(8) Compliance with Davis -Bacon and Related Act Requirements. All rulings and
interpretations of the Davis -Bacon and related Acts contained in 29 CFR parts 1, 3, and 5
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. Such disputes shall be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR parts 5, 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. Department of Labor, or the employees or their
representatives.
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(10)(i) Certification of Eli ibg ility. 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
contractor's firm is a person or firm 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)(1) or to be awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR part 24.
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18
U.S.C. 1001. 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 $5,000 or
imprisoned not more than two years, or both."
11. Complaints Proceedings or Testimony by Employees. No laborer or mechanic to
whom the wage, salary, or 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 Safety Standards 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 on such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rate not less than one and one-half times
the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any
violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and
any subcontractor responsible therefore shall be liable for the unpaid wages. In addition,
such contractor and subcontractor shall be liable to the United States (in the case of work
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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
sum of $10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime
wages required by the clause set forth in subparagraph (1) of this paragraph.
(3) Withholdingfor 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 performed by the contractor or subcontractor under any such contract or
any other Federal contract with the same prime 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 may be determined to be necessary to satisfy any
liabilities of such contractor or subcontractor for 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 forth in subparagraph (1) through (4) of this paragraph and also a clause
requiring the subcontractors to include these 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 prime 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 include the provisions of this paragraph in 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
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Urban Development or the Secretary of Labor shall direct as a means of enforcing
such provisions.
2.5-2.7 RESERVED
2.8 WAGE AND CLAIMS ADJUSTMENTS
The owner shall be responsible for the correction of all violations under section 2.4,
including violations committed by other contractors. In cases 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 for 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
2.10 EVIDENCE OF UNITS COMPLETION; ESCRO
(a) The owner shall evidence the completion of the unit(s) by furnishing the PHA, in
addition to the requirements listed in Part I of this Agreement, a certification 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 laborers
or mechanics in alleged violation of these provisions of the Agreement. In the event there
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.
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2.11 FLOOD INSURANCE
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.
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OMB Approval No. 2577-0169
(exp. 04/30/2018
U.S. Department Of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT -BASED VOUCHER PROGRAM
PBV HOUSING ASSISTANCE PAYMENTS CONTRACT
NEW CONSTRUCTION OR REHABILITATION
PART 1 OF HAP CONTRACT
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 collection.
L CONTRACT INFORMATION
a. Parties
This housing assistance payments (HAP) contract is entered into between:
( PHA) and
(owner).
b. Contents of contract
The HAP contract consists of Part 1, Part 2 and the contract exhibits listed in paragraph c.
c. Contract exhibits
The HAP contract includes the following exhibits:
EXHIBIT A: TOTAL NUMBER OF UNITS IN PROJECT COVERED BY THIS HAP
CONTRACT; INITIAL RENT TO OWNER; AND THE NUMBER AND
DESCRIPTION OF THE CONTRACT UNITS. (See 24 CFR 983.203 for
required items.) If this is a multi -stage project, this exhibit must include a
description of the units in each completed phase.
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HAP Contract for New Construction or Rehabilitation
EXHIBIT 2
C 51.1
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EXHIBIT B: SERVICES, MAINTENANCE AND EQUIPMENT TO BE
PROVIDED BY THE OWNER WITHOUT CHARGES IN ADDITION TO
RENT TO OWNER
EXHIBIT C: UTILITIES AVAILABLE IN THE CONTRACT UNITS, INCLUDING A
LISTING OF UTILITIY SERVICES TO BE PAID BY THE OWNER
(WITHOUT CHARGES IN ADDITION TO RENT TO OWNER) AND
UTILITIES TO BE PAID BY THE TENANTS
EXHIBIT 1J: FEA 1 URES PR00VIDED T O COM1- 1 `J`JI T H PR %_Ip AP✓I ACCESSIBILITY
FEATURES OF SECTION 504 OF THE REHABILITATION ACT OF 1973
ADDITIONAL EXHIBITS
d. Single -Stage and Multi -Stage Contracts (Check the applicable box.)
1. ❑ Single -Stage Project
This is a single -stage project.
For all contract units, the effective date of the HAP contract is:
The PHA enters the effective date, and executes the HAP contract, after completion and PHA
acceptance of all units in the single stage project.
2. ❑ Multi -Stage Project
This is a multi -stage project. The units in each completed stage are designated in Exhibit A.
The PHA enters the effective date for each stage after completion and PHA acceptance of all
units in that stage. The PHA enters the effective date for each stage in the "Execution of HAP
contract for contract units completed in stages" (starting on page 8).
The annual anniversary date of the HAP contract for all contract units in this multi -stage project
is the anniversary of the effective date of the HAP contract for the contract units included in the
first stage. The expiration date of the HAP contract for all of the contract units completed in
stages must be concurrent with the end of the HAP contract term for the units included in the
first stage. (See 24 CFR 983.206(c).)
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e. Term of the HAP contract
1. Beginning of Term
The PHA may not enter into a HAP contract for any contract unit until the PHA has
determined that the unit complies with the housing quality standards. The term of the
HAP contract for any unit begins on the effective date of the HAP contract.
2. Length of initial term
a. Subject to paragraph 2.b, the initial term of the HAP contract for any contract units is:
b. The initial term of the HAP contract for any unit may not be less than one year, nor more
than fifteen years.
3. Extension of term
The PHA and owner may agree to enter into an extension of the HAP contract at the time
of initial HAP contract execution or any time prior to expiration of the contract. Any
extension, including the term of such extension, must be in accordance with HUD
requirements.
A PHA must determine that any extension is appropriate to achieve long-term
affordability of the housing or expand housing opportunities.
4. Requirement for sufficient appropriated funding
a. The length of the initial term and any extension term shall be subject to availability, as
determined by HUD, or by the PHA in accordance with HUD requirements, of sufficient
appropriated funding (budget authority), as provided in appropriations acts and in the
PHA's annual contributions contract (ACC) with HUD, to make full payment of housing
assistance payments due to the owner for any contract year in accordance with the HAP
contract.
b. The availability of sufficient funding must be determined by HUD or by the PHA in
accordance with HUD requirements. If it is determined that there may not be sufficient
funding to continue housing assistance payments for all contract units and for the full
term of the HAP contract, the PHA has the right to terminate the HAP contract by notice
to the owner for all or any of the contract units. Such action by the PHA shall be
implemented in accordance with HUD requirements.
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f. Occupancy and payment
1. Payment for occupied unit
During the term of the HAP contract, the PHA shall make housing assistance payments
to the owner for the months during which a contract unit is leased to and occupied by an
eligible family. If an assisted family moves out of a contract unit, the owner may keep
the housing assistance payment for the calendar month when the family moves out
("move -out month"). However, the owner may not keep the payment if the PHA
determines that the vacancy is the owner's fault.
2. Vacancy payment
THE PHA HAS DISCRETION WHETHER TO INCLUDE THE VACANCY PAYMENT
PROVISION (PARAGRAPH f.2), OR TO STRIKE THIS PROVISION FROM THE HAP
CONTRACT FORM.
a. If an assisted family moves out of a contract unit, the PHA may provide vacancy
payments to the owner for a PHA -determined vacancy period extending from the
beginning of the first calendar month after the move -out month for a period not
exceeding two full months following the move -out month.
b. The vacancy payment to the owner for each month of the maximum two-month period
will be determined by the PHA, and cannot exceed the monthly rent to owner under the
assisted lease, minus any portion of the rental payment received by the owner (including
amounts available from the tenant's security deposit). Any vacancy payment may only
cover the period the unit remains vacant.
c. The PHA may only make vacancy payments to the owner if.
The owner gives the PHA prompt, written notice certifying that the family has
vacated the unit and the date when the family moved out (to the best of the
owner's knowledge and belief);
2. The owner certifies that the vacancy is not the fault of the owner and that the unit
was vacant during the period for which payment is claimed;
3. The owner certifies that it has taken every reasonable action to minimize the
likelihood and length of vacancy; and
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4. The owner provides any additional information required and requested by the
PHA to verify that the owner is entitled to the vacancy payment.
d. The PHA must take every reasonable action to minimize the likelihood and length of
vacancy.
e. The owner may refer families to the PHA, and recommend selection of such families
from the PHA waiting list for occupancy of vacant units.
f. The owner must submit a request for vacancy payments in the form and manner required
by the PHA and must provide any information or substantiation required by the PHA to
determine the amount of any vacancy payments.
3. PHA is not responsible for family damage or debt to owner
Except as provided in this paragraph f (Occupancy and Payment), the PHA will not make
any other payment to the owner under the HAP contract. The PHA will not make any
payment to owner for any damages to the unit, or for any other amounts owed by a
family under the family's lease.
g. Income -mixing requirement
Except as provided in paragraphs g.2 and 3, the PHA will not make housing assistance
payments under the HAP contract for more than 25 percent of the total number of
dwelling units (assisted or unassisted) in any project. The term "project" means a single
building, multiple contiguous buildings, or multiple buildings on contiguous parcels of
land assisted under this HAP contract.
2. The limitation in paragraph g.1 does not apply to single-family buildings.
3. In referring eligible families to the owner for admission to the number of contract units in
any project exceeding the 25 percent limitation under paragraph g.1, the PHA shall give
preference to elderly or disabled families, or to families receiving supportive services, for
the number of contract units designated for occupancy by such families. The owner shall
rent the designated number of contract units to such families referred by the PHA from
the PHA waiting list.
4. The PHA and owner must comply with all HUD requirements regarding income mixing.
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5. The following specifies the number of contract units (if any):
a. Designated for occupancy by disabled families;
b Designated for occupancy by elderly families;
C. Designated for occupancy by elderly or disabled families; or
d. Designated for occupancy by families receiving supportive services.
❑ Check this box if any contract units are designated for disabled families.
The following number of contract units shall be rented to disabled
families:
❑ Check this box if any contract units are designated for elderly families.
The following number of contract units shall be rented to elderly families:
❑ Check this box if any contract units are designated for elderly or disabled
families.
The following number of contract units shall be rented to elderly or disabled
families:
❑ Check this box if any contract units are designated for families receiving supportive
services.
The following number of contract units shall be rented to families
receiving supportive services:
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EXECUTION OF HAP CONTRACT FOR SINGLE -STAGE PROJECT
PUBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner (Print)
By:
Signature of authorized representative
Name and title (Print)
Date
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HAP Contract for New Construction or Rehabilitation
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EXECUTION OF HAP CONTRACT FOR CONTRACT UNITS COMPLETED AND
ACCEPTED IN STAGES
(For multi -stage projects, at acceptance of each stage, the PHA and the owner sign the HAP
contract execution for the completed stage.)
STAGE NO. 1. The Contract is hereby executed for the contract units in this stage.
STAGE EFFECTIVE DATE. The effective date of the Contract for this stage is:
UBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner (Print)
B:
Signature of authorized representative
Name and title (Print)
Date
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STAGE NO. 2. The Contract is hereby executed for the contract units in this stage.
STAGE EFFECTIVE DATE. The effective date of the Contract for this stage is:
UBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
By:
Signature of authorized representative
ame and official title (Print)
Date
OWNER
Name of Owner (Print)
By:
Signature of authorized representative
Name and title (Print)
Date
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HAP Contract for New Construction or Rehabilitation
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STAGE NO. 3. The Contract is hereby executed for the contract units in this stage.
STAGE EFFECTIVE DATE. The effective date of the Contract for this stage is:
PUBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner (Print)
By:
Signature of authorized representative
Name and title (Print)
Date
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STAGE NO. _ The Contract is hereby executed for the contract units in this stage.
STAGE EFFECTIVE DATE. The effective date of the Contract for this stage is:
PUBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner (Print)
By:
Signature of authorized representative
ame and title (Print)
Date
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HAP Contract for New Construction or Rehabilitation
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4-46
OMB Approval No. 2577-0169
(exp. 04/30/2018)
U.S. Department Of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT -BASED VOUCHER PROGRAM
PBV HOUSING ASSISTANCE PAYMENTS CONTRACT
NEW CONSTRUCTION OR REHABILITATION
PART 2 OF HAP CONTRACT
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 collection.
2. DEFINITIONS
Agreement. Agreement to enter into HAP Contract between the owner and the PHA.
The HAP contract was entered into following new construction or rehabilitation of the
contract units by the owner pursuant to an Agreement.
Contract units. The housing units covered by this HAP contract. The contract units are
described in Exhibit A.
Family. The persons approved by the PHA to reside in a contract unit with assistance
under the program.
HAP contract. This housing assistance payments contract between the PHA and the
owner. The contract consists of Part 1, Part 2, and the contract exhibits (listed in section
1.c of the HAP contract).
Housing assistance payment. The monthly assistance payment by the PHA for a
contract unit, which includes: (1) a payment to the owner for rent to the owner under the
family's lease minus the tenant rent; and (2) an additional payment to or on behalf of the
family if the utility allowance exceeds total tenant payment.
Household. The family and any PHA -approved live-in aide.
Housing quality standards (HQS). The HUD minimum quality standards for dwelling
units occupied by families receiving project -based voucher program assistance.
Project -based Voucher Program
HAP Contract for New Construction or Rehabilitation
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HUD. U.S. Department of Housing and Urban Development.
HUD requirements. HUD requirements which apply to the project -based voucher
program. HUD requirements are issued by HUD headquarters, as regulations, Federal
Register notices or other binding program directives.
Newly constructed housing. Housing units that do not exist on the proposal selection
date and are developed after the date of selection pursuant to an Agreement between the
PHA and owner for use under the project -based voucher program.
Owner. Any person or entity who has the legal right to lease or sublease a unit to a
participant.
Premises. The building or complex in which a contract unit is located, including
common areas or grounds.
Principal or interested party. This term includes a management agent and other persons
or entities participating in project management, and the officers and principal members,
shareholders, investors, and other parties having a substantial interest in the HAP
contract, or in any proceeds or benefits arising from the HAP contract.
Program. The project -based voucher program (see authorization for project -based
assistance at 42 U.S.C. 1437f(o)(13)).
PHA. Public Housing Agency. The agency that has entered into the HAP contract with
the owner. The agency is a public housing agency as defined in the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)).
Proposal selection date. The date the PHA gives written notice of proposal selection to
the owner whose proposal is selected in accordance with the criteria established in the
PHA's administrative plan.
Rehabilitated housing. Housing units that exist on the proposal selection date, but do
not substantially comply with the HQS at that date, and are developed, pursuant to an
Agreement between the PHA and owner, for use under the project -based voucher
program.
Rent to owner. The total monthly rent payable to the owner under the lease for a
contract unit. Rent to owner includes payment for any housing services, maintenance and
utilities to be provided by the owner in accordance with the lease.
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Tenant. The person or persons (other than a live-in aide) who executes the lease as a
lessee of the dwelling unit.
Tenant rent. The portion of the rent to owner payable by the family, as determined by
the PHA in accordance with HUD requirements. The PHA is not responsible for paying
any part of the tenant rent.
3. PURPOSE
a. This is a HAP contract between the PHA and the owner.
b. The purpose of the HAP contract is to provide housing assistance payments for
eligible families who lease contract units that comply with the HUD HQS from
the owner.
C. The PHA must make housing assistance payments to the owner in accordance
with the HAP contract for contract units leased and occupied by eligible families
during the HAP contract term. HUD provides funds to the PHA to make housing
assistance payments to owners for eligible families.
4. RENT TO OWNER; HOUSING ASSISTANCE PAYMENTS
a. Amount of initial rent to owner
The initial rent to owner for each contract unit is stated in Exhibit A, which is
attached to and made a part of the HAP contract. At the beginning of the HAP
contract term, and until rent to owner is adjusted in accordance with section 5 of
the HAP contract, the rent to owner for each bedroom size (number of bedrooms)
shall be the initial rent to owner amount listed in Exhibit A.
b. HUD rent requirements
Notwithstanding any other provision of the HAP contract, the rent to owner may
in no event exceed the amount authorized in accordance with HUD requirements.
The PHA has the right to reduce the rent to owner, at any time, to correct any
errors in establishing or adjusting the rent to owner in accordance with HUD
requirements. The PHA may recover any overpayment from the owner.
C. PHA payment to owner
Each month the PHA must make a housing assistance payment to the
owner for a unit under lease to and occupied by an eligible family in
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accordance with the HAP contract.
2. The monthly housing assistance payment to the owner for a contract unit
is equal to the amount by which the rent to owner exceeds the tenant rent.
3. Payment of the tenant rent is the responsibility of the family. The PHA is
not responsible for paying any part of the tenant rent, or for paying any
other claim by the owner against a family. The PHA is only responsible
for making housing assistance payments to the owner on behalf of a
family in accordance with the HAP contract.
4. The owner will be paid the housing assistance payment under the HAP
contract on or about the first day of the month for which payment is due,
unless the owner and the PHA agree on a later date.
5. To receive housing assistance payments in accordance with the HAP
contract, the owner must comply with all the provisions of the HAP
contract. Unless the owner complies with all the provisions of the HAP
contract, the owner does not have a right to receive housing assistance
payments.
6. If the PHA determines that the owner is not entitled to the payment or any
part of it, the PHA, in addition to other remedies, may deduct the amount
of the overpayment from any amounts due the owner, including amounts
due under any other housing assistance payments contract.
7. The owner will notify the PHA promptly of any change of circumstances
that would affect the amount of the monthly housing assistance payment,
and will return any payment that does not conform to the changed
circumstances.
d. Termination of assistance for family
The PHA may terminate housing assistance for a family under the HAP contract
in accordance with HUD requirements. The PHA must notify the owner in writing
of its decision to terminate housing assistance for the family in such case.
5. ADJUSTMENT OF RENT TO OWNER
a. PHA determination of adjusted rent
1. At each annual anniversary during the term of the HAP contract, the PHA
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shall adjust the amount of rent to owner, upon request to the PHA by the
owner, in accordance with law and HUD requirements. In addition, the
PHA shall adjust the rent to owner when there is a five percent or greater
decrease in the published, applicable Fair Market Rent in accordance with
24 CFR 983.302.
2. The adjustment of rent to owner shall always be determined in accordance
with all HUD requirements. The amount of the rent to owner may be
adjusted up or down, in the amount defined by the PHA in accordance
with HTJD requirements.
b. Reasonable rent
The rent to owner for each contract unit, as adjusted by the PHA in accordance
with 24 CFR 983.303, may at no time exceed the reasonable rent charged for
comparable units in the private unassisted market. The reasonable rent shall be
determined by the PHA in accordance with HUD requirements.
C. No special adjustments
The PHA will not make any special adjustments of the rent to owner.
d. Owner compliance with HAP contract
The PHA shall not approve, and the owner shall not receive, any increase of rent
to owner unless all contract units are in accordance with the HQS, and the owner
has complied with the terms of the assisted leases and the HAP contract.
e. Notice of rent adjustment
Rent to owner shall be adjusted by written notice by the PHA to the owner in
accordance with this section. Such notice constitutes an amendment of the rents
specified in Exhibit A.
6. OWNER RESPONSIBILITY
The owner is responsible for:
a. Performing all management and rental functions for the contract units.
b. Maintaining the units in accordance with HQS.
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C. Complying with equal opportunity requirements.
d. Enforcing tenant obligations under the lease.
e. Paying for utilities and housing services (unless paid by the family under the
lease).
f. Collecting from the tenant:
Any security deposit;
2. The tenant rent; and
3. Any charge for unit damage by the family.
7. OWNER CERTIFICATION
The owner certifies that at all times during the term of the HAP contract:
a. All contract units are in good and tenantable condition. The owner is maintaining
the premises and all contract units in accordance with the HQS.
b. The owner is providing all the services, maintenance and utilities as agreed to
under the HAP contract and the leases with assisted families.
C. Each contract unit for which the owner is receiving housing assistance payments
is leased to an eligible family referred by the PHA, and the lease is in accordance
with the HAP contract and HUD requirements.
d. To the best of the owner's knowledge, the members of the family reside in each
contract unit for which the owner is receiving housing assistance payments, and
the unit is the family's only residence.
e. The owner (including a principal or other interested party) is not the parent, child,
grandparent, grandchild, sister, or brother of any member of a family residing in a
contract unit.
f. The amount of the housing assistance payment is the correct amount due under
the HAP contract.
g. The rent to owner for each contract unit does not exceed rents charged by the
owner for other comparable unassisted units.
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h. Except for the housing assistance payment and the tenant rent as provided under
the HAP contract, the owner has not received and will not receive any payments
or other consideration (from the family, the PHA, HUD, or any other public or
private source) for rental of the contract unit.
i. The family does not own, or have any interest in the contract unit. If the owner is
a cooperative, the family may be a member of the cooperative.
3. CONDIF a iOW Or UNI i S
a. Owner maintenance and operation
The owner must maintain and operate the contract units and premises to provide
decent, safe and sanitary housing in accordance with the HQS, including
performance of ordinary and extraordinary maintenance. The owner must provide
all the services, maintenance and utilities set forth in Exhibits B and C, and in the
lease with each assisted family.
b. PHA inspections
1. The PHA must inspect each contract unit before execution of the HAP
contract. The PHA may not enter into a HAP contract covering a unit
until the unit fully complies with the HQS.
2. Before providing assistance to a new family in a contract unit, the PHA
must inspect the unit. The PHA may not provide assistance on behalf of
the family until the unit fully complies with the HQS.
3. At least annually during the term of the HAP contract, the PHA must
inspect a random sample, consisting of at least 20 percent of the contract
units in each building, to determine if the contract units and the premises
are maintained in accordance with the HQS. Turnover inspections
pursuant to paragraph 2 of this section are not counted towards meeting
this annual inspection requirement.
4. If more than 20 percent of the annual sample of inspected contract units in
a building fail the initial inspection, the PHA must reinspect 100 percent
of the contract units in the building.
5. The PHA must inspect contract units whenever needed to determine that
the contract units comply with the HQS and that the owner is providing
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maintenance, utilities, and other services in accordance with the HAP
contract. The PHA must take into account complaints and any other
information that comes to its attention in scheduling inspections.
C. Violation of the housing quality standards
If the PHA determines a contract unit is not in accordance with the HQS,
the PHA may exercise any of its remedies under the HAP contract for all
or any contract units. Such remedies include termination, suspension or
reduction of housing assistance payments, and termination of the HAP
contract.
2. The PHA may exercise any such contractual remedy respecting a contract
unit even if the family continues to occupy the unit.
3. The PHA shall not make any housing assistance for a dwelling unit that
fails to meet the HQS, unless the owner corrects the defect within the
period specified by the PHA and the PHA verifies the correction. If a
defect is life threatening, the owner must correct the defect within no more
than 24 hours. For other defects, the owner must correct the defect within
no more than 30 calendar days (or any PHA -approved extension).
d. Maintenance and replacement—owner's standard practice
Maintenance and replacement (including redecoration) must be in accordance
with the standard practice for the building concerned as established by the owner.
9. LEASING CONTRACT UNITS
a. Selection of tenants
During the term of the HAP contract, the owner must lease all contract
units to eligible families selected and referred by the PHA from the PHA
waiting list. (See 24 CFR 983.251.)
2. The owner is responsible for adopting written tenant selection procedures
that are consistent with the purpose of improving housing opportunities for
very low-income families and reasonably related to program eligibility
and an applicant's ability to perform the lease obligations.
Consistent with HUD requirements, the owner may apply its own
admission procedures in determining whether to admit a family referred
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by the PHA for occupancy of a contract unit. The owner may refer
families to the PHA, and recommend selection of such families from the
PHA waiting list for occupancy of vacant units.
4. The owner must promptly notify in writing any rejected applicant of the
grounds for rejection.
5. The PHA must determine family eligibility in accordance with HUD
requirements.
6. The contract unit leased to each family must be appropriate for the size of
the family under the PHA's subsidy standards.
7. If a contract unit was occupied by an eligible family at the time the unit
was selected by the PHA, or is so occupied on the effective date of the
HAP contract, the owner must offer the family the opportunity to lease the
same or another appropriately -sized contract unit with assistance under the
HAP contract.
8. The owner is responsible for screening and selecting tenants from the
families referred by the PHA from its waiting list.
b. Vacancies
1. The owner must promptly notify the PHA of any vacancy in a contract
unit. After receiving the owner notice, the PHA shall make every
reasonable effort to refer a sufficient number of families for owner to fill
the vacancy.
2. The owner must rent vacant contract units to eligible families on the PHA
waiting list referred by the PHA.
3. The PHA and the owner must make reasonable good faith efforts to
minimize the likelihood and length of any vacancy.
4. If any contract units have been vacant for a period of 120 or more days
since owner notice of vacancy (and notwithstanding the reasonable good
faith efforts of the PHA to fill such vacancies), the PHA may give notice
to the owner amending the HAP contract to reduce the number of contract
units by subtracting the number of contract units (by number of bedrooms)
that have been vacant for such period.
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10. TENANCY
a. Lease
The lease between the owner and each assisted family must be in accordance with
HUD requirements. In all cases, the lease must include the HUD -required tenancy
addendum. The tenancy addendum must include, word-for-word, all provisions
required by HUD.
b. Termination of tenancy
1. The owner may only terminate a tenancy in accordance with the lease and
HUD requirements.
2. The owner must give the PHA a copy of any owner eviction notice to the
tenant at the same time that the owner gives notice to the tenant. Owner
eviction notice means a notice to vacate, or a complaint or other initial
pleading used to commence an eviction action under State or local law.
C. Family payment
The portion of the monthly rent to owner payable by the family ("tenant
rent') will be determined by the PHA in accordance with HUD
requirements. The amount of the tenant rent is subject to change during
the term of the HAP contract. Any changes in the amount of the tenant
rent will be effective on the date stated in a notice by the PHA to the
family and the owner.
2. The amount of the tenant rent as determined by the PHA is the maximum
amount the owner may charge the family for rent of a contract unit,
including all housing services, maintenance and utilities to be provided by
the owner in accordance with the HAP contract and the lease.
3. The owner may not demand or accept any rent payment from the tenant in
excess of the tenant rent as determined by the PHA. The owner must
immediately return any excess rent payment to the tenant.
4. The family is not responsible for payment of the portion of the contract
rent covered by the housing assistance payment under the HAP contract.
The owner may not terminate the tenancy of an assisted family for
nonpayment of the PHA housing assistance payment.
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5. The PHA is only responsible for making the housing assistance payments
to the owner on behalf of the family in accordance with the HAP contract.
The PHA is not responsible for paying the tenant rent, or any other claim
by the owner.
d. Other owner charges
1. Except as provided in paragraph 2, the owner may not require the tenant or
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t llllly 111e111UG1J to pay charges for riieaio vi ouNYvi �a✓e .ova ✓ .
Nonpayment of such charges is not grounds for termination of tenancy.
2. In assisted living developments receiving project -based voucher
assistance, owners may charge tenants, family members, or both for meals
or supportive services. These charges may not be included in the rent to
owner, nor may the value of meals and supportive services be included in
the calculation of reasonable rent. Non-payment of such charges is
grounds for termination of the lease by the owner in an assisted living
development.
3. The owner may not charge the tenant or family members extra amounts
for items customarily included in rent in the locality or provided at no
additional cost to the unsubsidized tenant in the premises.
e. Security deposit
The owner may collect a security deposit from the family.
2. The owner must comply with HUD and PHA requirements, which may
change from time to time, regarding security deposits from a tenant.
The PHA may prohibit security deposits in excess of private market
practice, or in excess of amounts charged by the owner to unassisted
families.
4. When the family moves out of the contract unit, the owner, subject to
State and local law, may use the security deposit, including any interest on
the deposit, in accordance with the lease, as reimbursement for any unpaid
tenant rent, damages to the unit or other amounts which the family owes
under the lease. The owner must give the family a written list of all items
charged against the security deposit and the amount of each item. After
deducting the amount used as reimbursement to the owner, the owner must
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promptly refund the full amount of the balance to the family.
If the security deposit is not sufficient to cover amounts the family owes
under the lease, the owner may seek to collect the balance from the family.
However, the PHA has no liability or responsibility for payment of any
amount owed by the family to the owner.
11. FAMILY RIGHT TO MOVE
a. The family may terminate its lease at any time after the first year of occupancy.
The family must give the owner advance written notice of intent to vacate (with
a copy to the PHA) in accordance with the lease. If the family has elected to
terminate the lease in this manner, the PHA must offer the family the
opportunity for tenant -based rental assistance in accordance with HUD
requirements.
b. Before providing notice to terminate the lease under paragraph a, the family
must first contact the PHA to request tenant -based rental assistance if the family
wishes to move with continued assistance. If tenant -based rental assistance is
not immediately available upon lease termination, the PHA shall give the family
priority to receive the next available opportunity for tenant -based rental
assistance.
12. OVERCROWDED, UNDER -OCCUPIED, AND ACCESSIBLE UNITS
The PHA subsidy standards determine the appropriate unit size for: the family size and
composition. The PHA and owner must comply with the requirements in 24 CFR
983.259.
13. PROHIBITION OF DISCRIMINATION
a. The owner may not refuse to lease contract units to, or otherwise discriminate
against any person or family in leasingi 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. 3601-19) and implementing regulations at 24 CFR part 100 et seq. ;
Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-
1963 Comp., 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. 2000d -2000d-4) (Nondiscrimination in
Federally Assisted Programs) and implementing regulations at 24 CFR part 1; the
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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 8 of this title; title II of the
Americans with Disabilities Act, 42 U.S.C. 12101 et seq. ; 24 CFR part 8; section
3 of the 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, 12086, and 12107 (3 CFR, 1964-
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 Elilpioylilelit Opp^vrt'uillty Programci) and :mplement:ng
regulations at 41 CFR chapter 60; Executive Order 11625, as amended by
Executive Order 12007 (3 CFR, 1971-1975 Comp., p. 616 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 PHA and the owner must cooperate with HUD in the conducting of
compliance reviews and complaint investigations pursuant to all applicable civil
rights statutes, Executive Orders, and all related rules and regulations.
14. PHA DEFAULT AND HUD REMEDIES
If HUD determines that the PHA has failed to comply with the HAP contract, or has
failed to take appropriate action to HUD's satisfaction or as directed by HUD, for
enforcement of the PHA's rights under the HAP contract, HUD may assume the PHA's
rights and obligations under the HAP contract, and may perform the obligations and
enforce the rights of the PHA under the HAP contract.
15. OWNER DEFAULT AND PHA REMEDIES
a. Owner default
Any of the following is a default by the owner under the HAP contract:
The owner has failed to comply with any obligation under the HAP
contract, including the owner's obligations to maintain all contract units in
accordance with the housing quality standards.
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).
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The owner has committed any fraud or made any false statement to the
PHA or HUD in connection with the HAP contract.
4. The owner has committed fraud, bribery or any other corrupt or criminal
act in connection with any Federal housing assistance program.
If the property where the contract units are located is subject to a lien or
security interest securing a HUD 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 note, or with the regulatory agreement; or
B. The owner has committed fraud, bribery or any other corrupt or
criminal act in connection with the HUD loan or HUD -insured
mortgage.
6. The owner has engaged in any drug-related criminal activity or any violent
criminal activity.
b. PHA remedies
If the PHA determines that a breach has occurred, the PHA may exercise
any of its rights or remedies under the HAP contract.
2. The PHA 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 verified by the PHA) by a time prescribed in the notice.
The PHA's rights and remedies under the HAP contract include recovery
of overpayments, termination or reduction of housing assistance payments,
and termination of the HAP contract.
C. PHA remedy is not waived
The PHA's exercise or non -exercise of any remedy for owner breach of the HAP
contract is not a waiver of the right to exercise that remedy or any other right or
remedy at any time.
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16. OWNER DUTY TO PROVIDE INFORMATION AND ACCESS
REQUIRED BY HUD OR PHA
a. Requiredinformation
The owner must prepare and furnish any information pertinent to the HAP
contract as may reasonably be required from time to time by the PHA or HUD.
The owner shall furnish such information in the form and manner required by the
PHA or HUD.
b. PHA and HUD access to premises
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,
for 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 HAP contract, including the verification of information pertinent to the
housing assistance payments or the HAP contract.
a. Injury because of owner action or failure to act
The PHA has no responsibility for or liability to any person injured as a result of
the owner's action or failure to act in connection with the implementation of the
HAP contract, or as a result of any other action or failure to act by the owner.
b. Legal relationship
The owner is not the agent of the PHA. The HAP contract does not create or
affect any relationship between the PHA and any lender to the owner or any
suppliers, employees, contractors or subcontractors used by the owner in
connection with the implementation of the HAP contract.
C. Exclusion of third party claims
Nothing in the HAP contract shall be construed as creating any right of a family
or other third party (other than HUD) to enforce any provision of the HAP
contract, or to assert any claim against HUD, the PHA or the owner under the
HAP contract.
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d. Exclusion of owner claims against HUD
Nothing in the HAP contract shall be construed as creating any right of the owner
to assert any claim against HUD.
18. PHA -OWNED UNITS
Notwithstanding Section 17 of this HAP contract, 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.
19. CONFLICT OF INTEREST
a. Interest of members, officers, or employees of PHA, members of local
governing body, or other public officials
No present or former member or officer of the PHA (except tenant -
commissioners), no employee of the PHA who formulates policy or
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 or
responsibilities with respect to these programs, shall have any direct or
indirect interest, during his or her tenure or for one year thereafter, or in
the 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
HAP contract. The owner must fully and promptly update such disclosures.
C. Interest of member of or delegate to Congress
No 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 this HAP contract
or to any benefits arising from the contract.
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20. EXCLUSION FROM FEDERAL PROGRAMS
a. Federal requirements
The owner must comply with and is subject to requirements of 2 CFR part 2424.
b. Disclosure
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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 interested 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.
21. TRANSFER OF THE CONTRACT OR PROPERTY
a. When consent is required
The owner agrees that neither the HAP contract nor the property may be
transferred without the advance written consent of the PHA in accordance
with HUD requirements.
2. "Transfer" includes:
A. Any sale or assignment or other transfer of ownership, in any form,
of the HAP contract or the property;
B. The transfer of any right to receive housing assistance payments
that may be payable pursuant to the HAP contract;
C. The creation of a security interest in the HAP contract or the
property:
D. Foreclosure or other execution on a security interest; or
E. A creditor's lien, or transfer in bankruptcy.
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3. If the owner is a corporation, partnership, trust or joint venture, the owner is not
required to obtain advance consent of the PHA pursuant to paragraph a for
transfer of a passive and non -controlling interest in the ownership entity (such as
a stock transfer or transfer of the interest of a limited partner), if any interests so
transferred cumulatively represent less than half the beneficial interest in the HAP
contract or the property. The owner must obtain advance consent pursuant to
paragraph a for transfer of any interest of a general partner.
b Transferee assumption of HAP contract
No transferee (including the holder of a security interest, the security holder's
transferee or successor in interest, or the transferee upon exercise of a security
interest) shall have any right to receive any payment of housing assistance
payments pursuant to the HAP contract, or to exercise any rights or remedies
under the HAP contract, unless the PHA has consented in advance, in writing to
such transfer, and the transferee has agreed in writing, in a form acceptable to the
PHA in accordance with HUD requirements, to assume the obligations of the
owner under the HAP contract, and to comply with all the terms of the HAP
contract.
C. Effect of consent to transfer
1. The creation or transfer of any security interest in the HAP contract is
limited to amounts payable under the HAP contract in accordance with the
terms of the HAP contract.
2. The PHA's consent to transfer of the HAP contract or the property does
not to change the terms of the HAP contract in any way, and does not
change the rights or obligations of the PHA or the owner under the HAP
contract.
3. The PHA's consent to transfer of the HAP contract or the property to any
transferee does not constitute consent to any further transfers of the HAP
contract or the property, including further transfers to any successors or
assigns of an approved transferee.
d. When transfer is prohibited
The PHA 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
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U.S. General Services Administration list of parties excluded from Federal
procurement or nonprocurement programs.
22. SUBSIDY LAYERING
a. Ow ner 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 general local government, or any agency or instrumentality
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L11G1GV1, L11aL is mace avalla le or is expected w — uiw..av
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 HUD 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.
23. OWNER 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 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 any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the HAP contract, the owner must complete and submit
Standard Form -LLL, "Disclosure Form to Report Lobbying," in
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accordance with its instructions.
b. This certification by the owner is a prerequisite for making or entering into this
transaction imposed by 31 U.S.C. 1352.
24. COMPLETION AND ACCEPTANCE OF CONTRACT UNITS
The owner certifies that the contract units have been completed in accordance with the
Agreement. Completion and acceptance of the units is subject to the provisions of the
Agreement.
25. TERMINATION OF HAP CONTRACT FOR WRONGFUL SELECTION
OF CONTRACT UNITS
The HAP contract may be terminated upon at least 30 days notice to the owner by the
PHA or HUD if the PHA or HUD determines that the contract units were not eligible for
selection in conformity with HUD requirements.
26. NOTICES AND OWNER CERTIFICATIONS
a. Where the owner is required to give any notice to the PHA pursuant to the HAP
contract or any other provision of law, such notice must be in writing and must be
given in the form and manner required by the PHA.
b. Any certification or warranty by the owner pursuant to the HAP contract shall be
deemed a material representation of fact upon which reliance was placed when
this transaction was made or entered into.
27. ENTIRE AGREEMENT; INTERPRETATION
a. The Agreement and the HAP contract, including the exhibits, is the entire
agreement between the PHA and the owner.
b. The Agreement and the HAP contract must be interpreted and implemented in
accordance with all statutory requirements, and with all HUD requirements,
including amendments or changes in HUD requirements during the term of the
HAP contract. The owner agrees to comply with all such laws and HUD
requirements.
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PROPOSED PROJECT LOCATION
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