HomeAgain Consortium

Team Meeting.

NHS OC NSP2 5.12.2010

Surviving and Thriving in NSP2

Putting the pieces together.

• These regulations apply to all HUD policy actions (as defined in Sec. 50.16), and to all HUD project actions (see Sec. 50.2(a)(2)). Also, they apply to projects and activities carried out by recipients subject to environmental policy and procedures of 24 CFR part 58, when the recipient that is regulated under 24 CFR part 58 claims the lack of legal capacity to assume the Secretary's environmental review responsibilities and the claim is approved by HUD or when HUD determines to conduct an environmental review itself in place of a no recipient responsible entity. For programs, activities or actions not specifically identified or when there are questions regarding the applicability of this part, the Assistant Secretary for Community Planning and Development shall be consulted.

Regulatory & Environmental Mandates for NSP2

National Environmental Policy Act

NEPA:–Federal Environmental

Policy –Federal Law

Protect, Restore and Enhance the Human Environment

Subpart A General: Federal Laws and Authorities Sec. 50.3 Environmental policy.

(a) reject proposals which have significant adverse environmental impacts and to encourage the modification of projects

(b) The HUD approving official shall consider environmental and other Departmental objectives in the decision-making process.

(c) When EA's or EIS's or reviews under Sec. 50.4 reveal conditions or safeguards that should be implemented once a proposal is approved in order to protect and enhance environmental quality or minimize adverse environmental impacts, such conditions or safeguards must be included in agreements or other relevant documents.

www.HUD.gov/offices/cpd/environment/index.cfm

24CFR50.3

HUD Guidance on Assembling and Acquiring Environmental Information

HUD Guidance on Assembling and Acquiring Environmental Information

• (d) A systematic, interdisciplinary approach shall be used to assure the integrated use of the natural and social sciences and the environmental design arts in making decisions.

• (e) Environmental impacts shall be evaluated on as comprehensive a scale as is practicable.

• (f) HUD offices shall begin the environmental review process at the earliest possible time so that potential conflicts between program procedures and environmental requirements are identified at an early stage

• . (g) Applicants for HUD assistance shall be advised of environmental requirements and consultation with governmental agencies and individuals shall take place at the earliest time feasible.

• (h) For HUD grant programs in which the funding approval for an applicant's program must occur before the applicant's selection of properties, the application shall contain an assurance that the applicant agrees to assist HUD to comply with this part and that the applicant shall:

• (1) Supply HUD with all available, relevant information necessary for HUD to perform for each property any environmental review required by this part;

HUD Guidance on Assembling and Acquiring Environmental Information

– (2) Carry out mitigating measures required by HUD or select alternate eligible property; and

– (3) Not acquire, rehabilitate, convert, lease, repair or construct property, nor commit or expend HUD or local funds for these program activities with respect to any eligible property, until HUD approval of the property is received.

– (i)(1) It is HUD policy that all property proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gasses, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property.

– (2) HUD environmental review of multifamily and non-residential properties shall include evaluation of previous uses of the site and other evidence of contamination on or near the site, to assure that occupants of proposed sites are not adversely affected by the hazards listed in paragraph (i)(1) of this section.

– (3) Particular attention should be given to any proposed site on or in the general proximity of such areas as dumps, landfills, industrial sites or other locations that contain hazardous wastes.

– (4) HUD shall require the use of current techniques by qualified professionals to undertake investigations determined necessary.

What is Environmental Tiering?

• A method for evaluating projects at early stages when the particular sites arenot yet known,• A method for streamlining the environmental review for similar activities thatare grouped into projects,Tiering, or Unspecified Site Strategy as it is sometimes called, should be used forprojects when sites have not been identified. The Tiered review allows the ResponsibleEntity (RE) to review broad environmental impacts at the early stage of a project andsite-specific impacts when the sites are identified. It also allows the RE to obtain arelease of funds, for a particular project and timeframe prior to identification of theindividual sites (24 CFR Part 58.15).A project is a group of related activities (24 CFR Part 58.2 (a)(1 and 4)). Groupingactivities together into projects is called aggregation; projects can be functionally (allsingle family actions) or geographically related (the Farley Poplar Historic District) (24CFR Part 58.32). A project is not a Program or a group of Programs such as CDBG orHOME.The Tiered review must contain four parts:• The environmental form at the appropriate level of review• The Written Strategy• The Site Specific Review Checklist• The Request for Release of Funds and Certification, Public Notice andAuthority to Use Grant FundsThe environmental form must document compliance with environmental factors that arenot triggered in the area of the project. Items that are not incompliance must be on thewritten strategy. The strategy must explain how the remaining compliance factors willbe addressed as the sites are identified. The site-specific review checklist must be filledout for each site and must contain all items that were not documented to be incompliance at the broad level of review.

HUD mandate !The ER process must be complete

PRIOR to commitment of funds

One More Environmental Principal !

• The environmental review is a study of the site

Overview of the Laws of Authorities under NEPA

• Laws and Authorities 58.5National Historic Preservation Act (16 U.S.C. 470 et. seq.)

GOALS:

Establish broad agency responsibilities to protect & preserve historic properties (Section 110)

Require agencies to consider effects of their projects on historic properties (Section 106)

What’s an historic property?

• Buildings, objects, districts, sites, or structures usually 50+ years old; AND

• Listed on or eligible for listing on the National Register of Historic Places

• NR Criteria – 36 CFR Part 60.4

Section 106 of NHPA

• REQUIREMENTS:

• Take into account the effects of your project on historic properties

• Afford the Advisory Council on Historic Preservation a reasonable opportunity to comment. Practice in California Local Government is 30 days.

What triggers 106?

• Federal funding, assistance, license, permit, or approval

• Project is defined as an “undertaking”

• Project has potential to cause effects to historic properties

The 4-Step 106 Process

1. Initiate consultation2. Identify and evaluate historic

properties3. Assess effects4. Resolve adverse effects

1. Initiate Consultation

• Is the project an undertaking?• Is it exempt or CENST?

– §58.34 or §58.35(b)– Programmatic Agreement

• Which SHPO/THPO do you contact?• What other stakeholders should be

contacted?• How will you involve the public?

Identify historic properties

• Define “area of potential effect”• Gather existing information from

knowledgeable sources• Contact stakeholders for any new

info• Evaluate NR eligibility• Submit finding of “no historic

properties affected” or move to next step– Include supporting documentation

3. Assess Effects

• Apply criteria of adverse effect– See §800.5(a)(1)

• Consult with SHPO/THPO and stakeholders, the public

• Submit finding of “no adverse effect” or go to next step– Include supporting documentation

4. Resolve Adverse Effects

• Notify ACHP of adverse effect• Continue consultation with

stakeholders• Involve the public • Consider ways to avoid or minimize

effects by modifying the project• Negotiate mitigation to offset

adverse effects• Execute Memorandum of Agreement

HUD Guidance Available

• HUD Historic Preservation website:– http://www.hud.gov/offices/cpd/

environment/ review/historic.cfm• CDBG Pamphlet, “Preserving America”• 106 “Toolkit” for Neighborhood

Stabilization programs & activities– Helpful tips and guidance– Sample correspondence– Sample Programmatic Agreement

Floodplain24 CFR Part 55.12

Exceptions:• Acquisition of existing 1 to 4

family dwellings• Minor repairs to 1 to 4 family

dwellings• Incidental portion in FP

(conditions)• Projects with LOMA or LOMR• Avoid the FP – reject the site

Wetlands – EO 1199024 CFR Part 58.5(B)(2)

• Goal: Avoid Development in Wetland

Exceptions:• Rehabilitation• Acquisition of Existing• Other projects without soil

disturbance • Wetland on site but avoided

HUD Noise Standards24 CFR Part 51 (b)

Exceptions:• Acquisition of existing

structures without rehab• Uses that are not noise

sensitive

HUD Noise Standards24 CFR Part 51 (b)

When is the calculation required?Is the site:• 1000 feet from highway• 3,000 feet from a Railroad • 15 miles from a civil airport or

military airport

Above Ground Storage Tanks24 CFR Part 51 (C)

Above Ground Storage Tanks24 CFR Part 51 (C)

• Collect the following Information:

1. size of the tank

2. contents

3. liquid or gas

4. pressurized/ not under pressure

5. distance from project site

6. Is the tank diked or undiked?• I think I would get help if you

must go to this point !

Airport Clear Zones24 CFR Part 51 Subpart D

Policy:To avoid provision of HUD funds for

projects that are occupied or frequently used by people

Exceptions:Purchase of existing with notice and

written statement by airport operator of no planned expansion or buy out planned for the site

Airport Clear Zones24 CFR Part 51 Subpart D

Is there an airport in 1 mile of the site? If no, document the file with a mapIf yes:Obtain:

– Civil: “Airport Layout Plan”– Military: “AICUZ”

To determine:– Civil: Runway Clear Zone– Military:

• Clearzone and • Accident Potential Zone

Toxics 24 CFR Part 58.5(i)

Emphasis on sites with likely hazards: – Landfills– Dumps– Industrial sites– Gas stations– Substations

Sole Source Aquifers

Exceptions:• Acquisition of structures with

no change in use• Rehab of existing structures• States and areas with out sole

source aquifersNOT anticipated to be an issue for HAC members

Endangered Species Act

Goal: Conserve federally threatened and endangered species

and their habitats.

Wild and Scenic Rivers Act24 CFR Part 58.5(f)

Exceptions:

Acquisition of existing structuresRehabilitation of existing structures

Air Quality 24 CFR Part 58.5(g)

• Is the site in a Non -attainment Area?

• Local Requirements on SIP?

• Will Project impact?

• Exceptions:

Actions outside non-attainment areas Emission levels below de minmus level Rehabilitation activities Acquisition for continued use Land banking (required when site is developed)

Demolition and RehabComply with EPA and State Laws (emissions, asbestos & lead)

Project proximity to other sources such as:Stack emissionsRoads

Farmlands Protection Act24 CFR Part 58.5(h)

• Coastal Zones24 CFR Part 58.5(c)

Flood Insurance How Much – How long?

• Purchase of Flood Insurance is mandatory for properties assisted with HUD funds & located in the Special Flood Hazard Area (SFHA) 100 year flood plain

Grants:• Life of the property

* Even if title is transferred• Amount of the project costLoans:• Life of the Loan• Amount of the Loan

Other HUD Regulatory Mandates !

• FEDERAL UNIFORM RELOCATION LAWS

The Uniform Act, passed by Congress in 1970, is a federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The Uniform Act's protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects.

What is a Program or Project?

• Your acquisition and relocation activities may trigger URA requirements even when you may feel they are unrelated. It is important for you to have a clear understanding of these and other important terms as defined in the URA and the regulations.

• What is a "Program or Project" under the URA?• The phrase "program or project" is defined in 49

CFR Part 24 as, "any activity or series of activities undertaken by a federal agency or with federal financial assistance received or anticipated in any phase of an undertaking in accordance with the federal funding agency guidelines".

Who is Displaced? / Who is Not Displaced?

• Generally, a displaced person under the URA is an individual, family, partnership, association, corporation, or organization, which moves from their home, business, or farm, or moves their personal property, as a direct result of acquisition, demolition or rehabilitation for a federally funded project. Displaced persons are eligible for relocation assistance under the URA.

• Who is Not Displaced?• Generally, persons not displaced are not eligible for

relocation assistance under the URA. Examples of persons not displaced include, but are not limited to, the following: Persons displaced temporarily from their dwelling for less than 12 months while it is being rehabilitated

• Illegal aliens; the URA prohibits providing relocation assistance to persons not lawfully present in the U.S.

What types replacement housing payments are available to residential displaced persons?

• What types replacement housing payments are available to residential displaced persons?

• The URA provides for different replacement housing payments (RHP) based on a displaced person's occupancy status and length of occupancy. Tenant occupants may be eligible for a rental assistance payment to supplement the costs of leasing a comparable replacement dwelling, or downpayment assistance payment to purchase a replacement dwelling. Owner occupants may be eligible for a price differential payment, mortgage interest differential payment, or incidental payments to supplement the costs of purchasing a comparable replacement dwelling. For tenant occupants of 90 days or moreA rental assistance payment is based on the difference, if any, between the cost of the monthly rent and utilities of the displacement dwelling and a comparable decent, safe, and sanitary replacement dwelling, as determined by the agency. The URA established a 42 month period for supplementing this payment difference, for a total amount up to $5,250. (Please see Housing of Last Resort for additional information).

It is important to note that a rental assistance payment should be based on income for low-income persons. (Please see 49 CFR 24.402(b) and FHWA's Low Income Calculations for additional information.)

Furthermore, tenant occupants may be eligible to use their rental assistance payment as a downpayment for the purchase of a replacement dwelling.

Section 104(d). • In addition to the URA, the Community

Development Block Grant (CDBG), Urban Development Action Grant (UDAG), and HOME Investment Partnerships (HOME) programs are also subject to section 104(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(d)). The provisions applicable to these programs are set out in subpart C of this part. (c) Additional requirements. Applicable program regulations may contain additional relocation provisions.

This subpart applies only to CDBG grants under 24 CFR part 570, subparts D, F, and I (Entitlement grants, HUD-Administered Small Cities, and State programs); grants under 24 CFR part 570, subpart G (Urban Development Action Grants), and Loan Guarantees under 24 CFR part 570, subpart M; and assistance to State and local governments under 24 CFR part 92 (HOME program).

Tenant Occupied NSP Properties May be Eligible for Relocation.

• A tenant-occupant who moves as a result of a • voluntary acquisition for a federally-assisted project ( NSP) may

be eligible for relocation assistance as a displaced person. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable federal, state, and local law. If the property considered for acquisition s currently tenant-occupied or a tenant lawfully occupied the property within the past 3 months ( 90 DAYS)prior to our offer, an organization will need to assess relocation as a possible cost.. Further, the seller should not order current occupant(s) to move, or fail to renew a lease, in order to sell the property to us as vacant.

(NOTE: Pursuant to Public Law 105-117, aliens not lawfully present in the United States are not eligible for relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. All persons seeking relocation assistance will be required to certify that they are a United States citizen or national, or an alien lawfully present in the United States.)

Legal Status of Tenants and Eligibility for Relocation.

• Pursuant to Public Law 105-117, aliens not lawfully present in the United States are not eligible for relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. All persons seeking relocation assistance will be required to certify that they are a United States citizen or national, or an alien lawfully present in the United States.

•

How to avoid any confusion of Non Relocation Benefits for Short Term

Tenant.

• If you are considering renting a rehabilitated unit prior to sale to a future homebuyer, you may want to consider execution of an agreement with the tenant similar to the following.

Example of Notice of Non Payment of Relocation Benefits for future displacement.

• • MOVE-IN NOTICE• (GUIDEFORM NOTICE TO PROSPECTIVE TENANT)• • • Grantee or Agency Letterhead• (date)• • Dear :• • On (date) , (property owner) submitted an application to the • (Grantee) for financial assistance under a program funded by the Department of Housing and Urban Development (HUD). The

proposed project involves [acquisition] [rehabilitation] [demolition] and/or [conversion] of the property located at (address) . Because Federal funds are planned for use in this project, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) [and/or section 104(d) of the Housing and Community Development Act of 1974, as amended] may apply to persons in occupancy at the time the application was submitted for HUD funding. However, if you choose to occupy this property subsequent to the application for federal financial assistance, as a new tenant you will not be eligible for relocation payments or assistance under the URA [and/or section 104(d)].

• • This notice is to inform you of the following information before you enter into any lease agreement and/or occupy the property

located at the above address:• • You may be displaced by the project.• You may be required to relocate temporarily.• You may be subject to a rent increase. • You will not be entitled to any relocation payments or assistance provided under the URA [and/or section 104(d)]. If you have to

move or your rent is increased as a result of the above project, you will not be reimbursed for any such rent increase or for any costs or expenses you incur in connection with a move as a result of the project.

• • Please read this notification carefully prior to signing a rental agreement and moving into the project. If you should have any questions

about this notice, please contact (Grantee) at (address and telephone number) . Once you have read and have understood this notice, please sign the statement below if you still desire to lease the unit.

• • Sincerely, Organization /New Landlord.• • • • Tenant Signature required.• • • • • .• • •

Major NSP Compliance Requirements and

Procedures

• Certain State and Federal laws, as well as regulations and Executive Orders, are

• applicable in part or in whole to the NSP program.

General Requirements

• The Housing and Community Development Act of 1974, as amended and as implemented by the most current HUD regulations (24 CFR Part 570).

Financial Management

• 24 CFR Part 85.• Federal OMB Circular A-133.• Federal OMB Circular A-87.

Civil Rights• Title VI - Civil Rights Act of 1964.• Section 109 - Title I - Housing and Community Act of 1974.• Title VIII of the Civil Rights Act, 1968 (Fair Housing Act), as amended.• Section 504 of the Rehabilitation Act of 1973, and the Americans with

Disabilities• Act of 1990.• Executive Order 11246 - Equal Employment Opportunity, as amended by• Executive Order 11375, Parts II and III.• Executive Order 11063 - Equal Employment Opportunity, as amended by• Executive Order 12259.• Section 3 of the Housing and Development Act of 1968, as amended

Section 118• of Title I, Community Development and Housing Act, 1974, and

implemented byHUD regulations.• Age Discrimination Act of 1975.• Executive Order 12432: National Priority to Develop Minority and Women

Owned Businesses.• . Section 504 of the Rehabilitation Act of 1973 and implementation

regulation (24 CFR Part 8).

Labor Standards

• The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as

• supplemented by Department of Labor regulations.

• 19. The Davis-Bacon Act (40 U.S.C. 276(a) to (a-7), as supplemented by Department

• of Labor Regulations.• 20. The Copeland "Anti-Kickback" Act

(18 U.S.C. 874) as supplemented by• Department of Labor regulations.

Acquisition/Relocation

• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of

• 1970 (46 U.S.C. 4601 and regulations at 49 CFR, Part 24).

Housing• The Truth in Lending Act (Regulation Z).• Title I Consumer Protection Act (PL 90321).• The Lead Base Paint Poisoning Prevention Act (42

U.S.C. 4831-5 et al.) and HUD• implementing regulations (24 CFR Part 35).

The Residential Lead-Based Paint Hazard Reduction Act of 1993 (PL 102-550).

• The National Manufactured Housing Construction and Safety Standards Act of

• 1974 (42 U.S.C., 5401 et. seq., as amended).• The Fire Administration Authorization Act of 1992

(PL 102-522).

Environmental• The National Environmental Policy Act (NEPA) of 1969, as

amended by Executive• Order 11991 of May 24, 1977 and the Council on Environmental

Quality's (CEQ)• NEPA Regulations, 40 CFR Parts 1500-1508;• 35. Environmental Review Procedures for the CDBG Program, 24

CFR Part 58;• 36. The National Historic Preservation Act of 1966, as amended;

particularly Section• 106;• 37. Executive Order 11593, Protection and Enhancement of the

Cultural• Environment, May 13, 1971;• 38. The Reservoir Salvage Act of 1960, as amended, particularly

Section 3, as• amended by the Archeological and Historic Preservation Act of

1974;

• Flood Disaster Protection Act of 1973, as amended;• Executive Order 11988, Floodplain Management, May

24, 1977;. Executive Order 11990, Protection of Wetlands, May

24, 1977;• The Coastal Zone Management Act of 1972,as

amended;. The Safe Drinking Water Act of 1974, as amended;• The Endangered Species Act of 1973, as amended,

particularly Section 7;• . The Archeological and Historic Preservation Act of

1974;• . The Coastal Resources Barriers Act of 1982;• The Wild and Scenic Rivers Act of 1968, as amended;• The Clean Air Act Amendments of 1970, as amended;

HUD Environmental Standards (24 CFR, Part 51) Environmental Criteria and Standards;

• Farmland Protection Policy Act of 1981 (and the regulations at 7CFR Part 658

Lead-Based Paint Hazard Control Policies

• Lead-Based Paint Hazard Control Policies• The U.S. Department of Housing and Urban Development

(HUD) has issued a regulation to protect young children from lead-based paint hazards in housing that is financially assisted by the federal government or being sold by the government.

• The regulation, "Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance," was published in the Federal Register on September 15, 1999 and became effective

• September 15, 2000. The requirements apply to housing built before 1978; the year lead-based paint was banned nationwide for consumer use.

• The regulation puts all of HUD’s lead-based paint regulations in one part of the Code of Federal Regulations (24 CFR Part 35).

Section 3 of the Housing and Development Act of 1968, as amended and as

implemented by HUD regulations at 24 CFR Part 135

• Section 3 provides that to the greatest extent feasible, training and employment opportunities shall be made available to lower income residents of project areas and

• that contracts be awarded to small businesses located within the project area or owned in substantial part by project area residents.

• Equal Opportunity Construction Contract Provisions• Certain types of construction contracts for public

works and housing rehabilitation must include specific contract clauses pertaining to the Section 3 Clause,

• Executive Order 11246 and Title VI of the Civil Rights Act. Refer to Chapter III, Section 3, for more information or contact a HUD Program Representative.

Financial Management and Administration

• The financial management and administration of NSP programs is generally regulated by

• two federal regulations: 24 CFR Part 85 (The Common Rule: Administrative

• Requirements for Grants and Cooperative Agreements to State, Local and Federally

• Recognized Indian Tribal Governments) and OMB Circular A-87 (Cost Principles). In

• addition federal and state audit requirements must be met and are described in OMB

• Circular A-133.• The financial system should be able to produce the various

financial and compliance reports required for efficient grant administration. (See reporting requirements).

•

Financial Management Systems

• Recipients' financial management system must:• 1. Provide accurate, current, and complete disclosure of the financial activities• funded by NSP awards and adequately meet the reporting requirements• described in Chapter I, of this Manual - "Reporting Requirements". Approved• budgets reflect costs by activity to be undertaken, and so do the requests for• drawdown forms and the quarterly report forms. Therefore, financial records• should be established and maintained in such a manner as to facilitate the• reporting and monitoring of expenditures and obligations by activity.• 2. Maintain records that identify clearly and adequately the source and application• of funds of all NSP funded activities.• 3. Maintain effective control over and accountability for all funds, property, and• other assets, safeguarding these assets and insuring that they are used solely for• authorized purposes.• 4. Provide comparison of actual expenditures to budgeted expenditures.• 5. Include procedures to minimize the time elapsing between the drawdown of• funds from DCA and the disbursement of those funds by the Recipients. A• period of three working days or less shall be considered acceptable. In addition,• advances made by the Recipients to secondary Recipients must conform to• the same standards of timing and amount as apply to advances from DCA to• Recipients. (See Chapter I, Section 9, - "Drawdown of Funds" - of this Manual.)• 6. Provide procedures for ensuring the reasonableness, allocability and allowability• of costs in accordance with OMB Circular A-87 and the applicable grant award.• 7. Include source documentation to support the accounting records.

Provide for audits made by qualified and independent audit firms of managementsystems and internal control procedures that have been established. An auditshall be conducted annually and in accordance with Section 2 of this Chapter -"Audit Requirements".

Provide for source documents (appropriation ordinances, purchase orders,invoices, journal vouchers, cash receipts, bank deposit receipts, etc.) thatsupport all financial transactions relating to NSP activities should be filed andMaintained

Maintain accounting records that make it possible to identify the source andapplication of all funds committed to NSP-supported activities. Localcontributions to the program and income applied to the program should also beclearly identified.

Include procedures to ensure that sound internal accounting controls aremaintained over financial transactions and that effective control is maintained tosafeguard physical assets.

Ensure that costs incurred in NSP activities are allowable only under the followingconditions:

The award has been properly Costs are incurred on or after the date of the Grant Award by HCA Costs for projects or activities (except costs for environmental

reviews) are incurred only after all necessary environmental reviews have been completed, and all applicable conditions have been satisfied.

Costs are accounted for in accordance with generally accepted accounting principles and are not prohibited by Federal, State or local laws.

Costs are authorized in the award made by HAC Costs are incurred for activities eligible under the NSP Small Cities

Program. All appropriate credits have been applied.

Contract Requirements• The Recipient must include, in addition to the provisions needed to define a sound• and complete agreement, the following provisions in all contracts:• 1. Contracts other than small purchases must contain such contractual provisions or• conditions which will allow for administrative, contractual or legal remedies in• instances where contractors violate or breach contract terms, and provide for• appropriate sanctions and penalties.• 2. All contracts in excess of $10,000 must contain provisions for terminations "for• convenience" by Recipient, including when and how termination may occur and• the basis for settlement. In addition, all contracts must describe conditions• under which the contract may be terminated for default as well as conditions• where the contract may be terminated because of circumstances beyond the• control of the contractor.• 3. All contracts awarded by Recipients and their contractors or subgrantees having• a value of more than $10,000 must contain a provision requiring compliance with• Executive Order 11246, entitled "Equal Employment Opportunity", as amended• by Executive Order 11375, and as supplemented in the Department of Labor• regulations (41 CFR, Part 60).• the

• 4. All contracts and subcontracts over $2,000 for construction or repair must include a provision for compliance with the Copeland "Anti-Kickback" Act (18U.S.C. 874) as supplemented in Department of Labor regulations (23 CFR, Part 3). This act provides that each contractor or subgrantee shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The Recipient must report all suspected or reported violations to DCA.

• 5. All construction contracts awarded by Recipients and their subgrantees in excess of $2,000 must include a provision for compliance with Davis- Bacon Act (40 U.S.C. 27ato a-7) as supplemented by Department of Labor regulations (29 CFR, Part 5). Under this act contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less often than once a week. The Recipient must place a copy of the current prevailing wage determination issued by

Department of Labor in each solicitation and the award of a contract must be conditioned upon acceptance of the wage determination.The Recipient must report all suspected or reported violations to DCA.6 .Where applicable, all contracts awarded by Recipients and subgrantees in excess

• of $100,000 for construction contracts which involve the employment of• mechanics or laborers must include a provision for compliance with sections 103• and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-• 330) as supplemented by Department of Labor regulations (29 CRF, Part 5).• Under Section 103 of the Act, each contractor shall be required to compute the• wages of every mechanic and laborer based on a standard workday of 8 hours• and a standard workweek of 40 hours.• Work in excess of the standard workweek is permissible provided that the worker• is compensated at a rate of not less than 1 1/2 times the basic rate of pay of all• hours worked in excess of 40 hours in the workweek. Section 107 of the Act is• applicable to construction work and provides that 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.

These requirements do not apply to the purchases of supplies or material or articles ordinarily available on the open market.7. All negotiated contracts (except those of $10,000 or less) must include aprovision that HUD, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books,documents, papers, and records of the contractor which are directly pertinent to a specific grant program for the purposes of making audit, examination, excepts, and transcriptions for 3 years after final payment of the Recipient and all pending matters are closed.8. Contracts, subcontracts and subgrants of amounts in excess of $100,000 must contain a provision which requires compliance with all applicable standards, orders, or requirements issued under Section 306 of the Clean Air Act (42 U.S.C. 1857(h) or Section 508 of the Clean Air Act (33 U.S.C. 1368). Executive Order 11738, and Environmental Protection Agency regulations (40 CFR, Part 15), that prohibit the use of facilities included on the EPA List of Violating Facilities.9. Contracts must recognize mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (PL 94-163).

Other NSP Compliance Requirements

1. Voluntary Sale Notice to Seller2. Unit Vacancy requirements ( URL implications)3. Registration with CCR, DUNS4. Contractor/Vendor Non Disbarment HUD Eligible5. Insurance Requirements and Recommendations6. Fair Housing LOGO7. Public Access to Files8. HUD AUDITS

The End.