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HomeMy WebLinkAbout13 CVRM - Emergency Rental Assistance ProgramSTAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: April 8, 2021 PREPARED BY: Christopher Gerry, Senior Management Analyst REQUEST: Authorize the execution of a Subrecipient Agreement with the Coachella Valley Rescue Mission not to exceed $45,000 to operate the Emergency Rental Assistance Program (Contract No. C40230E). Recommendation By minute motion, approve a Subrecipient Agreement with the Coachella Valley Rescue Mission in an amount not to exceed $45,000 to operate the Emergency Rental Assistance Program. Background Under the Coronavirus Aid, Relief and Economic Securities Act (CARES Act), the City of Palm Desert received $241,144 in CDBG-CV1 funds through the U.S. Department of Housing and Urban Development (HUD). The purpose of CDBG-CV funds are to prevent, prepare for, and respond to the coronavirus pandemic. In addition, the CARES Act provided waivers to allow for greater flexibility of statutory waivers. On May 14, 2020, the City Council approved policy guidelines for an Emergency Rental Assistance Program (Program). The Program serves as an economic recovery tool for rental properties and a safety net for low and moderate-income households financially impacted by the coronavirus pandemic. The City Council previously approved policy guidelines, which has been incorporated into the Program guidelines (Attachment A). City Council previously approved subcontracting with a nonprofit organization to operate the Program as well. By June 15, 2020, the City received two proposals from nonprofit organizations to operate the Program. The nonprofit organizations providing proposals included the Jewish Family Service of the Desert (JFS) and the Coachella Valley Rescue Mission (CVRM). On June 25, 2020, the City Council approved a subrecipient agreement with JFS. While both applications were competitive, JFS displayed more experience in providing case management and direct financial assistance, and offered the most dedicated staffing hours to the Program. JFS was initially contracted to provide rental assistance for an estimated 50 households using the allocation of CDBG-CV1 funds and ultimately assisted 57 households. These households represent 115 individuals, including 90 adults and 25 children. Please note that 57 of 144 applicants (40%) qualified for the Program. April 8, 2021 - Staff Report Emergency Rental Assistance Program Page 2 of 4 The rental properties assisted include: Rental Property Households Served Rental Assistance Desert Oasis 19 $ 59,000 The Regent 13 $ 39,000 Desert Fountains 14 $ 35,000 The Enclave 7 $ 29,000 Fourplex or less 4 $ 11,000 Total: 57 $ 173,000 The City expended its CDBG-CV1 funds on the rental assistance activities, as follows: Activity Expenditures Rental Assistance Payments $173,000 Case Management (JFS) $40,000 City Administrative Costs $48,000 Total: *$261,000 * Includes approximately $20,000 in CDBG-CV3 funds (described below) The City subsequently and unexpectedly received an additional CARES Act allocation of $610,230 in CDBG-CV3 funds. These funds could be used according to the same federal regulations as the City’s previous allocation. On November 3, 2020, the City Council authorized a total budget of $500,000 in CDBG-CV1 and CDBG-CV3 funds toward the Program, excluding City administrative costs. JFS was initially contracted to provide rental assistance for an estimated 50 households using the allocation of CDBG-CV1 funds. While having exceeded expectations and fulfilling its contractual obligation, JFS has received other grant awards and funding sources to continue its organizational mission; therefore, JFS will be not be amending its scope of work to continue operating the Program using CDBG-CV3 funds. City staff would like to thank JFS for its excellent work and dedication throughout the Program. Furthermore, the Housing Commission previously requested that a letter of appreciation be submitted to JFS for its efforts as well. As a result, please see the letter submitted to JFS found as Attachment B. As previously mentioned, CVRM submitted a competitive application (Attachment C) to operate the Program. In order to ensure continuity and as the next applicant initially interested in the operating the Program, City staff recommends contracting with CVRM to provide rental assistance for approximately 60 households or the remaining a CDBG-CV3 funds, whichever is greater. The City and CVRM have previously partnered on multiple CDBG funding opportunities, and it has displayed experience in providing case management services while understanding and adhering to federal regulations. The recommended budget of $45,000 is similar to the service delivery costs expended by JFS. Furthermore, CVRM will charge at-cost to operate the Program. April 8, 2021 - Staff Report Emergency Rental Assistance Program Page 3 of 4 While excluding City administrative costs, the remaining CDBG-CV3 funds available for the Program include: Activity Expenditures Rental Assistance Payments $242,000 Case Management (CVRM) $45,000 Total: $287,000 The City recently opened an additional round to accept applications from rental property owners to opt-in to the Program. City staff is currently working with rental property owners to complete agreements in order for their tenants to apply for the Program. Contingent upon approval of the Subrecipient Agreement (Attachment D) and subsequently receiving tenant applications, CVRM will begin working with the respective tenants accordingly. Furthermore, JFS has agreed to meet with CVRM to share best practices and lessons learned from its experience operating the Program. Finally, City staff anticipates opening an additional round to accept applications and allow tenants from prior rental properties that opted in to the Program to submit applications (if having not previously received funding). Fiscal Analysis There is no impact to the General Fund. Below is a summary of CDBG-CV1 and CDBG-CV3 funds authorized for the Program , excluding City administrative costs (20% of grant funds). CDBG-CV1 Activity Budgeted * Expended Available Rental Assistance Payments $ 153,000 $ 153,000 $ - Case Management (JFS) $ 40,000 $ 40,000 $ - Total: $ 193,000 $ 193,000 $ - CDBG-CV3 Activity Budgeted * Expended Available Rental Assistance Payments $ 262,000 $ 20,000 $ 242,000 Case Management (CVRM) $ 45,000 $ - $ 45,000 Total: $ 287,000 $ 20,000 $ 287,000 CDBG-CV1 & CDBG-CV3 Activity Budgeted * Expended Available Rental Assistance Payment $ 415,000 $ 173,000 $ 242,000 Case Management $ 85,000 $ 40,000 $ 45,000 Total: $ 500,000 $ 213,000 $ 287,000 * Final payments pending for some expenditures Apr il 8, 2021 -Staff Report Emergency Rental Assistance Program Page 4 of 4 LEGAL REV IEW DEPT. REVIEW R o-b-erl-W. tl CM'ffYea>.tlW N/A Ro bert W . Harg re aves Tod d Hileman City Attorn ey City Manag e r City Manag e r , L. Todd Hil eman : L . Todd H {LevtA..IAV\, Attachments A. Program Guidelines B . Letter of Appreciation C . CVRM Proposal D . Subrecipient Agreement CITY COUNCIL A.£TION F INAN CIAL REVIEW 9,,.,.,.,6( 711. 71'/oo-u- Jan et Moo re Director of Finan ce APPROVED ____ V ____ DENTED _____ _ RECEIVED OTHER _____ _ ASSISTAN T CITY MANAGER .'A.nay :Firestine And y Fi rest ine Ass istan t City Manag er ~::.~~~t~oWfui¾ ~~e1 &uinPlni I¼ .Y /:'.ell~ NOES: J\I Dbf 1 J ABSENT: ___.N"~hn~-e._ _________ _ ABSTAIN: N-OY\-€ VERIFIED_B_Y: ..... : ~{z~ue..~...,/-s_r_$ ______ _ Original on File with City Clerk's Offke City of Palm Desert Community Development Block Grant (CDBG) Emergency Rental Assistance Program Program Guidelines – Round III 1. Background Under the Coronavirus Aid, Relief and Economic Securities Act (CARES Act), the City of Palm Desert (City) received a special allocation of funds (CDBG-CV) through the U.S. Department of Housing and Urban Development (HUD). The purpose of CDBG- CV funds are to prevent, prepare for, and respond to the coronavirus pandemic. The CARES Act also provided statutory waivers for flexibility related to the Community Development Block Grant (CDBG) Program. As a result, the City has developed an Emergency Rental Assistance Program (Program) for lower and moderate-income households. The Program provides qualified households rental assistance arrears from April 2020 and/or beyond. The Program serves as an economic recovery tool for owners of rental properties (Rental Properties) and a safety net for qualified lower and moderate-income households financially impacted by the coronavirus. The program will operate for a limited time. The City has contracted with the nonprofit organization, the Coachella Valley Rescue Mission (Subrecipient), to recommend, qualify and case manage households applying for and receiving emergency rental assistance through the Program. The City and Subrecipient will generally serve as the points of contact for Rental Properties and households, respectively. These guidelines are intended to ensure programmatic and fiscal consistency as well as clarify the roles and responsibilities of all stakeholders. Please note the City Council previously approved policy guidelines, which are incorporated herein. The City reserves the right to revise these guidelines. 2. Eligible Rental Properties Rental Properties shall meet all of the qualifying criteria, as follows: 2.1. Location Rental Properties must be located within the jurisdictional limits of Palm Desert. The City is responsible for qualifying the location. 2.2. Type Rental Properties must be market-rate rental housing. Eligible housing types include multi-family homes (two units or more), single-family homes and accessory dwelling units. The City is responsible for verifying property type. 2.3. Documentation Assistance City of Palm Desert Program Guidelines – Round III Page 2 of 6 If a household is qualified as eligible or determined to be eligible, Rental Properties must assist the respective household and/or Subrecipient with providing the appropriate documentation for the qualifying household to obtain rental assistance, if applicable or as necessary. 2.4. Late Fee Waiver Rental Properties must have already waived late fees for missing rent payment(s) for qualified households. Rental property must also submit a declaration acknowledging the late fees have/will (depending or when the program would require) waived and proof such as rent roll or rental payment statement for the specific unit. 3. Eligible Households Households shall meet all of the qualifying criteria, as follows: 3.1. Household A household is defined as all persons occupying the same housing unit. The occupants may be a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who occupy the same rental unit. A household must also be in good standing with all other leasing terms and rules. 3.2. Household Income Household income is defined as the total amount of income received from all sources by all household members (over 18 years of age) occupying the rental unit. The household income calculated based on the family size may be equal to, but cannot exceed 80% of the Riverside County area median income. The Subrecipient will be responsible for qualifying the criteria. 3.3. Loss of Income Households must have experienced a loss of income directly related to the coronavirus. The Subrecipient will be responsible for qualifying the criteria. 3.4. Missing Rent Payments Households must be missing rent payment for April 2020 and/or beyond. The amounts can include full or partial payments remaining due to Rental Properties. The Subrecipient will be responsible for qualifying the criteria. 3.5. Evictions City of Palm Desert Program Guidelines – Round III Page 3 of 6 Households must not have been facing eviction prior to the Governor’s Executive Order (March 19, 2020). The Subrecipient will be responsible for qualifying the criteria. 3.6. Duplication of Benefits Participation in other rental assistance programs is considered a duplicative benefit, which is ineligible per the funding source. Programs include: 3.6.1. Households with a tenant-based voucher; 3.6.2. Households residing in project-based voucher communities; 3.6.3. Households residing in public housing; and 3.6.4. Households receiving other government-based rental assistance. The Subrecipient will be responsible for qualifying this criteria. 4. Eligible Costs 4.1. Amount A qualified household may receive up to $5,000 for rental arrears only. Amounts per qualified household will be recommended by the Subrecipient with concurrence by the City, and may exceed the limitation at the discretion of the City on a case-by-case basis and subject to available funds. 4.2. Term Rental arrears must be for the month of April 2020 and/or beyond. Rental arrears cannot exceed a period of six consecutive months as well. The Subrecipient will qualify the criteria. 5. Roles and Responsibilities The following roles and responsibilities are presented chronologically and concurrently. 5.1. Application Period for Rental Properties (Opt-in Period) Rental Properties will have a limited time to opt-in to the Program through an application process. The City is responsible for the application process. The City will be responsible for the qualifying the criteria. City of Palm Desert Program Guidelines – Round III Page 4 of 6 5.2. Agreement with Rental Properties and Submission of Additional Information The City will request Rental Properties to enter into an agreement consistent with the policy guidelines and other federal requirements. The City will also request additional information, including the contact information for each household missing payment(s) from April 2020 and/or beyond; IRS Form W-9; and a business license (if applicable). 5.3. Application Period for Rental Properties The City, Subrecipient, and/or will contact households previously missing payments that are located on the Rental Properties. Correspondence will inform households of the rental assistance opportunity. Furthermore, households will be notified of an electronic application period. The Subrecipient may provide a hardcopy application and/or application assistance to households, upon request. Households will be directed to contact the Subrecipient during all stages of the Program. 5.4. Application Review The City will subsequently provide the applications to the Subrecipient. The City and Subrecipient will jointly review the applications to ensure households have met the eligibility requirements. For households that do not meet eligibility requirements, the Subrecipient will notify them accordingly. The City and Subrecipient will also jointly review the applications based upon certain criteria. The City and Subrecipient will develop funding recommendations based upon a review of the eligible applications. Funding is contingent upon the household providing the Subrecipient the appropriate supporting documentation sufficient to determine eligibility. 5.5. Household Notification After developing recommendations, the Subrecipient will contact all households not selected for the Program. Concurrently, the Subrecipient will notify the recommended households of their preliminary eligibility and request supporting documentation. The Subrecipient is encouraged to refer resources to the household, upon request. 5.6. Household Submission of Support Documentation Households recommended for funding must submit the appropriate supporting documentation to the Subrecipient. The supporting documentation must be complete to ensure federal compliance with the funding source. The Subrecipient will be responsible for collecting all the City of Palm Desert Program Guidelines – Round III Page 5 of 6 supporting documentation from each of the eligible households recommended for funding. 5.7. Subrecipient Review of Support Documentation The Subrecipient will be responsible for reviewing the support documentation. The City can also provide technical assistance to the Subrecipient, if necessary. If the support documentation is incomplete, the Subrecipient must contact the household and request the respective information. If the household is unresponsive to the request within a reasonable time (i.e., two weeks for all documentation), the Subrecipient may request the City to cancel a funding recommendation. 5.8. City Approval of Support Documentation Once the Subrecipient has obtained all the necessary support documentation, the City will receive and approve each case file accordingly. This step serves as the final review by the City to ensure that the appropriate support documentation programmatically qualifies the household for the Program. A final checklist will be signed by the Subrecipient and City to ensure compliance. 5.9. Fiscal Approval of Support Documentation Upon approval of the final checklist, the Subrecipient will submit an invoice to the City for the payment amount. The City will be responsible for issuing payments to the Rental Properties on behalf of the households. A copy of the payment (check) will be included in the case file. The City’s Finance Department reserves the right to request additional supporting documentation and/or deny any request lacking support documentation. 6. Support Documentation As identified throughout these guidelines, the Subrecipient and City will share some responsibilities related to support documentation. The collection and review of support documentation to qualify households will be the most labor-intensive task associated with the Program. Unless stated otherwise, the Subrecipient is responsible for collecting and reviewing support documentation to qualify households. 6.1. Household Income In order to determine household income limits, each member of the household must provide specific support documentation. Household members under 18 years old are excluded from the household income calculation, but must remain included in the household size. While cash assets are not calculated in household income, the Subrecipient shall use this information when making a funding recommendation for the household. The income documentation must be current City of Palm Desert Program Guidelines – Round III Page 6 of 6 within 30 days of qualifying for service. The support documentation to verify income includes: 6.1.1. Identification (over 18 years of age); 6.1.2. Lease agreement; 6.1.3. Household qualification form; 6.1.4. Proof of income, including: 6.1.1.1 Sixty (60) days of all banks statements for each member of the household; and 6.1.1.2 Sixty (60) days of all sources of income. 6.2. Proof of Financial Hardship The households must display proof of financial hardship directly because of the coronavirus pandemic. The support documentation must include: 6.2.1. Proof of missing payments (e.g., delinquency letter); and 6.2.2. Proof of loss of income, including: 6.2.2.1. Lay-off notice from employer; or 6.2.2.2. Proof of unemployment benefits; or 6.2.2.3. Proof of reduced hours/earnings. 7. Conclusion These guidelines have incorporated various federal and local policies and procedures. To serve as quality control, other forms have been created to ensure each step of compliance. Each form must be completed and placed in the project file as well. CI�Y OF PflLM D�SERt 73-5 I O FRED WARING DRIVE PALM DESERT, CALIFORNIA 922C�0-2f%$ TEL: �60 34G—a6i� r,�c: �60 340-0574 cityhall�cityofpalmdesert.org OFFCCE OF TH6 MAYOR AND CITY COUIVCII. March 30, 2021 Mr. Kraig Johnson, Executive Director Jewish Family Service of the Desert 490 South Farrell Drive, Unit C-2a8 Palm Springs, CA 92262 Dear Mr. ,�ohnson, Subject: Emergency Rental Assistance Program The Jewish Family Service of the Desert previously contracted wi#h the City of Palm Desert to aperate an Emergency Rental Assistance Program (Program) using funds autharized under the Corona�irus Aid, Relief and Econamic Securities Act (CARES Act). Over the duration of the Program, your organization served 57 low and moderate-income Palm Desert households impacted by the caronavirus pandemic. These households represent 90 adults and 25 children for whom you have hefped alleviate financial burdens and stress during the most difficult of times. In fact, yaur efforts resulted in the aliocation af $173,000 in rental assistance to the respective househol�s while assisting locaf rental property awners. Meanwhile, the City Council and City staff have continuously received gratitude from households and rental praperty owners utilizing the Program. This fact is a testarr�ent to #he excellent services pro�ided by you and your team, including the leadersnip from your Board of Directors. On behalf of the Palm Desert City Council, 1 wo�ald like to sincerely thank the Jewish Family Service of the Desert for this partnership and making a profound im{�act on the lives of many Palm Desert residents. Sincerely, �� Kathleen Kelly Mayor cc: Pa[m Desert City Council Jewish Family Service of the Des�r# Board of Directors � ru.uoa.�Encuai.rE� � � Coachella Valley Rescue Mission 6/12/2020 City of Palm Desert Christopher Gerry, Management Analyst 74510 Fred Waring Drive Palm Desert, CA 92260 RE: RFP Emergency Rental Assistance Program The Coachella Valley Rescue Mission applauds the City of Palm Desert's efforts to help both the residents and landlords in the City of Palm Desert with funding relief because of the COVID-19 Crisis. CVRM understands that the Emergency Rental Assistance Program is a Pilot program for the residents of the City of Palm Desert only. The City of Palm Desert will partner with Landlords in the City to identify renters who are behind on their rent payments. CVRM will work with the Renter to collect the necessary documentation to complete a relief package. CVRM will then provide the City of Palm Desert with the complete package for reimbursement to the Landlord. The Program is 90 to 120 days after the signing of the contract. This Program slated to help 40-50 indi�iduals are rent insecure in the City of Palm Desert. CVRM will begin with one staff person per week. We can add more staff if warranted. The Coachella Valley Rescue Mission Housing Department began in 2016, and have successfully placed over 400 homeless individuals and families in housing. CVRM works with HMIS and the CES to house the homeless in Riverside County. CVRM's skillset case managing the homeless will allow us to be the perfect fit for the Emergency Rental Assistance Program. Sincerely, �` � L ��� Darla Burkett Executive Director 760-347-3512 x 222 760 347 3512 office \ 760 347 8073 fax \ info@cvrm.org \ www.cvrm.org 47-470 Van Buren - P.O. Box l ObbO \ Indio, CA 92202-2564 �va...��cua vancy ��ca�.uc ivua�w�� City of Palm Deserts Emergency Rental Assistance Program 4.2 Case Management Our housing staff have learned to be ready for anything. We are dependent upon CES for our client referrals. Just recently we received a referral for a man in Blythe after meeting with staff determined that he wasn't interested in housing but would rather move back with Family in Georgia. Most agencies at this point would have sent this referral back to the CES. But CVRM staff saw this gentleman was in need and could not wait for another agency to intervene. Staff found another agency that would buy this gentleman a bus ticket and made sure he was able to get safely on board and re-united with his family. This is an example of the lengths our staff are willing to go to for their clients. CVRM's housing department was begun in 2016 with finro staff members and they placed 39 Adults and ten children for a total of 38 households. The department has grown to four full time staff members. County and State grants fund our RRH department. Our housing department has 13 years of combined experience in Housing and Case Management. Each staff persons are tasked with the following responsibilities: 1. Provide the following case management services for program participants: a. Assess household needs, situations, strengths and support nefinrorks to develop a mutually agreed upon Financial Assistance Plan (FAP) to promote housing stability. b. Help participants adjust to the change and challenges in their lives including homelessness, unemployment, abuse, recovery and financial stability. c. Link program participants to available community resources, such as food stamps, healthcare, mental health services, support groups, etc. d. Advocate for and help clients get resources that would improve their well- being. e. Monthly in home case management services to ensure that participants' situations have improved and regular program participation is being met. 2. Maintain a case load not to exceed 25 families and individuals. 3. Research housing availability in the Coachella Valley and assist program participants with applications. 4. Ensure data quality, accuracy of participants files and records, complete paperwork and comprehensive outcomes tracking in the areas of housing, case management, savings, job attainment and retention, goal setting and client progress, program intake and exit, and other related activities and client interactions for internal and external purposes including: coordination of services, program impact evaluation, billing, grant tracking, and compliance. 5. Regularly updates spreadsheet of properties, landlords, and available units for housing purposes. 6. Ensures that proper forms and documents are acquired, completed and submit in files 7. Coordinates with Annex and Program staff to add, remove, and adjust clients' status on Housing Schedule. Citv of Palm Deserts Emergency Rental Assistance Program 8. Promotes the Mission; fostering positive staff and community relations, ensuring that all participants are treated fairly and with respect and that CVRM maintains an environment that is inclusive and safe for all people. 9. Responds and reports emergencies as needed. 10. Build partnerships with outside organizations to improve services to our adults and children and coordinate CVRM services with other community resources. 4.3 Federal Contracts CVRM has been working with Coachella Valley Cities and Riverside County for many years on projects and programs using CDBG funding. We have used the CDBG funding to support our staff and operations, equipment, emergency shelter, and food for free meals. We are very proficient with budgeting, monthly, and quarterly reporting, along with providing a final report. 4.4 Supportive Seroices CVRM provides supportive services through our housing department after clients are placed in housing and or graduate from our long-term programs. Case managers follow up with the clients for up to a year with telephone calls after placement, home visits, delivering food or supplies, and helping with additional referrals, in general, case management are available to clients past and present by phone or email. 4.5 Proqram Staffin� and Mana�ement CVRM's Executive Director is our senior operating officer and is responsible for strategic planning, working with our Board of Directors. Duties for the Executive Director will include managing company assets, optimizing financial operations, providing leadership to all staff, establishing business goals, and ensuring tax compliance, advising the board of directors on organizational activities, overseeing the daily streamlining of operations. The day to day service begins with our Executive Director and her management team, which consists of Program Director, Development Director, and Finance Manager. CVRM's housing department is under the direction of our Program Director. We have four full-time housing representatives. See the above job description. 4.6 Orpanization Ca�aci#v CVRM level of an organization's capability to deliver services is on our 2020 Strategic Plan. CVRM has 61full time staff member Coachella Valley Rescue Mission Citv of Palm Deserts Emergencv Rental Assistance Program 4.7. Cost-to manaqe the uroqram. � Wage Hours Term Laptop One time Staff $16.00 ' 7.75 per 90 days week Total $800.00 $800.00 $1116.00 1 f Staff �$16.00 7.75 per 120 days $1488.00 � week � Equipment — Mobil $200.00 $200.00 I Printer J Misc. $100.00 $100.00 Supplies iMileage _ .58 per mile $500.00 $500.00 � � Admin $12500.00. $12500.00 J ,_Total $15,216.00 $15,588.00 � Administration Cost of $12,500.00 or 5 percent of $250,000.00. This works out to being able to assist 40-50 residents with $5,000.00. Projected staffing hours 7.75 hours per week and $16.00 per hour $496.00 per month x 3 months $1488.00 or $1984.00 forfour months Hourly rates, $16.00 Supplies /forms/packages/ink/mileage/ Operational costs/organizing documents for submission A laptop loaded Vostro 14 5490 Laptop (679.00), mouse and printer with forms and internet, printer/scanner Canon LK-62 Portable Kite 97.99, and a caring case $ 100.00, clipboard, ink, mileage. www. dell.com 4.8 Schedule CVRM proposes to assist 40 - 50 households with this program and proposes to complete this task in 90-120 days. 4.9 Policv Guideline and or Sub Recioient Aareement Deviation CVRM does not anticipate any deviations to the policy guidelines or Sub recipient agreement. 3 [This page has intentionally been left blank.] CONTRACT NO. C40230E 1 Community Development Block Grant Program Subrecipient Agreement No. C40230E DUNS # 790591929 CAGE CODE: 791H0 This Subrecipient Agreement is made April 8, 2021, by and between the City of Palm Desert (Grantee) and the Coachella Valley Rescue Mission (Subrecipient). Recitals WHEREAS, Grantee is an entitlement jurisdiction with the U.S. Department of Housing and Urban Development (HUD) for purposes of receiving Community Development Block Grant (CDBG) funds, to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974; and WHEREAS, with the approval of Grantee and HUD, a portion of its allocation has been awarded to Subrecipient in the amount not to exceed $45,000.00 to be used for the Emergency Rental Assistance Program; and WHEREAS, clients benefit from the services provided by Subrecipient, those benefiting from the services must qualify as low and moderate-income persons; and THEREFORE, IT IS AGREED: 1. TERM. The term of this Agreement for the activity shall be made for a period commencing April 8, 2021, and ending June 30, 2022, unless an extension for funding is approved by the City Manager or designee. 2. SCOPE OF SERVICES. A. ACTIVITY DESCRIPTION. Subrecipient will be responsible for administering a CDBG funded activity titled Emergency Rental Assistance Program in a manner satisfactory to Grantee and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the CDBG Program: Activity: Emergency Rental Assistance Program Who Will Be Served: Palm Desert Households Location of Services: 47470 Van Buren St, Indio, CA 92201 B. NATIONAL OBJECTIVE. Activities funded with CDBG funds must meet one of the Program’s National Objectives (Title 24, Part 570, Sections 570.200(a)(2) CONTRACT NO. C40230E 2 and (3), 570.208(a)-(d), and 570.506): a. ☒ Benefit low and moderate-income persons b. ☐ Aid in the prevention or elimination of slums or blight c. ☐ Meet community development needs having a particular urgency All households served by Subrecipient must be low and moderate-income. C. PERFORMANCE MEASURES. Estimated amount served during the term: a. Amount served: 60 households ($247,000 in CDBG-CV funds) D. PERFORMANCE MONITORING. Grantee as a HUD recipient is responsible for monitoring all Subrecipients as outlined below: a. Does activity meet CDBG National Objective identified b. Conformance with Agreement c. Record-keeping system (570.506) d. Financial management system (84.21.-28 – nonprofit) e. Insurance f. Procurement g. Equipment and real property h. Non-discrimination and actions to further fair housing i. Conclusion and follow-up of monitoring 3. REPORTING AND PAYMENT PROCEDURES. A. REPORTING. Per 570.502 and 570.507, Subrecipient agrees to submit the Self Certification Forms (if applicable) and Direct Benefit Activity Reports for duplicated and unduplicated clients to the Grantee on a monthly basis from April 8, 2021, to June 30, 2022. In addition, Subrecipient shall report the following narrative and statistical information through the Quarterly and Annual Report Forms. Information such as: amount of persons assisted (by age, gender, senior 62 years of age or older, race, income level, head of household, how many in family, services provided, etc.); amount of people that will be provided with new or improved access to services and/or facilities, the number of beds created (homeless or rehabilitation facilities), if applicable. (Data collection examples: case manager logs, sign-in sheet, tracking logs, client intake forms, scan card system, or other systems designed to obtained information.) Public facilities improvements or construction projects will require the above information pertaining to the participation in the organization’s overall program(s), and once the project is completed, data pertaining specifically to that facility will be reported under the Annual Follow-up Report. Subrecipient may be required to submit additional information as requested by Grantee or HUD. If Subrecipient fails to follow the reporting requirements, it may result in CONTRACT NO. C40230E 3 Grantee’s request to reimburse previous funds paid and/or forfeiture of remaining grant funds. B. ANNUAL FOLLOW -UP REPORT. Subrecipient agrees to submit the Annual Follow-up Report as provided by Grantee no later than August 30th of the year following grant expiration or close of project, if a time extension was granted. This report will include similar information to direct benefits activity and quarterly reports but will include information related specifically to the CDBG funded program/project and facility operation, if a portion of the facility or the facility as a whole was unoccupied at the time of activity. C. FUNDS. Grantee agrees to provide Subrecipient with funds equal to the amount allocated through CDBG funds, as stated above. Grantee shall disburse the funds on a reimbursable basis. Subrecipient shall provide copies of invoice(s), bank statements, etc. as required for reimbursement in a timely manner. Funds may be reimbursed only for those verified expenses for the eligible uses as noted in Exhibit A. D. PROGRAM INCOME. Subrecipient shall report monthly all program income (as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this contract, if any. The use of program income by Subrecipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, Subrecipient may use such income during the contract period of activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to Grantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to Grantee. E. INDIRECT COSTS. If indirect costs are charged, Subrecipient will develop an indirect cost allocation plan for determining Subrecipient’s share of administrative costs and shall submit such plan to the Grantee for approval, in a form approved by Grantee. F. PAYMENT PROCEDURES. Grantee will pay Subrecipient funds available under this Agreement based upon information submitted by Subrecipient and consistent with any approved budget and Grantee policy concerning payments. With the exception of certain pre-approved advances, payment will be made for eligible expenses actually incurred and paid by Subrecipient (on a reimbursement basis), and not to exceed actual expenses incurred. Payments will be adjusted by Grantee in accordance with advance fund and program income balances available in Subrecipient account. In addition, Grantee reserves the right to liquidate funds available under this Agreement for costs incurred by Grantee on behalf of Subrecipient. CONTRACT NO. C40230E 4 G. PROCUREMENT. Subrecipient shall comply with Grantee policy concerning the purchase of equipment, fixed assets, and other similar items and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to Grantee upon termination of this Agreement. OMB Standards. Unless specified otherwise within this Agreement, Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84.40-48. H. USE AND REVERSION OF ASSETS. The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: a. Subrecipient shall transfer to Grantee any CDBG funds including program income on hand as well as any accounts receivable attributed to the use of CDBG funds at the time of expiration, cancellation, or termination. b. REAL PROPERTY ACQUISITION AND/OR IMPROVEMENT. Real property acquired or improved in part (or in whole) with CDBG funds in excess of $25,000 shall continue to be utilized by the funded organization as approved and meet one of the national objectives in Section 570.208 until five (5) years after expiration of Agreement or longer as may be determined by Grantee. If not used in accordance with Section 570.208, Subrecipient shall pay Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of or improvement to the property. Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period (or such longer period of time as the Grantee deems appropriate). If activity term extended five (5) year period would also be extended. c. USE AND DISPOSITION OF REAL PROPERTY. Subrecipient awarded $25,000 or more in CDBG funds for acquisition or improvement (e.g., including construction and equipment purchases) in whole or in part shall comply with CDBG Regulation 24 CFR 570.505 relative to use of real property as noted for five years commencing when funds are first spent for property until after close out of the grant. Subrecipient may not change the use or planned use of any such property (including the beneficiaries of such use) from that for which the acquisition or improvement was made unless Subrecipient provides affected citizens and Grantee with reasonable notice of, and the opportunity to comment on CONTRACT NO. C40230E 5 any proposed change, and either: the new use qualifies as meeting one of the national objectives in Section 570.208 and is not a building for the general conduct of government or if Subrecipient determines, after citizens participation, that it is appropriate to change the use of the property to a use which does not qualify under Section 570.208, it may retain or dispose of the property for the changed use if Grantee is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, and improvements to the property. If the change occurs after closeout (five years), the provisions governing income from the disposition of the real property in Section 570.504(b)(4) or (5), as applicable, shall apply to the use of funds reimbursed. The property will no longer be subject to CDBG requirements after reimbursement of CDBG program income per 24 CFR 570.505(d). Subrecipient provided CDBG funds for the purchase of land, facilities, and/or buildings; equipment, capital improvements, rehabilitation, or other similar activities shall not sell, sublease, loan, reassign or any other such action that relinquishes control, ownership, or change of use without prior written request to and written authorization from Grantee and, if necessary, HUD. In all cases in which equipment, land, facilities, etc. acquired, in whole or in part, with CDBG funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under the Agreement were used to acquire such items). Items no longer needed by Subrecipient for activities under this Agreement shall be (a) transferred to Grantee for the CDBG Program or (b) retained after compensating Grantee (an amount equal to the current fair market value of the items les the percentage of non-CDBG funds used to acquire the items). 4. FINANCIAL AND RECORDS MANAGEMENT. A. ACCOUNTING STANDARDS. Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees to adhere to account principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. COST PRINCIPLES. Subrecipient shall administer its program and comply with applicable financial standards according to OMB Circular A-122 (non- profit) or A-21 (Educational Institution) as applicable. These principles shall be applied to all costs incurred whether charged on a direct or indirect basis. Subrecipient shall also have in place a financial system that tracks sources and uses of funds or “fund accounting” method. Accounting systems should CONTRACT NO. C40230E 6 include chart of accounts, cash receipts journal, cash disbursement journal, payroll journal, general ledger, and any other form that may be required as part of the organizations accounting/financial tracking system. C. AUDITING. Subrecipient shall be subject to audit requirements contained in the Single Audit Act Amendment of 1996 (31 USE 7501 -7507) and revised OMB Circular A133. Subrecipient shall be subject to random audits by Grantee, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary to audit, examine, and make excerpts or transcripts of all relevant data in its administration of the CDBG Program and federally funded activity. All CDBG funded activity records and related documents shall be made available as well as required financial records/data for the Subrecipient. Failure of Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments and/or reimbursement of funds paid. Subrecipient agrees to have an annual agency audit conducted in accordance with Grantee policy concerning Subrecipient audits and OMB Circular A-133. D. RECORDS MANAGEMENT AND RETENTION. Subrecipient shall maintain all records required by the federal regulations specified in 24 CFR 570.506, that are pertinent to the use and expenditure of funds under this Agreement as well as all documents pertaining to the activity and required reporting records. All documents and records shall be made available for inspection and copying during normal business hours by Grantee or designee or by HUD upon request. Such records shall include but not limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that activity meets one of the national objectives of the CDBG Program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG Program; f. Financial records as required by 24 CFR 570.502 and 24 CFR 84.21- 28; g. Tracking, monitoring, direct benefits forms, self-certification forms, reports, etc. required as part of compliance with this Agreement; h. Client data demonstrating client eligibility or services provided including but not limited to client name or client tracking number, address, contact information, ethnicity, income level, or other basis for determining eligibility, and description of services provided. i. Any and all other documents related to the CDBG funded program or project relative to this Agreement; and CONTRACT NO. C40230E 7 j. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Subrecipient shall retain all financial records, supporting documents, statistical records, and any and all other documents/records pertinent to this Agreement for a period of not less than five (5) years from the date of the last reimbursement payment. The retention period begins on the date of the submission of Grantee’s annual performance and evaluation report to HUD in which the activities assisted under this Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. E. DISCLOSURE. Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of Grantee’s or Subrecipient’s responsibilities with respect to services provided under this Agreement, is prohibited by the applicable state and federal laws unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. F. CLOSE OUT. Subrecipient’s obligation to Grantee shall not end until all close-out requirements are complied with and completed. Activities during this close-out period shall include, but are not limited to making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that Subrecipient has control over CDBG funds, including program income. 5. PERSONNEL AND PARTICIPANT CONDITIONS. A. PURSUANT TO LABOR CODE – SECTION 1861. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes Subrecipient’s certification that it is aware of the provisions of said Code and will comply with them; and further constitutes Subrecipient’s certification as follows: “I am aware of the provisions of Section 3700 of the California Labor Code which required every employer to be insured against liability for worker’s compensation or to undertake self-insurance in accordance with the provisions of that code and I will comply with such provisions before commencing the performance of this contract.” CONTRACT NO. C40230E 8 Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Works Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state, and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. Subrecipient agrees to comply with the Copeland Anti- Kick Back Act (18 U.S.C. 874 et. seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. B. DISCRIMINATION. Subrecipient shall provide services to all clients who need and request such services, so long as economic resources permit. Subrecipient shall abide by Sections 570.601 and 570.602 of Title 24 of the Federal code of regulations which requires that no persons in the United States shall, on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with the CDBG funds. C. CIVIL RIGHTS. a. COMPLIANCE. Subrecipient agrees to comply with all State and Federal civil rights laws and regulations and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107, and 12086. b. NONDISCRIMINATION. Subrecipient agrees to comply with the non- discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the HCDA are still applicable. c. LAND COVENANTS. This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and 24 CFR 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease of such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use of occupancy of such land, or in any improvements erected or to be erected thereon, providing CONTRACT NO. C40230E 9 that Grantee and the United States are beneficiaries of and entitled to enforce such covenants. Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. d. SECTION 504. Subrecipient agrees to comply with all State and Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. Grantee will provide Subrecipient with guidelines necessary for compliance with portions of the regulations in force during the term of this Agreement. D. AFFIRMATIVE ACTION. a. APPROVED AFFIRMATIVE ACTION PLAN. Subrecipient agrees that it shall be committed to carry out pursuant to Grantee’s specifications an Affirmative Action Program in keeping with the principles as provided in President’s Executive Order 11246 of September 24, 1966. Grantee shall provide Affirmative Action guidelines to Subrecipient to assist in the formulation of such program. Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. b. EQUAL EMPLOYMENT CLAUSE. Subrecipient agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Subrecipient will take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, up grading, demotion, or transfer, recruitment, or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Subrecipient agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the Grantee setting forth the provisions of this non- discriminating clause. Subrecipient will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. c. SECTION 3 EMPLOYMENT OPPORTUNITY. Per Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701) and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement. CONTRACT NO. C40230E 10 Subrecipient agrees to make every effort to promote, advertise, encourage, and hire very low to low-income person(s) and/or person(s) within the community of said activity and shall incorporate this stipulation into all agreements with all contractors, subcontractors, and vendors working on activities funded as part of this Agreement. This stipulation pertains to any and all types of training and employment related activities as a result of this Agreement. This stipulation only requires that Subrecipient hire said person(s) if additional employees are needed to complete activity. Employment can be temporary (project based) or permanent dependent upon the need of the employer. Activities undertaken to meet this requirement shall be reported by Subrecipient to Grantee. In addition, Subrecipient shall notify each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, of its commitment under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. Subrecipient further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement: “The work to be performed under this Agreement is an activity assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to very-low and low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for very low and low-income persons residing in the metropolitan area in which the project is located.” Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. d. SECTION 3 BUSINESS OPPORTUNITY. Per Executive Order 12421 dated July 14, 1983, Subrecipient agrees to make every effort to promote, advertise, encourage, purchase, and contract with businesses and subcontractors that are considered 51% or more minority and/or women owned, owned by low or very low-income residents, employs a substantial number of low or low-income residents, or provides subcontracting or business development opportunities to businesses CONTRACT NO. C40230E 11 owned by low to very low-income residents. (Low-income persons means families (including single persons) whose incomes do not exceed 80 per centum of the median income for the area.) Subrecipient shall incorporate this stipulate into all agreements with all subcontractors working on activity. Activities undertaken to meet this requirement shall be reported by Subrecipient to Grantee. e. ACCESS TO RECORDS. Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records, and accounts by Grantee or designee, HUD or its agent(s), or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations, and provisions stated herein. f. NOTIFICATION. Subrecipient will send each labor union or representative of workers with which it has a bargaining agreement or other contract or understanding of workers a notice advising of the Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. g. EQUAL EMPLOYMENT OPPORTUNITY. Subrecipient will, in all solicitations or advertisements for employees or other activities undertaken pertaining to this Agreement by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer. h. Subrecipient shall include the provision of Section 5, Items C (Civil Rights) and D (Affirmative Action) in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients, subcontractors or vendors. 6. LICENSING. Subrecipient agrees to obtain and maintain all licenses, registrations, accreditation, and inspections from all agencies governing its operations. Subrecipient shall ensure that its staff shall also obtain and maintain all required licenses, registrations accreditation and inspections from all agencies governing Subrecipient’s operations hereunder. 7. INDEMNIFICATION. Subrecipient shall indemnify and hold Grantee harmless from all claims, damages or liability, including all reasonable attorney fees and costs incurred in defending any claims arising out of or in connection with Subrecipient’s activity, including but not by the way of limitation any action or claim for worker’s compensation. 8. CONFLICT OF INTEREST. Subrecipient shall familiarize itself with CDBG regulations prohibiting conflicts of interest contained in 24 CFR 84.42 and 570.611. CONTRACT NO. C40230E 12 Subrecipient, its assigns, employees, agents, consultants, and officers shall comply with and shall not violate any provision of the regulations. Any violation shall be deemed a material breach of this Agreement and the Agreement shall be immediately terminated by Grantee. A. Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by federal funds. B. No employee, officer or agent of Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. C. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG- assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of Grantee, Subrecipient, or any designated public agency. 9. BYRD ANTI-LOBBYING AMENDMENT. Subrecipient certifies that they will not or have not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, or officer or employee of Congress in connection with obtaining any Federal contract, grant, loan, cooperative agreement, or any other award including the extension, continuation, renewal, amendment, or modification of same. Subrecipient shall disclose any lobbying with non-federal funds that takes place in conjunction with obtaining any federal award. (This Act pertains to all contractors and subcontractors who apply or bid for an award of $100,000 or more.) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress is connection with this Agreement, contract, grant, loan, or cooperative agreement or other document, Subrecipient will complete and submit Standard Form –LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and CONTRACT NO. C40230E 13 It will require that the language in the following paragraph “Lobbying Certification” be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly: Lobbying Certification: This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 10. HATCH ACT. Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V or the U.S.C. 11. COPYRIGHT. If this Agreement results in any copyrightable material or inventions, Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. 12. RELIGIOUS ACTIVITIES. Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction or proselytization. 13. ELIGIBILITY. As to Subrecipient or its claimants, Grantee shall bear no liability for any later determination by the United States Department of Housing and Urban Development or any other person or entity that Grantee or Subrecipient is or is not eligible under 24 CFR Part 570 to receive CDBG funds. 14. Organizations provided CDBG funding are required to offer the specific program funded for a minimum of five (5) years from the date of award. 15. CONDUCT. A. ASSIGNABILITY. Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from Grantee under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished to Grantee. B. SUBCONTRACTS. a. APPROVALS. Subrecipient shall obtain Grantee’s prior written approval CONTRACT NO. C40230E 14 before executing any subcontracts. b. MONITORING. Subrecipient shall monitor all subcontractors services on a regular basis to ensure contract compliance. Written summarization reports of monitoring shall be prepared including follow-up actions to correct non-compliance issues, if any, and placed in file. c. CONTENT. Subrecipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontracts executed in the performance of this Agreement. d. SELECTION PROCESS. Subrecipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to Grantee along with documentation concerning the selection process. 16. UNIFORM ADMINISTRATIVE REQUIREMENTS. Subrecipients shall comply with applicable uniform administrative requirements as described in CDBG Regulation 24 CFR 570.502(b), 570.502, 570.503(b)(4), and 570.610. 17. OTHER PROGRAM REQUIREMENTS. Subrecipient shall be in compliance with all federal laws and regulations described in CDBG Regulation 24 CFR 570.501, 570.503(b)(5), 570.600-603, 570.605-614 except those outlined in Section 570.604 and 24 CFR Part 52. 18. DRUG-FREE WORKPLACE REQUIREMENTS. Subrecipient to certify that it will comply with the drug-free workplace requirements in accordance with the Act and HUD’s rules at 24 CFR Part 24, Subpart F. (Drug-Free Workplace Act of 1988, (42 U.S.C.701)). 19. FALSE CLAIMS ACT. Subrecipient shall be subject to the False Claims Act (31 U.S.C. § 3729-3733, also called the Lincoln Law) which is federal law that allows people who are not affiliated with the government to file actions against subrecipients claiming fraud against the government. Under the False Claims Act those who knowingly submit, or cause another person or entity to submit, false claims payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11,000 per false claim. The False Claims Act explicitly excludes tax fraud. Section 3729(e) states that the Act “does not apply to claims, records, or statements made under the Internal Revenue Code.” 20. INSURANCE. Subrecipient shall have and maintain workers compensation, employee liability, automobile insurance, comprehensive public liability, property CONTRACT NO. C40230E 15 damage, and other insurance that may be specific to the organization or required as part of the award. 21. ENVIRONMENTAL CONDITIONS. Subrecipient agrees to comply with the following environmental conditions: A. AIR AND WATER. Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et. Seq., as amended, 1318 as well as other requirements specified in said Section 114 and Section 308 and all regulations and guidelines issued thereunder and including Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. B. FLOOD DISASTER PROTECTION. Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), Subrecipient shall assure that for activities located in an areas identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). C. LEAD-BASED PAINT. Subrecipient shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608 and 24 CFR Part 35, Subpart B. D. HISTORIC PRESERVATION. Subrecipient shall comply with Historic Preservation requirements as set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as the apply to the performance of this Agreement. 22. SEVERABILITY. In any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. 23. WAIVER. Grantee’s failure to act with respect to a breach by Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. 24. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement between Grantee and Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between Grantee and Subrecipient with respect to this Agreement. CONTRACT NO. C40230E 16 25. SUSPENSION AND TERMINATION. Agreement may be suspended or terminated in accordance with CDBG 24 CFR 85.43 if Subrecipient materially fails to comply with terms of Agreement, grant award (reporting, monitoring, tracking, ineffective or improper use of funds, lack of timely and proper implementation of its obligations pertaining to this Agreement), rules, regulations or provisions referred to herein, statutes, regulations, executive orders, HUD guidelines, policies or directives as may become applicable at any time. Also, award may be terminated for convenience in accordance with 24 CFR 85.44. This Agreement contains the entire Agreement of the parties and supersedes all other prior negotiations, understandings or agreements. The Agreement may only be modified by the written consent of the parties. Subrecipient: By: Print Name Date Signature Title Grantee: By: Kathleen Kelly, Mayor Date City of Palm Desert Attest: Grace L. Rocha, Acting City Clerk Date City of Palm Desert CONTRACT NO. C40230E 17 Exhibit A CDBG Activity Budget Total Activity Budget Personnel Salaries & Wages $32,390.00 Fringe Benefits $ 8,860.00 Subtotal: $41,000.00 Non-personnel Space Costs $ Rental, Lease, Purchase Equip. $ Consumable Supplies $ Travel $ Telephone $ Service/Program Delivery Cost $ Other Costs $ Subtotal: $ Indirect Expenses (10%) $ 4,000.00 Total: $45,000.00 CONTRACT NO. C40230E 18 Attachment B Scope of Services The scope of services is defined in the attached Program Guidelines and previous proposal submitted by the Subrecipient. (If discrepancies exists, the Program Guidelines supersede the Subrecipient proposal).