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R2021-098 2021-05-10RESOLUTION NO. R2021-98 A Resolution of the City Council of the City of Pearland, Texas, approving the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) Program Fiscal Year 2021 Annual Action Plan and CDBG Coronavirus Stimulus Plan Amendments, as part of its FY 2018-2022 CDBG 5-Year Consolidated Plan to be submitted to the U.S. Department of Housing and Urban Development. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Community Development Block Grant Program Annual Action Plan and CDBG Coronavirus Stimulus Plan Amendments, attached hereto as Exhibit "A", are hereby authorized and approved. PASSED, APPROVED and ADOPTED this the 10th day of May, A.D., 2021. T ST: ,i STAL ROAN, TRMC, CMC CITY SECRETARY APPROVED AS TO FORM: 41-----•••-• j1L------. DARRIN M. COKER CITY ATTORNEY Exhibit A DRAFT City of Pearland, Texas 14th Year Annual Action Plan for the City's Community Development Block Grant Program HUD Program Year 2020 (City of Pearland FY 2021) DUNS Number: 020796397 Kevin Cole, Mayor Clay Pearson, City Manager Prepared for U.S. Department of Housing and Urban Development Houston Field Office May 2021 Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction This Annual Action Plan for the City of Pearland covers Program Year (PY) 2020, which is the City's fiscal year 2021 (October 1, 2020 — September 30, 2021). Stimulus funding included in the Action Plan may be used through September 30, 2022. CDBG funding in Pearland will be expended to meet one or more of the 3 National Objectives: 1. Benefiting low- to moderate -income persons; 2. Preventing, reducing or eliminating slum and blight; or 3. Meeting an urgent community development need as a result of a disaster or other event. During the next year, the City expects to focus its CDBG entitlement funds on these three objectives by improving the quality of life for those low- to moderate -income households throughout the City and in City neighborhoods with 41.77% or more low- to moderate -income households — those households with incomes at or below 80% of the area median income. Pearland will focus most of its PY 2020 resources on rental assistance. Social/public service activities will involve continuing investments in the high -priority efforts involving homeless prevention in the form of emergency subsistence to low- to moderate -income households facing evictions and/or loss of critical utility services, as well as the growing importance of mental health services for uninsured and/or low income individuals/households. The PY 2018 program will need to open solicitation to fill gaps in social services that coincide with other disaster recovery efforts, and an application process will be used to coordinate the CDBG and CDBG-DR activities along these lines. Ideally, this particular effort will emphasize long-term economic resiliency for individuals, households and businesses in Pearland. Program administration activities will be critical for PY 2018, as there are a number of coordinating efforts in place that involve a variety of regular community -based action plan items and the local disaster recovery activities in Pearland. Pearland's relatively small allocation of CDBG funds, the voluminous financial impact of Hurricane Harvey, and the looming mitigation activities needed to bring the community back to normal all play a significant role in our assessment that administration and oversight will be substantive. The map below shows the location of the CDBG area -benefit neighborhoods. CITY or PEARLAND C DSi; Target Area F-1 Taw Aura L _ �� Pwlond ETJ EI Bwts Gr P•aMitic ,LirN� Map 1— City of Pearland with CDBG Areas Eligible for Area -wide Benefit The City's CDBG Exception Criteria status with HUD allows Pearland to utilize Census block groups with less than the regulatory 51% or more low -moderate income composition for area -benefit projects, due to the low poverty rate in the City. That percentage is now 41.77% and is reflected in the map above. However, the 2022 Action Plan (HUD Program Year 2021) will require a map change of the target area, as HUD has changed the City's Exception Criteria percentage for FY 21 (City FY 2022) to 45%. 2. Summarize the objectives and outcomes identified in the Plan The City's 5-year Consolidated Plan was submitted in PY 2017, providing objectives and outcomes through the HUD 2021. Broad objectives include the following: • Decent Housing — The City will strive to improve the housing stock city-wide and residential areas within the eligible CDBG area -benefit neighborhoods. It is anticipated that activities will include: o Rehabilitating existing housing stock: The City will continue its HERO (Housing Enforcement and Rehabilitation Opportunities) program, to repair, rehabilitate, and/or retrofit houses for accessibility, as well as preserve Pearland's residential neighborhoods within the CDBG areas through code enforcement. o Encouraging homeownership opportunities: Encouraging local and regional agencies to provide down -payment and/or closing cost assistance to moderate (low) -income households seeking to move from renting to owning a home. Additionally, encouraging local and regional agencies to provide homeownership and financial counseling to those who plan to purchase their first home. o Affirmatively furthering fair housing choice: Identifying and reducing any barriers to fair housing choice and achieving the specific actions set forth in the PY 2017-2021 Fair Housing Plan to affirmatively further fair housing choice. • Suitable Living Environment: The City will fund several activities that benefit the community by improving the living environment through: o Preventing, reducing and eliminating blighted conditions: Blending CDBG with other funds the City will conduct code enforcement activities throughout the CDBG areas, and through non-federal funds, identify and demolish abandoned structures within CDBG areas. o Improvingpublic facilities and infrastructure: The City will use several funding sources to improve public facilities, including parks, and infrastructure in CDBG Target Areas, particularly Old Townsite. o Assessing transportation services: The City will assess existing transportation assistance for elderly, disabled and domestic violence victims and develop a plan to address the need for increased demand response transportation within Pearland and to/from medical services in Houston. o Supporting private non-profit public services: CDBG funds will continue to be used to support public service agencies in better serving the disadvantaged throughout the City. • Economic Opportunity: The City will undertake activities that expand economic opportunities for low- to moderate -income (LMI) persons and businesses through: o Supporting private economic advancement activities: The City will respond to funding applications by non -profits and for -profits for the provision of educational and/or job training programs that can advance the employment potential of youth and adults. o Striving to meet Section 3 goals: The City will continue to diligently strive to meet all of the hiring, contracting and contractor education goals related to the Section 3 requirements; and making Section 3 compliance a high priority in all contracts using federal funds. 3. Evaluation of past performance During the past year (CDBG PY 2019), the City has undertaken a number of measures to meet the priorities established by the Pearland community and program stakeholders; including but not limited to: • Rental Assistance • Food/Meal Delivery • Code Enforcement • Mental Health Services 4. Summary of Citizen Participation Process and consultation process The City's Citizen Participation Plan provides Pearland's CDBG program with the parameters for compliance with 24 CFR Part 91.200(b), and was formed in 2007 with the origination of our status as a HUD Entitlement Jurisdiction. It was updated in 2013 and most recently again in 2020. The applicable processes for developing and completing the City's CDBG Annual Action Plan involves a variety of activities designed to include the public in the planning process, inform the community and stakeholders about the ongoing dynamics of the program, develop the Action Plan itself, and engage local leaders in decision -making as authorized officials that approve the Plan prior to submission to HUD. This process results in short-term and medium -range planning documents - its Annual Action Plan, 5-year Consolidated Plan and Affordable/Fair Housing Plan — all within the framework of meeting applicable long-range HUD goals and National Objectives. This Action Plan development process began in March of 2020 following the completion of major investments in COVID-19 response and recovery (CARES Act). Upon completion of the City's primary COVID-19 response, a planning process takes effect with the publication and scheduling of Council input and discussion, a public hearing, a 5-day public comment period, stakeholder reviews of priorities and local conditions that drive the selection of new or continuing community -based programs and services, and the budgetary assessment of necessary costs for completing action plan items. The process generally ties annual action items back to the priorities established in the 5-year Consolidated Plan. However, in 2020 the City was impacted by the COVID-19 pandemic that has affected the entire world and a number of urgent need situations have arisen that constitute making changes to our current plan. Some of these may end up adjusting the course of our future CDBG programmatic priorities. 5. Summary of public comments No public comments have been received at the time of completion of this Action Plan. 6. Summary of comments or views not accepted and the reasons for not accepting them None. 7. Summary The City of Pearland has used its CDBG funds to address the highest priority needs in the community and make the greatest impact possible on the living environment of low- to moderate -income residents. Efforts are hampered by the limited funds and by the lack of comprehensive services available through non-profit social service, housing, and homeless agencies in Pearland. Due to the relative size, location, and economic stability of the residents, the economies of scale do not exist to justify many social service, homeless, and affordable housing providers to locate in Pearland. However, the City has continued to address the housing, social service, and economic development needs of the community, particularly those voiced by the residents and stakeholders, through the CDBG program and other funding to the extent possible. PR-05 Lead & Responsible Agencies — 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Lead Management & Oversight Pearland Department/Agency Administration Financial Management Pearland Finance Housing and Code Enforcement Pearland Community Development Dept Table 1— Responsible Agencies Narrative (optional) Soon after the inception of the City's CDBG Entitlement Jurisdiction status in 2007, the oversight and management of the CDBG program in Pearland was moved from the City Manager's Office to the Finance Department. A Grants Coordinator was hired, in addition to the ongoing consultancy provided by a subject matter expert in CDBG program management, and the annual planning and program implementation activities were delivered out of that oversight model. In 2017, to elevate the oversight and management of CDBG funds, program oversight and management was relocated back into the City Manager's Office (now referred to as Administration), with supportive financial management functions remaining in Finance. The Finance Department is responsible for paying all invoices and reimbursement requests from the U.S. Treasury through HUD's IDIS on-line system once the funds have been verified as eligible. The Code Enforcement Division of the Fire Department oversees the City's CDBG-funded code enforcement activities. Community Development now oversees housing rehabilitation. Infrastructure projects are mostly carried out by the Capital Projects & Engineering or Public Works departments, with Parks and Recreation as a possibility if the scope of work is applicable to that department's domain. The City Attorney has been instrumental in maintaining Fair Housing compliance, and has participated in all HUD -sponsored training and professional development in that regard. Consolidated Plan Public Contact Information Joel Hardy Grants & Special Projects Administrator City of Pearland 3519 Liberty Drive Pearland, TX 77581 281-652-1795 JHardy@pearlandtx.gov City of Pearland Annual Action Plan 1 CDBG Program Year 2020 OMB Control No: 2506-0117 AP-10 Consultation — 91.100, 91.200(b), 91.215(1) 1. Introduction Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) Pearland consults with a number of local and regional agencies throughout the year and works to coordination with all agencies serving the community. Being a relatively small city, Pearland must rely heavily on the services provided by private agencies and Brazoria County, as well as the regional Council of Governments, and neighboring Harris County and Houston. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Gulf Coast Homeless Coalition (GCHC) is the official homeless coalition for Galveston, Brazoria, Chambers and Liberty Counties. It is located in Galveston but does hold some meetings in Brazoria County, though none in Pearland. Most of the GCHC's activities occur out of the Gulf Coast Center in Galveston, as the primary provider of shelter, transitional housing, and services to the homeless. The GCHC is part of the Balance of State for the Continuum of Care. The City works with Brazoria County who coordinates with Texas Homeless Network, the manager of the Balance of State program. There are no agencies in Pearland and only a few in Brazoria County that serve the homeless. Most homeless individuals and families must go to Galveston or Houston for services. Gulf Coast Center in Galveston is the primary provider of homeless information, services, and housing. The Salvation Army provides emergency shelter in Freeport, while the Women's Center provides shelter and transitional housing for victims of domestic violence, neither is geographically near Pearland. Forgotten Angels provides permanent housing for those adults with developmental and intellectual disabilities. Most of the residents would be homeless without the services of Forgotten Angels. The City is engaged in activities that support increases in situational homelessness and homeless prevention efforts due to Hurricane Harvey. These include mental health counseling services, more robust emergency subsistence, and a plan to increase the use of CDBG funds for housing rehabilitation and pending CDBG-DR funds being passed through to Pearland from the State of Texas. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Gulf Coast Homeless Coalition is the group that coordinates programs for serving homeless individuals and families. The Coalition covers Galveston, Brazoria, Chambers and Liberty Counties; however the member agencies are located primarily in Galveston County. The Coalition has moved the Continuum of Care management and oversight to the Texas Homeless Network under the Balance of State. The Galveston agencies are better equipped than the smaller Brazoria County agencies to manage the funding allocations and provide the much needed services to the region's homeless. As a result, no Brazoria County agency has received Continuum of Care funding, other than the fact that Gulf Coast Center receives the bulk of the funding and does have a presence in the County, but not in Pearland. The County staff is not closely involved in the Coalition or the Balance of State program and does not receive consultation from Texas Homeless Network in determining how to allocate its ESG funding, develop performance standards or evaluate outcomes. It is a participant in the THN HMIS system and does receive consultation when necessary for administering its local participation in HMIS. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities Pearland contacted a number of stakeholders, including housing, social service agencies, and advocacy groups to provide input into the priority needs in the community, the current services and service gaps, the equal distribution of services geographically and to all population groups, and fair housing issues. Among those participating in the process were: Texas General Land Office, Pearland Neighborhood Center, IMPACT Strategic Consulting, The Odom Group Consultants, Texas Division of Emergency Management, Federal Emergency Management Agency, Counseling Connections for Change, Adult Reading Center, Pearland Independent School District (PISD), Pearland Convention & Visitors Bureau (CVB), Pearland Economic Development Corporation, Brazoria County Housing Authority, Houston -Galveston Area Council (HGAC), and others. Because housing and long-term economic resiliency are a critical component of Pearland's "road to recovery" following the Coronavirus pandemic, the City has included some State agencies in the process.. Table 1— Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting Agencies that duplicate services prioritized in the City's 5-year Consolidated Plan were not specifically targeted for consultation. However, the City's citizen participation and public involvement processes do not restrict those perspectives and/or opinions from being provided for the sake of planning and program delivery, or spending. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? N/A Table 2 — Other local / regional / federal planning efforts Narrative (optional) AP-12 Participation — 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal -setting The Citizen Participation process will continue to be an on -going element of the CDBG program. Each year, the City makes a concerted effort to involve the residents in all of its planning activities. In preparation for PY 2020, the City hosted two public hearings and a docketed session for City Council members to provide input and discussion on potential spending priorities. Both public hearings were advertised in the front section of the general circulation newspaper and posted on the City's website. The two public hearings were conducted at or after 6:00 PM, one on October 12, 2020 and the second on March 22, 2021, to allow participation by residents that work during the day. The public hearings included an overview of the CDBG process with time given to receive the comments of every attendee regarding housing, special population, community development and fair housing issues in Pearland. There was an opportunity for discussion on better ways to collaborate and reach more residents with services and opportunities to become involved in CDBG planning. An abridged 5-day comment period was included in the process, per CDBG CARES Act flexibilities and waivers. The City has attended various meetings of public service agencies and provided information and contacts for them to share with their staff, volunteers and program participants regarding the CDBG program. The City is committed to working with public service agencies in identifying needs, priorities, funding opportunities and opportunities to collaborate. One of the most effective avenues to involving residents in the planning process is through the agencies that directly serve them. Pearland will continue to encourage citizen participation, with particular emphasis on participation by persons of very -low, low, and moderate income and those who are residents of target areas in which funds are allocated or proposed to be allocated. Citizen Participation Outreach The City of Pearland has been involved in the public participation process and has relied on the social service agencies to assist in outreach to the community, particularly minorities, non-English speakers, elderly and persons with disabilities. The social service agencies were asked to provide to their program participants information about CDBG and contact information and notices of public hearings. The City will continue to attempt to host public hearings in different locations around the City in future years, particularly in CDBG Target Areas and/or buildings housing subrecipient agencies. The City will make information available at the public venues and will provide meeting and public hearing notices to agencies for their consumers. The Mayor and City Council are also ambassadors into the community to garner more public participation. Annual Action Plan 1 HUD Program Year 2020 (City of Pearland Fiscal Year 2021) OMB Control No: 2506-0117 (exp. 06/30/2018) Expected Resources AP-15 Expected Resources — 91.220(c)(1,2) Introduction Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ PY 2020 (City FY 2021) HUCDBG Entitlement Jurisdiction Community Development $428,160 $429,719 $857,879 $857,879 Regular allocation of CDBG funds. CDBG — CV1 HUD Entitlement Jurisdiction —CARES Act Coronavirus Pandemic — Community Development $251,873 $251,873 $251,873 Pandemic stimulus allocation of CDBG funds. CDBG — CV2 HUD Entitlement Jurisdiction —CARES Act Coronavirus Pandemic — Community Development $443,583 $443,583 $443,583 Pandemic stimulus allocation of CDBG funds. Totals $1,123,616 $429,719 $1,553,335 $1,553,335 Table 1- Expected Resources — Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied These funds will leverage resource limitations that have failed to fully serve those with mental health service needs and affordable housing. Federal funds will be used to fill in gaps where uninsured/underinsured individuals with mental health needs are concerned, as there are often situations where the beneficiary cannot afford co -pays, full services or other aspects of the costs of service. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan No publicly owned land or property is being used to address any of the needs identified in the plan at this time. Projects AP-35 Projects — 91.22O(d) Introduction During PY 2020 (City of Pearland FY 2021), the City will focus its CDBG funds on improving the housing stock, increasing resources available to social service agencies meeting local underserved needs, and other small community development activities. Projects # Project Name HUD National Objective Matrix Code 1 Code Enforcement 15 2 Housing Rehabilitation 14H 3 Mental Health Counseling 050 4 Emergency Subsistence Payments — Rental Assistance 05Q 5 Health Facilities — SEVA Clinic 05M 6 Food/Meal Delivery 05A 7 Senior Center— Facility Improvements 03A Table 1- Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The primary allocation priorities for HUD Program Year 2020 (City of Pearland FY 2021) stem from the Coronavirus pandemic and the necessary emergency response for community economic recovery. Rental assistance, community health, senior center facility improvements, youth services, housing rehabilitation, code enforcement, and food/meal delivery make up the expenditures planned for during the applicable program years. The main obstacle to addressing these underserved needs is funding, so the CDBG program resources will be used to address the highlighted unmet needs. The tables below provide a breakdown of each proposed project by funding allocation and dollar amount to be funded. FY 2021 HUD CDBG (Regular Allocation) Implementing Entity Activity/Project Amount City of Pearland Program Administration (20%) $85,632.00 City of Pearland Code Enforcement $58,616.00 City of Pearland Housing Rehabilitation (Admin) $18,750.00 City of Pearland Knapp Center - Expansion $244,262.00 Counseling Connections Mental Health Services $21,000.00 Total $428,160.00 FY 2021 HUD CDBG-CV1 (Stimulus Allocation No. 1 - $251,873) Implementing Entity Activity/Project Amount City of Pearland Program Administration (10%) $25,187.30 City of Pearland Rental Assistance — Round 3 $226,685.70 Total $251,873.00 FY 2021 HUD CDBG-CV2 (Stimulus Allocation No. 2 - $443,583) Implementing Entity Activity/Project Amount City of Pearland Program Administration (10%) $44,358.30 City of Pearland Rental Assistance — Final Round $212,278.30 ActionS of Brazoria Food/Meal Delivery $144,000.00 SEVA Clinic Community Medicine $42,946.40 Total $433,583.00 AP-50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Geographic Distribution Target Area Percentage of Funds CDBG 5.22% Table 1- Geographic Distribution Rationale for the priorities for allocating investments geographically All area -based projects are located within established CDBG Target Areas with at least 41.77% low - moderate -income households for work taking place during the City's FY 2021 and 45% during FY 2022. The primary basis for allocating investments being the City's 3rd 5-Year Consolidated Plan, other supportive activities produce specific priorities each year towards meeting longer term goals and objectives. These include observational research by local code enforcement support groups such as the Eyes of Pearland and the Citizen Patrol, the City's Capital Improvement Program (CIP), the Pearland Citizen Survey, Subrecipient funding applications, and demographic indications of the need for specific investments. Therefore, in addition to Fair Housing activities, the City will plan for the implementation of seven projects that serve low -moderate income residents of the City of Pearland. The City proposes to use Community Development Block Grant funds from HUD for: • Continuation of its Code Enforcement in Low -Moderate Income Target Areas; • Continuation of its single-family housing rehabilitation program for low -moderate income Pearland residential homeowners that occupy such residences; • Continuation of a program to provide short-term emergency financial assistance to eligible, local, low -moderate income residents that are facing evictions, utility shut -offs, or even prescription medicines for the elderly or mentally -disabled adults; • Mental health services to low -moderate income residents; • Youth services; • Food/Meal Delivery; and • Improvements to senior facilities or those experiencing excessive wear and tear. Code Enforcement (CDBG Eligibility Matrix Code 15) Code Enforcement is an eligible expense under 24 CFR 570.202(c), and will be used to deploy a Code Enforcement Officer to serve low -moderate income areas of town (CDBG Target Area) to identify code violations, improve education and awareness of local standards, cite violators of local ordinances, and encourage violators to self-remediate code infractions to avoid citations. The Census block group areas affected will include: LOW CDBGU CDBG COUNTY BLK LOW MOD OGID NAME ST TY ST CNTY NAME TRACT GRP MOD UNIV LOWMODPCT GEOID Brazoria 484080 Pearland TX 52 48 039 County 660200 1 505 540 94% 15000US480396602001 Brazoria 484080 Pearland TX 52 48 039 County 660500 3 1085 1165 93% 15000US480396605003 Brazoria 484080 Pearland TX 52 48 039 County 660900 4 1685 1810 93% 15000US480396609004 Brazoria 484080 Pearland TX 52 48 039 County 660702 3 1500 2070 72% 15000US480396607023 Brazoria 484080 Pearland TX 52 48 039 County 660900 3 1725 2475 70% 15000US480396609003 Brazoria 484080 Pearland TX 52 48 039 County 660300 1 445 655 68% 15000US480396603001 Brazoria 484080 Pearland TX 52 48 039 County 661900 1 3470 5270 66% 15000US480396619001 Brazoria 484080 Pearland TX 52 48 039 County 660701 2 1130 1820 62% 15000US480396607012 Brazoria 484080 Pearland TX 52 48 039 County 660900 1 495 970 51% 15000US480396609001 Brazoria 484080 Pearland TX 52 48 039 County 660500 5 1165 2475 47% 15000US480396605005 Brazoria 484080 Pearland TX 52 48 039 County 660500 2 315 700 45% 15000US480396605002 Total % LMI 69% Affordable Housing AP-55 Affordable Housing — 91.220(g) Introduction One Year Goals for the Number of Households to be Supported Homeless 0 Non -Homeless 73 Special -Needs 0 Total 73 Table 1 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 73 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 73 Table 2 - One Year Goals for Affordable Housing by Support Type Discussion The City will meet affordable housing objectives by sustaining housing during pandemic economic recovery for 73 low -moderate households within the Entitlement Jurisdiction. These are households economically impacted by COVID-19 and that have either lost jobs, are underemployed, and/or facing the need for continued unemployment benefits. AP-65 Homeless and Other Special Needs Activities — 91.220(i) Introduction Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs There are very few services for the homeless, and no shelters, in Pearland. While the Gulf Coast Homeless Coalition serves Pearland, its main focus is on Galveston Island, with limited activity in the Angleton area far south of Pearland. Pearland Neighborhood Center, which the City supports with CDBG funds, does provide food and referrals to homeless individuals and families. The City continues to support Forgotten Angels which provides permanent supportive housing to disabled adults who would be homeless if not for their group homes and supportive services. Addressing the emergency shelter and transitional housing needs of homeless persons. There are no emergency or transitional housing programs in Pearland or the immediate area. Gulf Coast Center provides a limited number of units in Brazoria County relatively far removed from Pearland. Bay Area Turning Point, a domestic violence shelter, can serve Pearland but is located in Webster a significant distance from Pearland. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. Goodwill Industries no longer has a presence in Pearland, but does receive clients from Brazoria County, specifically Pearland. They provide rapid rehousing, job training, and supportive services to homeless individuals and families, particularly veterans, at one location in Galveston and three locations in or south of downtown Houston. Though not easily accessible, they are available to provide the services to Pearland residents. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The City funds Pearland Neighborhood Center to provide emergency rent/utility assistance and food assistance to needy households to prevent homelessness, but the program does not specifically target or track those who have been discharged from a publicly funded institution or system of care. There is no local HMIS system and no local agencies specifically serving the homeless. Pearland Neighborhood Center tracks the services they provide and that clients receive from other agencies, but the information is self - declared and not in a centralized HMIS system. Those who are accessing health, housing, employment, and other social services are residing in areas close to those services, such as Alvin or Angleton in Brazoria County, or Houston. The City's HERO (Housing Enforcement & Rehabilitation Opportunities) program helps to prevent low- income homeowners from becoming homeless when their homes are no longer safe or meet City codes. The repairs and rehabilitation activities provide suitable living environments and improve affordability for local, eligible homeowners that would otherwise face challenges sustaining a safe, livable home. AP-75 Barriers to affordable housing — 91.220(j) Introduction: Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Discussion: The City of Pearland has reviewed and analyzed the public policies affecting the development, availability, and cost of housing accessible to the low income and protected classes. All relevant city ordinances have been reviewed and none impede fair housing choice. The majority of the city's housing stock was developed by developers in the Pearland Extraterritorial Jurisdiction (ETJ) and then annexed into the City Limits. Therefore, ordinances regarding building type and size were not applicable at the time of construction. New housing developments within the city limits must follow standard 2015 international building codes, with a few local amendments. While the City does have minimum lot size requirements for development, the ordinance is in keeping with the general planning practices throughout Texas. A major barrier to the development of affordable housing is the requirement to meet minimum standards for the construction of windstorm resistant housing. These standards have been set forth by the Texas Department of Insurance Windstorm in Title 28 of the V.T.C.A. Administrative Code, Section 5.4011 and adopted by the City of Pearland. These standards have increased construction costs. Additionally, the regulatory methods of reducing flood losses in new construction can increase the overall cost of multi -family developments and subdivisions. One regulatory issue that can have a disparate impact on affordable and fair housing is the lack of a fair housing ordinance, and the City is committed to reviewing the viability and benefit of establishing such an ordinance during the next five years. An additional barrier, not related to public policies, include the relatively high income levels of residents and those choosing to move to Pearland, driving the demand for higher -priced housing. The majority of the housing in Pearland is less than 20 years old, pricing it out of reach for most renters and many homebuyers. Strategy to Remove or Ameliorate the Barriers to Affordable Housing Without the funds that HOME and other HUD programs outside of CDBG provide, and with the very limited CDBG funding, the City can do little to ameliorate the barriers to affordable housing. What it can do and has committed to doing is to assist Brazoria County Housing Authority to access landlords and encourage that they accept Section 8 HCVs and encourage Pearland residents who have secured vouchers to seek out housing in Pearland. The City will also work with Brazoria County, to the extent feasible, to identify potential developers who would be willing to become CHDOs and construct affordable housing in the ETJ. The City will continue to review LIHTC applications and give positive responses to those applications to the State that are feasible and sound. The City will continue its owner occupied housing rehabilitation program to assist low-income homeowners in remaining in their homes by bringing them up to code, making them accessible, and stemming additional damage from deteriorated roofs or damaged foundations. The City will work with the County or H-GAC when disaster recovery funds for housing are released to ensure that Pearland residents receive equal access to the funds. The City will also be reviewing the current ordinances and policies for any barriers to affordable and fair housing and will be completing a new Fair Housing Plan. In conjunction with the plan will be an investigation into the viability and efficacy of adopting a fair housing ordinance that would indirectly address affordable housing. By improving the infrastructure, especially storm drainage, in older, low-income areas, not only will the homes be better protected against damage but the residents will have a better quality of life. Program Specific Requirements AP-90 Program Specific Requirements — 91.220(I)(1) The City of Pearland receives no program income but will be expending funds on urgent need activities. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1) (1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before $0 the start of the next program year and that has not yet been reprogrammed 2. The amount of proceeds from section 108 loan guarantees that will be $0 used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 3. The amount of surplus funds from urban renewal settlements $0 4. The amount of any grant funds returned to the line of credit for which the $0 planned use has not been included in a prior statement or plan. 5. The amount of income from float -funded activities $0 Total Program Income $0 Other CDBG Requirements 1. The amount of urgent need activities $695,456 2. The estimated percentage of CDBG funds that will be used for activities that benefit 100% persons of low and moderate income. Overall Benefit —A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. Discussion: The City of Pearland receives no program income, but may be expending funds on urgent need activities due to the Coronavirus pandemic. The percentage of CDBG funds that will be used for activities benefitting LMI persons is based on the allocation to public services and other programs, for which 100% of the beneficiaries are LMI. In addition, all of the subrecipients receiving CDBG funds from Pearland's allocation which serves 100% LMI individuals, plus the share of the LMI population in the area -based projects. CDBG SUBRECIPIENT AGREEMENT between THE CITY OF PEARLAND, TEXAS and COUNSELING CONNECTIONS FOR CHANGE PREABLE AND RECITALS THIS AGREEMENT, entered to be made effective on the 1ST day of October, 2020, by and between the City of Pearland (herein called the "Grantee" and/or "City") and Counseling Connections for Change (herein called the "Subrecipient"). WHEREAS, the Grantee has applied for and received funds from the United States Government under Title 1 of the Housing and Community Development Act of 1974, Public Law 97-383 Unit of Government Code number 484080, application number B-20-MC-48-0400; WHEREAS, the primary purpose of the Community Development Block Grant (CDBG) Program, pursuant Title 1 of the Housing and Community Development Act of 1974, is to benefit low- to moderate income individuals and families; WHEREAS, the Subrecipient has submitted an application to the Grantee for CDBG funds to provide the above program, that has subsequently endured successful review and approval by U.S. Department of Housing and Urban Development, and will perform the services in a manner satisfactory to the Grantee and the Grantor; WHEREAS, the Subrecipient has stated its intention to ensure the completion and compliance with federal, State and local requirements, to document compliance with service area and low - and moderate -income persons and households that meet one of the criteria for National Objectives set out in 24 C.F.R. 570.208 (a), in addition to the federal Uniform Administrative Requirements (UAR) as set forth in 2 CFR Part 200; and WHEREAS, the Subrecipient shall ensure recognition of the role of the Grantee in providing services through this contract, prominently labeling all activities, facilities, and items utilized pursuant to this contract recognizing the source of funds as City of Pearland CDBG. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed between the parties hereto that: ARTICLE 1- PROJECT SECTION 1: SCOPE OF SERVICE A. Activities 1. Program Delivery City of Pearland, Texas Page 1 of 27 Subrecipient Agreement Activity #1 Provide mental health counseling services to low -moderate income residents within the City limits of Pearland, Texas. The project will be completed with a CDBG allocation not to exceed $21,000. This activity will be completed with the intent to provide the following units of service, at the following cost per unit: Anticipated Total Units of Service Units of Service: 50 2. Administration Cost Per Unit $420.00 The Subrecipient is required to administer the financial, programmatic and regulatory compliance measures necessary to meet HUD National Objectives as an independent contractor, and not as an officer, agent, servant or employee of the Grantee. 3. Income Benefit Goals It is anticipated that approximately 50 unduplicated low- to moderate -income clients will be served over the course of this 12-month Agreement. The goal is to serve no less than 35 clients at the 0-80% area median income (AMI) level (low -moderate income). B. National Objectives All activities funded with CDBG funds must meet one of the CDBG program's National Objectives: benefit low- and moderate -income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208. The Subrecipient certifies that the activity/activities carried out under this Agreement will meet the HUD Low -Moderate Income National Objective via Matrix Code 050 (Mental Health Services). C. Goals and Performance Measures The Subrecipient agrees to provide the following levels of program services: Activity Units per Month Total Units/Year Activity #1 L4-5 Units] L50 Units] D. Performance Monitoring The Grantee will monitor the performance of the Subrecipient against goals and performance standards as stated above. Substandard performance as determined by the Grantee will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, suspension or termination procedures will be initiated. E. Special Conditions The City requires that any and all activities involving construction projects be subject to local permitting and planning ordinances/requirements, and that the Subrecipient incur such costs. The City of Pearland, Texas Page 2 of 27 Subrecipient Agreement federal rules governing federally -assisted construction projects shall apply, and the City is not responsible for the Subrecipient's compliance with any federal, State and/or local rules, regulations and/or laws. SECTION 2: PROJECT DESCRIPTION Type of Project: Mental Health Services Project Location: 2549 Roy Road, Pearland, TX 77581 Service Area: City -Wide Matrix Code: 050 (Mental Health Services) Basic Eligibility Citation: 24 CFR 570.201(e): Public Services Amount Funded: $21,000 SECTION 3: TERM OF AGREEMENT The term of this Agreement is October 1, 2020 through September 30, 2021. The term of this Agreement may be extended should additional time for auditing this project be required, in accordance with law; this Agreement shall be deemed automatically extended until such time as the said audit shall be completed. The provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other CDBG assets, including program income. Additionally, the Grantee has monitored and cleared the Subrecipient of any and all applicable audit findings and/or concerns related to review and inspection of the Subrecipient's management and oversight of CDBG funds. Otherwise, should the aforementioned provisions not be met in a timely manner, pursuant 24 CFR 570.902, any projects or capital improvement cost paid with more than $20,000 and up to $50,000 in CDBG funds must be able to provide benefits to low- and moderate -income persons or areas for a minimum of five (5) years at the project site. For projects exceeding $50,000 and up to $100,000 in CDBG funds, the minimum continuing use is ten (10) years. Projects that exceed $100,000 to $150,000 in CDBG funds must be held in the same use for at least fifteen (15) years. Projects that are over $150,000 to $200,000 in CDBG funds must be held in the same use for twenty (20) years. Projects that have $200,000 or more in CDBG funds must continue to serve the low- to moderate -income population for a minimum of twenty-five (25) years. SECTION 4: PROGRAM REPORTING The Subrecipient shall submit such reports as required by the City to meet its local obligations and its obligations to HUD. The City will prescribe the report format, as well as the time and location for submission of such reports. Required reports include, but are not limited to the following: A. Quarterly reports which shall include the progress made to date, or justification for lack of progress, in providing the services specified in Article 1, Section 1: Scope of Services, of this Agreement. City of Pearland, Texas Page 3 of 27 Subrecipient Agreement B. Quarterly reports on demographic and income information regarding persons assisted by the Subrecipient through this Agreement. C. Closeout reports including a final performance report, inventory of all property acquired or improved by CDBG funds, and final financial report, upon termination or completion of the award. ARTICLE 2- FINANCIAL MANAGEMENT SECTION 1: PAYMENTS AND BUDGET A. General Statement The City shall reimburse the Subrecipient allowable costs for services identified in this Agreement not to exceed Fourteen Thousand Dollars ($21,000), upon presentation of properly executed reimbursement forms provided and approved by the City. Such reimbursement shall constitute full and complete payment by the City under this Agreement. Allowable costs shall mean those necessary and proper costs identified in the Subrecipient's application and budget and approved by the City unless any or all such costs are disallowed by the State of Texas or HUD. Any reimbursement made under this Agreement must comply with the applicable requirements of 24 CFR Part 85. The Subrecipient may not request disbursement of funds under this Agreement until the funds are needed for payment of allowable costs. B. Payments Reimbursement request must be submitted to the City of Pearland in accordance with instructions to be provided to the Subrecipient under separate cover. Reimbursement payments shall be made to: Counseling Connections For Change. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. Drawdowns for the payment of allowable costs shall be made against the line item budgets specified in Paragraph C, below, herein and in accordance with performance. Expenses for general administration shall also be paid against the line item budgets specified in Paragraph C and in accordance with performance. C. Budget Line Item Amount: Social Services $21,000 TOTAL $21,000 In addition, the Grantee may require a more detailed budget breakdown than the one contained herein, and the Subrecipient shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the Grantee. Any amendments to the budget must be approved in writing by both the Grantee and the Subrecipient. City of Pearland, Texas Page 4 of 27 Subrecipient Agreement D. Closeout Upon termination of this Agreement, in whole or in part for any reason including completion of the project, the following provisions may apply: A. Upon written request by the Subrecipient, the City shall make or arrange for payments to the Subrecipient of allowable reimbursable costs not covered by previous payments; B. Disposition of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee); C. The Subrecipient shall submit within thirty (30) days after the date of expiration of this Agreement, all financial, performance and other reports required by this Agreement, and in addition, will cooperate in a program audit by the City or its designee; and D. Closeout of funds will not occur unless all requirements of 24 CFR 92.507 are met and all outstanding issues with the Subrecipient have been resolved to the satisfaction of the City. The Subrecipient's obligation to the Grantee shall not end until all closeout requirements are completed. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income. SECTION 2: DOCUMENTATION OF COSTS AND OTHER FINANCIAL REPORTING All costs shall be supported by properly executed payrolls, time records, invoices, vouchers or other official documentation, as evidence of the nature and propriety of the charges. All accounting documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible, and upon reasonable notice, the City and HUD shall have the right to audit the records of the Subrecipient as they relate to the Agreement and the activities and services described herein. The Subrecipient shall also: A. Maintain an effective system of internal fiscal control and accountability for all CDBG funds and property acquired or improved with CDBG funds, and make sure the same are used solely for authorized purposes. B. Keep a continuing record of all disbursements by date, check number, amount, vendor, description of items purchased and line item from which the money was expended, as reflected in the Subrecipient's accounting records. C. Maintain payroll, financial, and expense reimbursement records for a period of five (5) years after receipt of final payment under this Agreement. D. Permit inspection and audit of its records with respect to all matters authorized by this Agreement by representatives of the City or HUD at any time during normal business hours and as often as necessary. City of Pearland, Texas Page 5 of 27 Subrecipient Agreement E. Inform the City concerning any funds allocated to the Subrecipient, that the Subrecipient anticipates will not be expended during the term of this Agreement, and permit the reassignment of the same by the City to other Subrecipients. F. Repay the City any funds in its possession at the time of the termination of this Agreement that may be due to the City or HUD. G. Maintain complete records concerning the receipt and use of all program income. Program income shall be reported on a monthly basis on forms provided by the City. SECTION 3: REIMBURSEMENT The City shall reimburse the Subrecipient only for actual incurred costs upon presentation of properly executed reimbursement forms as provided and approved by the City. Only those allowable costs directly related to this Agreement shall be paid. The amount of each request must be limited to the amount needed for payment of eligible costs. In the event that the City or HUD determines that any funds were expended by the Subrecipient for unauthorized or ineligible purposes or the expenditures constitute disallowed costs in any other way, the City or HUD may order repayment of the same. The Subrecipient shall remit the disallowed amount to the City within thirty (30) days of written notice of the disallowance. A. The Subrecipient agrees that funds determined by the City to be surplus upon completion of the Agreement will be subject to cancellation by the City. B. The Subrecipient aggress that upon expiration of this Agreement, the Subrecipient shall transfer to the City any CDBG funds on hand at the time of the expiration and any accounts receivable attributable to the use of CDBG funds. C. The City shall be relieved of any obligation for payments if funds allocated to the City cease to be available for any cause other than misfeasance of the City itself. D. The City reserves the right to withhold payments pending timely delivery of program reports or documents as may be required under this agreement. SECTION 4: PROGRAM INCOME The Subrecipient shall report monthly on all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.504, 2 CFR 200.80 and 2 CFR 200.307. By way of further limitations, the Subrecipient may use such income only during the term of this Agreement and only for activities permitted under this Agreement 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 the City at the completion of the Agreement. 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 the Grantee. ARTICLE 3- GENERAL CONDITIONS AND REQUIREMENTS SECTION 1: NOTICES City of Pearland, Texas Page 6 of 27 Subrecipient Agreement Notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. 1st Level 2nd Level Grantee/City Joel Hardy Clay Pearson Address 3519 Liberty Drive Pearland, TX 77581 SECTION 2: GENERAL CONDITIONS A. General Compliance Subrecipient Dawn Lawless Dawn Lawless 2549 Roy Road Pearland, TX 77581 The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpart J and subpart K of these regulations, except that (1) the Subrecipient does not assume the recipient's environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the recipient's responsibility for initiating the review process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply with all other applicable Federal, State and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. The Subrecipient shall comply with all applicable Federal laws, regulations, and requirements and all provisions of this Agreement, which include compliance with the provisions of the HCD Act and all rules, regulations, guidelines, and circulars promulgated by the various Federal departments, agencies, administrations, and commissions relating to the CDBG Program. The applicable laws and regulations include, but are not limited to: ■ 2 CFR Part 200 ■ 24 CFR Part 570; ■ 24 CFR Parts 84 and 85; ■ OMB Circular A-87 "Cost Principles for State and Local Governments," or OMB Circular A-110, or OMB Circular A-122 "Cost Principles for Non -Profit Organizations," or OMB Circular A-21 "Cost Principles for Educational Institutions"; ■ OMB Circular A-128, "Audits of State and Local Governments" or OMB Circular A-133 "Audits of Institutions of Higher Education and Other Non -Profit Institutions"; ■ The Davis -Bacon Fair Labor Standards Act; ■ The Contract Work Hours and Safety Standards Act of 1962; ■ Copeland "Anti -Kickback" Act of 1934; ■ Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA); ■ Title VI of the Civil Rights Act of 1964; (Public Law 88-352 implemented in 24 CFR Part 1) City of Pearland, Texas Page 7 of 27 Subrecipient Agreement • Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (Public Law 90-234 and Executive Order 11063 as amended by Executive Order 12259 (implemented in 24 CFR Part 107); • Sections 104(b) and 109 of the Housing and Community Development Act of 1974; • Section 3 of the Housing and Urban Development Act of 1968; • Equal employment opportunity and minority business enterprise regulations established in 2 C.F.R. Part 200, Appendix II, ¶ C and24 CFR part 570.904; • Non-discrimination in employment, established by Executive Order 11246 (as amended by Executive Orders 11375 and 12086); • Section 504 of the Rehabilitation Act of 1973 Uniform Federal Accessibility; • The Architectural Barriers Act of 1968; • The Americans With Disabilities Act (ADA) of 1990; • The Age Discrimination Act of 1975, as amended; • National Environmental Policy of 1969 (42 USC 4321 et seq.), as amended; • Lead Based paint regulations established in 24 CFR Parts 35, 570.608, and 24 CFR 982.401; • Asbestos guidelines established in CPD Notice 90-44; • HUD Environmental Criteria and Standards (24 CFR Part 51); • The Energy Policy and Conservation Act (Public Law 94-163) and 24 CFR Part 39; • Historic Preservation Act of 1966, as amended, and related laws and Executive Orders; • Executive Order 11988, Floodplain Management, 1977 (42 FR 26951 et seq.); • Flood Disaster Protection Act of 1973. B. "Independent Contractor" Nothing contained in this Agreement is intended, nor shall be construed in any manner to create or establish the relationship of employer/employee between the Grantee and the Subrecipient. The Subrecipient shall, at all times, remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Subrecipient is an independent contractor. C. Hold Harmless To the extent permitted by law, the Subrecipient agrees to hold harmless, defend and indemnify the City and its appointed and elected officers and employees from and against any and all liability, loss, costs, damage and expense, including costs and attorney fees in defense thereof because of any actions, claims, lawsuits, damages, charges and judgments whatsoever that arise out of the Subrecipient's performance or nonperformance of the services or subject matter called for in this Agreement. D. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement. E. Insurance & Bonding The Subrecipient shall carry sufficient insurance coverage to protect Agreement assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket City of Pearland, Texas Page 8 of 27 Subrecipient Agreement fidelity bond covering all employees in an amount equal to cash advances from the Grantee. The Subrecipient shall comply with the bonding and insurance requirements of 24 CFR 84.31 and 84.48. The certificates of insurance shall be provided to the City by the Subrecipient's insurance agent or carrier as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect. Insurance limits must be on each Certificate of Insurance. Each Certificate of Insurance shall be reviewed and approved by the City prior to commencement of this Agreement. No other form of certificate shall be used. The Subrecipient will not be relieved of any liability, claims, demands, or other obligations assumed by its failure to procure or maintain insurance, or its failure to procure or maintain insurance in sufficient amounts, durations, or types. Failure on the part of the Subrecipient to procure or maintain policies providing the required coverages, conditions and minimum limits will constitute a material breach of this Agreement, upon which the City may immediately terminate this contract. F. Licensing The Subrecipient agrees to comply with and obtain at its own expense, if necessary, all applicable Federal, State, City or Municipal standards for licensing, certifications and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in this Agreement to assure quality of services. In the event of an investigation or suspension regarding any Subrecipient license related to the services for which the City is providing funding under this Agreement, the City may terminate this Agreement and withhold further Agreement funds. In addition, monies already received under this Agreement may be owed back to the City. G. Amendments The parties may amend this Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Subrecipient from its obligations under this Agreement. The Grantee may, in its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies or available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Subrecipient. H. Failure to Perform In the event of a failure by the Subrecipient to comply with any terms or conditions of this Agreement or to provide in any manner activities or other performance as agreed herein, the City reserves the right to temporarily withhold all or any part of payment pending correction of the deficiency, suspend all or part of the Agreement, or prohibit the Subrecipient from incurring additional obligation of funds until the City is satisfied that corrective action has been taken or completed. The option to withhold funds is in addition to, and not in lieu of the City's right to City of Pearland, Texas Page 9 of 27 Subrecipient Agreement suspend or terminate this Agreement. The City may consider performance under this Agreement when considering future awards. I. Suspension or Termination The Grantee may pursue such remedies as are available to it in accordance with 2 CFR Part 200, Appendix II, ¶ A and 24 CFR 85.43, including but not limited to suspension or termination of this Agreement, if the Subrecipient materially fails to comply with any terms or conditions of this Agreement, which include, but are not limited to, the following: A. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; B. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement; C. Ineffective or improper use of funds provided under this Agreement; D. Submission by the Subrecipient to the Grantee reports that are incorrect or incomplete in any material respect; or E. Failure to take satisfactory corrective action as directed by the City. In accordance with 2 C.F.R. Part 200, Appendix II, ¶ B and 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Grantee or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. If, in the case of a partial termination, however, the Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Grantee may terminate the award in its entirety. In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Agreement but prior to its normal completion, the City may summarily terminate this Agreement as to the funds reduced or limited, notwithstanding any other termination provisions of this agreement. Termination under this Section shall be effective upon receipt of written notice. In the case of a suspension or termination, monies already received under this Agreement may be owed back to the City and the City may also declare the Subrecipient ineligible for further participation in the CDBG program. SECTION 3: ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. City of Pearland, Texas Page 10 of 27 Subrecipient Agreement 2. Cost Principles The Subrecipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not be limited to: ■ Records providing a full description of each activity undertaken; ■ Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; • Records required to determine the eligibility of activities; • Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; • Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; ■ Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and • Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Retention The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the Grantee's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there are 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. 3. Client Data The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, demographic information and description of City of Pearland, Texas Page 11 of 27 Subrecipient Agreement service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The 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 the Grantee's or Subrecipient's responsibilities with respect to services provided under this Agreement, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Audits & Inspections All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the 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. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within thirty (30) days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning subrecipient audits and OMB Circular A-133. C. Citizen Participation The Subrecipient will have processes in place (satisfaction surveys, Board representation, grievance procedures, etc.) which receive, document and utilize the input from low-income persons potentially benefiting or affected by the program or project covered under this Agreement. D. Procurement 1. Compliance The Subrecipient shall comply with current Grantee policy concerning the purchase of equipment 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 the Grantee upon termination of this Agreement. 2. OMB Standards Unless specified otherwise within this agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84.40-48. 2. Debarment and Suspension Non-federal entities and contractors are subject to the debarment and suspension regulations implementing Executive Order 12549, Debarment and Suspension (1986) and Executive Order 12689, Debarment and Suspension (1989) at 2 C.F.R. Part 180 and the Department of Homeland Security's regulations at 2 C.F.R. Part 3000 (Non -procurement Debarment and Suspension). These regulations restrict awards, subawards, and City of Pearland, Texas Page 12 of 27 Subrecipient Agreement contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs and activities. See 2 C.F.R. Part 200, Appendix II, ¶ H; and Procurement Guidance for Recipients and Subrecipients Under 2 C.F.R. Part 200 (Uniform Rules): Supplement to the Public Assistance Procurement Disaster Assistance Team (PDAT) Field Manual Chapter IV, If 6.d, and Appendix C, 112 [hereinafter PDAT Supplement]. A contract award must not be made to parties listed in the SAM Exclusions. SAM Exclusions is the list maintained by the General Services Administration that contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. SAM exclusions can be accessed at www.sam.gov. See 2 C.F.R. § 180.530; PDAT Supplement, Chapter IV, ¶ 6.d and Appendix C, ¶ 2. a. In general, an "excluded" party cannot receive a Federal grant award or a contract within the meaning of a "covered transaction," to include subawards and subcontracts. This includes parties that receive Federal funding indirectly, such as contractors to recipients and subrecipients. The key to the exclusion is whether there is a "covered transaction," which is any non -procurement transaction (unless excepted) at either a "primary" or "secondary" tier. Although "covered transactions" do not include contracts awarded by the Federal Government for purposes of the non -procurement common rule and DHS's implementing regulations, it does include some contracts awarded by recipients and subrecipient. b. Specifically, a covered transaction includes the following contracts for goods or services: a. The contract is awarded by a recipient or subrecipient in the amount of at least $25,000. b. The contract requires the approval of FEMA, regardless of amount. c. The contract is for federally -required audit services. d. A subcontract is also a covered transaction if it is awarded by the contractor of a recipient or subrecipient and requires either the approval of FEMA or is in excess of $25,000. i. The following provides a debarment and suspension clause. It incorporates an optional method of verifying that contractors are not excluded or disqualified: "Suspension and Debarment 1. This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the contractor is required to verify that none of the contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935). 2. The contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into. 3. This certification is a material representation of fact relied upon by (insert name of subrecipient). If it is later determined that the contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to (name of state agency serving as recipient and name of subrecipient), the Federal Government may pursue available City of Pearland, Texas Page 13 of 27 Subrecipient Agreement remedies, including but not limited to suspension and/or debarment. 4. The bidder or proposer agrees to comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions." E. Travel The Subrecipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this Agreement. F. 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. The Subrecipient shall transfer to the Grantee any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. B. Real property under the Subrecipient's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement [or such longer period of time as the Grantee deems appropriate]. If the Subrecipient fails to use CDBG assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the 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 acquisition of, or improvement to, the property. Such payment shall constitute program income to the Grantee. The 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]. C. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (1) transferred to the Grantee for the CDBG program or (2) retained after compensating the Grantee in an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment. SECTION 4: RELOCATION, REAL PROPERTY ACQUISITION AND ONE -FOR -ONE HOUSING REPLACEMENT The Subrecipient agrees to comply with (1) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b); (2) the requirements of 24 CFR 570.606(c) governing the City of Pearland, Texas Page 14 of 27 Subrecipient Agreement Residential Anti -displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and (3) the requirements in 24 CFR 570.606(d) governing optional relocation policies. The Grantee may, however, preempt the optional policies. The Subrecipient shall provide relocation assistance to displaced persons as defined by 24 CFR 570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted project. The Subrecipient also agrees to comply with applicable Grantee ordinances, resolutions and policies concerning the displacement of persons from their residences. Displacement of persons (including families, individuals, businesses, non-profit organizations and farms) as a result of activities assisted with CDBG funds is generally discouraged. SECTION 5: PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. General Compliance The Subrecipient agrees to comply 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. 2. Nondiscrimination The Subrecipient agrees to comply with the nondiscrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable nondiscrimination provisions in Section 109 of the HCDA are still applicable, which stipulates that no person 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 pursuant to agreement. • Additionally, the Subrecipient shall not, on the grounds of race, color, sex/gender, sexual orientation, familial status, religion, national origin, creed, ancestry, marital status, age or disability or handicap: A. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Agreement; B. Provide any facilities, financial aid, services or other benefits which are different, or are provided in a different manner, from those provided to others under this Agreement; C. Subject an individual to segregated or separate treatment in any facility, or in any matter if process related to receipt of any service or benefit under this Agreement; City of Pearland, Texas Page 15 of 27 Subrecipient Agreement D. Restrict an individual's access to or enjoyment of any advantage or privilege enjoyed by others in connection with any service or benefit under this Agreement; E. Treat anyone differently from others in determining if they satisfy any admission, enrollment, eligibility, membership or other requirement or condition which the individual must meet to be provided a service or a benefit under this Agreement. F. Deny anyone an opportunity to participate in any program or activity as an employee which is different from that afforded others under this agreement. If assignment and/or subcontracting has been authorized in writing, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each contractor or subcontractor. The Subrecipient shall take such actions as may be required to ensure full compliance with the provisions, including sanction for noncompliance. 3. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The 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. 4. Section 504 The Subrecipient agrees to comply with all 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. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. 5. Architectural Barriers Act/Americans with Disabilities Act The Subrecipient shall meet the requirements, where applicable, of the Architectural Barriers Act and the Americans with Disabilities Act, as set forth in 24 CFR 570.614. A building or facility designed, constructed, or altered with funds allocated or reallocated under CDBG program after December 11, 1995 and that meets the definition of a "residential structure" as defined in 24 CFR Part 40.2 or the definition of a "building" as defined in 41 CFR Part 101-19.602(a) is subject to the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-4157) and shall comply with the Uniform Federal Accessibility Standards. The Americans with Disabilities Act ("ADA') (42 USC 12131; 47 USC 155, 210, 218, and 255) requires that the design and construction of facilities for first City of Pearland, Texas Page 16 of 27 Subrecipient Agreement occupancy after January 26, 1993 must include measures to make them readily accessible and usable by individuals with disabilities. The ADA further requires the removal of architectural barriers and communication barriers that are structural in nature in existing facilities, where such removal is readily achievable —that is, easily accomplishable and able to be carried out without much difficulty or expense. B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be committed to carry out pursuant to the Grantee's specifications an Affirmative Action Program, in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1966. 2. Women- and Minority -Owned Businesses (W/MBE) The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement. As used in this Agreement, the terms "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish - heritage Americans, Asian -Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The 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 the Grantee, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement The regulation at 41 C.F.R. § 60-1.3 defines a "federally assisted construction contract" as any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant City of Pearland, Texas Page 17 of 27 Subrecipient Agreement to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work. The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity and Affirmative Action employer. The Subrecipient shall comply with Executive Order 11246 as amended by Executive Order 12086 and the regulations issued pursuant thereto (41 CFR Chapter 60), and will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The Subrecipient will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, or other forms of compensation and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 6. Subcontract Provisions The Subrecipient will include the provisions of Section 5. A, Civil Rights, and B, 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 or subcontractors. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities. The Byrd Anti -Lobbying Amendment, 31 U.S.C. § 1352 (as amended) is applicable to any and all Contractors who apply or bid for an award of $100,000 or more. Such Contractors shall file the required certification. Each tier certifies to the tier above that it will not and has 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, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 2. Labor Standards City of Pearland, Texas Page 18 of 27 Subrecipient Agreement The 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 Work 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. The Subrecipient agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and it's implementing regulations of the U.S. Department of Labor at 29 CFR Part 3. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Grantee for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the Grantee in 2 CFR Part 200, Appendix II, ¶ D, pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. Drug -Free Workplace The Subrecipient will or will continue to provide a drug -free workplace by: A. Maintaining a Zero Tolerance Drug Policy; B. Posting in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the Subrecipient's workplace and specifying the actions that will be taken against employees for violations of such prohibition; C. Stating in all solicitations or advertisements for employees or subcontractors placed by or on behalf of the Subrecipient that the Subrecipient maintains a drug -free workplace; D. Establishing an ongoing drug -free awareness program to inform employees about: • The dangers of drug abuse in the workplace; • The Subrecipient's policy of maintaining a drug -free workplace; • Any available drug counseling, rehabilitation, and employee assistance programs; and • The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; City of Pearland, Texas Page 19 of 27 Subrecipient Agreement E. Including the provisions of the foregoing clauses in all third -party contracts, subcontracts, and purchase orders that exceed ten thousand dollars ($10,000.00), so that the provisions will be binding upon each subcontractor or vendor. 4. "Section 3" Clause A. Compliance Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued thereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the Subrecipient and any of the Subrecipient's subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Subrecipient and any of the Subrecipient's subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The 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 a project 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 low - and very 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 low - and very low-income persons residing in the metropolitan area in which the project is located." The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead -based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low - and very low-income participants in other HUD programs. The Subrecipient further agrees to award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead -based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic City of Pearland, Texas Page 20 of 27 Subrecipient Agreement opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. B. Notifications The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. C. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this contract 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 promptly to the Grantee. All terms and conditions of this Agreement shall apply to any approved subcontract or assignment related to the Agreement. 2. Subcontracts A. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the Grantee prior to the execution of such agreement. B. Monitoring The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in City of Pearland, Texas Page 21 of 27 Subrecipient Agreement written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. C. Content The Subrecipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. D. Selection Process The 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 the Grantee along with documentation concerning the selection process. 3. Hatch Act The 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 of the U.S.C. 4. [Reserved] 5. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include, but are not limited to the following: A. The 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 the Subrecipient shall participate in the selection, the award or the 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 the Grantee, the Subrecipient, or any designated public agency. City of Pearland, Texas Page 22 of 27 Subrecipient Agreement 6. Lobbying The Subrecipient hereby certifies that: A. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; B. 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 in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and C. It will require that the language of paragraph (d) of this 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: D. 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. 7. Grantee Recognition The Subrecipient shall ensure recognition of the role of the City in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to the funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. 8. Copyright If this Agreement results in any copyrightable material or inventions, the Grantee reserves the right to a 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. 9. Religious Activities City of Pearland, Texas Page 23 of 27 Subrecipient Agreement The 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. In addition to, and not in substitution for, other provisions of this Agreement regarding the provisions of services utilizing CDBG funds the Subrecipient agrees that, in connection with such services: A. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion; B. It will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion; C. It will provide no mandatory religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such services. 10. Other Program Requirements The Subrecipient shall carry out each activity in compliance with all Federal laws and regulations described in 24 CFR 570 Subpart K, regardless if the law is specifically stated in this Agreement, except that: A. The Subrecipient does not assume the City's environmental responsibilities described in Section 570.604; and B. The Subrecipient does not assume the City's responsibility for initiating the review process under Executive Order 12372. SECTION 6: ENVIRONMENTAL CDBG regulations require the preparation of a project Environmental Review Record (ERR) and environmental clearance before funds are expended or costs incurred. The overall governing legislation is the National Environmental Policy Act (NEPA). City staff will complete the ERR. The time required for completion of the ERR can vary from a week to a few months. If the initial Environmental Assessment determines that an Environmental Impact Statement (EIS) or a Biological Assessment (BA) is necessary, the Subrecipient will be required to make appropriate budget modifications to assure the costs of the EIS or BA are paid for from project funds. After completing the ERR, the City may publish a notice of a Finding of No Significant Environmental Impact (FONSI) in a local newspaper declaring the intent to request release of project funds from HUD. After the release of the funds by HUD, the City will send the Subrecipient a written notice to begin the project. Subrecipients shall not implement any project activities or incur any project costs until receipt of the notice to proceed. The City must also determine whether the project meets other applicable statutory and regulatory requirements which include by are not limited to the following: City of Pearland, Texas Page 24 of 27 Subrecipient Agreement A. Air and Water The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: ■ Clean Air Act, 42 U.S.C. , 7401, et seq. and 2 C.F.R. Part 200, Appendix II, ¶ G; ■ Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; • Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area 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 The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead - based paint. Such notification shall point out the hazards of lead -based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead -based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead -based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted. D. Historic Preservation The Subrecipient agrees to comply with the Historic Preservation requirements 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 they apply to the performance of this Agreement. In general, this requires concurrence from the State's designated office for dealing with Historic Preservation, for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list. SECTION 7: HANDBOOK RECEIPT CERTIFICATION City of Pearland, Texas Page 25 of 27 Subrecipient Agreement The Subrecipient certifies that it has received the HUD published "Paying by the Rules- A Handbook for CDBG Subrecipients on Administrative Systems" in either print or electronic format from the Grantee. The Subrecipient further certifies and agrees that it is the Subrecipient's obligation as a part of this Agreement to read and understand the Handbook. SECTION 8: SEVERABILITY It is understood and agreed by the parties that if any part, term, or provision of this Agreement is held by the courts to be invalid, illegal or in conflict with any law, 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. SECTION 9: SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. SECTION 10: WAIVER The Grantee's failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. SECTION 11: SUCCESSORS This Agreement shall be binding upon each of the parties, their assigns, purchasers, trustees, and successors. SECTION 12: ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the Grantee and the 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 the Grantee and the Subrecipient with respect to this Agreement. SECTION 13: NO THIRD -PARTY BENEFICIARIES Except as expressly provided otherwise, this Agreement is intended to be solely for the benefit of the parties and shall not otherwise be deemed to confer upon or give to any other person or third party any remedy, claim, cause or action or other right. SECTION 14: GOVERNING LAW AND JURISDICTION This Agreement shall be construed in accordance with the laws of the State of Texas. In the event of any dispute over the Agreement's terms and conditions, the exclusive venue and jurisdiction for any litigation arising thereunder shall be in the District Court of Brazoria County, and, if necessary for exclusive federal questions, the United States District Court for the District of Texas. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date of the most recent signatory. City of Pearland, Texas Page 26 of 27 Subrecipient Agreement Grantee: City of Pearland, Texas Date /b c�Hnc 62( By Y Att CITY SECRETARY APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Federal I. D. # — 6 0 2- 9 d 9 • CITY ATTORNEY Subrecipient: Counseling Connections For Change Date (9-110 \ By r AktefliZO— Execu ive irector Federal I. D. # BY - OcOVl L 1'eSS (1 )7C Title City of Pearland, Texas Page 27 of 27 Subrecipient Agreement