HomeMy WebLinkAboutKimball Tower Housing Associates, L.P. - Section 8 Project-Based Voucher Program - 2019 U.S. Department Of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT-BASED VOUCHER PROGRAM
PBV HOUSING ASSISTANCE PAYMENTS CONTRACT
EXISTING HOUSING
PART 1 OF HAP CONTRACT
1. CONTRACT INFORMATION
a. Parties
This housing assistance payments(HAP)contract is entered into between:
Community Development Commission-Housing Authority of the City of National City
(PHA)and
Kimball Tower Housing Associates, L.P. (owner).
b. Contents of contract
The HAP contract consists of Part 1, Part 2 and the contract exhibits listed in paragraph c.
c. Contract exhibits
The HAP contract includes the following exhibits:
EXHIBIT A: TOTAL NUMBER OF UNITS IN PROJECT COVERED BY THIS HAP
CONTRACT; INITIAL RENT TO OWNER; AND THE NUMBER AND
DESCRIPTION OF THE CONTRACT UNITS. (See 24 CFR 983.203 for
required items.)
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EXHIBIT B: SERVICES, MAINTENANCE AND EQUIPMENT TO BE
PROVIDED BY THE OWNER WITHOUT CHARGES IN ADDITION
TO RENT TO OWNER
EXHIBIT C: UTILITIES AVAILABLE IN THE CONTRACT UNITS, INCLUDING
A LISTING OF UTILITIY SERVICES TO BE PAID BY THE OWNER
(WITHOUT CHARGES IN ADDITION TO RENT TO OWNER)AND
UTILITIES TO BE PAID BY THE TENANTS
EXHIBIT D: FEATURES PROVIDED TO COMPLY WITH PROGRAM
ACCESSIBILITY FEATURES OF SECTION 504 OF THE
REHABILITATION ACT OF 1973
ADDITIONAL EXHIBITS
d. Effective date and term of HAP contract
1. Effective date
a. The PHA may not enter into a HAP contract for any contract unit until the PHA
has determined that the unit complies with the housing quality standards.
b For all contract units,the effective date of the HAP contract is:
April 1,2019
c The term of the HAP contract begins on the effective date.
2. Length of initial term
a. Subject to paragraph 2.b,the initial term of the HAP contract for all contract units
is: 20 years
b. The initial term of the HAP contract may not be less than one year,nor more than
fifteen years.
3. Extension of term
The PHA and owner may agree to enter into an extension of the HAP contract at
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the time of initial HAP contract execution or any time prior to expiration of the
contract. Any extension, including the term of such extension, must be in
accordance with HUD requirements. A PHA must determine that any extension
is appropriate to achieve long-term affordability of the housing or expand
housing opportunities.
4. Requirement for sufficient appropriated funding
a. The length of the initial term and any extension term shall be subject to
availability, as determined by HUD, or by the PHA in accordance with HUD
requirements, of sufficient appropriated funding(budget authority), as provided in
appropriations acts and in the PHA's annual contributions contract(ACC)with
HUD,to make full payment of housing assistance payments due to the owner for
any contract year in accordance with the HAP contract.
b. The availability of sufficient funding must be determined by HUD or by the PHA
in accordance with HUD requirements. If it is determined that there may not be
sufficient funding to continue housing assistance payments for all contract units
and for the full term of the HAP contract,the PHA has the right to terminate the
HAP contract by notice to the owner for all or any of the contract units. Such
action by the PHA shall be implemented in accordance with HUD requirements.
e. Occupancy and payment
1. Payment for occupied unit
During the term of the HAP contract,the PHA shall make housing assistance
payments to the owner for the months during which a contract unit is leased to
and occupied by an eligible family. If an assisted family moves out of a contract
unit,the owner may keep the housing assistance payment for the calendar month
when the family moves out("move-out month"). However,the owner may not
keep the payment if the PHA determines that the vacancy is the owner's fault.
2. Vacancy payment
THE PHA HAS DISCRETION WHETHER TO INCLUDE THE VACANCY
PAYMENT PROVISION(PARAGRAPH e.2), OR TO STRIKE THIS PROVISION
FROM THE HAP CONTRACT FORM.
a. If an assisted family moves out of a contract unit,the PHA may provide vacancy
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payments to the owner for a PHA-determined vacancy period extending from the
beginning of the first calendar month after the move-out month for a period not
exceeding two full months following the move-out month.
b. The vacancy payment to the owner for each month of the maximum two-month
period will be determined by the PHA,and cannot exceed the monthly rent to
owner under the assisted lease,minus any portion of the rental payment received
by the owner(including amounts available from the tenant's security deposit).
Any vacancy payment may only cover the period the unit remains vacant.
c. The PHA may only make vacancy payments to the owner if:
1. The owner gives the PHA prompt,written notice certifying that the family
has vacated the unit and the date when the family moved out(to the best
of the owner's knowledge and belief);
2. The owner certifies that the vacancy is not the fault of the owner and that
the unit was vacant during the period for which payment is claimed;
3. The owner certifies that it has taken every reasonable action to minimize
the likelihood and length of vacancy; and
4. The owner provides any additional information required and requested by
the PHA to verify that the owner is entitled to the vacancy payment.
d. The PHA must take every reasonable action to minimize the likelihood and length
of vacancy.
e. The owner may refer families to the PHA, and recommend selection of such
families from the PHA waiting list for occupancy of vacant units.
f. The owner must submit a request for vacancy payments in the form and manner
required by the PHA and must provide any information or substantiation required
by the PHA to determine the amount of any vacancy payments.
3. PHA is not responsible for family damage or debt to owner
Except as provided in this paragraph e(Occupancy and Payment),the PHA will
not make any other payment to the owner under the HAP contract. The PHA will
not make any payment to owner for any damages to the unit,or for any other
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amounts owed by a family under the family's lease.
f. Income-mix ing requirement
1. Except as provided in paragraphs f.2 and 3,the PHA will not make housing
assistance payments under the HAP contract for more than 25 percent of the total
number of dwelling units(assisted or unassisted) in any project. The term
"project"means a single building, multiple contiguous buildings, or multiple
buildings on contiguous parcels of land assisted under this HAP contract.
2. The limitation in paragraph f.l does not apply to single-family buildings.
3. In referring eligible families to the owner for admission to the number of contract
units in any project exceeding the 25 percent limitation under paragraph f.l,the
PHA shall give preference to elderly or disabled families, or to families receiving
supportive services, for the number of contract units designated for occupancy by
such families. The owner shall rent the designated number of contract units to
such families referred by the PHA from the PHA waiting list.
4. The PHA and owner must comply with all HUD requirements regarding income
mixing.
5. The following specifies the number of contract units (if any):
a. Designated for occupancy by disabled families;
b Designated for occupancy by elderly families;
c. Designated for occupancy by elderly or disabled families; or
d. Designated for occupancy by families receiving supportive services.
❑ Check this box if any contract units are designated for disabled families.
The following number of contract units shall be rented to disabled
families:
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Check this box if any contract units are designated for elderly families.
The following number of contract units shall be rented to elderly families:
149
❑ Check this box if any contract units are designated for elderly or disabled
families.
The following number of contract units shall be rented to elderly or disabled
families:
El Check this box if any contract units are designated for families receiving
supportive services.
The following number of contract units shall be rented to families
receiving supportive services:
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EXECUTION OF HAP CONTRACT FOR EXISTING HOUSING
PUBLIC HOUSING AGENCY (PHA)
Name of PHA (Print)
Community Development Commission-Housing Authority of the City of National City
Signature of authorized representative
Name and official title (Print)Leslie Deese, Executive Director
3 Las 111
Date
OWNER
Name of Owner(Print)
Kimball Tower Housing Associates, L.P.
By:
Signature of authorized representative
Name and title (Print)Susan M. Reynolds
President & CEO
Date
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EXECUTION OF HAP CONTRACT FOR EXISTING HOUSING
PUBLIC HOUSING AGENCY (PHA)
Name of PHA(Print)
Housing Authority of the City of National City
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner(Print)
Kimball Tower Housing ssociates, L.P.
By:
Signature of rized representative
Name and title(Print)Susan M. Reynolds
President & CEO
Date lki(-Q kart-
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U.S.Department Of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT-BASED VOUCHER PROGRAM
PBV HOUSING ASSISTANCE PAYMENTS CONTRACT
EXISTING HOUSING
PART 2 OF HAP CONTRACT
2. DEFINITIONS
Contract units. The housing units covered by this HAP contract. The contract units are
described in Exhibit A.
Existing housing. Housing units that already exist on the proposal selection date and
that substantially comply with the housing quality standards on that date. The units must
fully comply with the housing quality standards before execution of the HAP contract.
Family. The persons approved by the PHA to reside in a contract unit with assistance
under the program.
HAP contract. This housing assistance payments contract between the PHA and the
owner. The contract consists of Part 1, Part 2, and the contract exhibits(listed in section
1.c of the HAP contract).
Housing assistance payment. The monthly assistance payment by the PHA for a
contract unit,which includes: (1) a payment to the owner for rent to the owner under the
family's lease minus the tenant rent; and(2) an additional payment to or on behalf of the
family if the utility allowance exceeds total tenant payment.
Household. The family and any PHA-approved live-in aide.
Housing quality standards(HQS). The HUD minimum quality standards for dwelling
units occupied by families receiving project-based voucher program assistance.
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HUD. U.S. Department of Housing and Urban Development.
HUD requirements. HUD requirements which apply to the project-based voucher
program. HUD requirements are issued by HUD headquarters, as regulations,Federal
Register notices or other binding program directives.
Owner. Any person or entity who has the legal right to lease or sublease a unit to a
participant.
Premises. The building or complex in which a contract unit is located, including
common areas or grounds.
Principal or interested party.This term includes a management agent and other persons
or entities participating in project management, and the officers and principal members,
shareholders, investors, and other parties having a substantial interest in the HAP
contract, or in any proceeds or benefits arising from the HAP contract.
Program. The project-based voucher program(see authorization for project-based
assistance at 42 U.S.C. 1437f(o)(13)).
PHA. Public Housing Agency. The agency that has entered into the HAP contract with
the owner. The agency is a public housing agency as defined in the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)).
Proposal selection date. The date the PHA gives written notice of proposal selection to
the owner whose proposal is selected in accordance with the criteria established in the
PHA's administrative plan.
Rent to owner. The total monthly rent payable to the owner under the lease for a
contract unit. Rent to owner includes payment for any housing services,maintenance and
utilities to be provided by the owner in accordance with the lease.
Tenant. The person or persons(other than a live-in aide)who executes the lease as a
lessee of the dwelling unit.
Tenant rent. The portion of the rent to owner payable by the family, as determined by
the PHA in accordance with HUD requirements. The PHA is not responsible for paying
any part of the tenant rent.
3. PURPOSE
a. This is a HAP contract between the PHA and the owner.
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b. The purpose of the HAP contract is to provide housing assistance payments for
eligible families who lease contract units that comply with the HUD HQS from
the owner.
c. The PHA must make housing assistance payments to the owner in accordance
with the HAP contract for contract units leased and occupied by eligible families
during the HAP contract term. HUD provides funds to the PHA to make housing
assistance payments to owners for eligible families.
4. RENT TO OWNER; HOUSING ASSISTANCE PAYMENTS
a. Amount of initial rent to owner
The initial rent to owner for each contract unit is stated in Exhibit A, which is
attached to and made a part of the HAP contract. At the beginning of the HAP
contract term, and until rent to owner is adjusted in accordance with section 5 of
the HAP contract,the rent to owner for each bedroom size(number of bedrooms)
shall be the initial rent to owner amount listed in Exhibit A.
b. HUD rent requirements
Notwithstanding any other provision of the HAP contract,the rent to owner may
in no event exceed the amount authorized in accordance with HUD requirements.
The PHA has the right to reduce the rent to owner, at any time,to correct any
errors in establishing or adjusting the rent to owner in accordance with HUD
requirements. The PHA may recover any overpayment from the owner.
c. PHA payment to owner
1. Each month the PHA must make a housing assistance payment to the
owner for a unit under lease to and occupied by an eligible family in
accordance with the HAP contract.
2. The monthly housing assistance payment to the owner for a contract unit
is equal to the amount by which the rent to owner exceeds the tenant rent.
3. Payment of the tenant rent is the responsibility of the family. The PHA is
not responsible for paying any part of the tenant rent, or for paying any
other claim by the owner against a family. The PHA is only responsible
for making housing assistance payments to the owner on behalf of a
family in accordance with the HAP contract.
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4. The owner will be paid the housing assistance payment under the HAP
contract on or about the first day of the month for which payment is due,
unless the owner and the PHA agree on a later date.
5. To receive housing assistance payments in accordance with the HAP
contract, the owner must comply with all the provisions of the HAP
contract. Unless the owner complies with all the provisions of the HAP
contract, the owner does not have a right to receive housing assistance
payments.
6. If the PHA determines that the owner is not entitled to the payment or any
part of it,the PHA, in addition to other remedies,may deduct the amount
of the overpayment from any amounts due the owner, including amounts
due under any other housing assistance payments contract.
7. The owner will notify the PHA promptly of any change of circumstances
that would affect the amount of the monthly housing assistance payment,
and will return any payment that does not conform to the changed
circumstances.
d. Termination of assistance for family
The PHA may terminate housing assistance for a family under the HAP contract
in accordance with HUD requirements. The PHA must notify the owner in writing
of its decision to terminate housing assistance for the family in such case.
5. ADJUSTMENT OF RENT TO OWNER
a. PHA determination of adjusted rent
1. At each annual anniversary during the term of the HAP contract,the PHA
shall adjust the amount of rent to owner,upon request to the PHA by the
owner, in accordance with law and HUD requirements. In addition,the
PHA shall adjust the rent to owner when there is a five percent or greater
decrease in the published, applicable Fair Market Rent in accordance with
24 CFR 983.302.
2. The adjustment of rent to owner shall always be determined in accordance
with all HUD requirements. The amount of the rent to owner may be
adjusted up or down,in the amount defined by the PHA in accordance
with HUD requirements.
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b. Reasonable rent
The rent to owner for each contract unit, as adjusted by the PHA in accordance
with 24 CFR 983.303,may at no time exceed the reasonable rent charged for
comparable units in the private unassisted market. The reasonable rent shall be
determined by the PHA in accordance with HUD requirements.
c. No special adjustments
The PHA will not make any special adjustments of the rent to owner.
d. Owner compliance with HAP contract
The PHA shall not approve, and the owner shall not receive, any increase of rent
to owner unless all contract units are in accordance with the HQS, and the owner
has complied with the terms of the assisted leases and the HAP contract.
e. Notice of rent adjustment
Rent to owner shall be adjusted by written notice by the PHA to the owner in
accordance with this section. Such notice constitutes an amendment of the rents
specified in Exhibit A.
6. OWNER RESPONSIBILITY
The owner is responsible for:
a. Performing all management and rental functions for the contract units.
b. Maintaining the units in accordance with HQS.
c. Complying with equal opportunity requirements.
d. Enforcing tenant obligations under the lease.
e. Paying for utilities and housing services (unless paid by the family under the
lease).
f. Collecting from the tenant:
1. Any security deposit;
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2. The tenant rent; and
3. Any charge for unit damage by the family.
7. OWNER CERTIFICATION
The owner certifies that at all times during the term of the HAP contract:
a. All contract units are in good and tenantable condition. The owner is maintaining
the premises and all contract units in accordance with the HQS.
b. The owner is providing all the services,maintenance and utilities as agreed to
under the HAP contract and the leases with assisted families.
c. Each contract unit for which the owner is receiving housing assistance payments
is leased to an eligible family referred by the PHA, and the lease is in accordance
with the HAP contract and HUD requirements.
d. To the best of the owner's knowledge,the members of the family reside in each
contract unit for which the owner is receiving housing assistance payments, and
the unit is the family's only residence.
e. The owner(including a principal or other interested party)is not the parent,child,
grandparent, grandchild, sister, or brother of any member of a family residing in a
contract unit.
f. The amount of the housing assistance payment is the correct amount due under
the HAP contract.
g. The rent to owner for each contract unit does not exceed rents charged by the
owner for other comparable unassisted units.
h. Except for the housing assistance payment and the tenant rent as provided under
the HAP contract,the owner has not received and will not receive any payments
or other consideration(from the family,the PHA,HUD, or any other public or
private source) for rental of the contract unit.
i. The family does not own, or have any interest in the contract unit. If the owner is
a cooperative, the family may be a member of the cooperative.
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8. CONDITION OF UNITS
a. Owner maintenance and operation
The owner must maintain and operate the contract units and premises to provide
decent, safe and sanitary housing in accordance with the HQS, including
performance of ordinary and extraordinary maintenance. The owner must provide
all the services, maintenance and utilities set forth in Exhibits B and C, and in the
lease with each assisted family.
b. PHA inspections
1. The PHA must inspect each contract unit before execution of the HAP
contract. The PHA may not enter into a HAP contract covering a unit
until the unit fully complies with the HQS.
2. Before providing assistance to a new family in a contract unit,the PHA
must inspect the unit. The PHA may not provide assistance on behalf of
the family until the unit fully complies with the HQS.
3. At least annually during the term of the HAP contract, the PHA must
inspect a random sample, consisting of at least 20 percent of the contract
units in each building,to determine if the contract units and the premises
are maintained in accordance with the HQS. Turnover inspections
pursuant to paragraph 2 of this section are not counted towards meeting
this annual inspection requirement.
4. If more than 20 percent of the annual sample of inspected contract units in
a building fail the initial inspection,the PHA must reinspect 100 percent
of the contract units in the building.
5. The PHA must inspect contract units whenever needed to determine that
the contract units comply with the HQS and that the owner is providing
maintenance,utilities, and other services in accordance with the HAP
contract. The PHA must take into account complaints and any other
information that comes to its attention in scheduling inspections.
c. Violation of the housing quality standards
1. If the PHA determines a contract unit is not in accordance with the HQS,
the PHA may exercise any of its remedies under the HAP contract for all
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or any contract units. Such remedies include termination, suspension or
reduction of housing assistance payments, and termination of the HAP
contract.
2. The PHA may exercise any such contractual remedy respecting a contract
unit even if the family continues to occupy the unit.
3. The PHA shall not make any housing assistance for a dwelling unit that
fails to meet the HQS,unless the owner corrects the defect within the
period specified by the PHA and the PHA verifies the correction. If a
defect is life threatening, the owner must correct the defect within no more
than 24 hours. For other defects, the owner must correct the defect within
no more than 30 calendar days(or any PHA-approved extension).
d. Maintenance and replacement—owner's standard practice
Maintenance and replacement(including redecoration)must be in accordance
with the standard practice for the building concerned as established by the owner.
9. LEASING CONTRACT UNITS
a. Selection of tenants
1. During the term of the HAP contract,the owner must lease all contract
units to eligible families selected and referred by the PHA from the PHA
waiting list. (See 24 CFR 983.251.)
2. The owner is responsible for adopting written tenant selection procedures
that are consistent with the purpose of improving housing opportunities for
very low-income families and reasonably related to program eligibility
and an applicant's ability to perform the lease obligations.
3. Consistent with HUD requirements,the owner may apply its own
admission procedures in determining whether to admit a family referred
by the PHA for occupancy of a contract unit. The owner may refer
families to the PHA, and recommend selection of such families from the
PHA waiting list for occupancy of vacant units.
4. The owner must promptly notify in writing any rejected applicant of the
grounds for rejection.
5. The PHA must determine family eligibility in accordance with HUD
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requirements.
6. The contract unit leased to each family must be appropriate for the size of
the family under the PHA's subsidy standards.
7. If a contract unit was occupied by an eligible family at the time the unit
was selected by the PHA, or is so occupied on the effective date of the
HAP contract,the owner must offer the family the opportunity to lease the
same or another appropriately-sized contract unit with assistance under the
HAP contract.
8. The owner is responsible for screening and selecting tenants from the
families referred by the PHA from its waiting list.
b. Vacancies
1. The owner must promptly notify the PHA of any vacancy in a contract
unit. After receiving the owner notice,the PHA shall make every
reasonable effort to refer a sufficient number of families for owner to fill
the vacancy.
2. The owner must rent vacant contract units to eligible families on the PHA
waiting list referred by the PHA.
3. The PHA and the owner must make reasonable good faith efforts to
minimize the likelihood and length of any vacancy.
4. If any contract units have been vacant for a period of 120 or more days
since owner notice of vacancy(and notwithstanding the reasonable good
faith efforts of the PHA to fill such vacancies),the PHA may give notice
to the owner amending the HAP contract to reduce the number of contract
units by subtracting the number of contract units(by number of bedrooms)
that have been vacant for such period.
10. TENANCY
a. Lease
The lease between the owner and each assisted family must be in accordance with
HUD requirements. In all cases,the lease must include the HUD-required tenancy
addendum. The tenancy addendum must include,word-for-word, all provisions
required by HUD.
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b. Termination of tenancy
1. The owner may only terminate a tenancy in accordance with the lease and
HUD requirements.
2. The owner must give the PHA a copy of any owner eviction notice to the
tenant at the same time that the owner gives notice to the tenant. Owner
eviction notice means a notice to vacate, or a complaint or other initial
pleading used to commence an eviction action under State or local law.
c. Family payment
1. The portion of the monthly rent to owner payable by the family("tenant
rent")will be determined by the PHA in accordance with HUD
requirements. The amount of the tenant rent is subject to change during
the term of the HAP contract. Any changes in the amount of the tenant
rent will be effective on the date stated in a notice by the PHA to the
family and the owner.
2. The amount of the tenant rent as determined by the PHA is the maximum
amount the owner may charge the family for rent of a contract unit,
including all housing services,maintenance and utilities to be provided by
the owner in accordance with the HAP contract and the lease.
3. The owner may not demand or accept any rent payment from the tenant in
excess of the tenant rent as determined by the PHA. The owner must
immediately return any excess rent payment to the tenant.
4. The family is not responsible for payment of the portion of the contract
rent covered by the housing assistance payment under the HAP contract.
The owner may not terminate the tenancy of an assisted family for
nonpayment of the PHA housing assistance payment.
5. The PHA is only responsible for making the housing assistance payments
to the owner on behalf of the family in accordance with the HAP contract.
The PHA is not responsible for paying the tenant rent,or any other claim
by the owner.
d. Other owner charges
1. Except as provided in paragraph 2, the owner may not require the tenant or
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family members to pay charges for meals or supportive services.
Nonpayment of such charges is not grounds for termination of tenancy.
2. In assisted living developments receiving project-based voucher
assistance,owners may charge tenants, family members,or both for meals
or supportive services. These charges may not be included in the rent to
owner,nor may the value of meals and supportive services be included in
the calculation of reasonable rent. Non-payment of such charges is
grounds for termination of the lease by the owner in an assisted living
development.
3. The owner may not charge the tenant or family members extra amounts
for items customarily included in rent in the locality or provided at no
additional cost to the unsubsidized tenant in the premises.
e. Security deposit
1. The owner may collect a security deposit from the family.
2. The owner must comply with HUD and PHA requirements,which may
change from time to time,regarding security deposits from a tenant.
3. The PHA may prohibit security deposits in excess of private market
practice, or in excess of amounts charged by the owner to unassisted
families.
4. When the family moves out of the contract unit,the owner, subject to
State and local law,may use the security deposit, including any interest on
the deposit, in accordance with the lease, as reimbursement for any unpaid
tenant rent, damages to the unit or other amounts which the family owes
under the lease. The owner must give the family a written list of all items
charged against the security deposit and the amount of each item. After
deducting the amount used as reimbursement to the owner,the owner must
promptly refund the full amount of the balance to the family.
5. If the security deposit is not sufficient to cover amounts the family owes
under the lease,the owner may seek to collect the balance from the family.
However, the PHA has no liability or responsibility for payment of any
amount owed by the family to the owner.
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11. FAMILY RIGHT TO MOVE
a. The family may terminate its lease at any time after the first year of occupancy.
The family must give the owner advance written notice of intent to vacate(with
a copy to the PHA)in accordance with the lease. If the family has elected to
terminate the lease in this manner,the PHA must offer the family the
opportunity for tenant-based rental assistance in accordance with HUD
requirements.
b. Before providing notice to terminate the lease under paragraph a, the family
must first contact the PHA to request tenant-based rental assistance if the family
wishes to move with continued assistance. If tenant-based rental assistance is
not immediately available upon lease termination,the PHA shall give the family
priority to receive the next available opportunity for tenant-based rental
assistance.
12. OVERCROWDED, UNDER-OCCUPIED,AND ACCESSIBLE UNITS
The PHA subsidy standards determine the appropriate unit size for the family size and
composition. The PHA and owner must comply with the requirements in 24 CFR
983.259.
13. PROHIBITION OF DISCRIMINATION
a. The owner may not refuse to lease contract units to,or otherwise discriminate
against any person or family in leasing of a contract unit,because of race, color,
religion, sex,national origin, disability, age or familial status.
b. The owner must comply with the following requirements: The Fair Housing Act
(42 U.S.C. 3601-19) and implementing regulations at 24 CFR part 100 et seq. ;
Executive Order 11063, as amended by Executive Order 12259(3 CFR, 1959-
1963 Comp.,p. 652 and 3 CFR, 1980 Comp.,p. 307) (Equal Opportunity in
Housing Programs) and implementing regulations at 24 CFR part 107;title VI of
the Civil Rights Act of 1964(42 U.S.C. 2000d-2000d-4)(Nondiscrimination in
Federally Assisted Programs)and implementing regulations at 24 CFR part 1; the
Age Discrimination Act of 1975 (42 U.S.C. 6101-6107)and implementing
regulations at 24 CFR part 146; section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and implementing regulations at part 8 of this title;title II of the
Americans with Disabilities Act, 42 U.S.C. 12101 et seq. ; 24 CFR part 8; section
3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and
implementing regulations at 24 CFR part 135; Executive Order 11246, as
Project-based Voucher Program
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amended by Executive Orders 11375, 11478, 12086, and 12107(3 CFR, 1964-
1965 Comp.,p. 339; 3 CFR, 1966-1970 Comp.,p. 684; 3 CFR, 1966-1970
Comp.,p. 803; 3 CFR, 1978 Comp.,p. 230; and 3 CFR, 1978 Comp.,p. 264,
respectively) (Equal Employment Opportunity Programs)and implementing
regulations at 41 CFR chapter 60; Executive Order 11625, as amended by
Executive Order 12007(3 CFR, 1971-1975 Comp.,p. 616 and 3 CFR, 1977
Comp.,p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CFR,
1983 Comp.,p. 198) (Minority Business Enterprise Development); and Executive
Order 12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp.,p. 393
and 3 CFR, 1987 Comp.,p. 245) (Women's Business Enterprise).
c. The PHA and the owner must cooperate with HUD in the conducting of
compliance reviews and complaint investigations pursuant to all applicable civil
rights statutes,Executive Orders, and all related rules and regulations.
14. PHA DEFAULT AND HUD REMEDIES
If HUD determines that the PHA has failed to comply with the HAP contract, or has
failed to take appropriate action to HUD's satisfaction or as directed by HUD, for
enforcement of the PHA's rights under the HAP contract, HUD may assume the PHA's
rights and obligations under the HAP contract, and may perform the obligations and
enforce the rights of the PHA under the HAP contract.
15. OWNER DEFAULT AND PHA REMEDIES
a. Owner default
Any of the following is a default by the owner under the HAP contract:
1. The owner has failed to comply with any obligation under the HAP
contract, including the owner's obligations to maintain all contract units in
accordance with the housing quality standards.
2. The owner has violated any obligation under any other housing assistance
payments contract under Section 8 of the United States Housing Act of
1937(42 U.S.C. 14370.
3. The owner has committed any fraud or made any false statement to the
PHA or HUD in connection with the HAP contract.
4. The owner has committed fraud, bribery or any other corrupt or criminal
act in connection with any Federal housing assistance program.
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5. If the property where the contract units are located is subject to a lien or
security interest securing a HUD loan or a mortgage insured by HUD and:
A. The owner has failed to comply with the regulations for the
applicable mortgage insurance or loan program, with the mortgage
or mortgage note, or with the regulatory agreement; or
B. The owner has committed fraud,bribery or any other corrupt or
criminal act in connection with the HUD loan or HUD-insured
mortgage.
6. The owner has engaged in any drug-related criminal activity or any violent
criminal activity.
b. PHA remedies
l. If the PHA determines that a breach has occurred,the PHA may exercise
any of its rights or remedies under the HAP contract.
2. The PHA must notify the owner in writing of such determination. The
notice by the PHA to the owner may require the owner to take corrective
action(as verified by the PHA)by a time prescribed in the notice.
3. The PHA's rights and remedies under the HAP contract include recovery
of overpayments,termination or reduction of housing assistance payments,
and termination of the HAP contract.
c. PHA remedy is not waived
The PHA's exercise or non-exercise of any remedy for owner breach of the HAP
contract is not a waiver of the right to exercise that remedy or any other right or
remedy at any time.
16. filliV4HRIDIVEY INIXDI MIHK INFORMATION AND ACCESS
a.Required information
The owner must prepare and furnish any information pertinent to the HAP
contract as may reasonably be required from time to time by the PHA or HUD.
The owner shall furnish such information in the form and manner required by the
Project-based Voucher Program
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PHA or HUD.
b. PHA and HUD access to premises
The owner must permit the PHA or HUD or any of their authorized
representatives to have access to the premises during normal business hours and,
for the purpose of audit and examination,to have access to any books, documents,
papers and records of the owner to the extent necessary to determine compliance
with the HAP contract, including the verification of information pertinent to the
housing assistance payments or the HAP contract.
17. PHA AND OWNER RELATION TO THIRD PARTIES
a. Injury because of owner action or failure to act
The PHA has no responsibility for or liability to any person injured as a result of
the owner's action or failure to act in connection with the implementation of the
HAP contract, or as a result of any other action or failure to act by the owner.
b. Legal relationship
The owner is not the agent of the PHA. The HAP contract does not create or
affect any relationship between the PHA and any lender to the owner or any
suppliers, employees, contractors or subcontractors used by the owner in
connection with the implementation of the HAP contract.
c. Exclusion of third party claims
Nothing in the HAP contract shall be construed as creating any right of a family
or other third party(other than HUD)to enforce any provision of the HAP
contract, or to assert any claim against HUD, the PHA or the owner under the
HAP contract.
d. Exclusion of owner claims against HUD
Nothing in the HAP contract shall be construed as creating any right of the owner
to assert any claim against HUD.
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18. PHA-OWNED UNITS
Notwithstanding Section 17 of this HAP contract, a PHA may own units assisted under
the project-based voucher program, subject to the special requirements in 24 CFR 983.59
regarding PHA-owned units.
19. CONFLICT OF INTEREST
a. Interest of members,officers, or employees of PHA, members of local
governing body, or other public officials
1. No present or former member or officer of the PHA(except tenant-
commissioners),no employee of the PHA who formulates policy or
influences decisions with respect to the housing choice voucher program
or project-based voucher program, and no public official or member of a
governing body or State or local legislator who exercises functions or
responsibilities with respect to these programs, shall have any direct or
indirect interest,during his or her tenure or for one year thereafter, or in
the HAP contract.
2. HUD may waive this provision for good cause.
b.Disclosure
The owner has disclosed to the PHA any interest that would be a violation of the
HAP contract. The owner must fully and promptly update such disclosures.
c. Interest of member of or delegate to Congress
No member of or delegate to the Congress of the United States of America or
resident-commissioner shall be admitted to any share or part of this HAP Contract
or to any benefits arising from the contract.
20. EXCLUSION FROM FEDERAL PROGRAMS
a. Federal requirements
The owner must comply with and is subject to requirements of 2 CFR part 2424.
b. Disclosure
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The owner certifies that:
1. The owner has disclosed to the PHA the identity of the owner and any
principal or interested party.
2. Neither the owner nor any principal or interested party is listed on the U.S.
General Services Administration list of parties excluded from Federal
procurement and nonprocurement programs; and none of such parties are
debarred, suspended, subject to a limited denial of participation or
otherwise excluded under 2 CFR part 2424.
21. TRANSFER OF THE CONTRACT OR PROPERTY
a. When consent is required
1. The owner agrees that neither the HAP contract nor the property may be
transferred without the advance written consent of the PHA in accordance
with HUD requirements.
2. "Transfer"includes:
A. Any sale or assignment or other transfer of ownership, in any form,
of the HAP contract or the property;
B. The transfer of any right to receive housing assistance payments
that may be payable pursuant to the HAP contract;
C. The creation of a security interest in the HAP contract or the
property;
D. Foreclosure or other execution on a security interest; or
E. A creditor's lien, or transfer in bankruptcy.
3. If the owner is a corporation,partnership,trust or joint venture, the owner is not
required to obtain advance consent of the PHA pursuant to paragraph a for
transfer of a passive and non-controlling interest in the ownership entity(such as
a stock transfer or transfer of the interest of a limited partner), if any interests so
transferred cumulatively represent less than half the beneficial interest in the HAP
contract or the property. The owner must obtain advance consent pursuant to
paragraph a for transfer of any interest of a general partner.
Project-based Voucher Program
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b Transferee assumption of HAP contract
No transferee(including the holder of a security interest,the security holder's
transferee or successor in interest, or the transferee upon exercise of a security
interest) shall have any right to receive any payment of housing assistance
payments pursuant to the HAP contract, or to exercise any rights or remedies
under the HAP contract,unless the PHA has consented in advance, in writing to
such transfer, and the transferee has agreed in writing, in a form acceptable to the
PHA in accordance with HUD requirements,to assume the obligations of the
owner under the HAP contract, and to comply with all the terms of the HAP
contract.
c. Effect of consent to transfer
1. The creation or transfer of any security interest in the HAP contract is
limited to amounts payable under the HAP contract in accordance with the
terms of the HAP contract.
2. The PHA's consent to transfer of the HAP contract or the property does
not to change the terms of the HAP contract in any way, and does not
change the rights or obligations of the PHA or the owner under the HAP
contract.
3. The PHA's consent to transfer of the HAP contract or the property to any
transferee does not constitute consent to any further transfers of the HAP
contract or the property, including further transfers to any successors or
assigns of an approved transferee.
d. When transfer is prohibited
The PHA will not consent to the transfer if any transferee,or any principal or
interested party is debarred, suspended subject to a limited denial of
participation, or otherwise excluded under 2 CFR part 2424,or is listed on the
U.S. General Services Administration list of parties excluded from Federal
procurement or nonprocurement programs.
2+2sfiffiEgayethYglrANARINGe required for existing housing projects.
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HAP Contract for Existing Housing
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23. OWNER LOBBYING CERTIFICATIONS
a. The owner certifies,to the best of owner's knowledge and belief,that:
1. No Federally appropriated funds have been paid or will be paid,by or on
behalf of the owner,to any person for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of the HAP contract,or the
extension, continuation,renewal, amendment, or modification of the HAP
contract.
2. If any funds other than Federally appropriated funds have been paid or
will be paid to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress,or an employee of a Member of Congress in
connection with the HAP contract,the owner must complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying,"in
accordance with its instructions.
b. This certification by the owner is a prerequisite for making or entering into this
transaction imposed by 31 U.S.C. 1352.
24. TERMINATION OF HAP CONTRACT FOR WRONGFUL SELECTION
OF CONTRACT UNITS
The HAP contract may be terminated upon at least 30 days notice to the owner by the
PHA or HUD if the PHA or HUD determines that the contract units were not eligible for
selection in conformity with HUD requirements.
25. NOTICES AND OWNER CERTIFICATIONS
a. Where the owner is required to give any notice to the PHA pursuant to the HAP
contract or any other provision of law, such notice must be in writing and must be
given in the form and manner required by the PHA.
b. Any certification or warranty by the owner pursuant to the HAP contract shall be
deemed a material representation of fact upon which reliance was placed when
this transaction was made or entered into.
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26. ENTIRE AGREEMENT; INTERPRETATION
a. The HAP contract, including the exhibits, is the entire agreement between the
PHA and the owner.
b. The HAP contract must be interpreted and implemented in accordance with all
statutory requirements, and with all HUD requirements, including amendments or
changes in HUD requirements during the term of the HAP contract. The owner
agrees to comply with all such laws and HUD requirements.
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Exhibit A
Total Number of Units in the Project Covered by this Section 8 PBV Contract: Initial Rent to
Owner and the Number and Description of the Contracted Units
Total Number of Units Receiving Project Based Assistance: 149
Unit Type Total Number Approx. Gross Utility Net Contract
of Units under NSF Rent Allowance Rent to Owner
PBV Contract
1BR/1BA 149 555 Sq Ft $1,209 $34 $1,175
2BR/1BA 0 n/a n/a n/a n/a
3BR/1BA 0 n/a n/a n/a n/a
Exhibit A
Listing of units to be included under this PBV Contract:
Kimball Unit No. Postal Address BR Type
102 1315 D Avenue, National City, 1
CA 91950
103 1315 D Avenue, National City, 1
CA 91950
104 1315 D Avenue,National City, 1
CA 91950
105 1315 D Avenue,National City, 1
CA 91950
106 1315 D Avenue,National City, 1
CA 91950
107 1315 D Avenue,National City, 1
CA 91950
108 1315 D Avenue,National City, 1
CA 91950
109 1315 D Avenue,National City, 1
CA 91950
110 1315 D Avenue,National City, 1
CA 91950
111 1315 D Avenue,National City, 1
CA 91950
112 1315 D Avenue,National City, 1
CA 91950
113 1315 D Avenue, National City, 1
CA 91950
1 14 1315 D Avenue,National City, 1
CA 91950
115 1315 D Avenue,National City, 1
CA 91950
201 1315 D Avenue,National City, 1
CA 91950
202 1315 D Avenue,National City, 1
CA 91950
203 1315 D Avenue,National City, 1
CA 91950
Exhibit A
204 1315 D Avenue,National City, 1
CA 91950
205 1315 D Avenue,National City, 1
CA 91950
206 1315 D Avenue,National City, 1
CA 91950
207 1315 D Avenue,National City, 1
CA 91950
208 1315 D Avenue,National City, 1
CA 91950
209 1315 D Avenue,National City, 1
CA 91950
210 1315 D Avenue,National City, 1
CA 91950
211 1315 D Avenue,National City, 1
CA 91950
212 1315 D Avenue,National City, 1
CA 91950
213 1315 D Avenue,National City, 1
CA 91950
214 1315 D Avenue,National City, 1
CA 91950
215 1315 D Avenue,National City, 1
CA 91950
216 1315 D Avenue,National City, 1
CA 91950
217 1315 D Avenue, National City, 1
CA 91950
301 1315 D Avenue,National City, 1
CA 91950
302 1315 D Avenue,National City, 1
CA 91950
303 1315 D Avenue,National City, 1
CA 91950
304 1315 D Avenue, National City, 1
CA 91950
Exhibit A
305 1315 D Avenue,National City, 1
CA 91950
306 1315 D Avenue,National City, 1
CA 91950
307 1315 D Avenue,National City, 1
CA 91950
308 1315 D Avenue,National City, 1
CA 91950
309 1315 D Avenue,National City, 1
CA 91950
310 1315 D Avenue,National City, 1
CA 91950
311 1315 D Avenue,National City, 1
CA 91950
312 1315 D Avenue,National City, 1
CA 91950
313 1315 D Avenue,National City, 1
CA 91950
314 1315 D Avenue,National City, 1
CA 91950
315 1315 D Avenue,National City, 1
CA 91950
316 1315 D Avenue,National City, 1
CA 91950
317 1315 D Avenue,National City, 1
CA 91950
401 1315 D Avenue,National City, 1
CA 91950
402 1315 D Avenue,National City, 1
CA 91950
403 1315 D Avenue,National City, 1
CA 91950
404 1315 D Avenue,National City, 1
CA 91950
405 1315 D Avenue, National City, 1
CA 91950
Exhibit A
406 1315 D Avenue,National City, 1
CA 91950
407 1315 D Avenue,National City, 1
CA 91950
408 1315 D Avenue,National City, 1
CA 91950
409 1315 D Avenue,National City, 1
CA 91950
410 1315 D Avenue,National City, 1
CA 91950
411 1315 D Avenue,National City, 1
CA 91950
412 1315 D Avenue, National City, 1
CA 91950
413 1315 D Avenue,National City, 1
CA 91950
414 1315 D Avenue,National City, 1
CA 91950
415 1315 D Avenue,National City, 1
CA 91950
416 1315 D Avenue,National City, 1
CA 91950
417 1315 D Avenue,National City, 1
CA 91950
501 1315 D Avenue, National City, 1
CA 91950
502 1315 D Avenue,National City, 1
CA 91950
503 1315 D Avenue,National City, 1
CA 91950
504 1315 D Avenue,National City, 1
CA 91950
505 1315 D Avenue,National City, 1
CA 91950
506 1315 D Avenue,National City, 1
CA 91950
Exhibit A
507 1315 D Avenue,National City, 1
CA 91950
508 1315 D Avenue,National City, 1
CA 91950
509 1315 D Avenue,National City, 1
CA 91950
510 1315 D Avenue, National City, 1
CA 91950
511 1315 D Avenue,National City, 1
CA 91950
512 1315 D Avenue,National City, 1
CA 91950
513 1315 D Avenue, National City, 1
CA 91950
514 1315 D Avenue,National City, 1
CA 91950
515 1315 D Avenue,National City, 1
CA 91950
516 1315 D Avenue,National City, 1
CA 91950
517 1315 D Avenue,National City, 1
CA 91950
601 1315 D Avenue,National City, 1
CA 91950
602 1315 D Avenue,National City, 1
CA 91950
603 1315 D Avenue,National City, 1
CA 91950
604 1315 D Avenue,National City, 1
CA 91950
605 1315 D Avenue,National City, 1
CA 91950
606 1315 D Avenue,National City, 1
CA 91950
607 1315 D Avenue,National City, 1
CA 91950
Exhibit A
608 1315 D Avenue,National City, 1
CA 91950
609 1315 D Avenue,National City, 1
CA 91950
610 1315 D Avenue, National City, 1
CA 91950
611 1315 D Avenue, National City, 1
CA 91950
612 1315 D Avenue,National City, 1
CA 91950
613 1315 D Avenue,National City, 1
CA 91950
614 1315 D Avenue, National City, 1
CA 91950
615 1315 D Avenue,National City, 1
CA 91950
616 1315 D Avenue,National City, 1
CA 91950
617 1315 D Avenue,National City, 1
CA 91950
701 1315 D Avenue,National City, 1
CA 91950
702 1315 D Avenue,National City, 1
CA 91950
703 1315 D Avenue,National City, 1
CA 91950
704 1315 D Avenue,National City, 1
CA 91950
705 1315 D Avenue,National City, 1
CA 91950
706 1315 D Avenue,National City, 1
CA 91950
707 1315 D Avenue,National City, 1
CA 91950
708 1315 D Avenue,National City, 1
CA 91950
Exhibit A
709 1315 D Avenue,National City, 1
CA 91950
710 1315 D Avenue,National City, 1
CA 91950
711 1315 D Avenue, National City, 1
CA 91950
712 1315 D Avenue, National City, 1
CA 91950
713 1315 D Avenue,National City, 1
CA 91950
714 1315 D Avenue,National City, 1
CA 91950
715 1315 D Avenue,National City, 1
CA 91950
716 1315 D Avenue,National City, 1
CA 91950
717 1315 D Avenue,National City, 1
CA 91950
801 1315 D Avenue,National City, 1
CA 91950
802 1315 D Avenue,National City, 1
CA 91950
803 1315 D Avenue,National City, 1
CA 91950
804 1315 D Avenue,National City, 1
CA 91950
804 1315 D Avenue,National City, 1
CA 91950
806 1315 D Avenue,National City, 1
CA 91950
807 1315 D Avenue,National City, 1
CA 91950
808 1315 D Avenue,National City, 1
CA 91950
809 1315 D Avenue,National City, 1
CA 91950
Exhibit A
810 1315 D Avenue,National City, 1
CA 91950
811 1315 D Avenue,National City, 1
CA 91950
812 1315 D Avenue,National City, 1
CA 91950
813 1315 D Avenue,National City, 1
CA 91950
814 1315 D Avenue,National City, 1
CA 91950
815 1315 D Avenue,National City, 1
CA 91950
816 1315 D Avenue,National City, 1
CA 91950
817 1315 D Avenue,National City, 1
CA 91950
902 1315 D Avenue,National City, 1
CA 91950
903 1315 D Avenue,National City, 1
CA 91950
904 1315 D Avenue,National City, 1
CA 91950
905 1315 D Avenue,National City, 1
CA 91950
906 1315 D Avenue,National City, 1
CA 91950
907 1315 D Avenue,National City, 1
CA 91950
908 1315 D Avenue,National City, 1
CA 91950
909 1315 D Avenue,National City, 1
CA 91950
910 1315 D Avenue,National City, 1
CA 91950
911 1315 D Avenue, National City, 1
CA 91950
Exhibit A
912 1315 D Avenue,National City, 1
CA 91950
913 1315 D Avenue,National City, 1
CA 91950
914 1315 D Avenue, National City, 1
CA 91950
915 1315 D Avenue,National City, 1
CA 91950
916 1315 D Avenue,National City, 1
CA 91950
917 1315 D Avenue,National City, 1
CA 91950
Exhibit A
Exhibit B
Services,maintenance and equipment to be provided by the Owner without charges in addition
to rent to owner:
Kimball Tower Housing Associates, L.P.,will provided the following services, maintenance
and/or equipment to the residence without additional charge:
Services
Mercy Housing California, as service provider, will oversee outcome-based,result-oriented
services and programs for residents in the community building, starting no later than six (6)
months after the completion of rehabilitation of the Kimball Tower until expiration of the Term.
The services will be administered by on-site staff. Programs will be tailored to the needs of the
community and age-appropriate for the entire family. The services will include,but not be
limited to:
■ Health and Wellness—The program focuses on and evaluation of the inextricable linkage
between healthcare and housing. Services include basic health&needs assessments,
ADL support& screening,health benefit acquisition,health education&risk reduction,
physical activities, access to food, wellbeing checks, transition planning, and linkages to
preventative and behavioral health care. In addition to annual assessments,periodically
monitor residents for change in risk factors and service needs, formalized screenings, and
on-site health risk reduction activities such as disease management groups, fall
prevention, and social support opportunities.
• Economic Development/Housing Stability—This program creates households with safe
and stable housing and where renters are in good standing. Services include eviction
prevention coaching, lease education,housing options,housing inspection, linkages with
financial resources, and referrals.
• Education/Community Participation—This program ties closely to health and wellness
and economic development/housing stability. Services include nutrition and exercise
resources, financial stability seminars, financial benefit acquisition, employment and job
readiness support, and technology literacy. Community participation activities for
residents such as, community projects & events, volunteer opportunities,voter
registration, leaderships programming, community safety initiatives, and family
reconciliation
Maintenance
Mercy Housing Property Management will oversee upkeep and maintenance of the property, at
no cost to residents. Onsite management, repairs,landscaping, etc., are all paid for by the
partnership.
Equipment/Furnishings
As part of the development scope, the partnership will provide indoor and outdoor common area
furnishings and mechanical equipment will be either replaced or repaired at no additional cost to
residents.
Exhibit C
Utilities available in the contract units including a listing of utility services to be paid by the owner
(without charges in addition to rent to owner) and utilities to be paid by the tenants.
Item Fuel Type Provided by Paid by
Heating Electric SDG&E Tenant
Cooking Electric SDG&E Tenant
Hot Water Gas SDG&E Owner
Other Electric Electric SDG&E Tenant
Water N/A Sweetwater Authority Owner
Sewer N/A City of National City Owner
Trash Collection N/A EDCO Owner
Air Conditioning N/A N/A N/A
Refrigerator/Microwave Electric Owner(Refrigerator Owner(Refrigerator
only) only
Range Electric Owner N/A
Utility Allowance: $34/unit.
Exhibit E
This exhibit contains the following:
• Davis Bacon Labor Standards Addendum [Attached]
Addendum to the HAP Contract—Labor Standards
This addendum is used for both the Project-Based Voucher HAP Contract("PBV")and the Project-Based
Rental Assistance("PBRA") HAP Contract under the Rental Assistance Demonstration and is applicable
for all construction or repair work on projects that are initiated within eighteen (18) months after the
effective date of the HAP contract. For PBRA HAP Contracts, it is"Exhibit 4"to the HAP Contract.
1. HUD-FEDERAL LABOR STANDARDS PROVISIONS
The owner is responsible for inserting the entire text of section 1 of this Addendum in all construction
contracts for construction or repair work on the project that is initiated within eighteen(18)months of the
effective date of the HAP contract and, if the owner performs any rehabilitation work on the project, the
owner must comply with all provisions of section 1. (Note: Sections 1(b) and (c) apply only when the
amount of the prime contract exceeds$ 100,000.)
(a)(1)(i)Minimum Wages. All laborers and mechanics employed or working upon the site of the work(or
under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or
development of the project)will be paid unconditionally and not less often than once a week, and without
subsequent deduction or rebate on any account (except such payroll deductions as are permitted by
regulations issued by the Secretary of Labor under the Copeland Act(29 CFR part 3)),the full amount of
wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at
rates not less than those contained in the wage determination of the Secretary of Labor which is attached
hereto and made part hereof regardless of any contractual relationship which may be alleged to exist
between the contractor and such laborers and mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of
laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions
of 29 CFR 5.5(a)(1)(iv); also,regular contributions made or costs incurred for more than a weekly period
(but not less often than quarterly) under plans, funds, or programs, which cover the particular weekly
period, are deemed to be constructively made or incurred during such weekly period. Such laborers and
mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the
classification of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4).
Laborers or mechanics performing work in more than one classification may be compensated at the rate
specified for each classification for the time actually worked therein: Provided, That the employer's
[12514] payroll records accurately set forth the time spent in each classification in which work is
performed. The wage determination (including any additional classification and wage rates conformed
under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321)) shall be posted at all times by the
contractor and its subcontractors at the site of the work in a prominent and accessible place where it can
be easily seen by the workers.
(ii)(A) Any class of laborers or mechanics which is not listed in the wage determination and which is to
be employed under the contract shall be classified in conformance with the wage determination. HUD
shall approve an additional classification and wage rate and fringe benefits therefor only when the
following criteria have been met: (1)The work to be performed by the
classification requested is not performed by a classification in the wage determination; (2) The
classification is utilized in the area by the construction industry; and (3) The proposed wage rate,
including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the
wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or
their representatives, and HUD or its designee agree on the classification and wage rate (including the
amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by
HUD or its designee to the Administrator of the Wage and Hour Division, Employment Standards
Administration, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized
representative, will approve, modify, or disapprove every additional classification action within 30 days
of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period
that additional time is necessary.
(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their
representatives, and HUD or its designee do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer
the questions, including the views of all interested parties and the recommendation of HUD or its
designee,to the Administrator for determination. The Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and so advise HUD or its designee or will notify HUD or
its designee within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs
(a)(1)(ii)(B) or (C) of this paragraph, shall be paid to all workers performing work in the classification
under this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics
includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the
benefit as stated in the wage determinations or shall pay another bona fide fringe benefit or an hourly cash
equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the contractor may
consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated
in providing bona fide fringe benefits under a plan or program: Provided, That the Secretary of Labor has
found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act
have been met.The Secretary of Labor may require the contractor to set aside in a separate account assets
for the meeting of obligations under the plan or program.
(2) Withholding. HUD or its designee shall upon its own action or upon written request of an authorized
representative of the Department of Labor withhold or cause to be withheld from the
contractors under this contract or any other Federal contract with the same prime contractor, or any other
Federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the
same prime contractor, so much of the accrued payments or advances as may be considered necessary to
pay laborers and mechanics, including apprentices, trainees and helpers, employed by the contractor or
any subcontractor the full amount of wages required by the contract. In the event of failure to pay any
laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the
work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the
construction or development of the project), all or part of the wages required by the contract, HUD or its
designee may, after written notice to the contractor, sponsor, applicant, or owner,take such action as may
be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such
violations have ceased. HUD or its designee may, after written notice to the contractor, disburse such
amounts withheld for and on account of the contractor or subcontractor to the respective employees to
whom they are due.
(3)(i) Payrolls and Basic Records. Payrolls and basic records relating thereto shall be maintained by the
contractor during the course of the work and preserved for a period of three years thereafter for all
laborers and mechanics working at the site of the work(or under the United States Housing Act of 1937,
or under the Housing Act of 1949, in the construction or development of the project). Such records shall
contain the name, address, and social security number of each such worker, his or her correct
classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona
fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-
Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid.
Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or
mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or
program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records
which show that the commitment to provide such benefits is enforceable, that the plan or program is
financially responsible, and that the plan or program has been communicated in writing to the laborers or
mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing
such benefits. Contractors employing apprentices or trainees under approved programs shall maintain
written evidence of the registration of apprenticeship programs and certification of trainee programs, the
registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable
programs.
(ii)(A)The contractor shall submit weekly for each week in which any contract work is performed a copy
of all payrolls to HUD or its designee if the agency is a party to the contract, but if the agency is not such
a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for
transmission to HUD or its designee.The payrolls submitted shall set out accurately and completely all of
the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security
numbers and home addresses shall not
be included on weekly transmittals. Instead the payrolls shall only need to include an individually
identifying number for each employee(e.g., the last four digits of the employee's social security number).
The required weekly payroll information may be submitted in any form desired. Optional Form WH-347
is available for this purpose from the Wage and Hour Division Web site at
http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is
responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors
shall maintain the full social security number and current address of each covered worker, and shall
provide them upon request to HUD or its designee if the agency is a party to the contract, but if the
agency is not such a party,the contractor will submit them to the applicant, sponsor,or owner, as the case
may be, for transmission to HUD or its designee, the contractor, or the Wage and Hour Division of the
Department of Labor for purposes of an investigation or audit of compliance with prevailing wage
requirements. It is not a violation of this section for a prime contractor to require a subcontractor to
provide addresses and social security numbers to the prime contractor for its own records,without weekly
submission to the sponsoring government agency(or the applicant,sponsor,or owner).
(B) Each payroll submitted shall be accompanied by a "Statement of compliance," signed by the
contractor or subcontractor or his or her agent who pays or supervises the payment of the persons
employed under the contract and shall certify the following: (1) That the payroll for the payroll period
contains the information required to be provided under 29 CFR 5.5(a)(3)(ii), the appropriate information
is being maintained under 29 CFR 5.5 (a)(3)(i), and that such information is correct and complete; (2)
That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract
during the [12515] payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages earned, other than permissible deductions as set forth in 29 CFR part 3; (3) That each laborer or
mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for
the classification of work performed, as specified in the applicable wage determination incorporated into
the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional
Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by
paragraph(a)(3)(ii)(B)of this section.
(D)The falsification of any of the above certifications may subject the contractor or subcontractor to civil
or criminal prosecution under section 1001 of Title 18 and section 3801 et seq. of Title 31 of the United
States Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this
section available for inspection, copying, or transcription by authorized representatives of HUD or its
designee or the Department of Labor, and shall permit such representatives to interview employees during
working hours on the job. If the contractor or subcontractor fails to
submit the required records or to make them available, HUD or its designee may, after written notice to
the contractor, sponsor, applicant, or owner,take such action as may be necessary to cause the suspension
of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required
records upon request or to make such records available may be grounds for debarment action pursuant to
29.CFR 5.12.
(4)(i) Apprentices and Trainees. Apprentices. Apprentices will be permitted to work at less than the
predetermined rate for the work they performed when they are employed pursuant to and individually
registered in a bona fide apprenticeship program registered with the U.S. Department of Labor,
Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor
Services or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in
his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program,
who is not individually registered in the program, but who has been certified by the Office of
Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where
appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio
permitted to the contractor as to the entire work force under the registered program. Any worker listed on
a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be
paid not less than the applicable wage rate on the wage determination for the classification of work
actually performed. In addition, any apprentice performing work on the job site in excess of the ratio
permitted under the registered program shall be paid not less than the applicable wage rate on the wage
determination for the work actually performed. Where a contractor is performing construction on a
project in a locality other than that in which its program is registered,the ratios and wage rates(expressed
in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered
program shall be observed. Every apprentice must be paid at not less than the rate specified in the
registered program for the apprentice's level of progress, expressed as a percentage of the journeymen
hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in
accordance with the provisions of the apprenticeship program. If the apprenticeship program does not
specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage
determination for the applicable classification. If the Administrator determines that a different practice
prevails for the applicable apprentice classification, fringes shall be paid in accordance with that
determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a
State Apprenticeship Agency recognized by the Office,withdraws approval of an apprenticeship program,
the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined
rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are employed pursuant to and
individually registered in a program which has received prior approval, evidenced by formal certification
by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to
journeymen on the job site shall not be greater than permitted under the plan approved by the
Employment and Training Administration. Every trainee must be paid at not less than the rate specified in
the approved program for the trainee's level of progress, expressed as a percentage of the journeyman
hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in
accordance with the provisions of the trainee program. If the trainee program does not mention fringe
benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless
the Administrator of the Wage and Hour Division determines that there is an apprenticeship program
associated with the corresponding journeyman wage rate on the wage determination which provides for
less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is
not registered and participating in a training plan approved by the Employment and Training
Administration shall be paid not less than the applicable wage rate on the wage determination for the
classification of work actually performed. In addition, any trainee performing work on the job site in
excess of the ratio permitted under the registered program shall be paid not less than the applicable wage
rate on the wage determination for the work actually performed. In the event the Employment and
Training Administration withdraws approval of a program, the contractor will no longer be permitted to
utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable
program is approved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees and journeymen under this
part shall be in conformity with the equal employment opportunity requirements of Executive Order
11246,as amended,and 29 CFR part 30.
(5) Compliance with Copeland Act Requirements. The contractor shall comply with the requirements of
29 CFR part 3 which are incorporated by reference in this Addendum.
(6) Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in
section 1(a)(1) through (11) and such other clauses as HUD or its designee may by appropriate
instructions require, and also a clause requiring the subcontractors to include these clauses in any lower
tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or
lower tier subcontractor with all the contract clauses in this section 1(a).
(7) Contract Terminations; Debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds
for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29
CFR 5.12.
(8) Compliance with Davis-Bacon and Related Act Requirements. All rulings and interpretations of the
Davis-Bacon and related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference
in this contract.
(9) Disputes Concerning Labor Standards. Disputes arising out of the labor standards provisions of this
contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved
in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7.
Disputes within the meaning of this clause include disputes between the contractor (or any of its
subcontractors) and HUD or its designee, the U.S. Department of Labor, or the employees or their
representatives.
(10)(i) Certification of Eligibility. By entering into this Addendum, the contractor certifies that neither it
(nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm
ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29
CFR 5.12(a)(1)or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR part
24.
(ii) No part of this Contract shall be subcontracted to any person or firm ineligible for award of a
Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs pursuant to 24 CFR part 24. [12516]
(iii)The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.
11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage,
salary, or other labor standards provisions of this Addendum are applicable shall be discharged or in any
other manner discriminated against by the Contractor or any subcontractor because such employee has
filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to
testify in any proceeding under or relating to the labor standards applicable under this Addendum to his
employer.
(b) Contract Work Hours and Safety Standards Act. The provisions of this paragraph (b) are applicable
only where the amount of the prime contract exceeds $ 100,000. As used in this paragraph, the terms
"laborers" and"mechanics"include watchmen and guards.
(1) Overtime Requirements. No contractor or subcontractor contracting for any part of the contract work
which may require or involve the employment of laborers or mechanics shall require or permit any such
laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of
forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less
than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
(2) Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any violation of the
clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible
therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable
to the United States(in the case of work done under contract for the District of Columbia or a territory,to
such District or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in subparagraph(1) of this
paragraph,in the sum of$ 10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime wages required
by the clause set forth in subparagraph(1)of this paragraph.
(3) Withholding for Unpaid Wages and Liquidated Damages. HUD or its designee shall upon its own
action or upon written request of an authorized representative of the Department of Labor withhold or
cause to be withheld, from any monies payable on account of work performed by the contractor or
subcontractor under any such contract or any other Federal contract with the same prime contractor, or
any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act,which
is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any
liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the
clause set forth in subparagraph(2)of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in
subparagraphs (1) through (4) of this paragraph and also a clause requiring the subcontractors to include
these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by
any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs(1)through(4)of
this paragraph.
(c) Health and Safety. The provisions of this paragraph (c) are applicable only where the amount of the
prime contract exceeds$ 100,000.
(1)No laborer or mechanic shall be required to work in surroundings or under working conditions which
are unsanitary, hazardous or dangerous to his or her health and safety as determined under construction
safety and health standards promulgated by the Secretary of Labor by regulation.
(2)The contractor shall comply with all regulations issued by the Secretary of Labor pursuant to 29 CFR
part 1926, and failure to comply may result in imposition of sanctions pursuant to the Contract Work
Hours and Safety Standards Act,40 U.S.C. 3701 et seq.
(3) The contractor shall include the provisions of this paragraph in every subcontract so that such
provisions will be binding on each subcontractor.The contractor shall take such action with respect to any
subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as
a means of enforcing such provisions.
2. WAGE AND CLAIMS ADJUSTMENTS
The owner shall be responsible for the correction of all violations under section 1 of this Addendum,
including violations committed by other contractors. In cases where there is evidence of underpayment of
salaries or wages to any laborers or mechanics (including apprentices and trainees)by the owner or other
contractor or a failure by the owner or other contractor to submit payrolls and related reports, the owner
shall be required to place an amount in escrow, as determined by HUD sufficient to pay persons
employed on the work covered by the Addendum the difference between the salaries or wages actually
paid such employees for the total number of hours worked and the full amount of wages required under
this Addendum, as well as an amount determined by HUD to be sufficient to satisfy any liability of the
owner or other contractor for liquidated damages pursuant to section 1 of this Addendum. The amounts
withheld may be disbursed by HUD for and on account of the owner or other contractor to the respective
employees to whom they are due, and to the Federal Government in satisfaction of liquidated damages
under section 1.
3.EVIDENCE OF UNIT(S)COMPLETION; ESCROW
(a) The owner shall evidence the completion of the unit(s) by furnishing the Contract Administrator a
certification of compliance with the provisions of sections 1 and 2 of this Addendum, and that to the best
of the owner's knowledge and belief there are no claims of underpayment to laborers or mechanics in
alleged violation of these provisions of the Addendum. In the event there are any such pending claims to
the knowledge of the owner, the Contract Administrator, or HUD, the owner will place a sufficient
amount in escrow,as directed by the Contract Administrator or HUD,to assure such payments.
(b) The escrows required under this section and section 2 of this Addendum shall be paid to HUD, as
escrowee, or to an escrowee designated by HUD, and the conditions and manner of releasing and
approving such escrows shall be approved by HUD.