Interdepartmental Memorandum of Understanding with the Office of Housing and Community Services (2) Interdepartmental Memorandum of Understanding
Between the City of Miami Beach
Office of Housing and Community Services
and the City of Miami Beach Capital Improvement Projects Office
THIS MEMORANDIN OF UNDERSTANDING ("MOU" and/or the "Agreement")
is made this I 0 day of 'J , 2016, between the City,of Miami Beach Office
of Housing and Community Services ("HCS"), and City of Miami Beach Capital
Improvement Projects Office (Provider").
WHEREAS, the City is an entitlement recipient of U.S. Department of Housing
and Urban Development (HUD) grant programs, Community Development Block Grant
(CDBG) funds, and HOME Investment Partnership funds (HOME), and the City expects
to continue to receive entitlement funds from these grant programs to operate the City's
housing and community development activities; and
WHEREAS, each year, the City prepares a One-Year Action Plan detailing how it
intends to allocate funds received from HUD to conduct eligible activities for the benefit
of low-and-moderate-income residents; and
WHEREAS, on July 8, 2015, the City Commission approved Resolution No.
2015-29080, authorizing the reallocation of HOME funds from the Meridian Place
Apartments Project and determined the necessity for engaging the Provider to continue
the following project in Miami Beach: London House Apartment Rehabilitation; and
WHEREAS, City has a funding gap in the rehabilitation of the London House
Apartments, an affordable housing project owned by the City; and
WHEREAS, the reallocation of these funds to the London House Apartment
project will reduce the funding gap; and
WHEREAS, the amount allocated for this project via Resolution No. 2015-29080,
is FORTY-EIGHT THOUSAND THREE HUNDRED FORTY-THREE DOLLARS
($48,343) of HOME funds; and
WHEREAS, the One-Year Action Plan for FY 2015/2016 was made available to
the public for comment at City Commission meeting on July 8, 2015; and for a 30-day
public review and comment period, from July 9, through August 7, 2015; and
WHEREAS, the Provider is providing services needed for the rehabilitation of
affordable housing which is a high priority need identified in the City's FY 2013-2017
Consolidated Plan approved by the City Commission on June 5, 2013.
NOW, THEREFORE, in consideration of the mutual benefits contained herein,
HCS and Provider agree as follows:
Section 1. Agreement Documents: Agreement documents shall consist of this
Agreement and five (5) Exhibits, all of which are incorporated by reference
into this Agreement:
Page 1 of 8
• Exhibit A - Scope of Services
• Exhibit B - Documentation
• Exhibit C - Budget
• Exhibit D - Financial Management for HOME-Funded Activities
• Exhibit E - Monitoring Checklist
Section 2. Statement of Work: The Provider agrees to implement the Program in
accordance with Exhibits A and B as summarized below:
Project Management Services:
Provision of Project Management for the ongoing rehabilitation of the
London House Apartments including, but not limited to, reviewing repair
design specifications and construction management; processing payment
disbursement requests, and ensuring project compliance with all rules
and regulations by the City vendor selected through the Procurement
process.
Section 3. Agreement Amount: HCS agrees to make available HOME Initiatives
Partnership (HOME) Funds, in the amount of $48,343, for use by the
Provider during the Term of the Agreement.
Section 4. Alterations: Any proposed alterations in the Program including, without
limitation, the Budget in Exhibit C, shall first be submitted, reviewed, and
approved in writing by the City Manager.
Section 5. Method of Payment and Reporting Requirements: The Provider agrees
to submit monthly Project Progress, Financial Status, and Funding
Allocation Reports describing the progress made by Provider in achieving
the objectives identified in the Scope of Services, and shall include
photographs of recent progress. The status reports shall be submitted no
later than ten (10) days after the end of each month. As part of the "Final
Report", the Provider also agrees to include, a comprehensive final report
covering the agreed-upon Program objectives, activities, expenditures, and
including, but not limited to, performance date on client feedback with
respect to the goals and objectives outlined in Exhibit A. Provider shall
also report on quarterly basis the efforts made to comply with Section 3
Goals. Other reporting requirements may be required by HCS in the event
legislative amendments are enacted or as the City Manager may
reasonably deem necessary. The provider shall be informed, in writing, if
any changes become necessary.
Section 6. Monitoring: HCS, at its discretion, shall schedule no less than one (1)
annual on-site monitoring visit with the Provider to evaluate the progress
and performance of the Program and to provide technical assistance using
the monitoring checklist attached as Exhibit E.
HCS reserves the right to approve the design concept development
specifications and construction documents. Provider must submit these
documents during each phase of the design process for HCS final
approval prior to moving to the next phase. HCS also reserves the right to
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visit the site prior to approval any release of payments to ensure
compliance with funding rules and regulations.
•
Section 7. Additional Conditions and Compensation - It is expressly understood
and agreed by the parties hereto that monies to be used by Provider for
compensation, as contemplated by this Agreement, originate from HOME
funds from the U.S. Department of Housing and Urban Development
(HUD) and must be implemented in full compliance with all of HUD's rules
and regulations. It is expressly understood and agreed that in the event of
curtailment or non-production of said federal funds, the financial sources
necessary to continue to pay the Provider all or any portions of the funds
contemplated herein will not be available, and that this Agreement will
thereby terminate effective as of the time that it is determined by the City
Manager, in his sole discretion and judgment, that said funds are no
longer available.
Section 8. Compliance with Local, State and Federal Regulations - The Provider
agrees to comply with all applicable federal regulations as they may apply
to Program administration and to carry out each activity in compliance with
the laws and regulations as described in 24 CFR Part 92, as same may be
amended from time to time. Additionally, the Provider will comply with all
State and local (City and County) laws and ordinances hereto applicable.
Section 9. Subcontract: [Intentionally deleted]
Section 10. Term: This Agreement shall be deemed to have commenced retroactively
on October 1, 2015 and shall terminate on September 30, 2016.
Section 11. Termination of Agreement:
11.1 Termination for Convenience: HCS and Provider agree that the
City Manager may terminate this Agreement, for convenience and without
cause, upon written notice to the parties, at least thirty (30) days prior to
the effective date of such termination. In the event of such termination for
convenience, HCS shall cease any payments to Provider for costs
resulting from obligations, which were not properly incurred before the
effective date of termination. Additionally, Provider shall be solely
responsible for submitting a final report, as provided in Section 5 of the
Agreement, detailing all Program objectives, activities and expenditures
up to the effective date of the termination. Said "final report" shall be due
within five (5) working days following the effective date of the termination.
Upon timely receipt of Provider's "final report", HCS, at its sole discretion,
shall determine the amount (if any) of HOME funds to be returned to HCS
as a result of any incomplete Program items and/or items not
satisfactorily performed, and shall provide Provider with written notice of
any monies due. Said monies shall be due immediately and payable
upon receipt of such notice by Provider.
11.2 [Intentionally omitted]
Page 3 of 8
11.3 Termination for Lack of Funds: In the event of curtailment of, or
regulatory constraints placed on the funds by HUD, this Agreement will
terminate, effective as of the time that it is determined such funds are no
longer available. Costs of the Provider resulting from obligations incurred
after termination are not allowable unless HCS expressly authorizes them
in the notice of termination, or subsequent thereto. Other costs after
termination which are necessary and not reasonably avoidable are
allowable if, in the sole discretion of HCS:
a. The costs resulting from obligations which were properly
incurred before the effective date of termination, are not in
anticipation of it, and, in the case of termination, are
noncancelable; and
b. The costs would be allowable if the award expired normally at
the end of the funding period in which the termination takes
effect.
Section 12. Equal Employment Opportunities: The Provider shall comply with equal
employment opportunities as stated in Executive Order 11246, entitled
"Equal Employment Opportunity" as amended Executive Order 11375,
and as supplemented in Department of Labor regulations.
Section 13. Program Income: [Intentionally deleted]
Section 14. Religious Organization or Owned Property: [Intentionally deleted]
Section 15. Reversion of Assets: In the event of a termination of this Agreement
pursuant to Section 11 herein, or upon expiration of the Agreement, the
Provider shall transfer to HCS any HOME funds on hand at the time of
termination or expiration and any account receivable attributable to the
use of HOME funds.
Section 16. Conformity to HUD regulations: The Provider agrees to abide by
guidelines set forth by HUD for the administration and implementation of
the HOME Program, including applicable Uniform Administrative
Requirements set forth in 24 CFR 92.505, and applicable federal laws and
regulations in 24 CFR 92.350, et seq. In this regard, the Provider agrees
that duly authorized representatives of HUD shall have access to any
books, documents, papers and records of the Provider that are directly
pertinent to this Agreement for the purpose of making audits,
examinations, excerpts and transcriptions. The Provider shall comply with
the requirements and standards of OMB Circular No. A-122, "Cost
Principles for Non-profit Organizations", or OMB Circular No. A-21, "Cost
Principles for Educational Institutions" as applicable. The Provider shall
comply with the following provisions of the Uniform Administrative
requirements of OMB Circular A-110 (implemented at 24 CFR Part 84,
"Uniform Administrative Requirements for Grants and Agreements With
Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations") or the related HOME provision, as specified in this
paragraph:
Page 4 of 8
a. Subpart A - "General";
b. Subpart B - "Pre-Award Requirements", except for 84.12, "Forms for
Applying for Federal Assistance";
c. Subpart C - "Post-Award Requirements", except for:
1) Section 84.22, "Payment Requirements" - Grantees shall follow
the standards of 85.20(b)(7) and 85.21 in making payments to
sub-recipients;
2) Section 84.23, "Cost Sharing and Matching";
3) Section 84.24, "Program Income" — In lieu of 84.24, HOME sub-
recipients shall follow 92.503;
4) Section 84.25, "Revision of Budget and Program Plans";
5) Section 84.32, "Real Property" — In lieu of 84.32, HOME sub-
recipients shall follow 92.504;
6) Section 84.34(g), "Equipment" - In lieu of the disposition
provisions of 84.34(g), the following applies:
i. In all cases in which equipment is sold, the proceeds shall be
returned to the program (pro-rated to reflect the extent to
which HOME funds were used to acquire the equipment); and
ii. Equipment not needed by the sub-recipient for HOME
activities shall be transferred to the recipient for the HOME
program or shall be retained after compensating the recipient;
7) Section 84.51(b), (c), (d), (e), (f), (g), and (h), "Monitoring and
Reporting Program Performance";
8) Section 84.52, "Financial Reporting";
9) Section 84.53(b), "Retention and access requirements for
records". Section 84.53(b) applies with the following exceptions:
i. The retention period reference in 84.53 (B) pertaining to
individual HOME activities shall be five years; and
ii. The retention period starts from the date of submission of the
annual performance and evaluation report, as prescribed in 24
CFR 91.520, in which the specific activity is reported on for the
final time rather than from the date of submission of the final
expenditure report for the award;
10)Section 84.61, "Termination" — In lieu of the provisions of 84.61,
HOME sub-recipients shall comply with 92.504(c)(2)(vii); and
Page 5 of 8
d. Subpart D - "After-the-Award Requirements" - except for 84.71,
"Closeout Procedures".
Section 17. [Intentionally deleted]
Section 18. Examination of Records: The Provider shall maintain sufficient records
in accordance with 24 CFR 92.504 and 92.508 to determine compliance
with the requirements of this Agreement, the HOME Program, and all
applicable laws and regulations. This documentation shall include, but not
be limited to, the following:
a. Books, records and documents in accordance with generally
accepted accounting principles, procedures and practices, which
sufficiently and properly reflect all revenues and expenditures of
funds provided directly or indirectly by this Agreement, including
matching funds and Program income. These records shall be
maintained to the extent ofsuch detail as will properly reflect all net
costs, direct and indirect labor, materials, equipment, supplies and
services, and other costs and expenses of whatever nature for
which reimbursement is claimed under the provisions of this
Agreement;
b. Time sheets for split-funded employees, which work on more than
one activity, in order to record the HOME activity delivery cost by
Program and the non-HOME related charges; and
c. How the Statutory National Objective(s) as defined in 24 CFR
92.507 and the eligibility requirement(s) under which funding has
been received, have been met.
The Provider is responsible for maintaining and storing all records
pertinent to this Agreement in an orderly fashion in a readily accessible,
permanent and secured location for a period of five (5) years after
expiration of this Agreement, with the following exception: if any litigation,
claim or audit is started before the expiration date of the five year period,
the records will be maintained until all litigation, claims or audit findings
involving these records are resolved. HCS shall be informed in writing
after closeout of this Agreement, of the address where the records are to
be kept.
Section 19. Audits and Inspections: At any time during normal business hours, and
as often as City and/or Federal Government representatives may deem
necessary, the Provider shall make available all records, documentation,
and any other data relating to all matters covered by the Agreement for
review, inspection or audit.
Section 20. Conflict of Interest: The Provider covenants that no person under its
employ who presently exercises any functions or responsibilities in
connection with Community Development funded activities has any
personal financial interests, direct or indirect, in this Agreement. The
Provider covenants that in the performance of this Agreement, no person
having such conflicting interest shall be employed. The Provider
covenants that it will comply with all provisions of 24 CFR 92.356 "Conflict
Page 6 of 8
of Interest", and the Federal, State, County and City of Miami Beach
statutes, regulations, ordinances or resolutions governing conflicts of
interest. The Provider shall disclose, in writing, to HCS any possible
conflicting interest or apparent impropriety that is covered by the above
provisions. This disclosure shall occur immediately upon knowledge of
such possible conflict. HCS will then render an opinion, which shall be
binding on both parties.
Section 21. Venue: This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Florida, both substantive and
remedial, without regard to principles of conflict of laws. The exclusive
venue for any litigation arising out of this Agreement shall be Miami-Dade
County, Florida, if in state court, and the U.S. District Court, Southern
District of Florida, if in federal court.
Section 22. Notices: All notices required under this Agreement shall be sent to the
parties at the following address:
City: Jimmy L. Morales, City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Maria L. Ruiz, Director
Housing and Community Services
City of Miami Beach
555 17th Street
Miami Beach, FL 33139
Provider: David Martinez, Director
Capital Improvement Projects Office
City of Miami Beach
1701 Meridian Ave, 3rd Floor
Miami Beach, FL 33139
IN WITNESS WHEREOF, THE CITY OF MIAMI BEACH OFFICE OF HOUSING AND
COMMUNITY SERVICES AND THE CITY OF MIAMI BEACH CAPITAL IMPROVEMENT
PROJECTS OFFICE have executed this Agreement as of the day and year first written
above by their duly authorized representatives.
CITY OF MIAMI BEACH OFFICE OF HOUSING AND COMMUNITY SERVICES
9IP(.
Maria L. Ruiz, irector Date
Page 7 of 8
CITY OF MIAMI BEACH CAPITAL IMPROVEMENT PROJECTS OFFICE
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David Ma ez, Di -ctor Date
CITY OF MIAMI BEACH
a Florida Municipal corporation:
ATTEST:
Raf el E. Gr ad , City Clerk Jimm IL. Morales, Ci y Manager
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Date Date •
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171 71- APPROVE
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FORM & LANGUAGE
,./.<01r & F R ECUTION
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Page 8 of 8
EXHIBIT"A"
"SCOPE OF SERVICES"
The Provider agrees to provide the following:
Service Units of Service Documentation of Service
Provision of Project Management Rehabilitation of a 24-unit • A1A Form
for the ongoing rehabilitation of building: London House • Building Permit
the London House Apartments divided as follows: • Building Inspections
including but not limited to: • Section 3 Reports
• Planning design execution, • 6 Units located at 1965 • Releases of Lien
monitoring and controlling Washington Avenue. • Certified Payroll
project schedule, budget, and • 18 Units located at 1975 • Certificate of Occupancy
project closure.
• Processing payment requests Washington Avenue.
• Ensuring project compliance
Related Definitions:
Davis-Bacon Act Compliance — The Davis-Bacon Act applies to contractors and subcontractors
performing on federally funded or assisted contracts in excess of$2,000 for the construction, alteration,
or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and
Related Act contractors and subcontractors must pay their laborers and mechanics employed under the
contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar
projects in the area. The Davis-Bacon Act directs the Department of Labor to determine such locally
prevailing wage rates. Affordable housing rehabilitation projects of eight (8) or more units using CDBG
funds must ensure Davis-Bacon Act compliance. Affordable housing rehabilitation projects of 12 or
more units using HOME funds must ensure Davis-Bacon Act compliance.
Environmental Review — Projects must have an Environmental Review unless they meet criteria
specified in HUD regulations that would exempt or exclude them from Request for Release of Funds
(RROF) and environmental certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35 and
570.604).
Evidence of Procurement — All expenses incurred with grant funds require evidence of procurement
according to this Agreement. Please carefully read the Agreement and related HUD rules to ensure
compliance.
Monthly Progress Report — The Provider is required to submit a monthly project progress report by
thelOth of the following month. The report must be signed by the person who prepared the report as
well as the agency's authorizing party. The report summarizes the progress made, expenses incurred
and deliverables completed. This report must be completed regardless of whether or not funds are
requested.
Monthly Financial Report—The Provider is required to submit a monthly financial report by the 10`h of
the following month regardless of whether or not funds are requested. The report delineates project
expenses incurred including non-City funds and must include the corresponding evidence of expense
incurred for any expense which is being submitted for reimbursement.
Monthly Funding Allocation Report — All Capital projects with multiple (more than one) funding
sources require the submission of monthly Funding Allocation Reports to HCS.
Professional Services Contracts — Professional services funded through this Agreement must adhere
to procurement guidelines as appropriate and have executed written agreements between the Provider
and the respective Vendor. Contracts must, at a minimum, specify the cost, timeline and scope of
service. A copy of all professional service contracts must be submitted to HCS prior to reimbursement
request.
Proof of Insurance — Evidence of appropriate and required insurance must be submitted prior to
contract execution. No City funds will be dispersed prior to submission of required insurance coverage.
Retainage — All capital projects are subject to the withholding of ten percent (10%) of each progress
payment made to Provider, in the form of a retainage until fifty percent of project completion ("50
percent completion"), and thereafter the retainage shall be reduced to five percent (5%) of each
progress payment made to Provider.
Section 3 Compliance — Any Agreement greater than $100,000 that involves rehabilitation, housing
construction, or other public construction, requires that Provider to complete and submit to HCS Form
HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very-Low Income
Persons(OMB No. 2529-0043).
Service Deliverables
Services must be delivered as follows:
Service Unit of Service Service Location Timeframe
Provision of Project Rehabilitation of a 24- 1975 & 1965 From the date of the last
Management for the unit building: London Washington Avenue, signature executing the
ongoing rehabilitation of House. Miami Beach, FL Agreement to
the London House • 6 Units located at 33139 09/30/2016
Apartments including 1965 Washington
but not limited to: Avenue.
• Planning design • 18 Units located at
execution, monitoring 1975 Washington
and controlling project Avenue.
schedule, budget, and
project closure.
• Processing payment
requests
• Ensuring project
compliance
Service Benchmarks
Service Benchmark(s)
Provision of Project Management for the ongoing Final Building Inspection
rehabilitation of the London House Apartments Certificate of Occupancy
including but not limited to:
• Planning design execution, monitoring and
controlling project schedule, budget, and project
closure.
• Processing payment requests
• Ensurin• .ro'ect corn'Hance
Service Documentation
Services will be deemed as provided when the following documentation is provided within the noted
timeframes:
Service Documentation Submission Deadline
Provision of Project • Al A Form Submit Monthly Finance,
Management for the ongoing • Building Permit Progress and Funding
rehabilitation of the London • Building Inspections Allocation reports after service
House Apartments including • Section 3 Reports is delivered. Reports will be
but not limited to: • Releases of Lien submitted within the first 10
• Planning design execution, • Certified Payroll days of the following month.
monitoring and controlling • Certificate of Occupancy
project schedule, budget,
and project closure.
• Processing payment requests
• Ensuring project compliance
Applicable Federal Regulations
The Provider must apply to all applicable federal regulations including:
1. Non-Discrimination and Equal Access
No person in the United States shall on the grounds of race, color, national origin, religion or sex be
excluded, denied benefits or subjected to discrimination under any program funded in whole or in part
by HOME funds. The Provider must take measures to ensure non-discriminatory treatment, outreach
and access to program resources. This applies to employment and contracting, as well as to marketing
and selection of program participants.
Fair Housing and Equal Opportunity
The Provider must comply with all the following Federal laws, executive orders and regulations
pertaining to fair housing and equal opportunity. They are summarized below:
• Title VI of the Civil Rights Act of 1964, As Amended (42 USC 2000d et seq.): States that no
person may be excluded from participation in, denied the benefits of, or subjected to
discrimination under any program or activity receiving Federal financial assistance on the basis
of race, color or national origin. The regulations implementing the Title VI Civil Rights Act
provisions for HUD programs may be found in 24 CFR Part 1.
• The Fair Housing Act (42 USC 3601-3620): Prohibits discrimination in the sale or rental of
housing, the financing of housing or the provision of brokerage services against any person on
the basis of race, color, religion, sex, national origin, handicap or familial status. Fair Housing
Act implementing regulations may be found in 24 CFR Part 100-115.
• Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259):
Prohibits discrimination against individuals on the basis of race, color, religion, sex or national
origin in the sale, rental, leasing or other disposition of residential property, or in the use or
occupancy of housing assisted with Federal funds. Equal Opportunity in Housing regulations
may be found in 24 CFR Part 107.
• Age Discrimination Act of 1975, As Amended (42 USC 6101): Prohibits age discrimination in
programs receiving Federal financial assistance. Age Discrimination Act regulations may be
found in 24 CFR Part 146.
• Section 109 of Title I of the Housing and Community Development Act of 1974: Requires that no
person shall be excluded from participation in, denied the benefits of, or be subjected to
discrimination under any program or activity funded with HOME funds on the basis of race,
color, religion, national origin or sex.
Handicapped Accessibility
The HOME regulations also require adherence to the three following regulations governing the
accessibility of Federally assisted buildings, facilities and programs.
• Americans with Disabilities Act (42 USC 12131; 47 USC 155, 201, 218 and 225): Provides
comprehensive civil rights to individuals with disabilities in the areas of employment, public
accommodations, state and local government services and telecommunications. The Act, also
referred to as the ADA, also states that discrimination includes the failure to design and
construct facilities (built for first occupancy after January 26, 1993) that are accessible to and
usable by persons with disabilities. The ADA also requires the removal of architectural and
communication barriers that are structural in nature in existing facilities. Removal must be
readily achievable, easily accomplishable and able to be carried out without much difficulty or
expense.
• Fair Housing Act: Multi-family dwellings must also meet the design and construction
requirements at 24 CFR 100.205, which implement the Fair Housing Act(42 USC 3601-19)
• Section 504: Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in federally
assisted programs on the basis of handicap. Section 504 imposes requirements to ensure that
"qualified individuals with handicaps" have access to programs and activities that receive
Federal funds. Under Section 504, recipients and Providers are not required to take actions that
create unique financial and administrative burdens or after the fundamental nature of the
program. For any Provider principally involved in housing or social services, all of the activities
of the agency -- not only those directly receiving Federal assistance -- are covered under
Section 504. Contractors or vendors are subject to Section 504 requirements only in the work
they do on behalf of the Provider or HCS. The ultimate beneficiary of the Federal assistance is
not subject to Section 504 requirements.
• The Architectural Barriers Act of 1968 (42 USC 4151-4157): Requires certain Federal and
Federally-funded buildings and other facilities to be designed, constructed or altered in
accordance with standards that ensure accessibility to, and use by, physically handicapped
people.
ll. Employment and Contracting
The Provider must enforce compliance with the regulations below governing employment and
contracting opportunities. These concern equal opportunity, labor requirements and
contracting/procurement procedures.
Equal Opportunity
The Provider must ensure compliance with the following regulations that ensure equal opportunity for
employment and contracting:
• Equal Employment Opportunity, Executive Order 11246, as amended: Prohibits discrimination
against any employee or applicant for employment because of race, color, religion, sex or
national origin. Provisions to effectuate this prohibition must be included in all construction
contracts exceeding $10,000. Implementing regulations may be found at 41 CFR Part 60.
• Section 3 of the Housing and Urban Development Act of 1968: Requires that, to the greatest
extent feasible, opportunities for training and employment arising from HOME funds will be
provided to low-income persons residing in the program service area. Also, to the greatest
extent feasible, contracts for work (all types) to be performed in connection with CDBG will be
awarded to business concerns that are located in or owned by persons residing in the program
service area.
• Minority/Women's Business Enterprise: Under Executive Orders 11625, 12432 and 12138, HCS
and the Provider must prescribe procedures acceptable to HUD for a minority outreach program
to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities
owned by minorities and women, in all contracts (see 24 CFR 85.36(e)).
Labor Requirements
The Provider must ensure compliance with certain regulations on wage and labor standards. In the
case of Davis-Bacon and the Contract Work Hours and Safety Standards Acts, every contract for
construction (in the case of residential construction, projects with eight or more units) triggers the
requirements.
• Davis-Bacon and Related Acts (40 USC 276(A)-7): Ensures that mechanics and laborers
employed in construction work under Federally-assisted contracts are paid wages and fringe
benefits equal to those that prevail in the locality where the work is performed. This act also
provides for the withholding of funds to ensure compliance, and excludes from the wage
requirements apprentices enrolled in bona fide apprenticeship programs.
• Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333): Provides that
mechanics and laborers employed on Federally-assisted construction jobs are paid time and
one-half for work in excess of 40 hours per week, and provides for the payment of liquidated
damages where violations occur. This act also addresses safe and healthy working conditions.
• Copeland (Anti-Kickback) Act (40 USC 276c): Governs the deductions from paychecks that are
allowable. Makes it a criminal offense to induce anyone employed on a Federally assisted
project to relinquish any compensation to which he/she is entitled, and requires all contractors to
submit weekly payrolls and statements of compliance.
• Fair Labor Standards Act of 1938, As Amended (29 USC 201, et. seq.): Establishes the basic
minimum wage for all work and requires the payment of overtime at the rate of at least time and
one-half. It also requires the payment of wages for the entire time that an employee is required
or permitted to work, and establishes child labor standards.
Contracting and Procurement Practices
The HOME program is subject to certain Federal procurement rules. In addition, HCS and the Provider
must take measures to avoid hiring debarred or suspended contractors or Providers and conflict-of-
interest situations. Each is briefly discussed below.
• Procurement: For the City, the procurement standards of 24 CFR 85.36 apply. For non-profit
organizations receiving HOME funds, the procurement requirements at 24 CFR Part 84 apply.
• Conflict of Interest: The HOME regulations require grantees (the City), state recipients and
Providers (the Provider) to comply with two different sets of conflict-of-interest provisions. The
first set of provisions comes from 24 CFR Parts 84 and 85. The second, which applies only in
cases not covered by 24 CFR Parts 84 and 85, is set forth in the HOME regulations. Both sets
of requirements are discussed below.
- The provisions at 24 CFR 85.36 and 24 CFR 84.42 apply in the procurement of property and
services by grantees (the City), state recipients, and Providers (the Provider). These
regulations require HCS and the Provider to maintain written standards governing the
performance of their employees engaged in awarding and administering contracts. At a
minimum, these standards must:
- Require that no employee, officer, agent of the City or the Provider shall participate in the
selection, award or administration of a contract supported by HOME if a conflict-of-interest,
either real or apparent, would be involved;
- Require that employees, officers and agents of the City or the Provider not accept gratuities,
favors or anything of monetary value from contractors, potential contractors or parties to
Sub-Agreements; and
- Stipulate provisions for penalties, sanctions or other disciplinary actions for violations of
standards.
A conflict would arise when any of the following has a financial or other interest in a firm selected for an
award:
- An employee, agent or officer of HCS or the Provider;
- Any member of an employee's, agent's or officer's immediate family;
- An employee's, agent's or officer's partner; or
- An organization that employs or is about to employ an employee, agent or officer of HCS or
the Provider.
- The HOME regulations at 24 CFR 92.356 governing conflict-of-interest apply in cases not
covered by 24 CFR 85.36 and 24 CFR 84.42. These provisions cover employees, agents,
consultants, officers and elected or appointed officials of the grantee (the City), state
recipient or subrecipient (the Provider). The regulations state that no person covered who
exercises or has exercised any functions or responsibilities with respect to HOME activities
or who is in a position to participate in decisions or gain inside information:
- May obtain a financial interest or benefit from a HOME activity; or
- Have an interest in any contract, subcontract or agreement for themselves or for persons
with business or family ties.
This requirement applies to covered persons during their tenure and for one year after leaving the
grantee (the City), the state recipient or Provider(the Provider) entity.
Upon written request, exceptions to both sets of provisions may be granted by HUD on a case-by-case
only after the City has:
- Disclosed the full nature of the conflict and submitted proof that the disclosure has been
made public; and
- Provided a legal opinion from the City stating that there would be no violation of state or
local law if the exception were granted.
• Debarred contractors: In accordance with 24 CFR Part 5, HOME funds may not be used to
directly or indirectly employ, award contracts to or otherwise engage the services of any
contractor or Provider during any period of debarment, suspension or placement of ineligibility
status. The City should check all contractors, subcontractors, lower-tier contractors or Providers
against the Federal publication that lists debarred, suspended and ineligible contractors.
Ill. Environmental Requirements
HCS is responsible for meeting a number of environmental requirements, including environmental
reviews, flood insurance, and site and neighborhood standards.
Environmental Review
HCS is responsible for undertaking environmental reviews in accordance with the requirements
imposed on "recipients" in 24 CFR 58. Reviews must be completed, and Requests for Release of
Funds (RROF) submitted to HUD before HOME funds are committed for non-exempt activities. Private
citizens and organizations may object to the release of funds for HOME projects on certain procedural
grounds relating to environmental review (see 24 CFR 58.70 - 58.77). To avoid challenges, grantees
(the City)and Providers (the Provider) should be diligent about meeting procedural requirements.
Flood Insurance
Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106): Requires that CDBG funds
shall not be provided to an area that has been identified by the Federal Emergency Management
Agency (FEMA) as having special flood hazard, unless: The community is participating in the National
Flood Insurance Program, or it has been less than a year since the community was designated as
having special flood hazards; and flood insurance is obtained.
IV. Lead-based Paint
On September 15, 1999, the "Requirements for Notification, Evaluation and Reduction of Lead-Based
Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance;
Final Rule" was published within title 24 of the Code of Federal Regulations as part 35 (24 CFR 35).
The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992, which is Title X (ten) of the Housing and Community Development Act of 1992.
Sections 1012 and 1013 of Title X amended the Lead-Based Paint Poisoning Prevention Act of 1971,
which is the basic law covering lead-based paint in federally associated housing.
The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead in
house dust. Scientific research has found that exposure to lead in dust is the most common way young
children become lead poisoned. Therefore, the new regulation requires dust testing after paint is
disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing is
being disposed of or assisted by the federal government, and also on the type and amount of financial
assistance, the age of the structure, and whether the dwelling is rental or owner occupied.
On April 22, 2008, the EPA issued a rule requiring the use of lead-safe practices and other actions
aimed at preventing lead poisoning to protect against the hazards created by exposure to lead dust in
existing structures built prior to 1978. Under the rule, all contractors performing renovation, repair and
painting projects that disturb lead-based paint in homes, child care facilities, and schools built before
1978 must be certified and follow specific work practices to prevent lead contamination. This rule (40
CFR Part 745) is enforced as of April 22, 2010. The rule must be executed by all sub-contractors.
Property Exempt from Lead-based paint regulation:
• Housing built since January 1, 1978, when lead paint was banned for residential use;
• Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is
expected to reside there;
• Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing,
dormitories or military barracks;
• Property that has been found to be free of lead-based paint by a certified lead-based paint
inspector;
• Property where all lead-based paint has been removed;
• Unoccupied housing that will remain vacant until demolished;
• Non-Residential property; and
• Any rehabilitation or housing improvement that does not disturb a painted surface.
Types of housing subject to 24 CFR 35:
• Federally-Owned housing being sold;
• Housing receiving a federal subsidy that is associated with the property, rather than with the
occupants (project-based assistance);
• Public housing;
• Housing occupied by a family (with a child) receiving tenant-based subsidy (such as a voucher
or certificate);
• Multifamily housing for which mortgage insurance is being sought; and
• Housing receiving federal assistance for rehabilitation, reducing homelessness, and other
special needs.
If you want copies of the regulation or have general questions, you can call the National Lead
Information Center at (800) 424-LEAD, or TDD (800) 526-5456 for the hearing impaired. You can also
download the regulation and other educational materials at http://www.hud.qov/offices/lead/index.cfm.
For further information, you may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at
lead requlations a(�hud.gov.
V. Displacement, Relocation, Acquisition and Replacement of Housing
HOME projects involving acquisition, rehabilitation or demolition may be subject to the provisions of the
Uniform Relocation Act (UDA). Demolition or conversion of units with HOME funds may trigger section
104 (d) (also known as the "Barney Frank Amendment" requirements.)
VI. Compliance with National Objective
The purpose of this agreement is to secure that HOME funds from the City of Miami Beach comply with
the primary National Objective, "Benefit to Low and Moderate Income Persons" and will provide
services or activities that benefit at least 51% low and moderate income persons. A low or moderate-
income household is defined as: a household having an income equal to or less than the limits cited
below. Individuals who are unrelated but are sharing the same household shall each be considered as
one-person households.
Low and Moderate Household Income Limits
(Source: U.S. Department of Housing & Urban Development) (Note: Low-Income (80% of Median
Income), Very Low-Income (50 % of Median Income), Extremely Low(30% of Median Income)
HUD Income Limits for FY 2015
Median Income for Miami-Dade Area = $49,900
Effective date 03/06/2015
1 - Person 2-Person 3-Person 4-Person 5-Person 6-Person 7 -Person 8-Person
30% Limits $14,250 $16,250 $18,300 $20,300 $21,950 $23,550 $25,200 $26,800
Very Low $23,700 $27,100 $30,500 $33,850 $36,600 $39,300 $42,000 $44,700
Income
Low $37,950 $43,350 $48,750 $54,150 $58,500 $62,850 $67,150 $71,500
Income
Change Orders/Budget Amendments
The goal should be to limit the use of Change Orders or Budget Amendments. Change Orders and
Budget Amendments require prior written approval by the City Manager.
To request a Change Order or Budget Amendment, a written request for changes must be submitted to
your Grant Monitor delineating the changes and providing a detailed justification for making the request.
Approvals of any changes are at the sole discretion of the City Manager.
No budget amendment will be processed after June 30, 2015 for Public Service Projects. No budget
amendment will be processed for Capital Projects Budgets after eighty (80) percent of the available
funds have been drawn.
Budget amendments or Change Orders that deviate from the original scope will be rejected and the
funds in question may be subject to recapture at the sole discretion of the City Manager.
Compliance with Local Rules, Regulations, Ordinances and Laws
The Provider must ensure compliance with all local rules, regulations, ordinances and laws (including
having an active business license) in addition to those specified in the body of the Agreement. In
addition, the Provider must ensure that any sub-recipients do not owe any monies to the City at the
time of Agreement(Purchase Order)execution or final release of grant funds.
The City will verify with the Finance Department to ensure that no monies are due the City prior to
(Purchase Order)Agreement execution.
Employee/Contractor File Review
The following documentation must be included in the Provider's employee/contractor file for those
employees/contractors providing services under this contract.
The following must be included in the employee files:
• Employment Application
• Evidence of degree/credentials
• Job Description Signed by Employee
• Evidence of Required Experience
• Florida Background Criminal Screening, if applicable
• National FBI Background Criminal Screening (Level 2), if applicable
• Affidavit of Good Moral Character, if applicable
• Proof of Knowledge of Policies & Procedures, if applicable
• 1-9 Verification on File
HCS reserves the right to inspect those employee/contractor files whose salaries are funded in part or
in whole by its funds.
Evaluation
In its continuing effort to ensure contract compliance and performance, HCS will evaluate the Provider
in its fulfillment of the terms of this agreement including, but not limited to, the following measures:
• Agreement compliance
• Leverage and fiscal soundness
• Accuracy and timeliness of Monthly Progress Reports
• Accuracy and timeliness of Monthly Financial Reports
• Accuracy and timeliness of Monthly Funding Allocation Reports
• Adherence to project timelines
• Fulfillment of prescribed outcomes
Fiscal Stability
The Provider is required to maintain fiscal stability throughout the terms of this Agreement. This is to
ensure the Provider's ability to fulfill the terms of this Agreement and meeting of the National Objective.
For affordable housing developers, fiscal stability policies are encouraged in anticipation of additional
HUD guidance regarding fiscal oversight for rental projects. More so, as projects have extended lives,
fiscal stability underscores the long-term viability of the housing units.
Monitoring & Performance Reviews
HCS reserves the right to inspect, monitor and/or audit the Provider to ensure contractual compliance.
This includes, but is not limited to:
• Review of on-site service delivery
• Inspection and review of client, budgetary and employee files (for those employees providing
services under this Agreement)
Monitoring visits will take place within 120 days of the commencement of services. HCS will notify the
Provider a minimum of three (3) business days prior to a monitoring visit.
Performance Ratings
The Provider agrees that its Performance Rating, the score awarded for performance on the following
measures, will be posted on the City's website on an annual basis:
• Timely and accurate submission of Monthly Progress Report
• Timely and accurate submissions of Monthly Financial Reports(reimbursement requests)
• Timely and accurate submission of Monthly Funding Allocation Reports
• Delivery of contracted service units
Ratings will be given for each performance measure based on the following:
Performance Measure I Rating Rationale & Score
Timely and accurate submission of Monthly D "0"for failing to submit on time
Progress Report D "25"for submitting on time
Timely and accurate submissions of Monthly D "0" for failing to submit accurate report with
Financial Report(reimbursement requests) back-up material on time
D "25"for submitting accurate report on time
Delivery of contracted service units within Possible score of 0 to 50 based upon completion
contracted timeframe of projected service units. Score is pro-rated if
total projected service units are not met.
Funding Allocation Reports
Capital projects must submit certified monthly Funding Allocation Reports that indicate project funding
sources and correlating uses. Funding Allocation Reports must be certified by the preparing party as
well as the agency's signatory as reflected within this Agreement.
Reporting Requirements
The Provider will provide HCS with a Monthly Progress Report, a Monthly Funding Allocation Report
and a Monthly Financial Report by the 10th of the following month. In the event that the 10th of the
month lands on a Saturday, Sunday or holiday, the report must be submitted the following business
day.
The following chart depicts the submission dates for the term of this Agreement:
Month Date or Submission
January 2016 February 10, 2016
February 2016 March 10, 2016
March 2016 April 11, 2016
April 2016 May 10, 2016
May 2016 June 10, 2016
June 2016 July 11, 2016
July 2016 August 10, 2016
August 2016 September 12, 2016
September 2016 October 10, 2016
Monthly reports will be submitted via any of the following methods:
• Standard mail
• Hand delivery
Monthly reports will not be considered acceptable unless the following is met:
• Forms are completely and accurately filled
• Necessary back-up materials are included (evidence of expense incurred, invoices, time logs,
executed AIA Forms, etc.)
• Reports bear the signature of the person preparing the report and the Provider's authorized
signatory
Monthly Progress Reports should encapsulate a project's progress in alignment with the funds
expended.
Retainage
All capital projects utilizing HUD funds are subject to a ten percent (10%) retainage until 50 percent
completion, and thereafter the retainage shall be reduced to five percent (5%). Partial releases would
be allowed pursuant Section 255.078, Florida Statutes. Final Release of Retainage will be approved
once HCS receives Certificate of Completion along with all Closeout Documents, including final
releases of liens from Sub-contractor(s). Retainage will be held as appropriate from all submitted
reimbursement requests.
Subsidy Layering Review
All affordable housing projects using CDBG/HOME funds require the completion of an independent
Subsidy Layering Review and underwriting. These reviews must be completed prior to the project being
submitted via HUD's IDIS system and precedes the incurrence of any related funds. Therefore, no
capital projects will be deemed eligible for reimbursement until the Subsidy Layering Review and
underwriting have been received and accepted by HCS.
The expense for the Subsidy Layering Review and underwriting services are eligible for reimbursement
if the project proceeds but is not eligible for reimbursement otherwise.
Timeliness of Reimbursement Requests
Reimbursement requests must be submitted no later than sixty (60) days from the incurrence of the
expense. HCS will strictly monitor this element. Please note that cancelled checks must be submitted in
conjunction with all reimbursement requests. Therefore, the Provider should calendar itself accordingly
to ensure that reimbursement requests are submitted to HCS in a timely manner.
Furthermore, at least sixty (60) percent of your allotted grant funds must be expended by June 30, 2016
as demonstrated by the total value of reimbursements processed. Capital Projects will be reviewed and
judged based on their implementation schedule.
Training Requirements
The Provider must ensure that the person responsible for preparing the Monthly Progress Report, the
Monthly Funding Allocation Report and Monthly Financial Report attends HCS's Provider Reporting
Training and places the attendance certificate in the employee's personnel file for inspection by HCS
during its monitoring visit.
Additional Documentation
The following documentation must be submitted with this executed agreement:
• All required insurance certificates
• Copy of current audit
• Copy of required business licenses and permits
EXHIBIT"B"
"DOCUMENTATION"
The Provider agrees to provide the following documents as part of its reporting requirements:
To DOCUMENT INSURANCE COVERAGE:
• Copy of insurance policy or binder(with proof of payment)with limits and scope of coverage
TO DOCUMENT FISCAL LEVERAGE:
• Monthly project Funding Allocation Reports (for capital projects only)
To DOCUMENT PROCUREMENT:
• Evidence of at least three (3)quotes obtained for service/item —engineering firm
• Formal bid process including advertisement, scope, respondents and scoring —General
contractor
To DOCUMENT EXPENSES INCURRED:
• Cancelled checks with copy of referenced invoice
• Electronic payroll ledgers with corresponding bank transactions (statement)
• Executed professional service agreements (subject to procurement)
• Executed and notarized AIA Forms (for capital projects only)
• Executed and Filed Release of Lien (for capital projects only)
• Confirmation of approval of submittals by the Project Manager and Design Team
• Executed Form WH-347—documenting Davis Bacon wages— Payroll Certificates
• Copies of valid work permits and clearances (for capital projects only)
• Copies of recorded Notice of Commencement and Notice of Termination (for capital projects
only— if applicable)
• Section 3 quarterly report
To DOCUMENT CONSTRUCTION COMPLETION:
• Final Building Permits
• Final Unconditional Release of Liens
• Warranties
• Certificate of Occupancy(CO)
EXHIBIT"C" ..
"Budget"
The attached budget reflects the scope of expenses that may be incurred through this Agreement. All
expenses must comply with applicable rules and regulations including Procurement and Davis Bacon
Act. :.
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m MIAMIBEACH
HOME FY 2008/09
Project Budget
London House Apartment
Sub-Recipient: City of Miami Beach/Capital Improvements Project: Rehabilitation
Please list all items that will be reimbursed by the City of Miami Beach.
Line Item Quantity Unit Cost Line Total
Personnel(Employees Only)-List Position Title
Personnel Expenses-Category Totals $ -
Operating Expenses-Category Totals
Operating Expenses-Category Totals $ -
Capital/Equipment Costs
Construction Cost $ 41,978.92 $ 41,978.92
Capital/Equipment Costs-Category Totals $ 41,978.92
Professional Services
$ 6,364.08 $ 6,364.08
Professional Services-Category Totals $ 6,364.08
Other Costs
Other Costs-Cate•o Totals
Project Total-All Categories $ 48,343.00
EXHIBIT"D"
"Financial Management"
To comply with federal regulations, each program must have a financial management system that
provides accurate, current and complete disclosure of the financial status of the activity. This means
the financial system must be capable of generating regular financial status reports which indicate the
dollar amount allocated for each activity (including any budget revisions), amount obligated (i.e., for
which contract exists), and the amount expended for each activity. The system must permit the
comparison of actual expenditures and revenues against budgeted amounts. HCS must be able to
isolate and to trace every HOME dollar received and prove where it went and for what it was used.
HCS is responsible for reviewing and certifying the financial management of any operating agency,
which is not a City department or bureau, in order to determine whether or not it meets all of the above
requirements. If the agency's system does not meet these requirements and modifications are not
possible, HCS must administer the HOME funds for the operating agency.
Support for Expenditures
Sufficient support for expenses depends on the type of expenditure. They normally include the
following items:
• Salaries - Should be supported by proper documentation in personnel files of hire date, position,
duties, compensation, and raises with effective date, termination date, and similar type information.
Non-exempt employees are required by law to complete a timesheet showing number of hours they
worked during the day. All employees paid in whole or in part from HOME funds should prepare a
time sheet indicating the hours worked on HOME projects for each pay period. Based on these
time sheets and the hourly payroll costs for each employee, a voucher statement indicating the
distribution of payroll charges should be prepared and placed in the appropriate files.)
• Employee Benefits - Should be supported by personnel policies and procedures manual,
describing the types of benefits, eligibility and other relevant information.)
• Professional Services - Should be supported by a complete and signed copy of the contract
between the organization and the independent contractor, describing at the minimum, period of
service, type of service and method for payments, in addition to the invoice from the private
contractor.)
• Purchases -At a minimum, purchases should be supported by a purchase order, packing list and
vendor invoice. Credit card statements, travel itineraries, vendor statements and similar items do
not represent support for an expense.
Records
Accounting records must be supported by source documentation. Invoices, bills of lading, purchase
vouchers,.payrolls and the like must be secured and retained for five years in order to show for what
purpose funds were spent. Payments should not be made without invoices and vouchers physically in
hand. All vouchers/invoices should be on vendor's letterhead. Financial records are to be retained for
a period of five years, with access guaranteed to HCS, to HUD or. Treasury officials or their
representative. .
Audits
For years beginning after June 30, 1996, all nonprofit organizations, state governments, and local
governments that receive Federal funding fall under the revised OMB Circular A-133, Audits of States,
Local Governments, and Nonprofit Organizations. Non-Federal entities that expend $500,000 or more
in a year in Federal awards must have a single or program-specific audit.
One copy of the Provider or vendors' audited financial statement shall be submitted to HCS
immediately following the end of the fiscal year(s)during which CDBG funds are received.
All auditees must submit to the Federal Audit Clearinghouse (FAC) a data collection form (Form SF-
SAC) and reporting package upon completion of the annual audit in accordance with OMB Circular A-
133. The deadline for this submission is the earlier of the 30 days after receipt of the auditor's
report(s), or nine months after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency for the audit. Address for submission is:
The Federal Audit Clearinghouse
1201 E. 10th Street
Jeffersonville, IN 47132
Phone (301)457-1551 or(800)253-0696
Email: pov.fac a(�census.gov .
Web: http://harvester.census.qov/sac
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