2022-23 Riverside County - CDBG Supplemental,OHW(HOUSING AND
WORKFORCE
:v SOLUTIONS
January 18, 2023
Jon McMillen, City Manager
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
x (3pelrr 1- ,
A"
File No.: 41Q.46-22, 41Q.47-22
RE: EXECUTED 2022-2023 SUPPLEMENTAL AGREEMENT - AUTHORIZATION TO INCUR COST
Dear Mr. McMillen:
Enclosed is a fully executed copy of your City's 2022-2023 Supplemental Agreement for the use of
Community Development Block Grant (CDBG) funds.
The U.S. Department of Housing and Urban Development and the Riverside County Housing and
Workforce Solutions Department (HWS) have completed their regulatory, administrative, and
environmental review of the City's following project (s):
41Q.46-22 Membership Fees Waiver/ Reduction Program $18,200
41Q.47-22 City of La Quinta Miscellaneous ADA Improvements $150,111
The total CDBG funding for the City is $168,311
This letter authorizes your City to incur costs for reimbursement retroactive to July 1, 2022.
All claims will be reviewed for compliance with applicable policies in the Community Development Policy
Manual. Please carefully review the policies relating to contract administration and reimbursement of
claims. Any changes will be forwarded to you as they occur.
You will be required to provide milestones for significant events affecting your overall timetable. Meeting
your timetable and milestones is imperative since it reflects on the City's capacity to manage grants in a
timely manner. Failure to demonstrate management capacity could result in the in the County reducing
or cancelling your CDBG funding.
P.O. Box 15281 Riverside, CA 92502
" January 18, 2023 File No.: 4.LQ.46-22, 4.LQ.47-22
Page 2
Public Service Activities:
If your CDBG funding includes a limited clientele public service activity, your City or sub -recipient must
maintain income self -certification and income verification forms for the clients served. In addition, your
City will be required to complete the attached Direct Benefit Activity Report relative to the clientele
served by your City or sub -recipient. These reports should be submitted on a monthly basis along with
your claims for reimbursement.
All clients benefitting from CDBG-funded public service activities must submit an Income Self -
certification Form (English/Spanish) with a copy sent to HWS. At least 51% of the persons benefitting
from this CDBG-funded activity must meet the income limits established by HUD. A copy of those
Income Limits, the Direct Benefit Report, as well as the Income Self -certification Form is available at
HWS's website: www.rivcoeda.org. Furthermore, at least 10% of the clientele served must be randomly
selected for income verification. These verifications must be conducted through an approved process
and submitted to HWS as well.
If the CDBG-funded public service activities meets a National Objective of the CDBG program by
benefitting persons that are presumedto be low or moderate income [24 CFR 570.208 (a)(2)(i)(A)], then
at least 51% of all clients must be within a presumed category. All persons benefitting from the CDBG-
funded activities must complete and submit a Self -Certification for Presumed Clientele form. This form,
as well as the Direct Benefit Activity Report, is also available at HWS's website: www.rivcoeda.org.
Public Facilities and Other Activities:
Please consult with your assigned CDBG Program Manager regarding the National Objective reporting
requirements for any CDBG-funded public facilities or other non-public service activities.
For audit purposes, recipients of Community Development Block Grant funds must comply with all
applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR 200).
The CDBG funds are identified in the Code of Federal Domestic Assistance (CFDA) Section 14.218.
If you have any questions, please contact Noe Arechiga at 760-863-2650.
Sincerely,
Juan Garcia,
CDBG/ESG/HOME Programs Development Manager
Attachments: Executed Supplemental Agreement
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
]File No.: 41Q.46-22, 4.LQ 47 22
SUPPLEMENTAL AGE` FOR THE USE OF
2022-2023 CONIIViUMTY DEVELOPNW.NT BLOCK GRANT FUNDS
This Supplemental Agreement ("Agreement") is eaterod into this day of
2022, by and between the COUNTY OF RIVERSIDE, a political subdivision of the
State of Ca ifornia, herein called, "COUNTY," and the MY OF LA QUINTA, herein called "CITY."
eoUNTY and CITY are collectively referred to as "Parties" and individually as "Party-7
The COUNTY and CITY mutually agree as follows:
1. GE ] COUNTY and CITY have executed a Cooperation Agreement, dobd
November 10, 2020 evoopemtion Agreement" ), whereby CITY elected to participate with COUNTY,
which has qualified as an "Urban County" for purposes of receiving Community DevelopmCni Block
Grant (CDBG) fiords ("CDBG"), and to assist and undertake essential community development and
housing assistance activities pursuant to the Housing and Community Development Act of 1974, Title
1, as amended, Public Law 93-383 hereinafter referred to as "Act." Said Cooperation Agreement, dated
November 10, 2020, is incorporated herein by reference and made a part of this Agreement as if each
and every provision was set forth herein.
2, P URPUSE. CTFY has been allocated $168,311 in CDBG Entitlement finds for the 2022-
2023 CDBG program year. CITY promises and agrees to undertake and assist with the community
development activities, within its jurisdiction, by utilizing the sum of $168,31I CDBG Entitlement
Funds, as speeifiagy identified in Exhrbit(s) A, and B, attached hereto, and are iMccnrporated herein by
this reference, for to following project(s) (collectively, the "Projeetsl:
4.LQ 46-22 Membership Fees WzWer/Reduction Program, sI8,200.
4.LQ.47 22 City of La Quiuta Miscellanearrs ADA Improvements, S150,111.
3. LQLAgREF IVIENT. The term of this Agreement for the implernenIation of the
Project(s) shall be for a period of one (1) year from July 1, 2022, to termination on June 30, 2023.
4. CON PLETI SCSCHEDULE. CITY shall proceed consistent with the completion schedule
set forth in Exhs"bi s A. ,ad E, attached hereto and incorporated herein.
Pass 1 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the
time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40
below), the COUNTY may consider extending the schedule for the completion of the project(s). Times
of performance for other activities may also be extended in writing by COUNTY. If substantial progress
toward completion in conformance with the completion schedule, as determined by COUNTY in its
discretion, of the project(s) not made during the term of this Supplemental Agreement, COUNTY may
suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in
the section titled "Termination," and the entitlement funds associated with the Project(s) may be
reprogrammed by the COUNTY after appropriate notice is provided to the City.
6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBG-
funded Projects or activities covered under the terms of this Supplemental Agreement as set forth in
Exhibit(s) A, and B, attached hereto, prior to receiving written authorization from COUNTY to proceed.
7. NOTICES. Each notice, request, demand, consent, approval or other communication
(hereinafter in this Section referred to collectively as "notices" and referred to singly as a "notice") which
the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement
shall be in writing and shall be deemed to have been duly and sufficiently given if. (a) personally
delivered with proof of delivery thereof (any notice so delivered shall be deemed to have been received
at the time so delivered); or (b) sent by Federal Express (or other similar national overnight courier)
designating early morning delivery (any notice so delivered shall be deemed to have been received on
the next Business Day following receipt by the courier); or (c) sent by United States registered or certified
mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States
Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the
United States), addressed to the respective parties as follows:
COUNTY
Heidi Marshall, Director
Riverside County HWS
P.O. Box 1528
CITY
Jon McMillen, City Manager
City of La Quinta
78-495 Calle Tampico
Riverside, CA 92502 La Quinta, CA 92253
Page 2 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
8. DISBURSEMENT OF FUNDS.
A. COUNTY's Board of Supervisors shall determine the final disposition and
distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 of this
Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions,
shall make payment of the CDBG funds to CITY as set forth in the attached Exhibit(s) A, and B. It is
the CITY's responsibility to monitor all project activities set forth in the attached Exhibit(s) A, and B,
and to ensure compliance with applicable federal regulations and the terms of this Supplemental
Agreement.
B. CITY shall comply with timely drawdown of CDBG Entitlement funding by
expeditiously implementing and completing the COUNTY -approved, CDBG-funded Projects. CITY
acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall program
drawdown rate. If the CITY's unobligated CDBG fund balance, as of January 31, 2023, exceeds one
hundred and seventy-five percent (175%) of the CITY's 2022-2023 CDBG allocation, the COUNTY
may, in its sole discretion, take the necessary administrative actions to reduce the CITY's CDBG fund
balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund
balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute
discretion, authorize CITY in writing, prior to January 31, 2023, to exceed the CDBG fund balance
requirement.
C. CITY shall comply with timely drawdown of CDBG funds by submitting monthly
requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements
of CDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY
has received the CITY's reimbursement request including documentation supporting expenditures.
D. All authorized obligations incurred in the performance of the Supplemental
Agreement for projects eligible under the following CDBG regulations must be reported in writing to
COUNTY no later than June 1, 2023:
1. Acquisition [24 Code of Federal Regulations (CFR) 570.201 (a)]
2. Clearance Activities [24 CFR 570.201 (d)]
3. Interim Assistance [24 CFR 570.201 (f)]
4. Code Enforcement [24 CFR 570.202 (c)]
Page 3 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
All public service activities [24 CFR 570.201 (e)] and other eligible activities under this
Supplemental Agreement must be implemented, completed, and obligations reported in writing to the
COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this
Supplemental Agreement. "CFR" as used herein refers to the Code of Federal Regulations.
9. RECORDS AND INSPECTIONS.
A. CITY shall establish and maintain financial, programmatic, statistical, and other
supporting records of its operations and financial activities in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part
200), and 24 CFR Section 570.502 (a), as they relate to the acceptance and use of federal funds under
this Agreement. Said records shall be retained for a period of four (4) years from the date that the activity
or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the
Comprehensive Annual Performance and Evaluation Report (CAPER). Exceptions to the four (4) year
retention period requirement, pursuant to 2 CFR 200.333 include, but not limited to, the following:
1 (4) year period;
i. if any litigation, claim, or audit is started prior to the expiration of the four
ii. when the CITY is notified in writing by the COUNTY, HUD, or other
Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG funds must
be retained for four (4) years after final disposition;
iv. when the records are transferred by the CITY to the COUNTY, HUD, or
other Federal agency, the four (4) year period is not applicable.
B. CITY shall obtain an external audit in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR
Section 200.500). Audits shall usually be performed annually but not less frequently than every two
years. Nonprofit institutions and government agencies that expend less than $750,000 a year in Federal
awards are exempt from Federal audit requirements, but records must be available for review by
appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall be
submitted to the COUNTY within 180 days after the end of the COUNTY'S fiscal year.
Page 4 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
C. CITY shall maintain a separate account for the CITY'S CDBG Entitlement funds
received as set forth in Exhibit(s) A, and B attached hereto.
D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours, make
available to COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other
authorized representative, for the examination and copying, all of its records and other materials with
respect to matters covered by this Agreement and provide reasonable access to CITY staff for the purpose
I of interview and discussion related to the records and documents.
E. CITY shall not retain any program income as defined in 24 CFR 570.500. Said
program income shall be used only for the activities that are the subject of this Agreement. Further, all
provisions of this Agreement shall apply to such activities.
F. The CITY shall ensure that at least fifty-one percent (51%) of the persons
benefiting from all CDBG-funded activities or projects designated as serving limited clientele [24 CFR
570.208(a)(2)(i)] are of low and moderate -income and meet the applicable household income guidelines.
The CITY shall provide the required income certification and direct benefit documentation, in writing,
to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, and
B, attached hereto. In the event that CITY engages the services of a sub -contractor to implement CDBG-
funded activities, the CITY must collect, in writing, all required income certification and direct benefit
documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting
requirement of each activity as set forth in Exhibit(s) A, and B, attached hereto.
10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and
local laws, regulations, and ordinances and any amendments thereto and the federal regulations and
guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those
regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the
provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the
above -mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the
Housing & Urban Development Act of 1968 (12 U.S.C.A. Section 1701u), as amended, a copy of which
is attached hereto as Exhibit "S", and incorporated herein by this reference. CITY shall adhere to the
regulations as set forth in Exhibit "R", attached hereto and incorporated herein by this reference,
Page 5 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
pertaining to inherently religious activities. CITY shall comply with the Additional Federal
Requirements, if applicable, attached hereto as Exhibit "AFR", and incorporated herein by this reference.
11. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with
COUNTY in undertaking essential community development and housing assistance activities,
specifically urban renewal and public assistance housing, and shall assist COUNTY in implementing
and undertaking the goals and strategies identified in the 2019-2024 Five Year Consolidated Plan,
pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant
Program.
12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Title 14 CCR Section 1501(d), the CITY
is designated as the lead agency for the projects that are the subject matter of this Supplemental
Agreement.
13. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of
Section 895.2 of the California Government Code imposing certain tort liability jointly upon public
entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the
Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code,
agree that each Party shall be liable for any damages including, but not limited to, claims, demands,
losses, liabilities, costs and expenses including reasonable attorneys' fees, resulting from the negligent
or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and
each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands,
damages, losses or liabilities for their negligence.
The hold harmless and indemnification obligations set forth herein shall survive the termination
and expiration of this Agreement. In the event there is conflict between this clause and California Civil
Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation
shall not relieve the CITY from indemnifying the Indemnitees to the fullest extent allowed by law.
14. INSURANCE. Without limiting or diminishing the CITY's obligation to indemnify or
hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost
and expense, the following insurance coverage's during the term of this Agreement. As respects to the
Page 6 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
insurance section only, the COUNTY herein refers to the County of Riverside, its Agencies, Districts,
Special Districts, and Departments, their respective directors, officers, Board of COUNTY OF
RIVERSIDE Supervisors, employees, elected or appointed officials, agents, or representatives as
Additional Insureds
a. Workers' Compensation:
If the CITY has employees as defined by the State of California, the CITY shall maintain
statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State of
California. Policy shall include Employers' Liability (Coverage B) including Occupational Disease with
limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive
subrogation in favor of the County of Riverside.
b. Commercial General Liability:
Commercial General Liability insurance coverage, including but not limited to, premises
liability, contractual liability, products and completed operations liability, personal and advertising
injury, and cross liability coverage, covering claims which may arise from or out of CITY'S performance
of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy's
limit of liability shall not be less than $2,000,000 per occurrence combined single limit. If such insurance
contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2)
times the occurrence limit.
C. Vehicle Liability:
If vehicles or mobile equipment are used in the performance of the obligations under this
Agreement, then CITY shall maintain liability insurance for all owned, non -owned or hired vehicles so
used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance
contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2)
times the occurrence limit. Policy shall name the County of Riverside as Additional Insured.
d. General Insurance Provisions - All lines:
(i). Any insurance carrier providing insurance coverage hereunder shall be
admitted to the State of California and have an A M BEST rating of not less than A: VIII (A:8) unless
Page 7 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
such requirements are waived, in writing, by the County Risk Manager. If the County's Risk Manager
waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only
for one policy term.
(ii). The CITY must declare its insurance self -insured retentions. If such self -
insured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent
of the County Risk Manager before the commencement of operations under this Agreement. Upon
notification of self -insured retention unacceptable to the COUNTY, and at the election of the Country's
Risk Manager, CITY' S carriers shall either; 1) reduce or eliminate such self -insured retention as respects
this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related
investigations, claims administration, and defense costs and expenses.
(iii). CITY shall cause CITY'S insurance carrier(s) to furnish the County of
Riverside with either 1) a properly executed original Certificate(s) of Insurance and certified original
copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in
writing by the County Risk Manager, provide original Certified copies of policies including all
Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further,
said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that
thirty (30) days written notice shall be given to the County of Riverside prior to any material
modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a
material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate
forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed
original Certificate of Insurance and original copies of endorsements or certified original policies,
including all endorsements and attachments thereto evidencing coverage's set forth herein and the
insurance required herein is in full force and effect. CITY shall not commence operations until the
COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of
endorsements and if requested, certified original policies of insurance including all endorsements and
any and all other attachments as required in this Section. An individual authorized by the insurance
carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of
Page 8 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
lInsurance.
(iv). It is understood and agreed to by the parties hereto that the CITY'S
insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or deductibles
and/or self -insured retention's or self -insured programs shall not be construed as contributory.
(v). If, during the term of this Agreement or any extension thereof, there is a
material change in the scope of services; or, there is a material change in the equipment to be used in the
performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds
five (5) years, the COUNTY reserves the right to adjust the types of insurance required under this
Agreement and the monetary limits of liability for the insurance coverage's currently required herein, if;
in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the CITY
has become inadequate.
(vi). CITY shall pass down the insurance obligations contained herein to all
tiers of subcontractors working under this Agreement.
(vii). The insurance requirements contained in this Agreement may be met with
a program(s) of self-insurance acceptable to the COUNTY.
(viii). CITY agrees to notify COUNTY of any claim by a third party or any
incident or event that may give rise to a claim arising from the performance of this Agreement.
15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this
Supplemental Agreement, an independent contractor and shall not be deemed an employee of the
COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and
subcontractor's) shall in no event be entitled to any benefits to which the COUNTY employees are
entitled, including but not limited to overtime, any retirement benefits, worker's compensation benefits,
and injury leave or other leave benefits. There shall be no employer -employee relationship between the
parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made
against the COUNTY based upon any contention by a third party that an employer -employee relationship
exists by reason of this Supplemental Agreement. It is further understood and agreed by the parties that
the CITY in the performance of this Supplemental Agreement is subject to the control or direction of the
COUNTY merely as to the results to be accomplished and not as to the means and methods for
Page 9 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
accomplishing the results.
16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570.601 and 570.602
of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall
on the grounds of race, color, national origin, sex, sexual orientation, gender identity, or veterans status
be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any
program or activity funded in whole or in part with Community Development funds.
CITY shall abide by and include in any subcontracts to perform work under this Supplemental
Agreement, the following clause:
"During the performance of this Supplemental Agreement, CITY and its subcontractors shall not
unlawfully discriminate against any employee or applicant for employment because of race,
religion, color, national origin, ancestry, physical disability, medical condition, marital status,
veterans status, sexual orientation, gender identity, age (over 40) or sex. CITY and
subcontractors shall insure that the evaluation and treatment of their employees and applicants
for employment are free of such discrimination. CITY and subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (California Government Code Section
12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission
are implementing California Government Code Section 12990 et seq., set forth in Chapter 1 of
Division 4.1 of Title 2 of the California Administrative Code are incorporated into this
Agreement by reference and made a part hereof as if set forth in full. CITY and its subcontractors
shall give written notice of their obligations under this clause to labor organizations with which
they have a collective bargaining or other agreement."
17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, officers and elected and
appointed officials shall become familiar with and shall comply with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the
CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570.611.
B. The Subrecipient shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award and administration of
contracts supported by Federal funds.
Page 10 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
C. No employee, officer or agent of the Subrecipient shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
D. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a
decision -making process or gain inside information with regard to such activities, may obtain a financial
interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect
to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either
for themselves or those with whom they have business or immediate family ties, during their tenure or
for a period of one (1) year thereafter. For purposes of this paragraph, a "covered person" includes any
person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the
Subrecipient, or any designated public agency.
E. CITY understands and agrees that no waiver of exception can be granted to the
prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR
570.611(d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine
whether such request is appropriate for submission to HUD in the COUNTY'S sole and absolute
discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will
consider the factors listed in 24 CFR 570.611(d)(2).
F. Prior to the distribution of any CDBG funding under this Supplemental
Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants,
officers and elected and appointed officials who are in a position to participate in a decision making
process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG
activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential
conflict, including even the appearance of conflict that may arise with respect to the CDBG activities
funded under this Supplemental Agreement.
G. Any violation of this Section 17 shall be deemed a material breach of this
Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by the
COUNTY.
18. LOBBYING. CITY certifies to the best of its knowledge and belief, that:
Page 11 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
a. No federally -appropriated funds have been paid or will be paid, by or on behalf
of the CITY, to any person for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, an officer or employee of Congress, or an employee of a member of
Congress in connection with the awarding of any federal contract, the making of any federal grant, the
making of any federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative
agreement.
b. If any funds other than 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 this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
C. CITY shall require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants,
loans, and cooperative agreements) and that all sub -recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into.
19. TERMINATION.
A. CITY. CITY may not terminate this Agreement except upon express written
consent of COUNTY, pursuant to 2 CFR 200.339 (a)(3).
B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY
may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to CITY of
action being taken and the reason for such action including, but not limited to, the following reasons:
(1) In the event CITY fails to perform the covenants herein contained at such
times and in such manner as provided in this Supplemental Agreement; and
(2) In the event there is a conflict with any federal, state or local law,
ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement invalid or
untenable; or
(3) In the event the funding from the Department of Housing and Urban
Page 12 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.
C. This Agreement may be terminated and/or funding suspended, in whole or in part,
for cause in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (2 CFR 200.339). Cause shall be based on the failure of the CITY to
materially comply with either the terms or conditions of this Agreement. Upon suspension of funding,
the CITY agrees not to incur any costs related thereto, or connected with, any area of conflict from which
the COUNTY has determined that suspension of funds is necessary. CITY acknowledges that failure to
comply with Federal statutes, regulations, or the terms and conditions of this Agreement may be
considered by the COUNTY in evaluating future CDBG and non-CDBG funding applications submitted
by CITY.
D. Upon suspension or termination of this Supplemental Agreement, CITY shall
return any unencumbered funds which it has been provided by COUNTY. In accepting said funds,
COUNTY does not waive any claim or cause of action it may have against CITY for breach of this
Supplemental Agreement.
E. Reversion of Assets
1. Upon expiration or termination of this Supplemental Agreement, the
CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the
Supplemental Agreement as well as any accounts receivable held by CITY which are attributable to the
use of CDBG funds awarded pursuant to this Supplemental Agreement.
2. Any real property under the CITY' S control that was acquired or improved
in whole or in part with CDBG funds (including CDBG funds provided to the CITY in the form of a
loan) in excess of $25,000 is either:
(i) Used to meet one of the National Objectives pursuant to 24 CFR
570.208 until five years after expiration of this agreement, or for such longer period of time as determined
to be appropriate by the COUNTY; or
(ii) Not used in accordance with Clause (i) above, in which event the
CITY shall pay the COUNTY an amount equal to the current market value of the property less any
portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or
improvement to, the property.
Page 13 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
20. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this
Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of
Housing, and Workforce Solutions, and the Community Development Block Grant Program in making
the project possible.
21. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall
be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of
this Supplemental Agreement and the effective and efficient achievement of the CDBG National
Objectives as set forth in Exhibit(s)A, and B, attached hereto. Quarterly reports shall be due on the last
day of the month immediately following the end of the quarter being reported. The quarterly written
reports shall include, but shall not be limited to, the following data elements:
A. Title of program, listing of components, description of activities/operations.
B. The projected goals, indicated numerically, and also the goals achieved (for each
report period). In addition, identify by percentage and description, the progress achieved towards
meeting the specified goals and identify any problems encountered in meeting goals.
C. If the CDBG-funded activity meets a National Objective under 24 CFR 570.208
(a)(2)(i), CITY will report the following:
1) Total number of direct beneficiaries (clientele served) with household
incomes at:
• Above 80% MHI
• Between 50% and 80% MHI (Low -Income)
• Between 30% and 50% MHI (Very Low -Income)
• Less than 30% MHI (Extremely Low -Income)
2) Total number and percent (%) of the clientele served that have household
incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female -Headed Households
D. CITY shall report, in writing, and cause its subcontractors to report, in writing,
beneficiary statistics monthly to Housing and Workforce Solutions (HWS) on the pre -approved Direct
Benefit Form and Self -Certification Form (certifying income, family size, and racial ethnicity) as
Page 14 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
required by HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes
during the term of this Supplemental Agreement. CITY and subcontractors will collect and provide all
necessary data required by HUD pertaining to the Specific Outcome Indicators as identified in HUD's
Community Planning and Development (CPD) Outcome Performance Measurement System.
22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval from
HWS prior to implementing the following "high risk" activities funded with CDBG assistance:
A. Construction of public facilities (project plans and specifications);
B. Acquisition of real property;
C. Historic Preservation;
D. Relocation; and
F. Economic Development
23. PRIOR COUNTY APPROVAL (CONSTRUCTION ACTIVITIE51. CITY shall obtain
COUNTY's written approval, through its HWS, of the project plans, specifications, and construction
documents prior to CITY'S construction of same for all projects consisting of CDBG-funded
construction activities. The COUNTY neither undertakes nor assumes nor will have any responsibility
or duty to CITY or to any third party to review, inspect, supervise, pass judgment upon or inform CITY
or any third party of any matter in connection with the development or construction of the
improvements, whether regarding the quality, adequacy or suitability of the plans, any labor, service,
equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY
and all third parties shall rely upon its or their own judgment regarding such matters, and any review,
inspection, supervision, exercise of judgment or information supplied to CITY or to any third party by
the COUNTY in connection with such matter is for the public purpose of assisting with a community
development and housing activity pursuant to the Act, and neither CITY (except for the purposes set
forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be
responsible for any of the work of construction, improvement, or development of the property.
It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local
jurisdiction land use requirements will permit development of the property and construction of the
improvements and the use, operation, and maintenance of such Improvements in accordance with the
Page 15 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any
local jurisdiction or County permit or other local jurisdiction or County approval necessary for the
development of the Property, or waive any applicable local jurisdiction or County requirements
relating thereto. This Agreement does not (a) grant any land use entitlement to CITY, (b) supersede,
nullify, or amend any condition which may be imposed by the local jurisdiction in connection with
approval of the development described herein, (c) guarantee to CITY or any other party any profits
from the development of the Property, or (d) amend any local jurisdiction or County laws, codes or
rules.
24. PRIOR COUNTY APPROVAL (AQUISITION ACTIVITIES). CITY shall obtain
COUNTY's written approval and authorization to proceed, through HWS, of all CDBG-funded real
property acquisition activities.
25. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY CONSTRUCTED WITH
CDBG FUNDS. When CDBG funds are used, in whole or in part, by CITY to acquire real property or
to construct a public facility, CITY will comply with the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.311); National
Environmental Policy Act of 1969 (42 U.S.C.A. §4321, et seq.); the California Environmental Quality
Act (Cal. Pub. Resources Code §21000, et seq.); the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (42 U.S.C.A. §4630, et seq.); and the COUNTY's Five
Year Consolidated Plan. In addition, the following is to occur:
a. Title to the real property shall vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be
maintained by the CITY, for a minimum period of five (5) years from the date the CDBG-funded
activity is closed -out and reported as complete by the COUNTY through the Comprehensive Annual
Performance and Evaluation Report (CAPER);
C. While held by CITY, the real property or the constructed facility is to be used
exclusively for the purposes for which acquisition or construction was originally approved by
COUNTY;
Page 16 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
d. Written approval from COUNTY must be secured if the property or the facility is
to be put to an alternate use that is consistent with the COUNTY'S Five Year Consolidated Plan or the
applicable federal regulations governing CDBG funds;
e. Should CITY desire to use the real property or the constructed facility, prior to
the completion of the mandatory five-year period, for a purpose not consistent with applicable federal
regulations governing CDBG funds or to sell the real property or facility, then:
(1) If CITY desires to retain title, CITY will reimburse COUNTY the amount
that represents the percentage of current fair market value that is identical to the percentage that CDBG
funds initially comprised of monies paid to acquire the property or construct the facility; or
(2) If CITY sells the property or facility or is required to sell the property or
facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds
realized by the sale that is identical to the percentage that CDBG funds initially comprised of monies
paid to acquire the property or construct the facility. This percentage amount will be calculated after
deducting all actual and reasonable cost of sale from the sale proceeds.
26. ENTIRE AGREEMENT. This Supplemental Agreement, including any attachments or
exhibits hereto constitutes the entire Supplemental Agreement of the parties with respect to its subject
matter and supersedes all prior and contemporaneous representations, proposals, discussions and
communications, whether oral or in writing. No oral understanding or agreement not incorporated herein
shall be binding on any of the parties hereto. Each of the attachments and exhibits attached hereto is
incorporated herein by this reference.
27. SEVERABILITY.
Each section, paragraph and provision of this Supplemental
Agreement is severable from each other provision, and if any provision or part thereof is declared invalid,
the remaining provisions shall remain in full force and effect.
28. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to
notify in writing, and to cause any subcontractor implementing CDBG-funded Projects to notify, in
writing, the Riverside County Workforce Development Center of any and all job openings that are caused
by the CDBG-funded Projects under this Supplemental Agreement.
29. MINISTERIAL ACTS. The Director of Housing and Workforce Solutions or designee(s)
Page 17 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms,
provisions, and conditions of this Supplemental Agreement as it may be amended from time -to -time by
I COUNTY.
30. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability
for any later determination by the United States Government, the U.S. Department of Housing and Urban
Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to
I receive CDBG entitlement funds from the COUNTY.
31. SOURCE OF FUNDING. CITY acknowledges that the source of funding pursuant to this
Supplemental Agreement is Community Development Block Grant funds (CFDA 14.218), and the Grant
Award Number is B-22-UC-06-0506.
32. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form with
respect to this Supplemental Agreement, without prior written approval of the COUNTY.
33. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any
dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State
of California. This Supplemental Agreement shall be construed as a whole according to its fair language
and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not be
employed in interpreting this Supplemental Agreement, all parties having been represented by counsel
in the negotiation and preparation hereof.
34. WAIVER. Failure by a parry to insist upon the strict performance of any of the
provisions of this Supplemental Agreement by the other parry, or the failure by a parry to exercise its
rights upon the default of the other party, shall not constitute a waiver of such party's rights to insist and
demand strict compliance by the other party with the terms of this Supplemental Agreement thereafter.
35. JURISDICTION AND VENUE: Any action at law or in equity arising under this
Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or
determining the validity of any provision of this Supplemental Agreement shall be filed only in the
Superior Court of the State of California, located in Riverside, California, and the parties hereto waive
all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction
36. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in
Page 18 of 21
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
whole or in part, for the purchase of equipment or personal property, the property shall not be transferred
from its originally funded use, by CITY or the CITY'S subcontractor implementing the CDBG-funded
activity, for a period of five (5) years from the close-out date of the grant from which CDBG assistance
was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review.
37. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or
exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant and
represent that they have the authority to execute this Supplemental Agreement and warrant and represent
that they have the authority to bind the respective parties to this Supplemental Agreement to the
performance of its obligations hereunder.
38. EFFECTIVE DATE. The effective date of this Supplemental Agreement is the date the
parties sign the Supplemental Agreement. If the parties sign the Supplemental Agreement on more than
one date, then the last date the Supplemental Agreement is signed by a party shall be the effective date.
39. COUNTERPARTS. This Supplemental Agreement may be signed by the different
parties hereto in counterparts, each of which shall be an original but all of which together shall constitute
one and the same agreement.
40. FORCE MAJEURE.
A. Performance by either party hereunder shall not be deemed to be in default where
delays or defaults are due to war, insurrection, strikes, lock -outs, riots, floods, earthquakes, fires,
casualties, acts of God, acts of the public enemy, epidemics, pandemic, quarantine restrictions, freight
embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe
weather, inability to secure necessary labor, material or tools, delays of any contractor, sub -contractor
or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or
any causes beyond the control or without the fault of the party claiming an extension of time to perform.
B. An extension of time for any such cause (a "Force Majeure Delay") shall be for
the period of the enforced delay and shall commence to run from the time of the commencement of the
cause, if notice by the parry claiming such extension is sent to the other party within thirty (30) calendar
days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the
foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay
and interference delivers to the other party written notice describing the event, its cause, when and how
Page 19 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
such party obtained knowledge, the date the event commenced, and the estimated delay resulting
therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30)
calendar days after it obtains knowledge of the event.
41. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modified
or amended only by a writing signed by the duly authorized and empowered representative of COUNTY
and CITY respectively.
42. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use of electronic
signatures, such as digital signatures that meet the requirements of the California Uniform Electronic
Transactions Act (("CUETA") Cal. Civ. Code §§ 1633.1 to 1633.17). The parties further agree that the
electronic signatures of the parties included in this Agreement are intended to authenticate this writing
and to have the same force and effect as manual signatures. Electronic signature means an electronic
sound, symbol, or process attached to or logically associated with an electronic record and executed or
adopted by a person with the intent to sign the electronic record pursuant to CUETA as amended from
time to time. Digital signature means an electronic identifier, created by computer, intended by the party
using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied
upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature"
as defined in subdivision (i) of Section 1633.2 of the Civil Code.
[Remainder of Page Intentionally Blank]
[Signatures on Following Page]
Page 20 of 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
19
19
20
21
22
23
24
25
26
27
28
IN WITNESS WHEREOF, the COUNTY and the CITY have exocutW this Agreement as of the
dates at forth below.
COUNTY OF RIVERSIDE,
a political subdivision of the
State of Califomia
BY: " -
Michael Walsh,
Deputy Director
is r
CITY OF LA QUINTA, a California.
Municipal Corporation and charter city
_ BY:
N on McMillen
Title: City Manager
Date: 10 1 °2Q ou
APPROVED AS TO FORM: ATTEST:
MINH C. TRAN
COUNTY UNSEL
By: BY:
P. Dmwn, MoAiRadev4 City
7*
Deputy County Counsel
APPROVED AS TO FORM:
BY:1..f.da+'
William HL Ihrke, City Athmw
Page 210921
EXHIBIT "It"
24 C.F.R. § 5.109
Equal participation of faith -based organizations in
HUD programs and activities.
Effective: May 4, 2016
(a) Purpose.
Consistent with Executive Order 13279 (issued on December 12, 2002, 67 FR 77141), entitled "Equal Protection
of the Laws for Faith —Based and Community Organizations," as amended by Executive Order 13559 (issued on
November 17, 2010, 75 FR 71319), entitled "Fundamental Principles and Policymaking Criteria for Partnerships
With Faith —Based and Other Neighborhood Organizations,", and further amended by Executive Order 13831
(issued on May 3, 2018, 83 FR 20715) entitled "Establishment of a White House Faith and Opportunity Initiative,"
this section describes requirements for ensuring the equal participation of faith -based organizations in HUD
programs and activities. These requirements apply to all HUD programs and activities, including all of HUD's
Native American Programs, except as may be otherwise noted in the respective program regulations in title 24 of
the Code of Federal Regulations (CFR), or unless inconsistent with certain HUD program authorizing statutes.
b) Definitions. The following definitions apply to this section:
Direct Federal financial assistance means Federal financial assistance provided when a Federal Government
agency or an intermediary, as defined in this section, selects the provider and either purchases services from that
provider (i.e., via a contract) or awards funds to that provider to carry out an activity (e.g., via grant, sub -grant,
sub -award, or cooperative agreement). The recipients of sub -grants or sub -awards that receive Federal financial
assistance through State -administered programs (e.g., flow -through programs) are considered recipients of direct
Federal financial assistance. In general, Federal financial assistance shall be treated as direct, unless it meets the
definition of indirect Federal financial assistance.
Federal financial assistance means assistance that non —Federal entities receive or administer in the forms of grants,
contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or
other assistance, but does not include a tax credit, deduction, or exemption.
Indirect Federal financial assistance means Federal financial assistance provided when the choice of the provider
is placed in the hands of the beneficiary, and the cost of that service is paid through a voucher, certificate, or other
similar means of Government -funded payment. Federal financial assistance provided to an organization is
considered indirect when the Government program through which the beneficiary receives the voucher, certificate,
or other similar means of Government -funded payment is neutral toward religion meaning that it is available to
providers without regard to the religious or non -religious nature of the institution and there are no program
incentives that deliberately skew for or against religious or secular providers; and the organization receives the
assistance as a result of a genuine, independent choice of the beneficiary.
Intermediary means an entity, including a nongovernmental organization, acting under a contract, grant, or other
agreement with the Federal Government or with a State, tribal or local government that accepts Federal financial
assistance and distributes that assistance to other entities that, in turn, carry out activities under HUD programs.
(c) Equal participation of faith -based organizations in HUD programs and activities.
Faith -based organizations are eligible, on the same basis as any other organization, to participate in any HUD
program or activity, considering any permissible accommodations, particulary under the Religious Freedome
Restoration Act. Neither the Federal Government, nor a State, tribal or local government, nor any other entity that
administers any HUD program or activity, shall discriminate against an organization on the basis of the
organization's religious character, affiliation, or lack thereof, or on the basis of the organization's religious
exercise. For purposes of this part, to discriminate against an organization on the basis of the organization's
religious exercise means to disfavor an organization, including by failing to select an organization, disqualifying
an organization, or imposing any condition or selection criterion that otherwise disfavors or penalizes an
organization in the selection process or has such an effect:
(1) Because of conduct that would not be considered grounds to disfavor a secular organization;
(2) Because of conduct that must or could be granted an appropriate accommodation in a manner consistent with
RFRA (42 U.S.C. 2000bb through 2000bb-4) or the Religion Clauses of the First Amendment to the Constitution;
or
(3) Because of the actual or suspected religious motivation of the organization's religious exercise.
(4) In addition, decisions about awards of Federal financial assistance must be free from political interference or
even the appearance of such interference and must be made on the basis of merit, not based on the organization's
religious character, affiliation, or lack thereof, or based on the organization's religious exercise. Notices of funding
availability, grant agreements, and cooperative agreements shall include language substantially similar to that in
appendix A to this subpart, where faith -based organizations are eligible for such opportunities.
(d) Independence and identity of faith -based organizations.
(1) A faith -based organization that applies for, or participates in, a HUD program or activity supported with
Federal financial assistance retains its autonomy, right of expression, religious character, authority over its
governance, and independence, and may continue to carry out its mission, including the definition, development,
practice, and expression of its religious beliefs. A faith -based organization that receives Federal financial
assistance from HUD does not lose the protections of law.
(2) A faith -based organization that receives direct Federal financial assistance may use space (including a
sanctuary, chapel, prayer hall, or other space) in its facilities (including a temple, synagogue, church, mosque, or
other place of worship) to carry out activities under a HUD program without concealing, altering, or removing
religious art, icons, scriptures, or other religious symbols. In addition, a faith -based organization participating in
a HUD program or activity retains its authority over its internal governance, and may retain religious terms in its
organization's name, select its board members and employees on the basis of their acceptance of or adherence to
the religious tenets of the organization consistent with paragraph (i) of this section), and include religious
references in its organization's mission statements and other governing documents.
(e) Explicitly religious activities.
If an organization engages in explicitly religious activities (including activities that involve overt religious content
such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered
separately, in time or location, from the programs or activities supported by direct Federal financial assistance and
participation must be voluntary for the beneficiaries of the programs or activities that receive direct Federal
financial assistance. The use of indirect Federal financial assistance is not subject to this restriction. Nothing in
this part restricts HUD's authority under applicable Federal law to fund activities, that can be directly funded by
the Government consistent with the Establishment Clause of the U.S. Constitution.
(f) Intermediary responsibilities to ensure equal participation of faith -based organizations in HUD programs.
If an intermediary - acting under a contract, grant, or other agreement with the Federal Government or with a
State, tribal or local government that is administering a program supported by Federal financial assistance - is
given the authority to select a nongovernmental organization to receive Federal financial assistance under a
contract, grant, sub -grant, sub -award, or cooperative agreement, the intermediary must ensure that such
organization complies with the requirements of this section. If the intermediary is a nongovernmental
organization, it retains all other rights of a nongovernmental organization under the program's statutory and
regulatory provisions.
(g) Nondiscrimination requirements.
Any organization that receives Federal financial assistance under a HUD program or activity shall not, in
providing services with such assistance or carrying out activities with such assistance, discriminate against a
beneficiary or prospective beneficiary on the basis of religion, religious belief, a refusal to hold a religious
belief, or a refusal to attend or participate in a religious practice. However, an organization that participates in a
program funded by indirect Federal financial assistance need not modify its program or activities to
accommodate a beneficiary who chooses to expend the indirect aid on the organization's program and may
require attendance at all activities that are fundamental to the program.
(h) No additional assurances from faith -based organizations.
A faith -based organization is not rendered ineligible by its religious nature to access and participate
in HUD programs. Absent regulatory or statutory authority, no notice of funding availability, grant agreement,
cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by HUD or a
recipient or intermediary in administering Federal financial assistance from HUD shall require otherwise eligible
faith -based organizations to provide assurances or notices where they are not required of similarly situated secular
organizations. All organizations that participate in HUD programs or activities, including organizations with
religious character or affiliations, must carry out eligible activities in accordance with all program requirements,
subject to any required or appropriate accommodation, particularly under the Religious Freedom Restoration Act,
and other applicable requirements governing the conduct of HUD -funded activities, including those prohibiting
the use of direct financial assistance to engage in explicitly religious activities. No notice of funding availability,
grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is
used by HUD or a recipient or intermediary in administering financial assistance from HUD shall disqualify
otherwise eligible faith -based organizations from participating in HUD's programs or activities because such
organization is motivated or influenced by religious faith to provide such programs and activities, or because of
its religious character or affiliation, or on grounds that discriminate against an organization on the basis of the
organization's religious exercise, as defined in this part.
(i) Exemption from Title VII employment discrimination requirements.
A religious organization's exemption from the Federal prohibition on employment discrimination on the basis of
religion, set forth in section 702(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1), is not forfeited when the
organization participates in a HUD program. Some HUD programs, however, contain independent statutory
provisions that impose certain nondiscrimination requirements on all grantees. Accordingly, grantees should
consult with the appropriate HUD program office to determine the scope of applicable requirements.
0) Acquisition, construction, and rehabilitation of structures.
Direct Federal financial assistance may be used for the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used for conducting eligible activities under a HUD program or activity.
Where a structure is used for both eligible and explicitly religious activities (including activities that involve overt
religious content such as worship, religious instruction, or proselytization), direct Federal financial assistance may
not exceed the cost of the share of acquisition, construction, or rehabilitation attributable to eligible activities in
accordance with the cost accounting requirements applicable to the HUD program or activity. However,
acquisition, construction, or rehabilitation of sanctuaries, chapels, or other rooms that a HUD —funded faith -based
organization uses as its principal place of worship, may not be paid with direct Federal financial assistance.
Disposition of real property by a faith -based organization after its use for an authorized purpose, or any change in
use of the property from an authorized purpose, is subject to Government -wide regulations governing real property
disposition (2 CFR part 200, subpart D) and the HUD program regulations, as directed by HUD.
(k) Commingling of Federal and State, tribal, and local funds.
If a State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal financial
assistance for an activity, the State, tribal or local government has the option to segregate those funds or
commingle them with the direct Federal financial assistance. However, if the funds are commingled, the
requirements of this section apply to all of the commingled funds. Further, if a State, tribal, or local government
is required to contribute matching funds to supplement direct Federal financial assistance for an activity, the
matching funds are considered commingled with the direct Federal financial assistance and, therefore, subject to
the requirements of this section. Some HUD programs' requirements govern any activity assisted under those
programs. Accordingly, recipients should consult with the appropriate HUD program office to determine the scope
of applicable requirements.
(1) Tax exempt organizations.
In general, HUD does not require that a recipient, including a faith -based organization, obtain tax-exempt status
under section 501(c)(3) of the Internal Revenue Code to be eligible for funding under HUD programs. Many grant
programs, however, do require an organization to be a nonprofit organization in order to be eligible for funding.
Notices of funding availability that require organizations to have nonprofit status will specifically so indicate in
the eligibility section of the notice of funding availability. In addition, if any notice of funding availability requires
an organization to maintain tax-exempt status, it will expressly state the statutory authority for requiring such
status. Applicants should consult with the appropriate HUD program office to determine the scope of any
applicable requirements. In HUD programs in which an applicant must show that it is a nonprofit organization but
this is not statutorily defined, the applicant may do so by any of the following means:
(1) Proof that the Internal Revenue Service currently recognizes the applicant as an organization to which
contributions are tax deductible under section 501(c)(3) of the Internal Revenue Code;
(2) A statement from a State or other governmental taxing body or the State secretary of State certifying that -
(i) The organization is a nonprofit organization operating within the State; and
(ii) No part of its net earnings may benefit any private shareholder or individual;
(3) A certified copy of the applicant's certificate of incorporation or similar document that clearly establishes the
nonprofit status of the applicant;
(4) Any item described in paragraphs (1)(1) through (3) of this section, if that item applies to a State of national
parents organization, together with a statement by the State of parent organization that the applicant is a local
nonprofit affiliate; or
(5) For an entity that holds a sincerely held religious belief that it cannot apply for a determination as an entity
that is tax-exempt under section 501(c)(3) of the Internal Revenue Code, evidence sufficient to establish that the
entity would otherwise qualify as a nonprofit organization under paragraphs (1)(1) through (4) of this section.
(m) Rule of construction.
Neither HUD nor any recipient or other intermediary receiving funds under any HUD program or activity shall
construe these provisions in such a way as to advantage or disadvantage faith -based organizations affiliated with
historic or well -established religions or sects in comparison with other religions or sects.
Credits
[69 FR 41717, July 9, 2004; 80 FR 75934, Dec. 7, 2015; 81 FR 19416, April 4, 2016; 85 FR 82315, Dec 17, 20201
SOURCE: 61 FR 5202, Feb. 9, 1996; 61 FR 9041, March 6, 1996; 61 FR 9537, March 8, 1996; 61 FR 11113,
March 18, 1996; 61 FR 13616, March 27, 1996; 61 FR 54498, Oct. 18, 1996; 70 FR 77743, Dec. 30, 2005; 73 FR
72340, Nov. 28, 2008; 75 FR 66258, Oct. 27, 2010; 77 FR 5674, Feb. 3, 2012; 80 FR 42352, July 16, 2015; 81
FR 19416, April 4, 2016; 81 FR 80798, Nov. 16, 2016; 81 FR 90657, Dec. 14, 2016, unless otherwise noted.
AUTHORITY: 12 U.S.C. 1701x; 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n, 3535 d ; Sec. 327, Pub.L. 109-
115, 119 Stat. 2936; Sec. 607, Pub.L. 109-162, 119 Stat. 3051 (42 U.S.C. 14043e et sea.); E.O. 13279, 67 FR
77141, 3 CFR, 2002 Comp., p. 258; and E.O. 13559, 75 FR 71319, 3 CFR, 2010 Comp., p. 273.; 29 U.S.C. 794,
42 U.S.C. 1437a, 1437c, 1437c-l(d), 1437d, 1437f, 1437n, 3535(d), and Sec. 327, Pub.L. 109-115, 119 Stat.
2936; 42 U.S.C. 3600-3620; 42 U.S.C. 5304(b); 42 U.S.C. 12101 et sea.; 42 U.S.C. 12704-12708; E.O. 11063,
27 FR 11527,3 CFR, 1958-1963 Comp., p. 652; E.O. 12892, 59 FR 2939,3 CFR, 1994 Comp., p. 849.
EXHIBIT "S"
Page 1 of 2
Economic Opportunities for Low- and Very Low -Income Persons
CONTRACT REQUIREMENTS
24 CFR Part 75
RIVERSIDE COUNTY
Section 75.1 Purpose
This part establishes the requirements to be followed to ensure the objectives of Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) are met. The
purpose of Section 3 is to ensure that economic opportunities, most importantly employment,
generated by certain HUD financial assistance shall be directed to low- and very low-income
persons, particularly those who are recipients of government assistance for housing or residents
of the community in which the Federal assistance is spent.
Section 75.3 Applicability
(a) General applicability. Section 3 applies to public housing financial assistance and Section 3
projects, as follows:
(1) Public housing financial assistance. Public housing financial assistance means:
(i) Development assistance provided pursuant to section 5 of the United States Housing Act of
1937 (the 1937 Act);
(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act;
(iii) Development, modernization, and management assistance provided pursuant to section 9(d)
of the 1937 Act; and
(iv) The entirety of a mixed -finance development project as described in 24 CFR 905.604,
regardless of whether the project is fully or partially assisted with public housing financial
assistance as defined in paragraphs (a)(1)(i) through (iii) of this section.
(2) Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing
construction, and other public construction projects assisted under HUD programs that
provide housing and community development financial assistance when the total amount
of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where
the assistance is from the Lead Hazard Control and Healthy Homes programs, as
authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12
U.S.C. 1701z-1 or 1701z-2), the Lead -Based Paint Poisoning Prevention Act (42 U.S.0 4801
et seq.); and the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851 et seq.). The project is the site or sites together with any building(s) and improvements
located on the site(s) that are under common ownership, management, and financing.
(ii) The Secretary must update the thresholds provided in paragraph (a)(2)(i) of this section not
less than once every 5 years based on a national construction cost inflation factor through Federal
Register notice not subject to public comment. When the Secretary finds it is warranted to ensure
compliance with Section 3, the Secretary may adjust, regardless of the national construction cost
factor, such thresholds through Federal Register notice, subject to public comment.
(iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the
project is fully or partially assisted under HUD programs that provide housing and community
development financial assistance.
(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts.
(c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section
7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 5307(b)) or
subject to tribal preference requirements as authorized under 101(k) of the Native American
Housing Assistance and Self -Determination Act (25 U.S.C. 4111(k)) must provide preferences
in employment, training, and business opportunities to Indians and Indian organizations, and are
therefore not subject to the requirements of this part.
(d) Other HUD assistance and other Federal assistance. Recipients that are not subject to Section
3 are encouraged to consider ways to support the purpose of Section 3.
Section 75.5 Definitions.
The terms HUD, Public housing, and Public Housing Agency (PHA) are defined in 24 CFR part
5. The following definitions also apply to this part:
1937Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.
Contractor means any entity entering into a contract with:
(1) A recipient to perform work in connection with the expenditure of public housing
financial assistance or for work in connection with a Section 3 project; or
(2) A subrecipient for work in connection with a Section 3 project.
Labor hours means the number of paid hours worked by persons on a Section 3 project or by
persons employed with funds that include public housing financial assistance.
Low-income person means a person as defined in Section 3(b)(2) of the 1937 Act.
Material supply contracts means contracts for the purchase of products and materials, including,
but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office
supplies.
Professional services means non -construction services that require an advanced degree or
professional licensing, including, but not limited to, contracts for legal services, financial
consulting, accounting services, environmental assessment, architectural services, and civil
engineering services.
Public housing financial assistance means assistance as defined in §75.3(a)(1).
Public housing project is defined in 24 CFR 905.108.
Recipient means any entity that receives directly from HUD public housing financial assistance
or housing and community development assistance that funds Section 3 projects, including, but
not limited to, any State, local government, instrumentality, PHA, or other public agency, public
or private nonprofit organization.
Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended (12
U.S.C. 1701u).
Section 3 business concern means:
(1) A business concern meeting at least one of the following criteria, documented within the last
six-month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons;
(ii) Over 75 percent of the labor hours performed for the business over the prior three-
month period are performed by Section 3 workers; or
(iii) It is a business at least 51 percent owned and controlled by current public housing
residents or residents who currently live in Section 8-assisted housing.
(2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or
conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section
3 business concern. Section 3 business concerns are not exempt from meeting the specifications
of the contract.
Section 3 project means a project defined in §75.3(a)(2).
Section 3 worker means:
(1) Any worker who currently fits or when hired within the past five years fit at least one of the
following categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the income
limit established by HUD.
(ii) The worker is employed by a Section 3 business concern.
(iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.
(3) Nothing in this part shall be construed to require the employment of someone who meets this
definition of a Section 3 worker. Section 3 workers are not exempt from meeting the
qualifications of the position to be filled.
Section 8-assisted housing refers to housing receiving project -based rental assistance or tenant -
based assistance under Section 8 of the 1937 Act.
Service area or the neighborhood of the project means an area within one mile of the Section 3
project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle
centered on the Section 3 project that is sufficient to encompass a population of 5,000 people
according to the most recent U.S. Census.
Small PHA means a public housing authority that manages or operates fewer than 250 public
housing units.
Subcontractor means any entity that has a contract with a contractor to undertake a portion of
the contractor's obligation to perform work in connection with the expenditure of public housing
financial assistance or for a Section 3 project.
Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.
Targeted Section 3 worker has the meanings provided in §§75.11, 75.21, or 75.29, and does not
exclude an individual that has a prior arrest or conviction.
Very low-income person means the definition for this term set forth in section 3(b)(2) of the 1937
Act.
YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce
Innovation and Opportunity Act (29 U.S.C. 3226).
Subpart C—Additional Provisions for Housing and Community Development
Financial Assistance
§75.19 Requirements.
(a) Employment and training. (1) To the greatest extent feasible, and consistent with existing
Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that
employment and training opportunities arising in connection with Section 3 projects are provided to
Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the project is
located.
(2) Where feasible, priority for opportunities and training described in paragraph (a)(1) of this
section should be given to:
(i) Section 3 workers residing within the service area or the neighborhood of the project, and
(ii) Participants in YouthBuild programs.
(b) Contracting. (1) To the greatest extent feasible, and consistent with existing Federal, state, and
local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded
in connection with Section 3 projects are provided to business concerns that provide economic
opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county)
in which the project is located.
(2) Where feasible, priority for contracting opportunities described in paragraph (b)(1) of this
section should be given to:
(i) Section 3 business concerns that provide economic opportunities to Section 3 workers residing
within the service area or the neighborhood of the project, and
(ii) YouthBuild programs.
§75.21 Targeted Section 3 worker for housing and community development financial assistance.
(a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community
development financial assistance means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or
(2) A worker who currently fits or when hired fit at least one of the following categories, as
documented within the past five years:
(i) Living within the service area or the neighborhood of the project, as defined in §75.5; or
(ii) A YouthBuild participant.
(b) [Reserved]
§75.23 Section 3 safe harbor.
(a) General. Recipients will be considered to have complied with requirements in this part, in the
absence of evidence to the contrary if they:
(1) Certify that they have followed the prioritization of effort in §75.19; and
(2) Meet or exceed the applicable Section 3 benchmark as described in paragraph (b) of this
section.
(b) Establishing benchmarks. (1) HUD will establish Section 3 benchmarks for Section 3 workers
or Targeted Section 3 workers or both through a document published in the FEDERAL REGISTER. HUD
may establish a single nationwide benchmark for Section 3 workers and a single nationwide
benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography,
the nature of the Section 3 project, or other variables. HUD will update the benchmarks through a
document published in the FEDERAL REGISTER, subject to public comment, not less frequently than
once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of
recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed
appropriate by HUD, for the 3 most recent reporting years.
(2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor
hours worked by specific categories of workers or in different localities or regions; averages for labor
hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant
to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks,
HUD will exclude professional services from the total number of labor hours as such hours are
excluded from the total number of labor hours to be reported per §75.25(a)(4).
(3) Section 3 benchmarks will consist of the following two ratios:
(i) The number of labor hours worked by Section 3 workers divided by the total number of labor
hours worked by all workers on a Section 3 project in the recipient's program year.
(ii) The number of labor hours worked by Targeted Section 3 workers as defined in §75.21(a),
divided by the total number of labor hours worked by all workers on a Section 3 project in the
recipient's program year.
§75.25 Reporting.
(a) Reporting of labor hours. (1) For Section 3 projects, recipients must report in a manner
prescribed by HUD:
(i) The total number of labor hours worked;
(ii) The total number of labor hours worked by Section 3 workers; and
(iii) The total number of labor hours worked by Targeted Section 3 workers.
(2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years
from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to
§75.31.
(3) The labor hours reported under paragraph (a)(1) of this section must include the total number
of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients,
contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of
this section, to report.
(4) Recipients reporting under this section, as well as subrecipients, contractors and
subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph
(a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of
this section, from professional services without including labor hours from professional services in the
total number of labor hours worked under paragraph (a)(1)(i) of this section. If a contract covers both
professional services and other work and the recipient or contractor or subcontractor chooses not to
report labor hours from professional services, the labor hours under the contract that are not from
professional services must still be reported.
(5) Recipients may report their own labor hours or that of a subrecipient, contractor, or
subcontractor based on the employer's good faith assessment of the labor hours of a full-time or part-
time employee informed by the employer's existing salary or time and attendance based payroll
systems, unless the project or activity is otherwise subject to requirements specifying time and
attendance reporting.
(b) Additional reporting if Section 3 benchmarks are not met. If the recipient's reporting under
paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks
described in §75.23, the recipient must report in a form prescribed by HUD on the qualitative nature of
its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for
example, include but are not limited to the following:
(1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers.
(2) Provided training or apprenticeship opportunities.
(3) Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume
assistance, coaching).
(4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job
placement services.
(5) Held one or more job fairs.
(6) Provided or referred Section 3 workers to services supporting work readiness and retention
(e.g., work readiness activities, interview clothing, test fees, transportation, child care).
(7) Provided assistance to apply for/or attend community college, a four-year educational
institution, or vocational/technical training.
(8) Assisted Section 3 workers to obtain financial literacy training and/or coaching.
(9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns.
(10) Provided technical assistance to help Section 3 business concerns understand and bid on
contracts.
(11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns.
(12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section
3 business concerns.
(13) Promoted use of business registries designed to create opportunities for disadvantaged and
small businesses.
(14) Outreach, engagement, or referrals with the state one -stop system as defined in Section
121(e)(2) of the Workforce Innovation and Opportunity Act.
(c) Reporting frequency. Unless otherwise provided, recipients must report annually to HUD
under paragraph (a) of this section, and, where required, under paragraph (b) of this section, on all
projects completed within the reporting year in a manner consistent with reporting requirements for the
applicable HUD program.
§75.27 Contract provisions.
(a) Recipients must include language applying Section 3 requirements in any subrecipient
agreement or contract for a Section 3 project.
(b) Recipients of Section 3 funding must require subrecipients, contractors, and subcontractors to
meet the requirements of §75.19, regardless of whether Section 3 language is included in recipient or
subrecipient agreements, program regulatory agreements, or contracts.
Subpart D—Provisions for Multiple Funding Sources, Recordkeeping, and
Compliance
§75.29 Multiple funding sources.
(a) If a housing rehabilitation, housing construction or other public construction project is subject
to Section 3 pursuant to §75.3(a)(1) and (2), the recipient must follow subpart B of this part for the
public housing financial assistance and may follow either subpart B or C of this part for the housing
and community development financial assistance. For such a project, the following applies:
(1) For housing and community development financial assistance, a Targeted Section 3 worker is
any worker who meets the definition of a Targeted Section 3 worker in either subpart B or C of this
part; and
(2) The recipients of both sources of funding shall report on the housing rehabilitation, housing
construction, or other public construction project as a whole and shall identify the multiple associated
recipients. PHAs and other recipients must report the following information:
(i) The total number of labor hours worked on the project;
(ii) The total number of labor hours worked by Section 3 workers on the project; and
(iii) The total number of labor hours worked by Targeted Section 3 workers on the project.
(b) If a housing rehabilitation, housing construction, or other public construction project is subject
to Section 3 because the project is assisted with funding from multiple sources of housing and
community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or recipients
must follow subpart C of this part, and must report to the applicable HUD program office, as
prescribed by HUD.
§75.31 Recordkeeping.
(a) HUD shall have access to all records, reports, and other documents or items of the recipient
that are maintained to demonstrate compliance with the requirements of this part, or that are
maintained in accordance with the regulations governing the specific HUD program by which the
Section 3 project is governed, or the public housing financial assistance is provided or otherwise made
available to the recipient, subrecipient, contractor, or subcontractor.
(b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or
subcontractor that employs the worker maintains documentation, to ensure that workers meet the
definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting
period, as follows:
(1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self -certification that their income is below the income limit from the prior calendar
year;
(ii) A worker's self -certification of participation in a means -tested program such as public housing
or Section 8-assisted housing;
(iii) Certification from a PHA, or the owner or property manager of project -based Section 8-
assisted housing, or the administrator of tenant -based Section 8-assisted housing that the worker is a
participant in one of their programs;
(iv) An employer's certification that the worker's income from that employer is below the income
limit when based on an employer's calculation of what the worker's wage rate would translate to if
annualized on a full-time basis; or
(v) An employer's certification that the worker is employed by a Section 3 business concern.
(2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be
maintained:
(i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
(A) A worker's self -certification of participation in public housing or Section 8-assisted housing
programs;
(B) Certification from a PHA, or the owner or property manager of project -based Section 8-
assisted housing, or the administrator of tenant -based Section 8-assisted housing that the worker is a
participant in one of their programs;
(C) An employer's certification that the worker is employed by a Section 3 business concern; or
(D) A worker's certification that the worker is a YouthBuild participant.
(ii) For a worker to qualify as a Targeted Section 3 worker under subpart C of this part:
(A) An employer's confirmation that a worker's residence is within one mile of the work site or, if
fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site
that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census;
(B) An employer's certification that the worker is employed by a Section 3 business concern; or
(C) A worker's self -certification that the worker is a YouthBuild participant.
(c) The documentation described in paragraph (b) of this section must be maintained for the time
period required for record retentions in accordance with applicable program regulations or, in the
absence of applicable program regulations, in accordance with 2 CFR part 200.
(d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five
years from when their certification as a Section 3 worker or Targeted Section 3 worker is established.
§75.33 Compliance.
(a) Records of compliance. Each recipient shall maintain adequate records demonstrating
compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200.
(b) Complaints. Complaints alleging failure of compliance with this part may be reported to the
HUD program office responsible for the public housing financial assistance or the Section 3 project, or
to the local HUD field office.
(c) Monitoring. HUD will monitor compliance with the requirements of this part. The applicable HUD
program office will determine appropriate methods by which to oversee Section 3 compliance. HUD
may impose appropriate remedies and sanctions in accordance with the laws and regulations for the
program under which the violation was found
EXHIBIT A
File No.: 41Q.46-22
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: City of La Quints. UEI#: JDZXS2JL8NL1
ADDRESS: 78-495 Calle Tampico_
La Quinta, CA 92253
CITY PROGRAM CONTACTS: Quinton Egson, Executive Director
SUBRECIPIENT NAME: Boys & Girls Clubs of Coachella 'Valley, Inc.
ADDRESS: 42-600 Cook Street Suite 120, Palm Desert, CA 92211
PRONE: 760-836-1160
FAX:
E-MAIL:qcgson@bLcofcv.org
PROJECT NAME: Membership Fees Waiver/Reduction Pro
PROJECT LOCATION: 49-995 Moon River Drive, La Quinta. CA 92253
LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT 124 CFR 58.34 (a)(4)]
CDBG ELIGIBILITY CODE: 24 CFR 570.201(e) Public Services
PROJECT FUNDING SUMMARY: $18,200
Project to be administered by County (HWS) on behalf of CITY: YES ❑ NO
H. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2022 2023 Community Development Block Grant for the
Membership Fees WaiverlReduction Program in a manner satisfactory to the County of Riverside and
consistent with any standards required as a condition of providing these funds. Such program will include
the following activities eligible under the Community Development Block Grant program:
Activity #1 The Boys and Girls Club of Coachella Valley, Inc., will use CD80funds to provide
membership "Scholarships"to at riskyouthIchildren ages 7-I8, from low-income families.
These scholarships will allow eligible individuals to participate in after -school programs
aiming to address academic hurdles, virtual learning ars and crafts and recreation.
Page 1 of 6
EXHIBIT A
File No.: 4.LQA6-22
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG pmgrarn's National
Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out
under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 (a(2)(i)(B)
CFR Reference: Low Mod Limited Clientele Income Certification
C. Levels of Accomplishment — Goals and Performance Measures
The City agrees to provide the following levels of program services:
Activity Units Total Total
der Motrth Units/Year Unduplicated Persons
Activity #1
Activity 02
140 140
Unit of Service is defined as: Students receiving scholarships
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): ® Creating Suitable Living Environments
❑ Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): ❑ Availability/Accessibility
® Affordability
❑ Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate
number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and
permitting, and sufficient amount of financial resources necessary to implement and carry out the activities
funded with CDBG funds.
City will immediately notify County ofany significant changes in organizational management, assigned stag
change in facilities, loss or change in matching funds, or any other event that could potentially impact City's
performance under this Agreement. Any changes in the above items are subject to the prior approval of the
County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and
performance standards as stated above. Substandard performance as deterrnined by the County will
constitute noncompliance with this Agreement If action to correct such substandard performance is not
taken by the City within a reasonable period of time after being notified by the County, contract suspension
or termination procedures will be initiated.
Page 2 of 6
EXHIBIT A
File No.: 4.LQA6-22
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement
shall not exceed `15200. Drawdowns for the payment of eligible expenses shall be made against the line
item budgets specified in this Section and in accordance with perfbrmance. Payments may be contingent
upon certification of the Subrecipient's financial management system in accordance with the standards
specified in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200).
The County may require a more detailed budget breakdown than the one contained herein, and the City
shall provide such supplementary budget information in a timely fashion in the form and content prescribed
by the County. Any amendments to the budget must be approved in writing by both the County and City.
Line Item
CDBGG Granted
Funds
Total Non-
CDBG Funds
Total
Activity/Project
Budget
Notes
Total Direct Program
$189200
Expenses
Salaries
Fringe
Office Space (Program Only)
Utilities
Communications
Reproduction/Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other: Scholarships
Local Funds
Total Indirect Program
$
Expenses
Indirect Costs (Specify)*
I
I
I =
I
I Now
All indirect costs must be pre -approved by the County. City must submit an Indirect Cost
Allocation Plan to County, in a form specified by County, demonstrating the appropriate
share of general and administrative costs.
Page 3 of 6
G.
TYPE
FEDERAL
Total Amount of Non- CDBG Leveraging
STATE/LOCAL
EXHIBIT A
File No.: 41Q.46-22
SOURCE AMOUNT
AMOUNTF-96URCE AMOUNT TOTAL
Local 1~ unc
TOTAL: $0
III. ADMINISTRATIVE REQUIRE, vIENTS
A. Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (2 CFR Part 200), and agrees to adhere to the accounting
principles and procedures required therein, utilize adequate internal controls, and maintain
necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).
These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
1. Records to be 1Vlaintaieel.
The City and its subrecipients will maintain all records required by the Federal regulations specified in 24
CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall
include but not be linuted to:
i Records providing a full description of each activity undertaken;
ii. Records demonstrating that each activity undertaken meets one of the National
Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities;
iv. Records required to document the acquisition, improvement, use or disposition of
real property acquired or improved with CDBG assistance;
V. Records documenting compliance with the fair housing and equal opportunity
components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and
vii. Other records necessary to document compliance with Subpart K of 24 CFR Part
570.
2. Records Retention:
The City shall retain all CDBG-related financial records, supporting documents, contracts, and agreement;
for a period of four (4) years. The retention period begins on the date of the submission of the County's
Page 4 of 6
EXHIBIT A
File No.: 41Q.46-22
annual performance and evaluation reportto HUD in which the activities assisted under the Agreement are
reported for the final time. The City will retain all National Objective documentation, including low -
moderate income certification, ethnicity, and other pertinent data for a period of four (4) years after
submission of the County's annual performance and evaluation report to HUD. Notwithstanding the above,
if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and
that have started before the expiration of the four-year period, then such records must be retained until
completion of the actions and resolution of all issues.
3. Client Data:
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall
include, but not be limited to, client name, address, income level or other basis for determining eligibility,
and description of service provided. Such information shall be made available to County monitors or their
designees for review upon request.
4. Disclosure:
The City understands that client information collected under this contract is private and the use or disclosure
of such information, when not directly connected with the administration of the County's or City's
responsibilities with respect to services provided under this contract, is prohibited by applicable federal and
State law unless written consent is obtained from such person receiving service and, in the case of a minor,
that of a responsible parent/guardian.
5. Close -outs -
The City's obligation to the County shall not end until all close-out requirements are completed. Activities
during this close-out period shall include, but are not limited to: making final payments, disposing of
program assets (including the return of all unused materials, equipment, unspent cash advances, program
income balances, and accounts receivable to the County), and determining the custodianship of records.
Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that
the City has control over CDBG finds, including program income.
6. Audits & Inspections.
All City records with respect to any matters covered by this Agreement shall be made available to the
County, HUD, and the Controller General of the United States or any of their authorized representatives, at
any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts
or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City
within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements
will constitute a violation of this contract and may ,result in the withholding of future payments. The City
hereby agrees to have an annual agency audit conducted in accordance with current County policy
concerning subreeipient audits, the Single Audit Act, and the Office of Management and Budget (OMI3)
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Page 5 of 6
EXHIBIT A
File No.: 41Q.46-22
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre -approved by County, CITY will perform and complete the activities described in
Section II in conformance with the schedule oftasks and milestones listed below:
Tasks 1 Milestone Start Bate Completion Date
Completed Training September 2022 October 2022
Execute Subrecipient Agreements September 2022 December 2022
(HWS must approve)
Implement Program Activities July 2022 T13D
Execute Supplemental Agreement September 2022 December 2022
& Notice to Incur Cost
City Submit Quarterly October 2022
Performance Reports to County January 2023
April 2023
July 2023
County Monitoring of City Performance TBD TBD
City submit Monthly October 2022 July 2023
Direct Benefit Reports
City Submits Reimbursement Requests
Monthly Submittal ❑ October 2022 June 2023
Other Schedule ❑
CDBG Program Services Complete March 15, 2023
V. SPECIAL CONDITIONS ]PERFORMANCE REQUIREMENTS
City must collect income selPeertifications from every individual or family participating in CDBG-funded
activities or the parent or legal guardian of every child participating in CDBG-funded activities. This
includes family income, family size, and ethnicity. Sponsor is required to collect income verification
documentation from at least 10% of the participants. All ofthis documentation must be submitted to HWS
on a monthly basis unless otherwise authorized in writing by CDBG program staff.
Once the Notice to Incur Cost letter is received, Sponsor must submit monthly reimbursement requests
unless another schedule is approved, in writing, by HWS. Further, at least 75% of all 2022-2023 CDBG
funds must be drawn down by February 15, 2022, and 100% of all 2022-2023 CDBG funds must be drawn
down by March 15, 2022. Failure to meet this draw down schedule will result in the closing or cancellation
of the CDBG grant and reprograming of remaining funds.
Page 6 of 6
EXHIBIT B
File No.: 41Q.47-22
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(NON-PUBLIC SERVICE)
1. GENERAx.INFORMATION
CITY NAME: City of La Quinta UE1 #: DZXS2JL$NLl
ADDRESS: 79-495 Calle Tampico
La Quinta, CA 92253
PROGRAM CONTACTS: Jon McMillen
PRONE: 760-777-7000 FAX:
E-MAIL.: 'mcmillen la uintaca. ov
PROJECT NAME: City of La g2inta Miscellaneous ADA Ina rovements
PROJECT LOCATION: Various Locations in Ci 's ADA Transition Plan
LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion
CDBG ELIGIBILITY CODE: 570.201 (c)
PROJECT FUNDING SUMMARY: $150,111
Project to be administered by County (HWS) on behalf of City: YES ❑ NO
II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2022-2023 Community Development Block Grant for the City
of La Quinta Miscellaneous ADA Improvements in a manner satisfactory to the County of Riverside and
consistent with any standards required as a condition of providing these funds. Such program will include
the fallowing activities eligible under the Community Development Block Grant program:
Activity # i The City of La Quinta will use CDBG funds to pay for costs associated with the
construction of ADA improvements at various ci"wned public facilities and the
installation of intersection curbs and compliant sidewalks, all prioritized improvements
recommended in the City's ADA Ransition Plan report. CDBG funds will be teed for
design, construction, project management, compliance monitoring, and inspection/testing
costs. City of La Quints Miscellaneous ADA Improvements
Page 1 of 6
EXHIBIT B
File No.: 41Q.47-22
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program's National
Objective Criteria as required under 24 CFR 570.200(ax2). City certifies that the activity(ies) carried out
under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 a 2 i A
CFR Reference:
Low Mod Limited Clientele Presumed
C. Levels of Accomplishment — Goals and Performance Measures
The City agrees to implement and complete the following activity(ies):
Activity # 1: Implement and complete the design and construction of ADA complianece activities
Activity #2: Design, construction project management, compliance monitoring, inspection, and other
related expenses
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): ® Creating Suitable Living Environments
® Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): Availability/Accessibility
Affordability
Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained
and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and
sufficient amount of financial resources necessary to implement and carry out the activities funded with
CDBG funds.
City will immediately notify County of any significant changes in organizational management, assigned staff,
change in facilities, loss or change in matching Funds, or any other event that could potentially impact the
City or subrecipient's performance under this Agreement.
Any changes in the above items are subject to the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and
performance standards as stated above. Substandardperformance as determined by the
County will constitute noncompliance with this Agreement. If action to correct such substandard
performance is not taken by the City within a reasonable period of time after being notified by the County,
contract suspension or termination procedures will be initiated.
Page 2 of 6
EXHIBIT B
File No.: 4.LQ.47-22
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement
shall not exceed SISOJI1 Drawdowns for the payment of eligible expenses shall be made against the line
item budgets specified in this Section and in accordance with performance. Payments may be contingent
upon certification of the Subrecipient's financial management system in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part
200).
The County may require a more detailed budget breakdown than the one contained herein, and the City
shall provide such supplementary budget information in a timely fashion in the form and content prescribed
by the County. Any amendments to the budget must be approved in writing by both the County and City.
Line Item
CDBG Granted
iFuods
Total of Non-
CDBG Funds
Total Activity/Project
Budget
Notes
Design/Engineering Costs
Local Funds
$150,111
Project Administration Costs
Construction Costs
X
$0
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Clearance
Interim Assistance
Indirect Costs:
OTAL CDBG BUDGE
150J1�
150 111
Page 3 of 6
EXHIBIT B
File No.: 4.LQ.47-22
G. Total Amount of Non- CDBG Leveraging
TYPE SOURCE j AMOUNT , SOURCE 1 AMOUNT SOURCE AMOUNT ; TUTAJ. l
FEDERAL
STATE/LOCALLocal funds j
PRI"TE
OTHER I
TOTAL: SO
III. ADMINISTRATIVE REQU REM ENTS
A. Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting
principles and procedures required therein, utilize adequate internal controls, and maintain
necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with the Uniform .Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).
These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR
570.506 that are pertinent to the activities to be %nded under this Agreement. Such records shall include
but not be limited to:
I Records providing a full description of each activity undertaken;
I Records demonstrating that each activity undertaken meets one of the National Objectives of the
CDBG program,
iii. Records required to determine the eligibility of activities;
iv. Records required to document the acquisition, improvement, use or disposition of real property
acquired or improved with CDBG assistance;
V. Records documenting compliance with the fair housing and equal opportunity components of the
CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and
vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
2. Records Retention
Page 4 of 6
EXHIBIT B
File No.: 41Q.47-22
The City shall retain all CDBG-related financial records, supporting documents, contracts, and
agreements for a period of four (4) years. The retention period begins on the date of the
submission of the County's annual performance and evaluation report to HUD in which the
activities assisted under the Agreement are reported for the final time. The City will retain all
National Objective documentation, including low -moderate income certification, ethnicity, and
other pertinent data for a period of four (4) years after submission of the County's annual
performance and evaluation report to HUD. Notwithstanding the above, if there is litigation,
claims, audits, negotiations or other actions that involve any of the records cited and that have
started before the expiration of the four-year period, then such records must be retained until
completion of the actions and resolution of all issues.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall
include, but not be limited to, client name, address, income level or other basis for determining
eligibility, and description of service provided. Such information shall be made available to County
monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and the use or
disclosure of such information, when not directly connected with the administration of the County's or
City's responsibilities with respect to services provided under this contract, is prohibited by applicable
federal and State law unless written consent is obtained from such person receiving service and, in the
case of a minor, that of a responsible parent/guardian.
S. Close-outs
The City's obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final payments,
disposing of program assets (including the return of all unused materials, equipment, unspent cash
advances, program income balances, and accounts receivable to the County), and determining the
custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in
effect during any period that the City has control over CDBG funds, including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made available to the
County, HUD, and the Controller General of the United States or any of their authorized representatives,
at any time during normal business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared
by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit
requirements will constitute a violation of this contract and may result in the withholding of future
payments. The City hereby agrees to have an annual agency audit conducted in accordance with. current
County policy concerning subrecipient audits the Single Audit Act, and the Office of Management and
Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Page 5 of 6
EXHIBIT B
File No.: 41Q.47-22
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre -approved by County, City will perform and complete the activities described in Section
ll in conformance with the schedule of tasks and milestones listed below:
Tasks 1 Milestone start Da a Comps tetion Date
Complete CDBG Training September 2022 September 2022
Implement Project Activities Upon Notification from HWS
Execute Supplemental Agreement September 2022 December 2022
& Notice to incur Cost
Tasks 1 Milestone Start Date CoMpletion Date
Submit Quarterly Performance January 2023
Reports to County April 2023
August 2023
2023 December 2024
County Monitoring of City To be determined by Program Manager
Program/Perforniance
Specific Project Activities:
1. Sponsor executes Supplemental Agreement; receives Authorization to Incur Cost letter
2. Sponsor prepares final construction documents (incorporating Special Federal Provisions) for HWS review
and approval
3. HWS authorizes Sponsor to advertise for bids
4. HWS reviews and approves bidding process
5. Sponsor awards construction contract
6. Sponsor and HWS conduct "pre -construction meeting"
7. HWS authorizes Sponsor to issue "Notice to Proceed"
City Submits Reimbursement Requests
Monthly Submittal ❑
Other Schedule 19
CDBG-funded Project Complete
City Submits Monthly Reports
To be determined by Program Manager
TBD
Upon Notification by HWS
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
City must follow proper procurement and construction policies and procedures of the City and CDBG
regulations. No construction will shall commence using CDBG funding without prior Notice to Proceed. Pre -
Construction meeting required. City is required to contact the County Program Manager for review prior to
submission of RFP, construction activity or cost without prior written approval. County must be contacted 10
days in advance for attendance of Pre -Construction meeting. Original Certified payrolls to be submitted on a
weekly basis to County.
Page 6 of 6
HOUSING AND
0 WORKFORCE
HWSSOLUTIONS
NGAGE ENCOURAGE EQUIP
September 29, 2022
Jon McMillen, City Manager
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
RE: SUPPLEMENTAL AGREEMENT FOR THE 2022-2023 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) PROGRAM
Dear Mr. McMillen:
Enclosed please find two (2) copies of the above referenced Supplemental Agreement for your city's 2022-2023
CDBG program year. This agreement covers the following activities:
41Q.46-22 Membership Fees Waiver/Reduction Program, $18,200
41Q.47-22 City of La Quinta Miscellaneous ADA Improvements, $150,111
Upon review of the agreement, please have all copies executed and returned to this office, together with the
following documentation:
1. Your City Council's approval of the Agreement and authorization to execute; (Adopted Resolution and/or
Certified Minute Order);
2. Evidence of Workmen's Compensation Insurance pursuant to Section 14 A of the Supplemental
Agreement; and
3. Original Certificates of Insurance and certified copies of endorsements pursuant to Section 14 D (3) of
the Supplemental Agreement.
Please note: In order for the County to comply with HUD's CDBG program timeliness requirements, your
city's fully -executed agreements and required documentation must be returned to this office no later
than sixty (60) days from the date of this letter. In the event that the properly executed agreements and
documentation are not received by the deadline date, your city will be in jeopardy of forfeiting your 2022-
2023 CDBG funding. The County will then consider reprograming these funds to other activities within
the Urban County program area.
A fully -executed Supplemental Agreement will be forwarded to you as well as the authorization to incur costs.
Please be advised that this is not a notice to proceed. The County will not reimburse the City of La Quinta for
any expenditure prior to the issuance of the Authorization to Incur Costs
P.O. Box 1528 1 Riverside, CA 92502
Supplemental Agreement Notice
September 29, 2022
Page 2
Furthermore, the County will not issue the Notice to Proceed until an appropriate representative of the City has
completed the online CDBG Subrecipient training. The training tutorial can be accessed at
hnp://www.rivcoeda.org
Should you have any questions, please contact Noe Arechiga (760) 863-2650.
Sincerely
Susana C
Principal Program Manager CDBG/ESG Programs
RESOLUTION NO. 2021 - 041
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LA QUINTA, CALIFORNIA, ADOPTING
PROPOSALS, AUTHORIZING THE CITY MANAGER
TO SUBMIT APPLICATIONS FOR COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS, AND
AUTHORIZATION FOR THE CITY MANAGER TO
EXECUTE SUPPLEMENTAL AGREEMENT FOR
FISCAL YEAR 2022/2023
WHEREAS, The City of La Quinta (City) is a participating jurisdiction in
the Riverside County Economic Development Agency Community
Development Block Grant Program, and
WHEREAS, the City and County of Riverside (County) cooperatively
administer the Community Development Block Grant (CDBG) program under
the provision of the Cooperative Agreement executed between the City and
County, and under applicable U.S. Department of Housing and Urban
Development rules; and
WHEREAS, the Public Works Department published a public hearing
notice in The Desert Sun newspaper on October 29, 2021, announcing the
public hearing date, availability of funds, and requesting proposals; and
WHEREAS, pursuant to said agreement, the City Council held a public
hearing on November 16, 2021, to consider public comments on community
needs and the use of such funds; and
WHEREAS, the CDBG Funds for Fiscal Year 2022/2023 is estimated to
be approximately $156,000 to begin July 1, 2022; and
WHEREAS, the City must submit project applications to the Riverside
County Economic Development Agency; and
WHEREAS, merits of all proposals were openly discussed and
considered; and
WHEREAS, by a majority vote of the City Council of the City of La
Quinta, California, the following proposal(s), or reprogramming(s), were
selected:
Resolution No. 2021 - 041
CDBG Funds and Priorities for Fiscal Year 2022/2023
Adopted: November 16, 2021
Page 2 of 3
PROJECT NAME
Miscellaneous ADA Improvements
Reallocation request from public
services to public improvements for
Miscellaneous ADA Improvements
Fee Waiver/Reduction Program
SPONSOR AMOUNT
City of La Quinta $132,600
City of La Quinta $ 5,200
Coachella Valley Boys and $ 18,200
Girls Club La Quinta Unit
TOTAL: $156,000
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of La Quinta, California, as follows:
SECTION 1. That the City of La Quinta hereby selects the above -named
projects, for use of Community Development Block Grant funds.
SECTION 2. That the City Council hereby directs the City Manager to
prepare and submit the designated applications to the Riverside County
Economic Development Agency in a timely manner proposing the named use
of funds.
SECTION 3. That the City Council hereby authorizes the City Manager to
approve and execute the 2022/23 Supplemental Agreement between the
Riverside County Economic Development Agency and the City.
SECTION 4. That the City Council hereby authorizes the City Manager to
execute any and all necessary documents and other agreements to
consummate all activities in this resolution.
SECTION 5. If there is shortfall in funding, the City Council directs the
City Manager to request the County of Riverside to increase the City's public
service cap in order to fully fund public service approved applications.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La
Quinta City Council held on this 16t" day of November 2021, by the following
vote:
AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor
Evans
NOES: None
ABSENT: None
ABSTAIN: None
Resolution No. 2021 - 041
CDBG Funds and Priorities for Fiscal Year 2022/2023
Adopted: November 16, 2021
Page 3 of 3
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
City of La Quinta
CITY COUNCIL MEETING' November 16, 2021
STAFF REPORT
PUBLIC HEARING ITEM NO. 1
AGENDA TITLE: ADOPT RESOLUTION TO AUTHORIZE THE CITY MANAGER
TO SUBMIT APPLICATIONS TO RIVERSIDE COUNTY ECONOMIC
DEVELOPMENT AGENCY FOR COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS AND EXECUTE SUPPLEMENTAL AGREEMENTS FOR FISCAL YEAR
2022/23
RECOMMENDATION
Adopt a resolution to authorize the City Manager to submit applications to the
Riverside County Economic Development Agency for Community Development
Block Grant funds; execute the Supplemental Agreements for Fiscal Year
2022/23; and allocate $18,200 to the Boys and Girls Club of the Coachella
Valley Fee Waiver/Reduction Program, $132,600 to the City of La Quinta
Americans with Disabilities Act Improvements Project, and authorize an
additional allocation of $5,200 for public improvements if approved by
Riverside County.
EXECUTIVL SUMMARY
• The Community Development Block Grant (CDBG) funds programs
revitalize neighborhoods, promote economic development, and improve
community facilities and services.
The City is eligible to receive approximately $156,000 in CDBG funds in
fiscal year (FY) 2022/23; 15% can be used for public services projects
and 85% for public improvements or housing services.
City -approved grant applications must be submitted to the Riverside
County Economic Development Agency (County EDA) no later than
December 3, 2021. The exact amount of CDBG funding will be confirmed
in the second quarter of 2022.
FISCAL IM11AL I
Upon approval by the Department of Housing and Urban Development (HUD)
and the County EDA, the City will receive an estimated $156,000 in CDBG
funds. The final FY 2022/23 funding allocation will be based upon actual funds
107
received. Revenues and expenses will be incorporated in FY 2022/23 City
Budget and tracked in a special revenue fund Account No. 210-0000-43105
CDBG (Federal Assistance Fund 210).
BACKGROUND/ANALYSIS
The City is a cooperating city of the County's CDBG program and has
participated since 1983. HUD oversees the County's program and the County
distributes annual funding to cooperating cities. The CDBG program requires
that each project/activity the funds are used for meets one of the three
national objectives: 1) benefit low and moderate -income individuals; 2) aid in
the prevention or elimination of slums or blight; or 3) meet a need having a
particular urgency.
Public Services
CDBG funding can be used for public services, such as childcare, recreation
and education programs; however, only 15% of the awarded annual allocation
may be designated for public services, or a maximum of $23,400 for FY
2022/23 based on the total amount of $156,000 anticipated to be distributed
to the City. The County EDA has a minimum funding requirement of $10,000
for this category. The Boys and Girls Club requested only $18,200 for FY
2022/23 which leaves an available balance of $5,200. The City has not
received any other applications for this funding category.
Public Improvements
CDBG funding can be used for public improvements, which include
construction, reconstruction, rehabilitation, and accessibility improvements.
Public improvement funds can be used for facilities and improvements that
are publicly owned or owned by a non-profit agency open to the public. These
funds must be used for improvements that benefit low- and moderate -income
individuals or neighborhoods. Based on the County's guidelines for allocation
of funds, 85% of the awarded annual allocation may be designated for
public/capital improvements, or a maximum of $132,600 for FY 2022/23
based on the total amount anticipated to be distributed to the City. The City
will request that the County reallocate the remaining funds of $5,200 in the
public services category to be used for public improvements, for a total
amount of $137,800.
CDBG Applications
The City received one application for CDBG funding (Attachment 1) - The Boys
and Girls Club of the Coachella Valley; and the City's Engineering Services
Division submitted a public improvement -funding request.
�:
Staff recommends awarding the anticipated public service funds of $18,200
to the Boys and Girls Club; and $132,600 plus potentially an additional $5,200
to the City's Engineering Services division should the reallocation request as
noted above be approved by the County. The Boys and Girls Club funding will
benefit 71 children who attend; the public improvement request will fund
American with Disabilities Act (ADA) improvements at City facilities that
benefit individuals with disabilities and those who have low and moderate
income.
Agency and Public Review
A request for applications and notice of funding availability was posted to the
City's website on October 5, 2021. A public notice was published in The Desert
Sun on October 29, 2021, announcing the availability of funds and the public
hearing date.
ALTERNATIVES
Council may allocate funds to an alternate single applicant in each category,
or an alternate combination of applicants and funding amounts in each
category. Council could elect to not approve the recommended community
development needs/CDBG funding priorities or modify the proposed
needs/funding priorities list.
Prepared by: Carley Escarrega, Management Assistant
Approved by: Bryan McKinney, Public Works Director/City Engineer
Attachment: 1. Fiscal Year 2022/23 CDBG Summary of Applications
•R
ATTACHMENT 1
CITY OF LA QUINTA
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
2022/2023 SUMMARY OF APPLICATIONS RECEIVED
Public Service Applications
THE BOYS AND GIRLS CLUBS OF THE COACHELLA VALLEY - LA QUINTA UNIT:
• The Boys and Girls Club of the Coachella Valley was founded in 1966.
• After school program has been provided in the City of La Quinta since 1994.
• The fee waiver/reduction program has been funded by the City of La Quinta with
CDBG funds for the past 20 years.
Funds Requested/Service Provided:
■ Requesting $18,200 for fee waiver/reduction program to provide scholarships
benefiting extremely low-, very low-, low-, and moderate -income children.
■ Program served 998 members in 2019-2020, of which 72 were provided
scholarships with CDBG funds.
■ $18,200 will enable 71 qualifying children to take advantage of the Club's services
and programs.
Public Improvement Applications
CITY OF LA QUINTA:
Project Summary:
• The City of La Quinta Public Works Department submitted an application requesting
$132,600 of CDBG funding for Americans with Disabilities Act (ADA) improvements
at various City owned public parks and public facilities.
• Project will correct ADA deficiencies at various City owned public parks and facilities
throughout the City of La Quinta.
• The ADA improvements at various City owned facilities throughout the City will
promote easier accessibility for individuals with disabilities.
• The improvements are based upon an ADA Transition Plan Report previously
completed by the City.
• Funding will allow for design, construction, inspection, and testing costs associated
with ADA improvements.