92237-PRA Part II of the Rental Assistance Contract

OMB Approval No. 2502-0608

(Exp. XX-XX-XXXX)

Part II of the Rental Assistance Contract Section 811 Project Rental Assistance (PRA)

U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner

The public reporting burden for this collection of information is estimated to average 1 hour, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

Comments regarding the accuracy of this burden estimate and any suggestions for reducing this burden can be sent to U.S. Department of Housing and Urban Development, Office of the Chief Data Officer, 451 7th St SW, Room 8210, Washington, DC 20410-5000. Do not send completed forms to this address. When providing comments, please refer to OMB Approval No. 2502-0608. HUD may not conduct and sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number. This collection of information is required, under Pub L. 111-374, to assist HUD in determining an applicant's eligibility and capacity to administer Project Rental Assistance Program funds to qualified multifamily rental owners for housing for persons with disabilities consistent with prescribed statutory and regulatory criteria for Direct Endorsement lenders to perform quality control reviews of loans originated by sponsored third party originators and to self-report findings of fraud, material misrepresentation, and other material findings to FHA. The information collected will be used to evaluate applications and make selection recommendations. No assurances of confidentiality are provided for this information collection.

PRA Project Number:

811 PRA Contract Number:

FHA Project Number (if applicable):

2.1 OWNER'S RESPONSIBILITIES AND OWNER’S WARRANTIES.

1. Owner Responsibilities. The Owner is Responsible for:

1. Performing all management and rental functions for the contract units.

2. Enforcing tenant obligations under the lease.

3. Paying for utilities and housing services (unless paid by the family under the lease)

4. (4) Collecting from the tenant:

(i) Security Deposit, if applicable.

(ii) The tenant’s rent.

(iii) Any charge for unit damage by the family allowed by local, state and federal law.

2. Owner Warranties.

1. Legal Capacity. The Owner warrants that it has the legal right to execute this Contract and to lease assisted units covered by this Contract.

2. Completion of Work. The Owner warrants that the project described in section 1.1 meets the safe and habitable inspection standards and if applicable, that the assisted units comply with the terms and conditions of the agreement to enter into the Rental Assistance Contract.

2.2 FAMILIES TO BE HOUSED; GRANTEE ASSISTANCE.

1. Families to Be Housed. The assisted units are to be leased by eligible families solely as private dwellings and as their principal place of residence. (See also section 2.8.) Families to be housed must be consistent with the Grantee’s Cooperative Agreement, including Grantee’s Program Description (as contained in Exhibit 2 of the Cooperative Agreement), and Grantee’s Inter-Agency Partnership Agreement.

2. Grantee Assistance.

   1. The Grantee agrees to make Rental Assistance Payments on behalf of eligible families for the assisted units, to enable the eligible families to lease safe, habitable dwellings pursuant to Section 811 of the Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C. 8013, as amended by the Frank Melville Supportive Housing Investment Act of 2010, Pub. L. No. 111-374 and the applicable HUD administrative and regulatory requirements.

2. If there is a Utility Allowance and if the Utility Allowance exceeds the Total Tenant Payment, the Owner shall pay the eligible family or the appropriate entity the amount of the excess. The Grantee will pay funds to the Owner in trust solely for the purpose of making this payment. Any pledge by the Owner of payments properly payable under this contract shall not be construed to include payments covered by paragraph (b)(2) of section 2.2.

2.3 MAXIMUM HOUSING ASSISTANCE COMMITMENT; PROJECT ACCOUNT.

1. Maximum Annual Contract Commitment. The Grantee shall not make any Project Rental Assistance Payments in excess of the amount identified in section 1.1(c) and Exhibit 1, Part I of the RAC, unless Grantee, at its discretion, approves Owner’s request to adjust the amount of Project Rental Assistance Payments in cases where the Project Rental Assistance Payments are inadequate to provide for reasonable operating costs for the assisted units.

The Grantee may reduce the amount identified in section 1.1(c) where there is a reduction in the number of assisted units, in the contract rents or pursuant to any other provision of this contract.

2.4 PROJECT RENTAL ASSISTANCE PAYMENTS TO OWNERS.

1. Project Rental Assistance Payments on Behalf of Families.

   1. Project Rental Assistance Payments shall be paid to the Owner for assisted units under lease for occupancy by eligible families in accordance with the contract as attached in Exhibit 1, Part I of the RAC. The Project Rental Assistance Payments will cover the difference between the Contract Rent and that portion of the rent payable by the eligible family as determined in accordance 24 C.F.R. Part 5 and other applicable administrative and regulatory requirements.

2. The amount of Project Rental Assistance Payments payable on behalf of the eligible family and the amount of rent payable by the eligible family shall be subject to change by reason of changes in eligible family household Income, family composition, or pursuant to any HUD regulations or administrative guidance related to the assisted units; or by reason of a change in any applicable Utility Allowance, as approved or required by the Grantee. Any such change shall be effective as of the date stated in a notification of the change to the eligible family, which need not be at the end of the Lease Term.

2. Vacancies During Rent-Up. Grantees can determine whether to include payment of vacancies in its Project Rental Assistance program. If the Grantee decides to provide vacancy payments, for each assisted unit that is not leased as of the effective date of this contract, the Owner is entitled to vacancy payments that may not exceed 80 percent of the Contract Rent for up to 60 days of vacancy, provided that the Grantee/Owner: (1) commences and performs appropriate feasible actions to fill the vacancy, consistent with Grantee’s PRA program and its marketing plan to eligible families and otherwise complied with section 2.2 of the Agreement, and (2) has not rejected any eligible applicants, except for good cause acceptable to the Grantee.

3. Vacancies after Rent-Up. If an eligible family vacates an assisted unit and the Grantee program includes vacancy payments, the Owner is entitled to Project Rental Assistance Payments (except as provided in paragraph (d) of this section) that may not exceed 80 percent of the Contract Rent for up to 60 days of vacancy if the Owner:

1. Certifies that it did not cause the vacancy by violating the lease, the Contract or any applicable law;

2. Notified the Grantee of the vacancy or prospective vacancy and the reasons for it immediately upon learning of the vacancy or prospective vacancy;

3. Has fulfilled and continues to fulfill the requirements under this Contract; and

1. Commence and perform appropriate feasible actions to fill the vacancy, consistent with the Grantee’s PRA program and its marketing plan to eligible families; and

2. Has not rejected any eligible applicant, except for good cause acceptable to the Grantee

4. Certifies that any eviction of an eligible family resulting in a vacancy was carried out in compliance with section 2.9.

4. Vacancies for Longer than 60 Days. If an assisted unit continues to be vacant for more than 60 consecutive days either during rent-up or after rent-up the Owner shall not be entitled to any payments under 2.4(b)-(c). Grantee and Owner shall comply with any administrative requirements imposed by HUD as related to vacancies for the Section 811 Project Rental Assistance program.

5. Grantee Not Obligated for the Eligible Family’s Rent. The Grantee has not assumed any obligation for the amount of rent payable by any eligible family or the satisfaction of any claim by the Owner against any eligible family other than in accordance with section 2.4 of this contract. The financial obligation of the Grantees limited to making Project Rental Assistance Payments on behalf of eligible families in accordance with this contract.

6. Owner's Monthly Requests for Payments.

   1. The Owner shall submit monthly requests to the Grantee or as directed by the Grantee for Project Rental Assistance Payments. Each request shall set forth: (i) the name of each eligible family and the address and/or number of the unit leased by the eligible family; (ii) the address and/or the number of each unit, if any, not leased to families for which the Owner is claiming payments; (iii) the Contract Rent as set forth for which the Owner is claiming payments as listed in (1) Exhibit, Part I of the RAC for the initial year, and (2) the Grantee approved Rent Schedule (form HUD-92458) for subsequent years; (iv) the amount of rent payable by the eligible family leasing the unit; and (v) the total amount of Project Rental Assistance Payments requested by the Owner.

2. Each of the Owner's monthly requests shall contain a certification by it that to the best of its knowledge and belief (i) the assisted units are in a safe and habitable condition, (ii) all the other facts and data on which the request for funds is based are true and correct, (iii) the amount requested has been calculated in accordance with the provisions of this contract and is payable under the contract, (iv) none of the amount claimed has been previously claimed or paid under this contract, and (v) the Owner has not received and will not receive any payments or other consideration from the eligible family, the Grantee, HUD, or any other public or private source for the assisted unit beyond that authorized in this contract and the lease.

3. If the Owner has received an excessive payment, the Grantee, in addition to any other rights to recovery, may deduct the amount from any subsequent payment or payments.

4. The Owner's monthly requests for Project Rental Assistance Payments are subject to penalty under 18 U.S.C. 1001, which provides, among other things, that whoever knowingly and willfully makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both.

2.5 MAINTENANCE, OPERATION AND INSPECTION.

1. Maintenance and Operation. The Owner agrees to maintain and operate the assisted units and related facilities in a safe, habitable condition in accordance with the requirements in 24 CFR part 5, subpart G including the provision of all the services, maintenance and utilities set forth in section 1.1(e). The Owner also agrees to comply with the lead-based paint regulations at 24 CFR Part 35. If the Grantee determines that the Owner is not meeting one or more of these obligations, the Grantee shall have the right to take action under section 2.19(b).

2. Inspection.

(1) Prior to occupancy of any assisted unit by an eligible tenant, they must be given the opportunity to be present for the move-in unit inspection. The inspection of the assisted unit would be completed by both the Owner and the tenant, and both shall certify, on a form prescribed or approved by the Grantee that they have inspected the assisted unit and have determined it to be in a safe, habitable condition in accordance with the criteria provided in the form. The Owner shall keep a copy of this inspection and make part of the lease as an attachment to the lease. If the eligible family waives the right to this inspection, a form prescribed or approved by the Grantee would be signed by the tenant indicating they have waived this right.

(2) The Owner shall perform unit inspections of the assisted units on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be replaced or repaired. This will ensure that the Owner is meeting its obligation to maintain the assisted units in a safe, habitable condition. Owners must provide reasonable notice to the tenant prior to inspection and must conduct the inspection during reasonable times.

(3) In addition to annual Owner inspections described in 2.5(b)(2) above, a physical inspection pursuant to National Standards for the Physical Inspection of Real Estate (NSPIRE) must also be performed of the assisted units and related facilities at a frequency that conforms to the property’s other existing federal or state housing programs, the minimum requirements set forth in 24 CFR part 5, subpart G,, and at such other times as may be necessary. If multiple federal or state housing programs are layered at the property, the frequency of the physical inspection shall be determined by the most stringent UPCS standard, with a minimum of every 3 years.

3. Units Not Safe and Habitable. If the Grantee notifies the Owner that it has failed to maintain an assisted unit in a safe, habitable condition and the Owner fails to take corrective action within the time prescribed in the notice, the Grantee may exercise any of its rights or remedies under the Contract, including reduction or suspension of Project Rental Assistance Payments.

4. Notification of Abatement. Any reduction or suspension of Project Rental Assistance Payments shall be effective as provided in written notification to the Owner. The Owner shall promptly notify the tenant of any such abatement.

5. Overcrowded and Underoccupied Units. Where the Grantee determines whether a unit is larger or smaller than appropriate for an eligible family, the Owner agrees to correct the situation in accordance with PRA Program requirements and HUD guidelines in effect at the time of the determination.

Accessibility Requirements. The Owner agrees to maintain and operate the assisted units and related facilities in compliance with the following accessibility requirements Section 504 of the Rehabilitation Act of 1973 as implemented by 24 CFR part 8, the design and construction requirements of the Fair Housing Act and HUD’s implementing regulations at 24 CFR part 100, the Architectural Barriers Act of 1968 and its implementing regulations at 24 CFR part 40, as applicable, and the Americans with Disabilities Act and its implementing regulations at 28 CFR parts 35 and 36. HUD applies the Uniform Federal Accessibility Standards (UFAS) through its regulations under part 8.

2.6 FINANCIAL REQUIREMENTS.

The Grantee is required to submit to HUD audited annual financial statements that comply with the requirements of OMB Circular A-133 and 2 CFR Part 200 Subpart F. The Grantee shall establish control measures with the Owner to meet the Grantee’s financial requirements. The Owner agrees to the Grantee’s control measures.

2.7 INITIAL RENTS, RENT ADJUSTMENTS AND UTILITY ALLOWANCE.

1. With respect to the initial rents, Grantee and Owner agrees that in no circumstance may the initial RAC rent level exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements of a state housing agency, Chapter 9 of HUD’s Section 8 Renewal Guide, or as approved by HUD. In cases where the initial RAC rent level exceeds applicable Section 8 Small Area Fair Market Rent or Fair Market Rent, Exhibit 1 shall identify how the initial rent settings were determined, as approved by HUD.

2. Annual Adjustments.

1. After the initial rent setting made in the first year of the Contract, subsequent rents must be adjusted annually based on [CHECK ONE BOX ONLY]:

[ ] HUD’s Operating Cost Adjustment Factor (OCAF).

[ ] other operating cost index has been adopted by the Grantee for purposes of subsidizing affordable housing, as approved by HUD and as further described in Exhibit 2.

[ ] other means as may be approved by HUD, and as further described in Exhibit 2.

2. The Grantee must initiate the subsequent annual rent adjustment by notifying the Owner in writing prior to the expiration of current rents. The Grantee will ensure that at the anniversary of the RAC, Owners of Eligible Multifamily Properties submit a written request to the Grantee to obtain an annual increase of gross rent (including utilities, if applicable). The Grantee will review and approve each written request and ensure that the approved annual rent adjustment coincides with Part II of the RAC, section 2.7(b). The Grantee will document the approved contract rent increase and utility allowance adjustment (if applicable) on a rent schedule (Form HUD-92458) and update iREMS with the approved rent increase. Within the first year of the Contract and with approval from HUD, the Owner may request to align their Contract anniversary date with the existing federal or state housing programs layered at the property.

3. Contract Rents may be adjusted upward or downward, as may be appropriate; however, in no case shall the annual adjustment result in Contract Rents less than the Contract Rents on the effective date of the Contract.

3. Funding of Adjustments. Project Rental Assistance Payments will be made in amounts commensurate with Contract Rent adjustments under this section up to the maximum amount authorized under section 2.3(a) of this Contract.

4. Overall Limitation. Notwithstanding any other provision of this Contract, adjustments after Contract execution, shall not result in higher rents charged for assisted units as compared to the unassisted units, as determined by Grantee.

5. Incorporation of Rent Adjustment. Any adjustment in Contract Rents shall be incorporated into a Rental Schedule (form HUD-92458) establishing the effective date of the adjustment.

6. Utility Allowance.

1. If there is a utility allowance, the utility analysis methodology shall be reviewed and if needed adjusted annually based on [CHECK ONE BOX ONLY AND ATTACH UTILITY POLICY IN EXHIBIT 2]:

[ ] HUD Multifamily Housing Policy

[ ] Public Housing Authority Policy

[ ] Rural Housing Services (RHS) Policy

[ ] State or Local Housing Agency

[ ] Other means as may be approved by HUD, and as further described in Exhibit 2

2.8 MARKETING AND LEASING OF UNITS.

1. Compliance with Equal Opportunity Requirements. Projects shall be managed and in accordance with all applicable EEO requirements. Projects must comply with all applicable federal fair housing and civil rights laws and requirements as set forth in 24 CFR part 5.

2. Security Deposits.

   1. The Owner may collect a security deposit from the family in the amount stated in the lease.

2. The Owner must comply with HUD Security Deposit requirements, which may change from time to time, regarding security deposits from a tenant.

3. When the family moves out of the contract unit, the Owner, subject to State and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit or other amounts which the family owes under the lease. The Owner must give the family a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used as reimbursement to the Owner, the Owner must promptly refund the full amount of the balance to the family.

(4) If the security deposit is not sufficient to cover reimbursement amounts for any unpaid tenant rent, damages to the unit or other amounts which the family owes under the lease, the Owner may seek to collect the balance from the tenant.

3. Eligibility, Selection and Admission of Families.

   1. The Owner shall be responsible for the screening of eligible families in accordance with a grantee-approved tenant selection plan, from among those referred to the Owner by the Grantee or their designee. Any screening of eligible families, performed by the owner or by a third-party screening company on behalf of the owner, must be performed consistent with the nondiscrimination requirements set out in 24 CFR part § 5.105. Additionally, Owner shall be responsible for the determination of income eligibility of applicants, computation of the amount of Rental Assistance Payments on behalf of each selected eligible family and of Total Tenant Payment and recordkeeping in accordance with applicable HUD regulations and requirements.

2. The Owner shall not charge any eligible family any amount in excess of the Total Tenant Payment.

3. The Owner must lease assisted units only to eligible families. The Owner must inform the Grantee or their designee of a vacancy and hold the unit open for a reasonable period of time. If no eligible tenants are identified within a reasonable period of time, as determined by the Grantee, the Owner may lease the unit to families which are not eligible for the PRA Program; this household is not entitled to the benefit of the rental assistance. If the number of occupied PRA assisted units at the property falls below the Total Number of Assisted Units listed in Exhibit 1 of Part I of the RAC, the Owner will designate the next available appropriate unit as an assisted unit until the total number of occupied PRA assisted units meets the Total Number of Assisted Units listed in Exhibit 1 or Part I of the RAC.

4. The Lease entered into between the Owner and the eligible tenants shall be on the form as prescribed by HUD.

5. (i) The Owner must make a reexamination of family household income, composition, and the extent of medical or

other healthcare expenses incurred by the eligible family at least annually, and appropriate redeterminations shall be made by the Owner of the amount of Total Tenant Payment and the amount of Project Rental Assistance Payment, in accordance with applicable HUD regulations and requirements.

2. If the family household reports a change in income or other circumstances that would result in a decrease/increase of Total Tenant Payment between regularly scheduled reexaminations, the Owner, upon receipt of verification of the change, must promptly (no longer than 30 days from the date the Tenant reports the change in income) make appropriate adjustments in the Total Tenant Payment. The Owner may require in its lease that families report increases in income or other changes between scheduled reexaminations.

2. An tenants’ eligibility for Project Rental Assistance Payments continues until the Total Tenant Payment equals the total housing expense for the unit it occupies. The termination of availability at this point will not affect the tenants’ other rights under the lease nor preclude resumption of payments as a result of later changes in income or other circumstances during the term of this Contract.

5. The Owner shall maintain all information as confidential relating to PRA applicants and eligible families, the disclosure of which would constitute an unwarranted invasion of personal privacy.

3. Rent Redetermination after Adjustment in Utility Allowance. Consistent with section 2.7 and any HUD administrative requirements related to Utility Allowance, Owner agrees to adjust the rents of assisted eligible families in cases where there is a Utility Allowance adjustment.

3. Processing of Applications and Complaints. Owner shall process applications for admission, notifications to applicants, and complaints by applicants in accordance with applicable HUD and Grantee requirements, including all applicable fair housing and equal opportunity requirements (24 CFR 5.105(a)) and shall maintain records and furnish such copies or other information as may be required by HUD or the Grantee.

3. Review: Incorrect Payments. In making Project Rental Assistance Payments to Owners, the Grantee will review the Owner's determinations under this section. If as a result of reviews, audits or information received by the Grantee, it is determined that the Owner has received improper or excessive Project Rental Assistance Payments, the Grantee shall have the right to deduct the amount of such overpayments from any amounts otherwise due the Owner, or otherwise effect recovery.

2.9 TERMINATION OF TENANCY OR PRA RENTAL ASSISTANCE BY THE OWNER.

The Owner agrees not to terminate any tenancy of or assistance on behalf of an assisted eligible family except in accordance with the lease, all applicable HUD regulations and other requirements in effect at the time of the termination, and any State and local law.

2. .10 NONDISCRIMINATION.

1. General. The Owner shall not in the selection of eligible families, in the provision of services, or in any other manner, discriminate against any person on the grounds of race, color, religion, sex, national origin, disability, familial status (children under eighteen being present, seeking legal custody of minor children, or pregnancy), or age. See 24 CFR 5.105(a).

2. The Fair Housing Act. The Owner shall comply with all requirements under the Fair Housing Act, which prohibits discrimination in the sale, rental, financing and advertising of housing and in other housing-related transactions on the basis of race, color, religion, sex, national origin, disability, familial status (children under eighteen being present, seeking legal custody of minor children, or pregnancy), and any related rules and regulations.

3. Title VI of the Civil Rights Act of 1964 and Executive Order 11063. The Owner shall comply with all requirements imposed by Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d. et seq.; the HUD Regulations issued thereunder, 24 CFR, Subtitle A, Part 1; the HUD requirements pursuant to these regulations; and Executive Order 11063 and any regulations and requirements issued thereunder, to the end that, in accordance with that Act, Executive Order 11063, and the regulations and requirements of HUD, no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, or be denied the benefits of, or be otherwise subjected to discrimination under the Project Rental Assistance Payments Program. This provision is included pursuant to the regulations of HUD, 24 CFR, Subtitle A, Part 1 issued under Title VI of the Civil Rights Act of 1964, HUD regulations issued pursuant to Executive Order 11063 and the HUD requirements pursuant to the regulations. The obligation of the Owner to comply therewith inures to the benefit of the United States of America, HUD, any of which shall be entitled to invoke any remedies available by law to redress any breach or to compel compliance by the Owner.

4. Section 504 of the Rehabilitation Act of 1973. The Owner shall comply with all the requirements imposed by Section 504 of the Rehabilitation Act of 1973, as amended, and any related rules and regulations. HUD's Section 504 implementing regulations are found at 24 CFR part 8. Section 504 provides that no qualified person with a disability shall, on the basis of disability, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity which receives or benefits from Federal financial assistance. Accordingly, the Owner shall not discriminate against any qualified person with a disability on the basis of disability.

5. Employees of Owner.

   1. In carrying out the obligations under this Contract, the Owner will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, disability, familial status (children under eighteen being present, seeking legal custody of minor children, or pregnancy),age or genetic information. The Owner will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to race, color, religion, sex, national origin, disability, familial status (children under eighteen being present, seeking legal custody of minor children, or pregnancy),age or genetic information. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

   2. The Owner agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by HUD setting forth the provisions of this nondiscrimination clause. The Owner will in all solicitations or advertisements for employees placed by or on behalf of the Owner state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability, familial status (children under eighteen being present, seeking legal custody of minor children, or pregnancy), age or genetic information. The Owner will incorporate the foregoing requirements of this paragraph in all of its contracts for project work, except contracts for standard commercial supplies or raw materials, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for project work.

6. Age Discrimination Act of 1975. The Owner shall comply with the requirements in the Age Discrimination Act of 1975, as amended, 42 U.S.C. 6101 et seq., which prohibits discrimination on the basis of age in programs and activities receiving Federal financial assistance. HUD’s implementing regulations are found at 24 CFR part 146.

Violence Against Women Act of 1994. The Owner shall comply with any rules and regulations issued or adopted by HUD under the Violence Against Women Act of 1994, as amended, 34 U.S.C. 12491 et seq, which protects applicants, tenants, and program participants in certain covered HUD programs from being denied admission to housing, evicted from housing, or denied or terminated from housing assistance for reasons related to domestic violence, dating violence, sexual assault, or stalking committed against them. VAWA protections are not only available to women but are available equally to all individuals regardless of sex. HUD’s regulations implementing VAWA can be found at 24 CFR Subpart L.

2.11 COOPERATION IN EQUAL OPPORTUNITY COMPLIANCE REVIEWS.

The Owner and the Grantee agree to cooperate with HUD in the conducting of compliance reviews and complaint investigations pursuant to or permitted by all applicable civil rights statutes, Executive Orders, and rules and regulations.

2.12 FLOOD INSURANCE.

Flood insurance is required in areas designated by FEMA’s Flood Insurance Rate Maps as the 100-year floodplain. If Flood insurance is required, the Owner agrees that the project will be covered, during its anticipated economic or useful life, by flood insurance under the National Insurance Program in an amount at least equal to its development or project cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is less.

2.13 CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT.

In compliance with regulations issued by the Environmental Protection Agency (EPA), 40 CFR Part 15, pursuant to the Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water Pollution Control Act, as amended ("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the Owner agrees to the following:

1. Not utilize any facility in the performance of this Contract or any nonexempt subcontractor which is listed on the EPA List of Violating Facilities pursuant to section 15.20 of the regulations

2. Promptly notify the Grantee of the receipt of any communication from the EPA indicating that a facility to be utilized for the Contract is under consideration to be listed on the EPA List of Violating Facilities

3. Comply with all the requirements of section 114 of the Air Act and section 308 of the Water Act relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in section 114 of the Air Act and section 308 of the Water Act, and all regulations and guidelines issued thereunder

4. Include or cause to be included the provisions of this Contract in every nonexempt subcontract and take such action as HUD may direct as a means of enforcing such provisions

2.14 REPORTS AND ACCESS TO PREMISES AND RECORDS.

1. The Owner shall maintain complete and accurate records and adhere to applicable confidentiality requirements. The Owner shall furnish any information and reports pertinent to this Contract as reasonably may be required from time to time by HUD and the Grantee.

2. The Owner shall permit HUD and the Grantee or any of their duly authorized representatives to have access to the premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to the Rental Assistance Payments.

2.15 DISPUTES.

(a) Grantee’s determinations with respect to the assisted units which are consistent with this Agreement and any applicable HUD requirements will generally not be overturned by HUD. Grantee and Owner are encouraged to resolve disputes through negotiations and mediation, if necessary. However, in the event a dispute may lead to potential default by either party resulting from an ambiguity under this Agreement, the Grantee and the Owner may submit to HUD a request for clarification of the contract term(s) or utilize an alternative dispute resolution process agreed to by both parties and implemented consistent with this section of the RAC. The Grantee and the Owner shall explain in writing the underlying facts and the contract term(s) in dispute. HUD shall review the inquiry and: (i) agree that a contract term ambiguity exists and make a final determination on the matter; or (ii) conclude no contract term ambiguity exists or conclude the dispute is outside the scope of HUD review and make no determination as to the issue(s) presented.

(b) The decision of the HUD will not be reviewable unless, within 30 calendar days from the date of receipt of the HUD determination, either party mails or otherwise furnishes to the Secretary of Housing and Urban Development a written appeal with written justification. Both parties shall proceed diligently with the performance of the Contract and in accordance with the decision of HUD pending resolution of the appeal.

2.16 INTEREST OF MEMBERS, OFFICERS, OR MEMBERS OF LOCAL GOVERNING BODY, OR OTHER PUBLIC OFFICIALS:

1. No person or entity in the following clauses shall have an interest, direct or indirect, in this Agreement or in any proceeds or benefits arising from it, during his or her tenure or for one year thereafter.

1. any member or officer of the Grantee, except where his or her interest is as a tenant;

2. (i) any employee of the Grantee who formulates policy or influences decisions with respect to the PRA project;

2. any other employee of the Grantee, except where his or her interest is as a tenant;

3. any member of the governing body or the executive officer of the locality (city or county) in which the project is situated;

4. any member of the governing body or executive officer of the locality (city or county) in which the Grantee was activated;

5. any other State or local public official (including State legislators), who exercise any functions or responsibilities with respect to the PRA project;

6. any Grantee, where any of its members, officers, or employees has a personal interest in the project (except an employee who does not formulate policy or influence decisions with respect to the PRA Demo project may have an interest as a tenant).

2. Members of the classes described in paragraph (a) who involuntarily acquire an interest in the PRA program or in a PRA project, or who had acquired prior to the beginning of their tenure any such interest, must disclose any interest or perspective interest to the Grantee and the HUD Headquarters and may, with appropriate justification, if consistent with State law, apply through the Grantee for a waiver. The Grantee will review the waiver request and forward their recommendation to HUD Headquarters.

3. No person to whom a waiver is granted shall be permitted (in his or her capacity as member of a class described in paragraph (a)) to exercise responsibilities or functions with respect to an Agreement or a Contract executed, or to be executed, on his or her behalf, or with respect to an Agreement or a Contract to which this person is a party.

4. The Owner shall insert in all contracts, subcontracts, and arrangements entered into in connection with the project or any property included or planned to be included in the project and shall require its contractors and subcontractors to insert in each of the subcontracts, the provisions of paragraphs (a) through (d).

5. The provisions of paragraphs (a) through (d) of this section shall not apply to a utility service if the rates are fixed or controlled by a governmental agency.

2.17 INTEREST OF MEMBER OR DELEGATE TO CONGRESS.

No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this Contract or to any benefits which may arise from it.

2.18 ASSIGNMENT, SALE OR FORECLOSURE.

1. The Owner agrees that it has not made and will not make any sale, assignment, or conveyance or transfer in any fashion, of this Contract, without the prior written consent of the Grantee which shall not be unreasonably withheld.

2. The Owner and the party signing this Contract on behalf of the Owner represent that they have the authority of all of the parties having ownership interests in the Owner to agree to this provision on their behalf and to bind them with respect to it.

3. Except where otherwise approved by Grantee, this Contract shall continue in effect and Project Rental Assistance Payments will continue in accordance with the terms of the Contract in the event:

   1. Of assignment, sale, or other disposition of the project or this Contract,

   2. Of foreclosure, including foreclosure by HUD,

   3. Of assignment of the mortgage or deed in lieu of foreclosure,

   4. The Grantee or HUD takes over possession, operation or ownership,

   5. The Owner prepays the mortgage.

2.19 DEFAULTS BY GRANTEE AND/OR OWNER.

1. Rights of Owner if Grantee Defaults under Contract.

   1. Events of Default. The occurrence of any of the following events constitutes a default:

      1. If the Grantee fails to perform or observe any term or condition of this Contract;

      2. If the Contract is held to be void, voidable, or ultra vires;

      3. If the power or right of the Grantee to enter into the Contract is drawn into question in any legal proceeding.

   2. Owner Request for HUD Determination of Default. If the Owner believes that an event as specified in paragraph (a)(1) has occurred, and the Owner is not in default, the Owner may, within 30 days of the initial occurrence of the event:

      1. Notify HUD of the occurrence of the event;

      2. Provide supporting evidence of the default and of the fact that the Owner is not in default; and

      3. Request HUD to determine whether there has been a default.

3. HUD Determination of Default and Curing of Default. HUD, after notice to the Grantee giving it a reasonable opportunity to take corrective action, or to demonstrate that it is not in default, shall make a determination whether the Grantee is in default and whether the Owner is not in default. If HUD determines that the Grantee is in default and that the Owner is not, HUD shall take appropriate action to require the Grantee to cure the default. If necessary for the prompt continuation of the project, HUD may assume the Grantee's rights and obligations under the Contract. HUD may, subject to appropriations and its ability to recover funds from the Grantee, pay Project Rental Assistance Payments with respect to the assisted units in accordance with this Contract until reassigned to another Grantee or returned to the original Grantee under this Agreement. All rights and obligations of the Grantee assumed by HUD will be returned to the same or another Grantee:

   1. when HUD is satisfied that all defaults have been cured and that the assisted u nits will thereafter be administered in accordance with all applicable requirements, or

   2. when the Contract is at an end, whichever occurs sooner.

4. Enforcement by Owner. The provisions of this paragraph (a) are made for the benefit of the Owner and the Owner's other assignees, if any, who have been specifically approved by HUD prior to the assignment. These provisions shall be enforceable by these parties against HUD by suit at law or in equity.

2. Rights of Grantee and HUD if Owner Defaults under Contract.

   1. Events of Default. A default by the Owner under this Contract shall result if:

      1. The Owner has violated or failed to comply with any provision of, or obligation under, this Contract or of any Lease, including failure to correct any deficiencies identified by the Grantee in connection with any inspection and failure to comply with Federal civil rights and nondiscrimination requirements as determined by HUD; or

      2. The Owner has asserted or demonstrated an intention not to perform some or all of its obligations under this Contract or under any Lease; or

      3. For projects with mortgages insured by HUD or loans made by HUD, the Owner has violated or failed to comply with the regulations for the applicable insurance or loan program, with the insured mortgage, or with the regulatory agreement; or the Owner has filed any false statement or misrepresentation with HUD in connection with the mortgage insurance or loan.

2. Grantee Determination of Default. Upon a determination by the Grantee that a default has occurred, the Grantee shall notify the Owner, with a copy to HUD, of

   1. The nature of the default,

   2. The actions required to be taken and the remedies to be applied on account of the default (including actions by the Owner and/or the lender to cure the default), and

   3. The time within which the Owner and/or the lender shall respond with a showing that all the required actions have been taken.

   4. If the Owner fails to respond or take action to the satisfaction of the Grantee, the Grantee shall have the right to take corrective action to achieve compliance, in accordance with paragraph (b) or to terminate this Contract with HUD approval, in whole or in part, or to take other corrective action to achieve compliance in its discretion, or as directed by HUD).

3. Corrective Actions. Pursuant to paragraph (b)(2) of this section the Grantee, in its discretion or as directed by HUD, may take the following corrective actions:

   1. Bring any action necessary to enforce any obligations of the Owner growing out of the project operation

   2. Apply to any court, State or Federal, for specific performance of this Contract, for an injunction against any violation of the Contract, for the appointment of a receiver to take over and operate the project in accordance with the Contract, or for such other relief as may be appropriate.

   3. Reduce or suspend Project Rental Assistance Payments.

   4. Recover any overpayments.

4. HUD Rights.

   1. Notwithstanding any other provisions of this Contract, in the event HUD determines that the Owner is in default of its obligations under the Contract, HUD shall notify Grantee, who shall take action on behalf of HUD. In the event that the Grantee does not take appropriate action as determined by HUD, HUD shall have the right, after notice to the Owner, the trustee, if any, and the Grantee giving them a reasonable opportunity to take corrective action, to proceed in accordance with paragraph (b)(3).

   2. In the event HUD takes any action under this section, the Owner and the Grantee hereby expressly agree to recognize the rights of HUD under this Contract to the same extent as if the action(s) were taken by the Grantee.

3. Remedies Not Exclusive and Non-Waiver of Remedies. The availability of any remedy under this Contract, shall not preclude the exercise of any other remedy under this Contract or under any provisions of law, nor shall any action taken in the exercise of any remedy be considered a waiver of any other rights or remedies. Failure to exercise any right or remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any time.

2.20 LEGAL RELATIONSHIP.

The Owner is not the agent of the HUD. The RAC contract does not create or affect any relationship between HUD and any lender to the owner or any suppliers, employees, contractors, or subcontractors used by the owner in connection with the implementation of the RAC contract.

Signature Page

Warning:

I/We, the undersigned, certify under penalty of perjury that the information provided on this form is true, accurate, and correct. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012, 1014; 31 U.S.C. §3729, 3802.)

.

Owner

Name of Owner (Print or Type)

__________________________________________________________________________________________________

By: _______________________________________________________________________________________________ Signature of authorized representative

Name of Signatory (Print or Type) _________________________________________________________________________________________________

Official Title (Print)

________________________________________________________________________________________________

Date (mm/dd/yyyy): _________________________________________

Grantee

By: _______________________________________________________________________________________________

Signature of authorized representative

Name of Signatory (Print or Type) __________________________________________________________________________________________________

Official Title (Print) ___________________________________________________________________________________

Date (mm/dd/yyyy) : _________________________________________

Exhibit 1: Initial Rent Setting Methodology, where applicable. [Exhibit 1 is not required if the initial RAC rent level does not exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD.]

Exhibit 2: Explanation of Rent Adjustments and/or attachment of Utility Allowance Policy Under Section 2.7, where applicable.

Page 18 of 18

HUD Form -92237-PRA (02/2025)