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								   	GOVERNOR. RICK PERRY
								    	November 17, 2010
	  	The Honorable Pat Tinley
	  	County Judge, Kerr County
	  	700 Main
	  	Kerrville, Texas  78028
	  	Re:  TxCDBG Contract No. 710065
	  	Dear Judge Tinley:
	  	I would like to congratulate your locality on its recent contract award under the Texas Community Development
	  	Block Grant  Program  (TxCDBG).  Enclosed are two  (2) signed  copies of Contract  No.  710065  between  Kerr
	  	County and the Texas Department of Rural Affairs, for your review and signature.
	  	Please  read  the  contract  carefully,  with  special  attention  to  the  Reporting  Requirements,  Environmental
	  	Clearance Requirements and Special Conditions (Sections 8, 20 and 22) of this contract as these restrict your
	  	allowance  to  incur  project  costs  and  our ability  to  release  contract funds  to  your  local  government.  Please
	  	review the  activities  provided  for in  Exhibit A,  Performance  Statement;  Exhibit  B,  Budget;  Exhibit  C,  Project
   	•     	Implementation  Schedule  and  the  requirements  of  Exhibit  D,  The  Applicable  Laws  and  Regulations,  and
	  	Exhibit E, Certifications. (Please consider having your city /county attorney review the enclosed contract).
	  	These  Exhibits  must  be  adhered  to  during  the  contract  period.   	All  fiscal  and  administrative  staff should  be
	  	familiar with  the  budget  categories  and  amounts.   	The  program  staff should  be  aware  of the  Performance
	  	Statement,  and  Project  Implementation  Schedule.   	Fiscal  and  program  staff  should  be  familiar  with  the
	  	Applicable  Laws  and  Regulations.   	Copies  of  these  Exhibits  should  be  distributed  to  appropriate  staff
	  	members.
	  	Please review and sign both copies of the'contract.  The city must retain one (1")'fully executed contract
	  	for their files and  return  one  (1) fully executed  contract to this  office.   	If the  name  of the  authorized
	  	person signing this contract is different from the name typed, please correct the name appearing in the
	  	contract.  Please mail one (1) copy of the executed contract to the following address:
							  	ATTN:  Veronica Sandoval
							  	Texas Department of Rural Affairs
							  	Texas Community Development Block Grant Program
							  	P.O. Box 12877
							  	Austin, Texas  78711
	  	All  Contractor  localities  are  encouraged  to  utilize  minority  and  women -owned  businesses  in  completing
	  	contract activities whenever possible.  Although Contractors are not directly responsible for meeting a specific
	  	goal,  each  year  the  U.S.  Department  of  Housing  and  Urban  Development  establishes  an  overall  minority
	  	business enterprise participation goal for the Texas Community Development Block Grant Program (TxCDBG).
	  	The  Texas  Building  and  Procurement  Commission  (TBPC),  through  the  Texas  Historically  Underutilized
	  	Business (HUB) Program,  can provide you with a directory of minority and women -owned  businesses located
	  	in your area.  If you would  like to purchase a directory,  please contact the TBPC at HUB program at 512/463-
	  	5872.   	This  cost  is  an  eligible  expense  under  the  TxCDBG  administration  category.   	Contractors  are
	  	encouraged  to  place  the  businesses  located  in  your  area  on  vendor  mailing  lists  to  increase  minority  and
	  	women -owned business participation in the Texas Community Development Block Grant Program.  Information
	  	regarding minority contracting is provided in Chapter 12 of the Project Implementation Manual.
	  	Each  local  government  expending  $500,000  or  more  in  total  federal  or  state  funds  during  a  fiscal  year  is
	  	required to submit two (2) copies of the Single Audit report to TDRA.  Federal regulations require that the audit
	  	be submitted to the Office of Rural Community Affairs within thirty (30) days of receipt of the completed  audit
	  	report,  but  no  later than  nine  (9)  months  after the  end  of the  audit  period.   	All  Contractors  are  required  to
	  	submit an audit certification form within sixty (60) days after the end of their fiscal year.
	  	TDRA  has  established  requirements  to  ensure  that  the  contract  is  returned  to  TDRA  in  a  timely
	  	manner.   	The current program  rules require that the contract be executed within sixty (60) days from
	  	the date of this letter or the award will be withdrawn.
	  	Should  you  have  any  questions  or  need  additional  information  about the  terms  in  this  contract,  please  call
	  	Tammie Fulton, your Regional Coordinator, at (512) 936 -2086.
	  	Sincerely,
	   	Mark Wyatt, Director
	  	Community Developm -
	   	MW:rj
	   	Enclosures:    	Contract
	   	cc:  Contract File
	  	wlopscon
													    	•
						 	TEXAS DEPARTMENT OF RURAL AFFAIRS
							   	CONTRACT NO. 710065 FOR
						  	COMMUNITY DEVELOPMENT PROGRAMS
	     	STATE OF TEXAS  ]
	     	COUNTY OF TRAVIS  ]
	     	SECTION 1	     	PARTIES TO CONTRACT
	     	This  contract  and  agreement  is  made  and  entered  into  by  and  between  the  Texas  Department  of
	     	Rural Affairs,  an  agency  of the  State  of Texas,  referred  to  as the  "Department ",  and the  County  of
	     	Kerr ,  referred to as the "Contractor ".  The  parties have severally and collectively agreed  and  by the
	     	execution  are  bound  to  the  mutual  obligations  and  to  the  performance  and  accomplishment  of the
	     	described tasks.
	     	SECTION 2.	    	CONTRACT PERIOD
	     	This  contract and  agreement  shall  commence on  October  17,  2010,  and  shall terminate  on  October
	     	16, 2012, unless otherwise specifically provided by the terms of this contract.
	     	SECTION 3.	    	CONTRACTOR PERFORMANCE
	     	The  Contractor  shall  conduct,  in  a  satisfactory  manner  as  determined  by  the  Department,  a
	     	community development program,  referred to as CDBG,  in a non - entitlement area under Title I  of the
	     	Housing  and  Community  Development  Act  of  1974,  as  amended  (42  U.S.C.  Sec.  5301  et  seq.),
	     	referred to as the Act.  The Contractor shall  perform  all activities in accordance with the terms of the
	     	Performance  Statement,  referred  to  as  Exhibit  A;  the  Budget,  referred  to  as  Exhibit  B;  the  Project
	     	Implementation  Schedule,  referred to as  Exhibit C; the Applicable  Laws  and  Regulations,  referred to
	     	as  Exhibit  D;  the  Certifications,  referred to  as  Exhibit  E;  the  assurances,  certifications,  and  all  other
	     	statements  made  by the  Contractor  in  its  application for the  project funded  under this  contract;  and
	     	with  all  other  terms,  provisions,  and  requirements  set  forth  in  this  contract.   	The  Contractor  shall
	     	ensure that the persons to  benefit from the activities described in  Exhibit A,  Performance Statement,
	     	of this contract are receiving the service or a benefit from the use of the new or improved facilities and
	     	activities  for  the  contract  obligations  to  be  fulfilled  and  before  submitting  the  Project  Completion
	     	Report to this Department.  If the persons to benefit from the activities described  in  Exhibit A are not
	     	receiving the service or a benefit,  the Contractor is liable to  repay to the Department  any associated
	     	disallowed costs.
	     	The Contractor shall adhere to the Project Implementation Schedule timelines for key project activities
	     	as shown in Exhibit C.  The Department may require the Contractor to submit written justification and
	     	take  remedial action for any contract activity that is not completed  by the end of the month specified
	     	on  the  schedule  in  Exhibit  C.   	These  key  activities  include  Procurement  of  Professional  Services
	     	Completed,  Plans  and  Specifications  Completed /Submitted  for  Approval,  Environmental  Review
	     	Completed,  Clearance  of  Special  Conditions,  Wage  Rate  Request/Decision/10-Day  Call,   	Bid
	     	Advertisement/  Construction  Contract  Awarded,  Construction  —  50  percent  of  TxCDBG  project
	     	complete, Construction - 50 percent of TxCDBG funds requested from the Department; Construction -
	     	75 percent of TxCDBG project complete,  Construction - 75 percent of TxCDBG funds requested from
	     	the Department,  Construction - 90 percent of TxCDBG project complete, Construction - 90 percent of
	     	TxCDBG  funds  requested  from  the  Department,  Final  Inspections  Completed,  and  Close -out
	     	documents submitted to the Department.
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	     	SECTION 4.	    	DEPARTMENT OBLIGATIONS
	     	A.  Measure of Liability
	     	In  consideration  of full  and  satisfactory  performance  of the  activities  referred  to  in  Section  3  of this
	     	contract,  the  Department  shall  be  liable  for actual  and  reasonable  costs  incurred  by the  Contractor
	     	during the contract period for performances rendered under this contract by the Contractor, subject to
	     	the limitations set forth in this Section 4.
		   	1.  It is expressly  understood and  agreed  by the parties that the  Departments obligations  under
		  	this  Section 4  are  contingent  upon  the  actual  receipt  of adequate state or federal funds  to  meet
		  	Department's liabilities under this contract.  If adequate funds are not available to make payments
		  	under this contract, Department shall notify the Contractor in writing within a reasonable time after
		  	such fact is determined.  Department shall terminate this contract and will not be liable for failure
		  	to make payments to the Contractor under this contract.
		  	2.  The  Department shall  not be liable to the Contractor for any costs  incurred by the Contractor,
		  	or  any  portion  thereof,  which  has  been  paid  to  the Contractor  or  is  subject  to  payment  to  the
		  	Contractor,  or  has  been  reimbursed  to  the  Contractor  or  is  subject  to  reimbursement  to  the
		  	Contractor by any source other than the Department or the Contractor.
		  	3.  The  Department shall  not be  liable to the Contractor for any costs incurred  by the Contractor
		  	which are not allowable costs, as set forth in Section 6 (A) of this contract.
		  	4.   	The  Department shall  not be  liable to the Contractor for any costs incurred by the Contractor
		  	or for any performances  rendered by the Contractor which are not strictly in  accordance  with the
		  	terms of this contract,  including the terms of Exhibit A,  Exhibit B,  Exhibit C,  Exhibit D,  and  Exhibit
		  	E of this contract.
		  	5.  The Department shall not be liable to the Contractor for any costs incurred by the Contractor in
		  	the  performance of this contract which  have  not been  billed to the Department  by the Contractor
		  	within  sixty  (60)  days  following  termination  of this  contract  unless  otherwise  provided  for  in  the
		  	Certificate of Expenditures referred to in Section 8 (C) of this contract.
		  	6.   	The  Department  shall  not  be  liable  for  costs  incurred  or  performances  rendered  by  the
		  	Contractor before commencement of this  contract or after termination of this contract,  unless the
		  	Contractor  receives  written  approval  from  the  Department  and  they  are  specifically  identified  in
		  	Exhibit A, Performance Statement and Exhibit B,  Budget, of this contract.
		  	7.  The  Department  shall  not  be  liable  for  costs  incurred  and  reserved  on  the  Certificate  of
		  	Expenditures if such costs are  not billed to the Department within ninety days after the contract's
		  	termination date.  An exception will  be made for the reserved funds for the final 5% administrative
		  	drawdown  for  programmatic  closure.   	Audit  funds  reserved  on  the  Certificate  of  Expenditures
		  	eligible for reimbursement under the provisions of Section  19 of this contract shall  be billed to the
		  	Department  within  twelve  months  after  the  end  of  the  Contractor's  fiscal  year  that  follows  the
		  	termination  date  of  this  contract.   	The  Department  shall  deobligate  all  reserved  funds  not
		  	requested under this subsection.
	    	B.  Excess Payments
	    	The  Contractor  shall  refund  to  the  Department  any  sum  of  money  which  has  been  paid  to  the
	    	Contractor by the  Department, which the  Department determines has resulted in overpayment to the
	    	Contractor,  or  which  the  Department  determines  has  not  been  spent  by  the  Contractor  strictly  in
								     	Page 2 of 16
	     	accordance  with  the  terms  of this  contract.   	Such  refund  shall  be  made  by  the  Contractor  to  the
																		    	•
	     	Department within thirty (30) working days after such refund is requested by the Department.
	     	C.  Limit of Liability
																	     	•
	     	Notwithstanding  any  other provision  of this  contract,  the  total  of all  payments  and  other obligations
	     	incurred  by  the  Department  under  this  contract  shall  not  exceed  the  sum  of  Two  Hundred  Fifty
	     	Thousand and No /100 Dollars ($250,000).
	     	SECTION 5.	    	METHOD OF PAYMENT
	     	A.  The  Contractor shall  submit to the  Department  at  its  offices  in  Travis County,  Texas,  a  properly
	     	completed  Request  for  Payment  form  and  State  of Texas  Purchase  Voucher,  as  specified  by  the
	     	Department,  as  often  as  actually  needed.   	The  Department  shall  determine  the  reasonableness  of
	     	each amount requested and shall  not make disbursement of any such payment until the Department
	     	has reviewed and approved such Request.
	     	B.   	The  Contractor's  requests  for  the  advance  of funds  shall  be  limited  to  the  minimum  amounts
	     	needed  for  effective  operation  of  programs  under  this  contract,  and  shall  be  timed  as  closely  as
	     	possible to be in accord with actual cash requirements.  The Contractor shall establish procedures to
	     	minimize the time elapsing  between the transfer of funds from the  Department to the Contractor and
	     	shall ensure that such funds are disbursed as soon as administratively possible.
	     	C.   	Notwithstanding  the  provisions  of Section  5  (A)  of this  contract,  it  is  expressly  understood  and
	     	agreed  by the parties that payments under this contract are contingent upon the Contractor's full and
	     	satisfactory performance of its obligations under this contract.
	     	D.  It is expressly understood  and  agreed  by the parties that any right or remedy provided for in this
	     	Section 5 or in any other provision of this contract shall not preclude the exercise of any other right or
	     	remedy under this contract or under any provision of law,  nor shall any action taken in the exercise of
	     	any right or remedy be deemed 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.
	     	SECTION 6.	    	UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
						   	PRINCIPLES, AND PROGRAM INCOME
	     	A.   	Except  as  specifically  modified  by  law  or  the  provisions  of this  contract,  the  Contractor  shall
	     	comply with the  Regulations in  Exhibit D and,  for matters not addressed therein, with 24 C.F.R.  Part
	     	85,  "Administrative  Requirements  for  Grants  and  Cooperative  Agreements  to  State,  Local  and
	     	Federally Recognized  Indian Tribal Governments" (referred to as the "Common Rule ") as modified by
	     	the  rules  promulgated  by  the  Office  of  the  Governor  under  the  Uniform  Grant  and  Contract
	     	Management Act (TEX.  GOV'T.  CODE ANN.  Chapter 783;  referred  to  as "UGCMS. "),  in  performing
	    	this  contract.   	The  allowability  of  costs  incurred  for  performances  rendered  shall  be  determined  in
	     	accordance  with  Office  of  Management  and  Budget  (OMB)  Circular  A -87,  as  supplemented  by
	     	UGCMS and this contract.
	     	B.  The Contractor shall comply with the requirements set forth in 24 C.F.R. Section 570.489(e) of the
	     	Regulations to account for program income related to activities financed in whole or in part with funds
	    	provided under this contract.
		  	1.   	The  Contractor shall  maintain  records  of the  receipt,  accrual,  and  disposition  of all  program
		  	income in the same manner as required for all other funds under this contract,  and the Contractor
		  	shall  provide  reports  of  program  income  to  the  Department  with  each  form  submitted  by  the
		  	Contractor in accordance with Section 5 of this contract, and at the termination of this contract.
								     	Page 3 of 16
		  	2.   	Program  income earned by the  Contractor during the period of this contract shall be  retained
		  	by the Contractor and utilized by the Contractor to fund performances specified in this contract,  in
		  	the manner specified, prior to requesting additional funds from the Department.
		  	3.  At  least sixty  (60) days prior to the termination  of this  contract,  the Contractor shall  submit  a
		  	plan  to  the  Department  for  its  approval  which  specifies  the  manner  in  which  the  Contractor
		  	proposes  to  use  any  unexpended  program  income  earned  under  this  contract  to  continue  the
		  	performance  specified  in this  contract  in  the  manner specified.  Any program  income  earned  by
		  	the  Contractor from  this  contract,  prior  to  the  establishment  and  approval  of  a  Revolving  Loan
		  	Fund  plan  by the  Contractor must  be  returned to the  Department.   	In the  event the  Department
		  	does  not approve the plan submitted  by the Contractor, the Contractor shall  return such  program
		  	income  to  the  Department  within  thirty  (30)  working  days  after  receipt  of  the  Department's
		  	notification of disapproval.
	     	SECTION 7.	    	RETENTION AND ACCESSIBILITY OF RECORDS
	    	A.  The  Contractor shall maintain fiscal records and supporting documentation for all expenditures of
     	•		funds made under this contract in  a manner which  conforms to OMB Circular A 87,  24 CFR Section
	     	570.490  of the  Regulations  in  Exhibit  D,  and  this  contract.   	Such  records  must  include  data on  the
	     	racial,  ethnic,  and  gender  characteristics  of  persons  who  are  applicants  for,  participants  in,  or
	     	beneficiaries of the funds provided under this contract.  The Contractor shall retain such records, and
	    	any supporting  documentation,  for the greater of:  (i)  three  years after close -out of the  HUD  grant to
	    	the  state  of Texas  (not the  closeout  of this  contract);  (ii)  if notified  by the  Department  in writing,  the
	    	date that the final  audit is accepted with all audit issues resolved to the  Department's satisfaction,  or
	    	(Hi) a date consistent with the period required by other applicable laws and regulations as described in
	    	24 CFR 570.487 and 570.488.
    	•	 	B.  The Contractor shall give the  United  States Department of Housing and  Urban  Development, the
	    	Inspector  General,  the  General  Accounting  Office,  the  Auditor  of  the  State  of Texas,  an  office  or
	    	agency  of the  State  of Texas,  and  the  Department,  or any of their duly authorized  representatives,
	    	access  to  and  the  right  to  examine  all  books,  accounts,  records,  reports,  files,  and  other  papers,
	    	things, or property belonging to or in use by the Contractor pertaining to this contract.  Such  rights to
	    	access shall continue as long as the records are retained by the Contractor.  The Contractor agrees to
	    	maintain  such  records  in  an  accessible  location  and  to  provide  citizens  reasonable  access  to  such
	    	records consistent with the Texas Public Information Act.
	    	C.  The Contractor shall include the substance of this Section 7 in all subcontracts.
	    	SECTION 8.	    	REPORTING REQUIREMENTS
	    	A.  The Contractor shall submit to the Department such  reports on the operation and  performance of
	    	this contract as may be required by the Department including but not limited to the reports specified in
	    	this Section 8.
	    	B.  The Contractor shall submit to the Department no later than the twentieth (20th) day of the month
	    	after  the  end  of  each  calendar  quarter  of  the  contract  period  specified  in  Section  2,  a  Quarterly
	    	Progress Report of the progress, in narrative form, of all construction and nonconstruction activities by
	    	budget categories performed  pursuant to  Exhibit A,  Performance Statement,  and of the expenditures
	    	and obligations of funds by budget category made pursuant to Exhibit B, Budget,  of this contract.  The
	    	Quarterly  Progress  Report  shall  be  in  a  format  prescribed  by  the  Department  and  shall  include  all
	    	such  activities,  expenditures,  and  obligations  made  or  performed  under  this  contract  during  the
	    	previous quarter.
								     	Page 4 of 16
    	•	 	C.  The Contractor shall submit a Certificate of Expenditures to the Department no later than sixty (60)
	     	days after the contract termination date or at the conclusion of all contract activities as determined by
	     	the  Department.  The  Certificate of Expenditures shall  be  in  a format prescribed  by the  Department
	     	and  shall  be accompanied  by a final  Project Completion  Report of all  activities  performed  under this
	     	contract.
	     	D.   	In  addition  to  the  limitations  on  liability  otherwise  specified  in  this  contract,  it  is  expressly
	     	understood  and  agreed  by the  parties  that  if the  Contractor fails  to  submit to  the  Department  in  a
	     	timely and  satisfactory manner any report required  by this  contract,  the Department may,  at its sole
	     	option  and  in  its  sole  discretion,  withhold  any  or  all  payments  otherwise  due  or  requested  by  the
	     	Contractor.  If the Department withholds such  payments,  it shall  notify the Contractor in writing of its
	     	decision  and the  reasons therefore.   	Payments withheld  pursuant to this  paragraph  may  be  held  by
	     	the  Department until such time as the delinquent obligations for which funds are withheld are fulfilled
	     	by the Contractor.
	     	E.   	The  Contractor  is  required  to  immediately  report  to  the  Department  any  incident  of  criminal
	     	misapplication  of Texas  Community  Development Block Grant (TxCDBG) funds  associated  with this
	     	contract.
	     	SECTION 9.	    	MONITORING
	     	The  Department  reserves  the  right  to  perform  periodic  on -site  monitoring  of  the  Contractor's
	     	compliance with the terms and conditions of this contract,  and of the adequacy and timeliness of the
	     	Contractor's  performances  under  this  contract.   	After  each  monitoring  visit,  the  Department  shall
	     	provide the  Contractor with  a written  report  of the  monitor's findings.   	If the  monitoring  reports  note
	     	deficiencies  in the  Contractor's  performances  under the terms  of this  contract,  the  monitoring  report
	     	shall include requirements for the timely correction of such deficiencies  by the Contractor.  Failure by
	     	the  Contractor  to  take  action  specified  in  the  monitoring  report  may  be  cause  for  suspension  or
	     	termination of this contract, as provided in Sections 17 and 18 of this contract.
	     	SECTION 10.	   	INDEPENDENT CONTRACTOR
	     	It  is  expressly  understood  and  agreed  by  the  parties  that  the  Department  is  contracting  with  the
	     	Contractor  as  an  Independent  Contractor,  and  that  the  Contractor,  as  such,  agrees  to  the  extent
	     	allowed by law to hold the  Department  harmless  and to  indemnify the  Department from  and  against
	     	any  and  all  claims,  demands,  and  causes  of  action  of  every  kind  and  character  which  may  be
	     	asserted by any third party occurring or in any way incident to, arising out of,  or in connection with the
	     	services to be performed by the Contractor under this contract.
	     	SECTION 11.	   	SUBCONTRACTS
	    	A.   	Except for subcontracts to which the federal  labor standards requirements  apply,  the  Contractor
	     	may subcontract for performances  described in this contract without obtaining the  Department's prior
	    	written approval.  The Contractor shall only subcontract for performances described in this contract to
	    	which  the  federal  labor  standards  requirements  apply  after  the  Contractor  has  submitted  a
	    	Subcontractor  Eligibility form,  as  specified  by the  Department,  for each  such  proposed  subcontract,
	    	and  the  Contractor  has  obtained  the  Department's  prior written  approval,  based  on  the  information
	    	submitted,  of the  Contractor's  intent  to  enter  into  such  proposed  subcontract.   	The  Contractor,  in
	    	subcontracting for any performances described in this contract, expressly understands that in entering
	    	into such subcontracts, the Department is in no way liable to the Contractor's subcontractor(s).
	    	B.  In no event shall any provision of this Section  11,  specifically the requirement that the Contractor
	    	obtain the Department's prior written approval of a subcontractor's eligibility,  be construed as relieving
	    	the Contractor of the responsibility for ensuring that the performances rendered under all subcontracts
	    	are rendered so as to comply with  all of the terms of this contract,  as if such  performances rendered
								     	Page 5 of 16
    	•	 	were  rendered  by the  Contractor.  The  Department's  approval  under Section  11  does  not  constitute
	     	adoption,  ratification,  or  acceptance  of  the  Contractor's  or  subcontractor's  performance.    	The
	     	Department maintains the  right to  insist  upon  the  Contractor's full  compliance with  the terms  of this
	     	contract,  and  by the  act  of approval  under Section  11,  the  Department does  not waive  any  right  of
	     	action which may exist or which may subsequently accrue to the Department under this contract.
	     	C.  The Contractor shall  comply with 24  CFR Section  85.36, this contract and all  applicable federal,
	     	state and local laws,  regulations, and ordinances for making procurements under this contract.
	     	D.  The Contractor shall maintain a retainage in the amount of five percent (5 %) of each construction
	     	or rehabilitation subcontract entered  into  by the  Contractor until the  Department determines that the
	     	Federal labor standards requirements applicable to each such subcontract have been satisfied.
	     	SECTION 12.	   	CONFLICT OF INTEREST
	     	A.  The Contractor shall ensure that no employee,  officer,  or agent of the Contractor shall participate
	     	in the  selection,  or in the  award  or administration  of a  subcontract supported  by funds  provided  if a
	     	conflict of interest,  real or apparent, would be involved.  Such conflict of interest would arise when:  1)
	     	The employee,  officer,  or agent;  2)  any member of his or her immediate family; 3) his or her partner;
	     	or, 4) any organization which employs, or is about to employ any of the above, has a financial or other
	     	interest in the firm  or person  selected to perform  the subcontract.  The  Contractor shall comply with
	     	Chapter 171, Texas Local Government Code and 24 C.F.R. 570.489(h) of the federal regulations.
	     	B.  In all cases not governed by Subsection (A) of this Section, no persons specified in subsection (C)
	     	of this  Section  who  exercise  or  have  exercised  any functions  or  responsibilities  with  respect to the
	     	activities  assisted  under  this  contract  or  any  other  CDBG  contract  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 or benefit from the activity, or have an interest or benefit from the activity,  or
	     	have  any  interest  in  any  contract,  subcontract  or  agreement  with  respect  thereto,  or the  proceeds
	     	thereunder,  either for themselves  or those with whom they  have family  or business ties during their
	    	tenure or for one year thereafter.
	     	C.   	The  conflict  of  interest  provisions  of  Subsection  (B)  apply  to  any  person  who  is  an  employee,
	     	agent, consultant, officer, or elected official or appointed official of the Contractor or of a subcontractor
	     	of the Contractor.
	     	D.  The Contractor shall include the substance of this section in all subcontracts.
	    	SECTION 13.	   	NONDISCRIMINATION, RELIGIOUS ACTIVITY, AND FAITH -BASED
					  	ORGANIZATIONS
	    	A.   	The  Contractor  shall  ensure  that  no  person  shall  on  the  ground  of  race,  color,  national  origin,
	    	religion,  sex,  age,  or  handicap  be  excluded  from  participation  in,  be  denied  the  benefits  of,  or  be
	    	subjected to discrimination under or be denied access to any program or activity funded in whole or in
	    	part with funds made available under this contract.
	    	B.   	Organizations  that  are  religious  or  faith -based  are  eligible,  on  the  same  basis  as  any  other
	    	organization,  to  participate  in  this program  and activities funded  under this contract.  The Contractor
	    	receiving funds  under this  contract shall  not discriminate  against an organization  on the  basis of the
	    	organizations' religious character or affiliation.  None of the performances rendered by the Contractor
	    	under this contract shall  involve,  nor shall  any  portion  of the funds  received by the  Contractor under
	    	this  contract,  be  used  to engage  in  inherently  religious  activities.   	Funds  made  available  under this
	    	contract may not be  used for the acquisition,  construction, or rehabilitation  of structures to the extent
	    	that  those  structures  are  used  for  inherently  religious  activities.   	Funds  made  available  under  this
	    	contract may be used for the acquisition,  construction,  or rehabilitation of structures only to the extent
								     	Page 6 of 16
	     	that those  structures  are  used for conducting  eligible  activities.  Where  a  structure  is  used  for both
	     	eligible  and  inherently  religious  activities,  funds  made  available  under this  contract may  not exceed
	     	the  cost  of those  portions  of the  acquisition,  construction,  or  rehabilitation  that  are  attributable  to
	     	eligible  activities  in  accordance with  the  cost  accounting  requirements  applicable to funds  provided
	     	under  this  contract.   	The  Contractor  shall  comply  with  the  regulations  promulgated  by  the  U.S.
	     	Department of Housing and Urban Development on faith -based activities at 24 CFR Sec. 570.200(j).
	     	SECTION  14.	   	LEGAL AUTHORITY
	     	A.  The Contractor assures and guarantees that the Contractor possesses the legal authority to enter
	     	into this contract,  receive funds authorized by this contract, and to perform the services the Contractor
	     	has obligated itself to perform.
	     	B.   	The  person  or  persons  signing  and  executing  this  contract  on  behalf  of  the  Contractor,  or
	     	representing themselves as signing and executing this contract on behalf of the Contractor,  do hereby
	     	warrant and  guarantee that he,  she or they  have been duly authorized  by the  Contractor to  execute
	     	this  contract  on  behalf of the  Contractor and  to  validly  and  legally  bind  the  Contractor to  all  terms,
	     	performances, and provisions set forth.
	     	C.  The, Department shall have the right to suspend or terminate this contract if there is a dispute as to
	     	the legal authority of either the Contractor or the person signing this contract to enter into this contract
	     	or to render performances.  The Contractor is liable to the Department for any money it has  received
	     	from  the  Department  for  performance  of  the  provisions  of  this  contract,  if  the  Department  has
	     	suspended or terminated this contract for reasons enumerated in this Section 14.
	     	SECTION  15.	   	LITIGATION AND CLAIMS
	     	The  Contractor shall  give the  Department immediate  notice in writing of  1)  any action,  including  any
	     	proceeding  before an administrative agency,  filed  against the Contractor arising  out the  performance
	     	of  any subcontract;  and  2)  any  claim  against  the  Contractor,  the  cost  and  expense  of  which  the
	     	Contractor may be entitled to be reimbursed by the Department.  Except as otherwise directed by the
	     	Department, the Contractor shall furnish immediately to the Department copies of all pertinent papers
	     	received by the Contractor with respect to such action or claim.  The Contractor shall provide a notice
	     	to the Department within 30 days upon filing under any bankruptcy or financial insolvency provision of
	     	law.
	     	SECTION  16.	   	CHANGES AND AMENDMENTS
	     	A.  Except as specifically provided otherwise in this contract, any alterations, additions, or deletions to
	     	the  terms  of  this  contract  shall  be  by  amendment  in  writing  and  executed  by  both  parties  to  this
	     	contract.
	     	B.  It is understood and agreed by the parties that performances under this contract must be rendered
	     	in accordance with the Act, the Regulations of the Department, assurances and certifications  made to
	     	the  Department by the Contractor,  and the  assurances  and  certifications  made to the  United  States
	     	Department of Housing and Urban Development by the State of Texas with regard to the operation of
	     	the TxCDBG Program.  Based on these considerations,  and in order to ensure the legal and effective
	     	performance of this  contract by  both  parties,  it is agreed  by the  parties that the  performances under
	     	this contract are amended  by the provisions of the TxCDBG Project Implementation Manual and any
	     	amendments  thereto  and  may  further  be  amended  in  the  following  manner:   	The  Department  may
	     	from time to time during the period of performance of this contract issue policy directives which serve
	     	to establish,  interpret,  or clarify performance requirements under this contract.  Such policy directives
	     	shall be promulgated by the Director of the TxCDBG in the form of TxCDBG issuances, shall have the
	     	effect  of qualifying  the terms  of this  contract and  shall  be  binding  upon  the  Contractor,  as  if written
	     	herein,  provided  however  that  the  policy  directives  and  any  amendments  to  the  TxCDBG  Project
										Page 7 of 16
    	•	 	Implementation  Manual  shall  not alter the terms  of this  contract  so as to  release the  Department  of
	     	any  obligation  specified  in  Section  4  of this  contract to  reimburse  costs  incurred  by  the  Contractor
	     	prior to the effective date of the amendments or policy directives.
	     	C.  Any alterations, additions, or deletions to the terms of this contract which are required by changes
	     	in  Federal or State  law or regulations are automatically incorporated into this contract without written
	     	amendment, and shall become effective on the date designated by such law or regulation.
	     	D.   	Notwithstanding  Subsection  A  of this  Section  16,  the  Contractor  may  make  transfers  of funds
	     	between  or among  budget  categories  of  Exhibit  B,  Budget,  without requiring  an  amendment to  this
	     	contract, or otherwise requiring the Department's prior written approval provided that:
		  	1.  The  cumulative  dollar amount  of all  transfers  among  direct  budget  categories  is  equal  to  or
		  	less than ten percent (10 %) of the total amount of this contract as specified in Section 4 (C);
		  	2.  The transfer will not change the scope or objective of the projects funded  under this  contract;
		  	and
		  	3.   	The Contractor submits a budget revision report to the Department,  on a form specified by the
		  	Department,  simultaneously  with  the  submission  of  the  Contractor's  first  request  for  payment
		  	following any such transfers made in accordance with this Subsection D.
	     	SECTION  17.	   	SUSPENSION
	     	Notwithstanding  the  provisions  of  TEX.  GOV'T.  CODE  ANN.  Chapter  2251,  in  the  event  the
	     	Contractor fails to comply with any term of this contract, the Department may, upon written notification
	     	to  the  Contractor,  suspend  this  contract  in  whole  or  in  part  and  withhold  further  payments  to  the
	     	Contractor,  and  prohibit  the  Contractor  from  incurring  additional  obligations  of  funds  under  this
	     	contract.
	     	SECTION 18.	   	TERMINATION
	     	A.   	The  Department shall  have  the  right to  terminate  this  contract,  in  whole  or  in  part,  at  any time
	     	before  the  date  of  completion  specified  in  Section  2  of  this  contract  whenever  the  Department
	     	determines that the  Contractor has failed to  comply with  any term  of this  contract.  The .Department
	     	shall notify the Contractor in writing prior to the thirtieth (30th) day preceding the date of termination of
	     	such determination; the reasons for such termination; the effective date of such termination; and in the
	     	case of partial termination, the portion of the contract to be terminated.
	     	B.  Either of the  parties to this  contract shall  have the  right to terminate this contract,  in whole  or in
	     	part,  when  both  parties  agree that the  continuation  of the activities funded  under this  contract would
	     	not produce beneficial  results commensurate with the further expenditure of funds;  provided that both
	     	parties  agree,  in  writing,  upon  the  termination  conditions,  including  the  effective  date  of  such
	    	termination; and in the case of partial termination, the portion of the contract to be terminated.
	     	C.   	Upon  termination  or  receipt  of  notice  to  terminate,  whichever  occurs  first,  the  Contractor  shall
	    	cancel,  withdraw,  or  otherwise  terminate  any  outstanding  orders  or  subcontracts  related  to  the
	     	performance  of this  contract  or the  part  of this  contract  to  be  terminated,  and  shall  cease  to  incur
	    	costs thereunder.  The Department shall not be liable to the Contractor or to the Contractor's creditors
	    	for costs incurred after termination of this contract.
	    	D.  Notwithstanding any exercise by the Department of its right of suspension under Section  17 of this
	    	contract, or of early termination pursuant to this Section 18, the Contractor shall not be relieved of any
	    	liability to the  Department for damages due to the Department by virtue of any breach of this contract
	    	by the Contractor.  The Department may withhold  payments to the  Contractor until  such time as the
								     	Page 8 of 16
	     	exact amount of damages due to the  Department from the Contractor is agreed  upon  or is  otherwise
	     	determined.
	     	SECTION 19.	   	AUDIT
	     	A.  The  Contractor shall  arrange for the performance  of an annual financial  and  compliance  audit of
	     	funds received and performances rendered under this contract, subject to the following conditions and
	     	limitations:
		  	1.   	(a)  Audit  Required - Federal  Awards.   	Contractors  expending  $500,000  or  more  in  Federal
		  	financial  assistance for any fiscal year,  beginning  with fiscal  years ending  January 31,  2004  and
		  	after,  shall have a single audit conducted in accordance with the Single Audit Act Amendments of
		  	1996,  31  U.S.C.  7501,  and  OMB  Circular  No.  A -133  -  Revised  as  of June  27,  2003,  "Audits  of
		  	States,  Local Governments, and Non - Profit Organizations."  Alternatively, Department may require
		  	a program specific audit for certain situations and when the Single Audit Act does not apply.  For
		  	purposes  of this  Section  19,  "Federal  financial  assistance"  means  assistance that  non-  Federal
		  	entities  receive  or  administer  in  the form  of  grants,  loans,  loan  guarantees,  property  (including
		  	donated   	surplus   	property),   	cooperative   	agreements,   	interest   	subsidies,   	insurance,   	food
		  	commodities,  direct appropriations,  and other assistance,  but does not include amounts  received
		  	as  reimbursement  for  services  rendered  to  individuals  as  described  in  OMB  Circular  A -133
		  	§_ 205  (h)  and  §_205  (i).  The term  includes  awards of Federal financial  assistance  received
		  	directly from Federal agencies,  or indirectly through other units of State and local government.
				(b) Audit  Required -State Financial Assistance.  Contractors that expended $500,000 or more
		  	in total State  Financial Assistance for any fiscal year,  beginning with fiscal years ending  January
		  	31,  2004  and  after,  shall  have  a  single  or  program  specific  audit  conducted  for  that  year  in
		  	accordance  with  provisions  of  the  State  of Texas  Single  Audit  Circular  and  the  Uniform  Grant
		  	Management Standards (UGMS) as adopted June 2004.  For purposes  of this Section  19,  "State
		  	Financial  Assistance"  (or cost  reimbursement contract)  means  assistance that non -state  entities
		  	receive  or  administer  in  the form  of grants,  loans,  loan  guarantees,  property  (including  donated
		  	surplus  property),  cooperative  agreements,  interest subsidies,  insurance,  food  commodities,  and
		  	other  assistance,  but  does  not  include  amounts  received  as  an  reimbursement  for  services
		  	rendered  to  individuals  as  described  in  sec.  _.205  (f).   	"State  Financial  Assistance"  (or  cost
		  	reimbursement contract) is received directly from state awarding agencies or indirectly from pass -
		  	through  entities  under  a  federal  block  grant.   	State  financial  assistance  also  does  not  include
		  	federal awards as defined by OMB Circular A -133.
		  	2.   	Audit Expenses.  Notwithstanding Section 4, the Contractor shall utilize funds budgeted under
		  	this  contract  to  pay for that  portion  of the  cost  of such  audit  services  properly  allocable  to  the
		  	activities funded  by  the  Department  under this  contract,  provided  however that the  Department
		  	shall  not  make  payment for the  cost of such  audit  services  until the  Department  has  received  a
		  	satisfactory audit report and  invoice,  as  determined  by the  Department,  from the  Contractor;  the
		  	invoice  submitted  for  reimbursement  should  clearly  show the  percentage  of  cost  relative  to  the
		  	total single  audit cost of the audit services.  Therefore,  when  submitting  a  request for audit fees
		  	reimbursement, the Contractor shall submit an invoice that clearly shows the total cost of the audit
		  	and  the  corresponding  prorated  charge  per  funding  source.   	In  addition,  when  applicable,  an
		  	explanation shall  be submitted with the reimbursement request supporting why the percentage of
		  	audit fee  charges exceeds the percentage amount of TxCDBG funds expended of the total funds
		  	expended by the Contractor.
													    	•
		  	3.   	If the Contractor meets the  single audit expense threshold  as  described  in Subsections A (1)
		  	(a) and A (1) (b) of this section, the Contractor shall submit...
			   	•   	one (1) copy of the Single Audit Report;
								     	Page 9 of 16
			   	•   	one  (1)  copy  of the  Department's  Single  Audit  Report  Submission  Check  List  (See
    	•			   	Audit Certification Form (ACF) packet for check list);
			   	•   	one  (1)  copy of the  CPA's  Management  Letter,  (if issued  by CPA firm to  Contractor),
				 	and Management's response to the Department.
		  	The Contractor shall  submit the audit package to the  Department within thirty (30) days  after the
		  	completion  of the audit,  but no  later than  nine  (9)  months  after the end of the Contractor's audit
		  	period  (i.e.,  after the  Contractor's  fiscal  year  end).   	The  Contractor  shall  ensure  that  the  audit
		  	report  is  made available for public inspection within thirty  (30) days after completion  of the audit.
		  	Audits  performed  under Subsection A of this  Section  19  are  subject to  review and  resolution  by
		  	the  Department  or  its  authorized  representative.   	The  Contractor shall  ensure  the  Audit  Report
		  	submitted include either in the report or as part of the cover letter,  auditor and  contractor contact
		  	information, including contact person, mailing address, telephone, fax number and e-mail address.
		  	The Contractor shall ensure the Audit Report submitted also  includes the submission of the CPA
		  	Management Letter if a Management Letter was issued to the Contractor by it's CPA firm.  Failure
		  	by  the  Contractor  to  submit  a  completed  single . audit  package  as  described  in  the  audit
		  	requirements  by the  required due date  could  affect funding  for all existing  contracts,  eligibility to
		  	apply under the TxCDBG Program, and the issuance of new contracts for funding awards.
     	•	    	4.   	Notwithstanding  the  requirements  after  paragraphs  "A -1  through  3"  of this  Section  20,  the
		  	Contractor shall submit within 60 days after its fiscal year end an Audit Certification Form (ACF) or
		  	a similar statement.  The  Contractor shall submit an ACF to the Department annually as  long  as
		  	the  Contractor  has  an  open  contract  with  the  Department.   	The  ACF  or  statement  will  include
		  	information indicating if the Contractor has or has not met the $500,000 expenditure threshold that
		  	will  require a Single Audit  Report in accordance with the  Uniform  Grant Management Standards,
		  	Subpart  C -Post  Award  Requirements,  Section  _.26  Audit,  item  (d).   	If  the  Contractor  did  not
		  	exceed the  threshold,  the  Contractor shall  include  with  the ACF  or statement,  a  list  of  all  open
		  	Federal  or  State...  (The Depart ment's  and  all  other  funding  agencies)...  con tracts  providing
		  	financial assistance and the corresponding activity.  Failure by the Contractor to submit an ACF or
		  	a similar statement  or failure to  submit a  complete ACF  or single  audit package  as  described  in
		  	the  audit  requirements  by  the  required  due  date  could  affect  funding  for  all  existing  contracts,
		  	eligibility  to  apply  under the  TxCDBG  Program,  and  the  issuance  of  new  contracts  for funding
		  	awards.
		  	5.   	Pursuant to Texas Administrative Code §5.167(c),  "Chapter 2105,  Texas  Government Code,
		  	requires  that  all  subrecipients  of  federal  block  grants  be  included  under  the  provisions  of  the
		  	Uniform  Grant  and  Contract  Management  Standards."    	The  Uniform  Grant  and  Contract
		  	Management Standards (UGMS) (D) sec.    	.400 requires "Recipients who are required to have a
		  	single audit and receive state or federal awards for more than one state agency shall  have a state
		  	single  audit  coordinating  agency.   	The  governor's  office  shall  designate  a  state  single  audit
		  	coordinating  agency  based  upon  the  state  awarding  agency  that  provides  the  predominant
		  	amount of direct funding to a recipient and other factors,  as  appropriate, to ensure equitable and
		  	manageable workloads."  Further,  it  is the  Contractor's  responsibility to  make this  request to the
		  	governor's  office  pursuant  to  Texas  Administrative  Code  §5.167(c)(2),  "To  have  a  state  single
		  	audit coordinating agency designated a recipient must submit a written request to the Governor's
		  	Budget  and  Planning  Office,  P.O.  Box  12428,  Austin,  Texas  78711.   	This  request  must  list the
		  	state agencies providing financial assistance with the grant amounts for the year to be audited and
		  	indicate that the governing body has authorized the initiation of the single audit."
	     	B.  Notwithstanding Subsection A of this Section  19, the Department reserves the right to conduct an
	     	annual  financial  and  compliance  review  of  funds  received  and  performances  rendered  under  this
	     	contract.  The Contractor agrees to permit the Department or its authorized representative to audit the
	     	Contractor's  records  and  to  obtain  any  documents,  materials,  or  information  necessary to  facilitate
	     	such review.
								     	Page  10 of 16
	     	C.   	The  Contractor  understands  and  agrees  that  it  shall  be  liable  to  the  Department for  any  costs
	     	disallowed  pursuant to financial  and  compliance  audit(s)  of funds  received  under this  contract.  The
	     	Contractor further understands and agrees that reimbursement to the Department of such disallowed
	     	costs shall be paid by the Contractor from funds which were not provided or otherwise made available
	     	to the Contractor under this contract.
	     	D.   	The  Contractor  shall  take  such  action  to  facilitate  the  performance  of  such  audit  or  audits
	     	conducted  pursuant to this Section  19 as the  Department may require of the Contractor.  Contractor
	     	shall  establish  written  standard  operating  procedures  and  internal  controls  to  include  the  timely
	     	procurement of a CPA firm to start and complete the year end single audit report if applicable, in order
	     	to comply with contractual and regulatory requirements.  The  Department shall not release  any funds
	     	for any costs incurred by the Contractor under this contract until the Department has received a copy
	     	of any audit report required by this Section 19.
	     	E.  The Contractor shall procure audit services through an open, competitive process at least once
	     	every four years.  The  auditor shall  retain working  papers and  reports for a  minimum  of three  years
	     	after the date of issuance of the auditor's report to the  auditee.  Audit working  papers shall  be  made
	     	available upon request to the Department at the completion of the audit, as a part of a quality review,
																			    	•
	     	to resolve audit findings,  or to carry out oversight responsibilities  consistent with the purposes of this
	     	part.  Access to working papers includes the right to obtain copies of working papers, as is reasonable
	     	and necessary.
	     	F.   	Contractor understands  that  acceptance  of funds  under this  contract  acts  as  acceptance  of the
	     	authority of the State Auditor's Office, or any successor agency, to conduct an audit or investigation in
	     	connection  with  those  funds.   	Contractor further  agrees  to  cooperate  fully  with  the  State  Auditor's
	     	Office  or  its  successor  in  the  conduct  of the  audit  or  investigation,  including  providing  all  records
	     	requested.   	Contractor will  ensure  that this  clause  concerning  the  authority to  audit  funds  received
	     	indirectly  by subcontractors through  Contractor and the  requirement to  cooperate  is  included  in  any
	     	subcontract it awards.
	     	SECTION 20.	   	ENVIRONMENTAL CLEARANCE REQUIREMENTS
	     	A.  The Contractor understands and agrees that by the execution of this contract the Contractor shall
	     	assume the responsibilities for environmental review, decision making,  and other action which would
	     	otherwise  apply to  the  Department  under  Section  5304(0  of the Act,  in  accordance with  and  to the
	     	extent specified  in  24  CFR  Part  58.   	In  accordance  with  Section  58.77(b)  of such  regulations,  the
	     	Contractor further understands  and  agrees that the  Contractor shall  handle  inquiries  and  complaints
	     	from persons and agencies seeking redress in relation to environmental reviews covered by approved
	     	certifications.
	     	B.  Funds provided under this contract may be obligated and expended before the actions specified in
	    	this Section occur only for the following eligible activities:
		  	1.  The payment of reasonable planning and administrative costs related to the project;
		  	2.   	Environmental  studies,  including  environmental  clearance  activities  required  by  this  Section;
		  	and
		  	3.   	The  payment or reimbursement  of reasonable  project engineering  and  design  costs  incurred
		  	for this project.
								     	Page  11  of 16
     	•		C.  The  Contractor shall  prepare  a written  Environmental Assessment of its  activities  in  accordance
	    	with 24 C.F.R.  Part 58,  Subpart E, and the TxCDBG Project Implementation Manual.  The Contractor
	    	must  then  follow  the  steps  specified  in  this  subsection  to  ensure  compliance  with  the  National
	    	Environmental Policy Act (NEPA).  When the Environmental Assessment is completed, the Contractor
	    	must follow  one  of the following  two  (2)  procedures.  The  first  is  a  Finding  of Significant  Impact,  in
	    	which the  Request for Release of Funds for the project is an action which  may significantly affect the
	    	quality  of  the  human  environment.    	If  this  is  the  case,  the  Contractor  must  then  prepare  an
	    	Environmental  Impact  Statement  in  accordance with  Subpart  F  or Subpart  G  of 24  C.F.R.  Part  58.
	    	The  second  and  more  common  procedure  must  be  followed  for  all  projects  not  requiring  an
	    	Environmental  Impact  Statement.  The  Contractor  in  this  instance  must  publish,  in  the  manner
	    	prescribed in 24 C.F.R.  Sections 58.43 and  58.45,  a combined  legal  notice in a single  publication: A
	    	Finding  of  No  Significant  Impact  (FONSI),  and  a  Notice  of  Intent  to  Request  Release  of  Funds
	    	(NOI /RROF).    	In  the  first  part  of  this  notice,  the  Contractor  certifies  that,  as  a  result  of  the
	    	Environmental  Assessment,  the  project  is  not  an  action  which  may  or  will  significantly  affect  the
	    	quality  of the  human  environment.  The  Contractor shall  then  provide the  public with  at  least fifteen
	    	(15)  calendar  days  to  comment  on  this  combined  notice  following  its  publication  date,  unless
	    	exceptional  circumstances exist as specified  in 24 C.F.R.  Section 58.46.  If no unresolved  problems
	    	occur, the Contractor must then concurrently submit to the Department the following documents:
		  	1.   	Request for Release of Funds and Certification (form HUD 7015.15);
		  	2.   	Statutory  Checklist  (Covering  24  CFR  Part  58.5)  and  HUD  Compliance  Documentation
		  	Checklist (Covering 24 CFR Part 58.6);
		  	3.   	Published FONSI and NOI /RROF; and
		  	4.   	Publisher's Affidavit (only needed if sending a photocopy of the publication and not an original
		     	full page of the newspaper with publication title and date.)
		    	Upon receipt of such documents, the Department must allow a fifteen (15) calendar day comment
	    	period to expire before it can formally release any project funds which are subject to the environmental
	    	review  regulations.  The  Contractor must comply with  all  other applicable  environmental  requirements
	    	as specified in Exhibit D of this contract.  The Contractor shall document its compliance with such other
	    	requirements in its environmental review file.  The environmental review file and source documentation
	    	must be maintained as part of the environmental review record.
	    	SECTION 21.	   	CITIZEN PARTICIPATION REQUIREMENTS
	    	A.   	The  Contractor  shall  provide  for  and  encourage  citizen  participation,  particularly  by  low  and
	    	moderate income persons who reside in slum or blighted areas and areas in which the funds provided
	    	under this contract are used, in accordance with Section 570.486 of the Regulations and this contract;
	    	B.   	The  Contractor  shall  hold  a  public  hearing  concerning  any  activities  proposed  to  be  added,
	    	deleted,  or substantially  changed,  as  determined  by the  Department,  from  the  activities  specified  in
	    	Exhibit A,  Performance Statement,  of this contract;
	    	C.   	Prior to  the  programmatic  closure  of this  contract,  the  Contractor shall  hold  a  public  hearing  to
	    	review its performance under this contract;
	    	D.   	For  each  public  hearing  scheduled  and  conducted  by  the  Contractor  under  this  section,  the
	    	Contractor shall comply with the following requirements:
		  	1.   	Notice  of  each  hearing  shall  be  published  in  the  non -legal  section  of  a  newspaper  having
		  	general  circulation  in  the  Contractor's  jurisdiction  at  least  seventy -two  (72)  hours  prior  to  each
		  	scheduled hearing.  The published notice shall include the date, time, and location of each hearing
								    	Page 12 of 16
		   	and the topics  to  be  considered  at  each  hearing.   	The  published  notice  shall  be  printed  in  both
		   	English  and  Spanish,  if  appropriate.   	The  Department  shall  accept  articles  published  in  such
		   	newspapers which satisfy the content and timing requirements of this subsection.  In addition, the
		   	Contractor  shall  prominently  post  such  notices  in  public  buildings  and  distributed  to  interested
		   	community groups.
		   	2.   	If  any  substantial  changes  are  being  requested  concerning  the  activities  included  in  this
		   	contract, the public hearings shall be held after 5 p.m. on a weekday or on a Saturday or Sunday.
		   	The hearings must be conducted at a location convenient to potential or actual beneficiaries, with
		   	accommodation for the handicapped.
		   	3.  When a significant number of non - English  speaking  residents can  reasonably be expected to
		   	participate  in  a  public  hearing,  the  Contractor  shall  provide  an  interpreter to  accommodate  the
		   	needs of the non - English speaking residents.
	     	E.    	Notwithstanding  the  provisions  of  Section  7  of  this  contract,  the  Contractor  shall  retain
	     	documentation  of the  public hearing  notices,  a  list of the  attendees at each  hearing,  and  minutes of
	     	each hearing  held in  accordance with this section for a  period of three (3) years after the termination
	     	of this  contract.  The  Contractor shall  make such  records  available to the  public  in  accordance with
	     	TEX. GOV'T. CODE ANN. Chapter 552.
	     	F.   	Complaint  Procedures.   	The  Contractor shall  maintain  written  citizen  complaint  procedures  that
	     	provide a timely written  response to complaints and grievances.  Such  procedures shall  comply with
	     	the Department's requirements.  The Contractor shall ensure that its citizens are aware of the location
	     	and  hours  at which  they  may  obtain  a  copy  of the  written  procedures  and  the  address  and  phone
	     	number for submitting complaints.
	     	SECTION 22.	   	SPECIAL CONDITIONS
	     	A.  The  Department shall  not  release  any funds for any  costs  incurred  by the  Contractor  under this
	     	contract until the Department has received a copy of the Contractor's previous fiscal year audit report
	     	or certification from the Contractor that its fiscal control and fund accounting procedures are adequate
	     	to  assure  the  proper  disbursal  of  and  accounting  for  funds  provided  under  this  contract.   	The
	     	Department shall specify the content and form of such certification.
	     	B.  The Department shall not be liable to the Contractor for any costs incurred by the Contractor under
	     	this  contract  until  the  Department  receives  a  properly  completed  Depository/Authorized  Signators
	     	Form, as specified by the Department, from the Contractor.
	     	C.   	The  Contractor shall  not  advertise  or  solicit  bids  for  construction  or  rehabilitation  of  a  project
	     	assisted  with  funds  provided  under  this  contract  until  the  Contractor  has  received  the  applicable
	     	prevailing wage rates from the Department.
	     	D.  In accordance with Section  18 of this contract, this contract shall terminate six (6) months after the
	     	commencement date  specified  in  Section  2  unless  activities  specified  in  Section  20  or  listed  under
	     	Section 22 funded under this contract have begun by such date.
	     	E.  Public buildings, facilities, centers, constructed with Texas Department of Rural Affairs (TDRA)
	     	Community Development Block Grant (CDBG) assistance  shall  have permanent signage  placed  in  a
	     	prominent visible public area with the wording provided below.  The formatting of such signage will be
	     	at  local  discretion to  best fit the  architectural design  of the facility  constructed  but should  be  legible
	     	from at least three feet distance.
	     	Other construction projects, e.g., water transmission lines, sewer collection lines, drainage, roadways,
	     	housing  rehabilitation,  etc.  utilizing  TDRA CDBG  funding  shall  have temporary signage  erected  in  a
								     	Page 13 of 16
	     	prominent location at the construction project site or along a major thoroughfare within the locality as
	     	directed by the owner.
		   	Project Sign Wording:
		     	"This  project  is funded  by the Texas  Department of Rural Affairs  of the  State of Texas,  to
		   	strengthen  and  enhance  the  quality  of  life  in  smaller  and  rural  communities  with  funds
		   	allocated  by the  United  States  Department  of Housing  and  Urban  Development through  the
		   	Community Development Block Grant Program."
	     	F.  The Department shall not be liable for costs incurred or performances rendered by the Contractor
	     	before  commencement of this  contract or after termination  of this  contract,  unless  (a)  the  costs  are
	     	specifically  identified  in  Exhibit A,  Performance Statement and  Exhibit B,  Budget,  of this contract,  (b)
	     	the costs  incurred  by the  Contractor were for otherwise allowable  pre- agreement  program  costs that
	     	were incurred on  or after March 27,  2009 and  (c) the  Contractor complied with  all the  Department's
	     	requirements applicable to Texas CDBG grants,  including all applicable state  and federal laws,  such
	     	as procurement procedures,  applicable environmental,  labor, civil rights and acquisition requirements,
	     	all provisions of this contract,  and all applicable Texas CDBG policies and procedures.
	     	G.  If the contract ends without any project beneficiaries  resulting from the use of contract funds,  the
	     	Contractor shall  be  required  to  reimburse to the  Department all  contract funds  disbursed  previously,
	     	including  but  not  limited  to  funds  disbursed  for  administration  and  engineering  services.   	The
	     	Contractor  shall  be  required  to  repay  the  funds  within  60  days  after  the  receipt  of  notice  by  the
	     	Department to the Contractor that funds must be repaid.
	     	H.  The  Department will  consider an extension  of the term  of the contract only if the  Contractor  has
	     	requested funds under this contract, in accordance with applicable requirements, from the Department
	     	by  the  end  date  of  the  original  contract  period  for  activities  in  Budget  categories  other  than
	     	Engineering,  Planning &  Urban  Env.  Design,  and General Administration as shown in  Exhibit B in  an
	     	aggregate  amount  of five  percent  (5 %)  of the  total  contract funds  in  Budget  categories  other than
	     	Engineering,  Planning & Urban Env.  Design,  and General Administration.  The Department may allow
	     	an  extension  without  receipt  of  a  request  in  the  amount  of  at  least  5  percent  as  specified  in  this
	     	paragraph  if the  project  involves  construction  being  financed  by  another  state  or federal  entity that
	     	must occur prior to initiation of construction or other project activities financed with Department funds
	     	under this contract.
	     	I.   	The  Contractor  shall  comply  with  all  reporting  and  submission  requirements  of  the  Federal
	     	Funding  Accountability  and  Transparency  Act,  31  U.S.C.  §6101,  as  well  as  the  reporting  and
	     	submission  requirements  of the  U.S.  Department of Housing  and  Urban  Development as  prescribed
	     	by the Department.
	     	J.  The  Contractor shall  provide documentation that final  plans,  specifications,  and  installation  of its
	     	sewer system  improvements  (septic  systems)  have  been  reviewed  and  approved  by the  County  of
	     	Kerr    	County  Health   	Department  through  authority  granted   	by  the  Texas  Commission  on
	     	Environmental Quality.
	     	K.   	The  Contractor  shall  provide  a  copy  of  its  proposed  on -site  sewer  facilities  (OSSF)  program
	     	guidelines  for the  Department  review  prior to  the  selection  of  program  recipients  and  prior  to  the
	     	Department's release of funds for such activities.
	     	L.   	The  Contractor  shall  mitigate  all  existing  septic  systems  in  accordance  with  Title  30  Texas
	     	Administrative Code Chapter 285 Subchapter D Rule 285.36(b),  which states,  "An abandoned tank is
	     	a tank that is not to be used again for holding sewage.  To properly abandon, the owner shall conduct
	     	the  following  action  in  the  order  listed.  (1)  All  tanks,  boreholes,  cesspools,  seepage  pits,  holding
	     	tanks,  and  pump tanks shall  have the wastewater removed by a waste transporter,  holding  a current
								     	Page  14 of 16
	   	•
	     	registration  with  the  executive  director.  (2)  All  tanks,  boreholes,  cesspools,  seepage  pits,  holding
	     	tanks,  and  pump  tanks  shall  be  filled  to  ground  level  with  fill  material  (less  than  three  inches  in
	     	diameter), which is free of organic and construction debris."
	     	SECTION 23.	   	DEBARMENT
	    	A.  By signing this contract, the Contractor certifies that it will not award any funds provided under this
	     	contract  to  any  party  which  is  debarred,  suspended  or  otherwise  excluded  from  or  ineligible  for
	     	participation in federal assistance programs under Executive Order 12549 and 24 CFR Part 24.  The
	     	Contractor  shall  receive  the  certification  provided   	by  the   	Department  from   	each   	proposed
	     	subcontractor under this contract and its principals.
	     	B.   	By signing  this  contract,  the  Contractor certifies  that  it  is  not debarred,  suspended  or  otherwise
	     	excluded  from  or  ineligible  for  participation  in  federal  assistance  programs  under  Executive  Order
	     	12549  and  24  CFR  Part  24.   	Further,  the  Contractor  is  required  to  immediately  report  to  the
	     	Department  if it  is  debarred,  suspended  or otherwise  excluded  from  or  ineligible  for  participation  in
	    	federal assistance programs under Executive Order 12549 and 24 CFR Part 24.
	     	SECTION 24.	   	POLITICAL AID AND LEGISLATIVE INFLUENCE PROHIBITED
	    	A.  None of the funds  provided  under this contract shall  be  used for influencing  the  outcome of any
	    	election, or the passage or defeat of any legislative measure.  This prohibition shall not be construed
	    	to prevent any official  or employee of the Contractor from furnishing to any member of its governing
	    	body  upon  request,  or to any other local  or state  official  or employee or to any citizen  information  in
	    	the  hands  of the  employee  or official  not  considered  under law to  be  confidential  information.  Any
	    	action  taken  against  an  employee  or official  for supplying  such  information  shall  subject the  person
	    	initiating the action to immediate dismissal from employment.
	    	B.   	No funds  provided  under this contract may  be  used  directly or indirectly to  hire  employees  or in
	    	any  other  way  fund  or  support  candidates  for  the  legislative,  executive,  or  judicial  branches  of
	    	government of the Contractor, the State of Texas, or the government of the United States.
	    	SECTION 25.	   	FRAUD, ABUSE, AND MISMANAGEMENT
	    	The Contractor must take steps,  as directed by the  Department  , to avoid or mitigate occurrences of
	    	fraud,  abuse,  and  mismanagement  especially  with  respect  to  the  financial  management  of  this
	    	contract  and  procurements  made  under  this  contract.   	Upon  the  discovery  of  such  alleged  or
	    	suspected  fraud,  the  Contractor  shall  immediately  notify  the  Department  and  appropriate  law
	    	enforcement  authorities,  if  necessary,  of  the  theft  of  any  assets  provided  for  under  this  contract,
	    	malfeasance,  abuse  of  power  or  authority,  kickbacks,  or  the  embezzlement  or  loss  of  any  funds
	    	under this contract.
	    	SECTION 26.	   	ORAL AND WRITTEN AGREEMENTS
	    	A.  All oral and written agreements between the parties to this contract relating to the subject matter of
	    	this contract that were made prior to the execution of this contract have  been  reduced to writing  and
	    	are contained in this contract.
	    	B.  The attachments enumerated and denominated below are hereby made a part of this contract, and
	    	constitute promised performances by the Contractor in accordance with Section 3 of this contract:
		  	1.   	Exhibit A,  Performance Statement,  1  Page
		  	2.   	Exhibit B,  Budget, 2 Pages
		  	3.   	Exhibit C,  Project Implementation Schedule,  1  Page
								    	Page  15 of 16
		  	4.   	Exhibit D, Applicable Laws and Regulations, 3 Pages
		  	5.   	Exhibit E, Certifications, 2 Pages
	     	SECTION 27.	   	VENUE
	     	For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
	     	WITNESS OUR HANDS EFFECTIVE October 17, 2010.
								 	ap t •
								  	may, Co  my Judge
								  	County of Kerr
	     	Approved and accepted on behalf of the Texas Department of Rural Affairs.
								  	Charles S. (Charlie) Stone, Executive Director
								 	Texas Department of Rural Affairs
	    	This contract is not effective unless signed by the Executive Director of the Texas Department of
	     	Rural Affairs or by the Executive Director's authorized designee.
								     	Page  16 of 16
									 	EXHIBIT A
							   	CONTRACT NUMBER 710065
							   	PERFORMANCE STATEMENT
								    	County of Kerr
		     	Contractor  shall  carry  out  the  following  activities  in  the  target  area  identified  in  its  2009/2010
	    	Colonia  Construction  Fund  application.   	The  persons  to  benefit  from  the  activities  described  in  this
	    	Performance  Statement  must  be  receiving  service  or  a  benefit  from  the  use  of the  new  or  improved
	   	facilities  and  activities for the  contract  obligations  to  be  fulfilled.   	The  Contractor shall  ensure that the
	   	amount of funds  expended for each  activity  described  does  not exceed the  amount  specified  for such
	   	activity in Exhibit B,  Budget.
	   	Rehabilitation on Private Properties
		     	Contractor shall replace failing and substandard on -site sewage system facilities (OSSF) for thirty
	   	(30) low to moderate income households located in the following colonia areas: Western Kerrville South,
	   	Woodcreek,  Hill  River  Country  Estates,  Westwood  Oaks  and  Blueridge- Lafayette.   	Construction Shall
	   	include OSSF replacement, permit and inspection fees, and in -kind eligibility processing assistance.
		    	These  activities  shall  benefit  seventy -seven  (77)  persons,  of which  seventy -seven  (77)  or  one
	   	hundred percent (100 %) are of low -to- moderate income.
	   	Administration
		    	Contractor shall ensure that the amount of the Department funds expended for all eligible project -
	   	related administration activities,  including the required annual program compliance and fiscal  audit does
	   	not exceed the amount specified for administration in Exhibit B, Budget.
										Page 1  of 1
										EXHIBIT B
							     	CONTRACT NO. 710065
									 	BUDGET
								    	County of Kerr
				Project Activities			     	Contract Funds    	Other Funds	  	Total Funds
	  	01	  	Acquisition of Real Property				    	$0		  	$0			 	$0
		     	(does not include acquisition of
		     	easements for construction activities)
	  	02	 	Disposition of Real Property				    	$0		  	$0			 	$0
	  	03A		Senior Center						     	$0		  	$0			 	$0
	  	03D		Youth Center								$0		  	$0			 	$0
	  	03E		Neighborhood Facilities					  	$0		  	$0			 	$0
	  	03F		Parks, Recreational Facilities				   	$0		  	$0			 	$0
	  	03G		Parking Facilities						  	$0		  	$0			 	$0
	  	031	 	Flood & Drainage Improvements			     	$0		  	$0			 	$0
	  	03J	  	Water Improvements - Construction			 	$0		  	$0			 	$0
		     	Water Improvements - Total				    	$0		  	$0			 	$0
	  	03J	  	Sewer Improvements- Construction			 	$0		  	$0			 	$0
		     	Sewer Improvements - Total				   	$0		  	$0			 	$0
	  	03K		Street Improvements					     	$0		  	$0			 	$0
	  	03L		Sidewalks							   	$0		  	$0			 	$0
	  	03M		Child Care Centers							$0		  	$0			 	$0
	  	030		Fire Stations /Equipment					 	$0		  	$0			 	$0
	  	03P		Health Facilities						   	$0		  	$0			 	$0
	  	03	 	Other Public Facilities &
				Improvements (Removal of
		     	Architectural Barriers)					    	$0		  	$0			 	$0
	  	04	 	Clearance and Demolition						$0		  	$0			 	$0
	  	05	 	Public Services (LIMITED TO 15% OF
				REQUEST)							  	$0		  	$0			 	$0
	  	08	 	Relocation Payments & Assistance			   	$0		  	$0			 	$0
	   	14A		Rehabilitation Single -Unit
				Residential Structures					    	$0		  	$0			 	$0
	   	14A		Rehabilitation Single -Unit
		     	Water Service						     	$0		  	$0			 	$0
										Page 1  of 2
	   	14A		Rehabilitation Single -Unit
				Sewer Service					    	$216,000	  	$12,500'			$228,500
	   	14B		Rehabilitation Multi -Unit
				Residential Structures					   	$0		  	$0			 	$0
	   	14D		Rehabilitation of Public
				Residential Structures					    	$0		  	$0			 	$0
	   	14H		Rehabilitation: Administration
				(all delivery costs)						 	$0		  	$0			 	$0
	   	15	 	Code Enforcement						 	$0		  	$0			 	$0 •
	   	20A		Planning & Urban Env.  Design
				(NOT TO EXCEED 16 %)					 	$0		  	$0			 	$0
	   	21J		General Administration				   	$34,000		  	$0		 	$34,000
			   	TOTALS						 	$250,000	   	$12,500			$262,500
	   	Source of Other Funds:
	   	1 In -kind services by Kerr County for OSSF waived fees,
	   	permitting and application assistance
										Page 2 of 2
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										EXHIBIT D
							THE APPLICABLE LAWS AND REGULATIONS
		The  Contractor shall  comply with the Act  and  Regulations  specified  in  Section  3  of this  contract  and  with the
		OMB Circular and federal  regulations  specified  in  Section  6  of this contract;  Cash  Management  Improvement
		Act regulations (31  C.F.R.  Part 205);  and with all  other federal, state,  and local  laws and  regulations applicable
		to the activities and performances rendered by the Contractor under this contract including but not limited to the
		laws, and the regulations promulgated thereunder specified in Section  I through VII of this Exhibit D.
		I.	 	CIVIL RIGHTS
		Title VI of the Civil Rights Act of 1964, (42 U.S.C.  Section 2000d et seq.); 24 C.F.R. Part I, "Nondiscrimination in
		Federally Assisted Programs of the Department of Housing and Urban  Development - Effectuation of Title VI of
		the Civil Rights Act of 1964";
		Title  VIII  of the  Civil  Rights  Act  of  1968,  "The  Fair  Housing  Act  of  1968"  (42  U.S.C.  Sec  3601  et  seq.),  as
		amended;
		Executive  Order  11063,  as  amended  by  Executive  Order  12259,  and  24  C.  F.R.  Part  107,  "Nondiscrimination
		and  Equal  Opportunity  in  Housing  under  Executive  Order  11063 ".  The failure  or  refusal  of the  Contractor to
		comply with the  requirements  of Executive Order  11063  or 24  C.F.R.  Part  107  shall  be  a  proper basis for the
		imposition of sanctions specified in 24 C.F.R.  107.60;
		The Age Discrimination Act of 1975 (42 U.S.C. Sec. 6101  et seq.);
		Section  504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794.) and "Nondiscrimination  Based on Handicap
		in  Federally- Assisted  Programs  and  Activities  of  the  Department  of  Housing  and  Urban  Development ",  24	 	I
		C.F.R.  Part 8.  By signing this  contract,  the Contractor understands and  agrees that the  activities funded shall
		be  operated  in  accordance with  24  C.F.R.  Part 8;  and the Architectural  Barriers Act  of  1968  (42  U.S.C.  Sec.
		4151  et seq.),  including the  use  of a telecommunications  device for  deaf persons  (TDDs)  or equally effective
		communication system.
		11.		LABOR STANDARDS
		The Davis -Bacon Act, as amended (40 U.S.C.  Secs. 276a - 276a -5);
		The Contract Work Hours & Safety Standards Act (40 U.S.C.  327 et seq.);
		The Copeland "Anti- Kickback" Act (18 U.S.C. Sec. 874).
		III.     	EMPLOYMENT OPPORTUNITIES
		Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. Sec.1701u).
		IV.     	LEAD -BASED PAINT
		Section  302  of the  Lead -Based  Paint  Poisoning  Prevention Act  (42  U.S.C.  Sec.  4831(b))  and the  procedures
		established by the Department thereunder.
										Page  1  of 3
	   	•
		V.		ENVIRONMENTAL LAW AND AUTHORITIES
		Environmental  Review  Procedures  for  Recipients  assuming  HUD  Environmental  Responsibilities,  24  CFR
		Part 58, as amended.
		In  accordance  with  the  provisions  of  law  cited  in  §58.1(b),  the  responsible  entity  must  assume  the
		environmental responsibilities for projects under programs cited in §58.1(b),  and in doing so must comply with
		the  provisions  of  the  National  Environmental  Policy  Act  of  1969,  as  amended  and  the  Council  on
		Environmental Quality regulations contained in 40 CFR parts  1500 through  1508.  This includes responsibility
		for compliance with the applicable  provisions and  requirements of the  Federal  laws and authorities specified
		in  §58.5  [below].  The  responsible  entity  must  certify that  it  has complied with the  requirements  that %hrould
		apply  to  HUD  under  these  laws  and  authorities  and  must  consider  the  criteria,  standards,  policies  and
		regulations of these laws and authorities.
		(a)   	Historic Properties
			(1)  The  National  Historic  Preservation Act  of  1966  as  amended  (16  U.S.C.  470  et seq.),  particularly
		    	sections  106  and  110  (16  U.S.C.  470  and  470h -2),  except  as  provided  in  §58.17  for  Sectign  17
		    	projects.
			(2)   	Executive  Order  11593,  Protection  and  Enhancement of the Cultural  Environment,  May  13,  1971
		    	(36 FR 8921),
			(3)   	Federal  historic  preservation  regulations  as  follows:   	36  CFR  part  800  with  respect  to  HUD
		    	programs.
			(4)  The Reservoir Salvage Act of 1960 as amended by the Archeological and Historic Preservation Act
		    	of 1974 (16 U.S.C. 469 et seq.), particularly section 3 (16 U.S.C. 469a -1).
		(b)   	Floodplain management and wetland protection
			(1)   	Executive  Order  11988,  Floodplain  Management,  May 24,  1977  (42  FR 26951),  as  interpreted  in
		    	HUD regulations at 24 CFR part 55,  particularly section 2(a) of the order (For an explanation of the
		    	relationship  between  the  decision- making  process  in  24  CFR  part 55  and  Part 58,  see  §55.110  of
		    	this subtitle A.)
			(2)   	Executive Order 11990, Protection of Wetlands, May 24,1977 (42 FR 26961),
		(c)    	Coastal Zone Management
			(1)  The  Coastal  Zone  Management  Act  of  1972  (16  U.S.C.  1451  et seq.),  as  amended,  particularly
		    	sections 307(c) and (d) (16 U.S.C.  1456(c) and (d)).
		(d)   	Sole source aquifers
			(1)  The  Safe  Drinking  Water  Act  of  1974  (42  U.S.C.  201,  300f  et  seq.,  and  21  U.S.C.  349)  as
		    	amended; particularly section  1424(e)(42 U.S.C. 300h -3(e).
			(2)   	Sole Source Aquifers (Environmental Protection Agency -40 CFR part 149.)
		(e)    	Endangered species
			(1)   	The Endangered  Species Act of 1973 (16  U.S.C.  1531  et seq.)  as amended,  particularly section 7
		    	(16 U.S.C.  1536)
									 	Page 2of3
	   	•
	 	(f)    	Wild and scenic rivers
			(1)  The Wild and Scenic Rivers Act of 1968 (16 U.S.C.  1271  et seq.) as amended,  particularly sections
		    	7(b) and (c) (16 U.S.C.  1278(b) and (c)).
	 	(g)   	Air quality
			(1)   	The  Clean Air Act  (42  U.S.C.  7401  et seq.  )  as  amended,  particularly sections  176(c)  and  (d)  (42
		    	U.S.C. 7506(c) and (d)).
			(2)   	Determining   	Conformity   	of   	Federal   	Actions   	to   	State   	or   	Federal   	Implementation   	Plans
		    	(Environmental Protection Agency -40 CFR parts 6, 51, and 93).
	 	(h)   	Farmland protection
			(1)   	Farmland  Protection  Policy Act of  1981  (7  U.S.C.  4201  et seq.)  particularly  sections  1540(b)  and
		    	1541  (7 U.S.C. 4201(b) and 4202).
			(2)   	Farmland Protection Policy (Department of Agriculture -7 CFR part 658).
		(i)    	HUD environmental standards
			(1)  Applicable  criteria  and  standards  specified  in  HUD  environmental  regulations  (24  CFR  part  51)
		    	other than the runway clear zone and clear zone notification requirement in 24 CFR 51.303(a)(3).
			(2)   	HUD  Notice  79 -33,  Policy  Guidance  to  Address  the  Problems  Posed  by  Toxic  Chemicals  and
		    	Radioactive Materials, September 10,  1979.  All properties that are being proposed for use must be
		    	free of hazardous materials, contamination, toxic chemicals and gases,  and radioactive substances,
		    	where  a  hazard  could  affect  the  health  and  safety  of  occupants  or  conflict  with  the  intended
		    	utilization  of the  property.   	The  environmental  review  of non - residential  property,  (or  multi - family
		    	housing with five or more dwelling  units,  including  leasing)  must include the evaluation of previous
		    	uses of the site or other evidence of contamination on or near the site, to ensure that the occupants
		    	of proposed sites are not adversely affected  by any hazards.  Particular attention must be given to
		    	any  proposed site on or in the general  proximity of such areas as dumps,  landfills,  industrial sites,
		    	or  other  locations  that  contain,  or  may  have  contained,  hazardous wastes.   	The  Contractor shall
		    	use   	current  techniques   	by  qualified   	professionals  to   	undertake   	investigations   	determined
		    	necessary.
																		•
		0)    	Environmental justice
			(1)   	Executive Order 12898 of February 11,  1994 - --  Federal Actions to Address Environmental Justice
		    	in Minority Populations and Low - Income Populations, (59 FR 7629).
		(k)    	Other requirements  - See 24 CFR Part 58.6.
		VI.     	ACQUISITION /RELOCATION
		The Uniform  Relocation Assistance and Real Property Acquisition  Policies Act of 1970 (42  U.S.C. Sec.  4601  et
		seq.), 24 C.F.R.  Part 42, and 24 C.F.R.  Section 570.606.
		VII.     	FAITH -BASED ACTIVITIES
		Executive Order  13279  of December 12,  2002 -  Equal  Protection of the Laws for Faith -Based and  Community
		Organizations, (67 FR 77141).
										Page 3 of 3
									 	EXHIBIT E
								   	CERTIFICATIONS
	 	WITH  RESPECT  TO  THE  EXPENDITURE  OF  FUNDS  PROVIDED  UNDER  THIS  CONTRACT  BY  THE
	 	County of Kerr , THAT;
		   	(1)     	IT  WILL  MINIMIZE  DISPLACEMENT  OF  PERSONS  AS  A  RESULT  OF  ACTIVITIES
		   	ASSISTED WITH SUCH FUNDS;
		   	(2)     	THE  PROGRAM  WILL  BE  CONDUCTED  AND  ADMINISTERED  IN  CONFORMITY WITH
		   	THE CIVIL RIGHTS ACT OF  1964 (42 U.S.C.  SEC. 2000a et seq.) AND THE FAIR HOUSING ACT
		   	(42  U.S.C.  SEC  3901  et seq.),  AND THAT  IT WILL AFFIRMATIVELY FURTHER  FAIR  HOUSING,
		   	AS SPECIFIED BY THE DEPARTMENT;
		   	(3)     	IT  WILL  PROVIDE  FOR  OPPORTUNITIES  FOR  CITIZEN  PARTICIPATION,  HEARINGS
		   	AND  ACCESS  TO  INFORMATION  WITH  RESPECT  TO  ITS  COMMUNITY  DEVELOPMENT
		   	PROGRAMS, AS SPECIFIED BY THE DEPARTMENT;
		   	(4)    	IT  WILL  NOT  ATTEMPT  TO  RECOVER  ANY  CAPITAL  COSTS  OF  PUBLIC  IMPROVE-
		   	MENTS ASSISTED IN WHOLE OR IN PART WITH SUCH FUNDS BY ASSESSING ANY AMOUNT
		   	AGAINST  PROPERTIES  OWNED  AND  OCCUPIED  BY  PERSONS  OF  LOW  AND  MODERATE
		   	INCOME,  INCLUDING  ANY  FEE  CHARGED  OR  ASSESSMENT  MADE  AS  A  CONDITION  OF
		   	OBTAINING  ACCESS  TO  SUCH  PUBLIC  IMPROVEMENTS  UNLESS  (A)  SUCH  FUNDS  ARE
		   	USED TO  PAY THE  PROPORTION  OF  SUCH  FEE OR ASSESSMENT THAT RELATED TO THE
		   	CAPITAL COSTS OF SUCH  PUBLIC  IMPROVEMENTS THAT ARE  FINANCED  FROM  REVENUE
		   	SOURCES  OTHER  THAN  SUCH  FUNDS;  OR  (B)  FOR  PURPOSES  OF  ASSESSING  ANY
		   	AMOUNT  AGAINST  PROPERTIES  OWNED  AND  OCCUPIED  BY  PERSONS  OF  MODERATE
		   	INCOME,  THE  CONTRACTOR  CERTIFIES  THAT  IT  LACKS  SUFFICIENT  FUNDS  UNDER THIS
		   	CONTRACT TO COMPLY WITH THE REQUIREMENTS OF CLAUSE (A).
		   	(5)    	IN  THE  EVENT THAT  DISPLACEMENT  OF  RESIDENTIAL  DWELLINGS  WILL  OCCUR  IN
		   	CONNECTION  WITH  A  PROJECT  ASSISTED  WITH  TCDP  FUNDS,  IT  WILL  FOLLOW  A
		   	RESIDENTIAL  ANTIDISPLACEMENT  AND  RELOCATION  ASSISTANCE  PLAN,  AS  SPECIFIED
		   	BY THE DEPARTMENT.
		   	(6)    	IT  SHALL  ADOPT  AND  ENFORCE  A  POLICY  PROHIBITING  THE  USE  OF  EXCESSIVE
		   	FORCE  BY  LAW  ENFORCEMENT  AGENCIES  WITHIN  ITS  JURISDICTION  AGAINST  ANY
		   	INDIVIDUAL ENGAGED IN NONVIOLENT CIVIL RIGHTS DEMONSTRATIONS AND A POLICY OF
		   	ENFORCING  APPLICABLE  STATE  AND  LOCAL  LAWS  AGAINST  PHYSICALLY  BARRING
		   	ENTRANCE TO OR EXIT FROM A FACILITY OR LOCATION WHICH IS THE SUBJECT OF SUCH
		   	NONVIOLENT CIVIL RIGHTS DEMONSTRATION WITHIN ITS JURISDICTION.
									 	Page 1  of 2
						 	CERTIFICATION REGARDING LOBBYING FOR
				 	CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
	 	County of Kerr
		 	CERTIFIES, TO THE BEST OF ITS KNOWLEDGE AND BELIEF, THAT:
		    	(1)     	NO FEDERAL APPROPRIATED FUNDS HAVE BEEN  PAID OR WILL BE PAID,  BY OR ON
		    	BEHALF OF THE  UNDERSIGNED,  TO ANY PERSON  FOR INFLUENCING OR ATTEMPTING TO
		    	INFLUENCE AN  OFFICER  OR  EMPLOYEE  OF AN  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.
		    	(2)     	IF ANY FUNDS OTHER THAN  FEDERAL APPROPRIATED FUNDS  HAVE BEEN PAID OR
		    	WILL  BE  PAID  TO  ANY  PERSON  FOR  INFLUENCING  OR  ATTEMPTING  TO  INFLUENCE  AN
		    	OFFICER  OR  EMPLOYEE  OF  ANY  AGENCY,  A  MEMBER  OF  CONGRESS,  AN  OFFICER  OR
		    	EMPLOYEE  OF  CONGRESS,  OR  AN   	EMPLOYEE  OF  A  MEMBER  OF  CONGRESS   	IN
		    	CONNECTION  WITH   	THIS   	FEDERAL   	CONTRACT,   	GRANT,   	LOAN,   	OR   	COOPERATIVE
		   	AGREEMENT, THE UNDERSIGNED SHALL COMPLETE AND SUBMIT STANDARD  FORM - LLL,
		   	"DISCLOSURE FORM TO REPORT LOBBYING ", IN ACCORDANCE WITH ITS INSTRUCTIONS.
		    	(3)     	THE UNDERSIGNED 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  SUBRECIPIENTS  SHALL  CERTIFY AND
		   	DISCLOSE ACCORDINGLY.
	  	THIS CERTIFICATION IS A MATERIAL REPRESENTATION OF FACT WHICH RELIANCE WAS PLACED
	  	WHEN THIS TRANSACTION WAS MADE OR ENTERED INTO.  SUBMISSION OF THIS CERTIFICATION
	  	IS A PREREQUISITE  FOR MAKING OR ENTERING  INTO THIS TRANSACTION  IMPOSED BY SECTION
	  	1352,  TITLE  31,  U.S.  CODE.   	ANY  PERSON  WHO  FAILS  TO  FILE  THE  REQUIRED  CERTIFICATION
	  	SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY  OF  NOT  LESS  THAN  $10,000  AND  NOT  MORE  THAN
	  	$100,000 FOR EACH SUCH  FAILURE.
										Page 2 of 2