**FY 2007 HOPE VI REVITALIZATION GRANT AGREEMENT**

This grant agreement (\"Grant Agreement\") is made by and between the
United States Department of Housing and Urban Development (\"HUD\") and
the public housing agency (\"Grantee\") identified in block 7 of the
cover sheet (\"Cover Sheet\") of this Grant Agreement (Form HUD-1044).
The Grantee received a HOPE VI Revitalization Grant from fiscal year
2007 funds, for the public housing development that is the subject of
this Grant Agreement (\"Development\"), and that is identified in block
16 of the Cover Sheet.

HUD agrees, subject to the terms of this Grant Agreement, to provide
grant funds to the Grantee, in the total amount listed in block 14 of
the Cover Sheet, for the activities described in the Revitalization Plan
as defined in Article II.

The assistance that is the subject of this Grant Agreement is authorized
by, and required to be used in accordance with, Section 24 of the U.S.
Housing Act of 1937 (the "HOPE VI Authorization\"). Funding for the HOPE
VI Authorization is appropriated by the Revised Continuing
Appropriations Resolution, 2007 (Pub. L.110-5, approved February 15,
2007).

The Cover Sheet and the Exhibits are incorporated into, and subject to
the terms of, this Grant Agreement.

HUD and the Grantee hereby agree to be bound by the following terms and
conditions of this Grant Agreement:

ARTICLE I: [HOPE VI Requirements]{.underline}

The Grantee agrees to conduct all activities to be assisted with funds
provided under this Grant Agreement in accordance with the following
requirements, as such requirements now exist or as they may hereafter be
amended (hereafter collectively referred to as the \"HOPE VI
Requirements\"):

\(A\) the U.S. Housing Act of 1937 (the \"1937 Act\"), including the
HOPE VI Authorization, and all implementing regulations;

\(B\) the HOPE VI Appropriations Act;

\(C\) for public housing rental units, the Annual Contributions Contract
(the \"ACC\") entered into between the Grantee and HUD, and any
amendments thereto (including, if applicable, any Mixed Finance ACC
Amendment);

(D) the Notice of Funding Availability published in the [Federal
    Register]{.underline} on

> July 31, 2007 (72 FR 41822) (the \"HOPE VI NOFA\");

(E) the SuperNOFA published in the [Federal Register]{.underline} on
    January 18, 2007 (72 FR 2396, as amended through technical
    corrections published in the [Federal Register]{.underline} on May
    11, 2007 (72 FR 27302), as relevant;

\(F\) any regulations, handbooks, notices, or policies applicable to the
activities being conducted with funds provided under this Grant
Agreement;

\(G\) any executive orders applicable to the activities being conducted
with funds provided under this Grant Agreement;

\(H\) the terms and requirements of this Grant Agreement, and any
amendments or addenda thereto;

> \(I\) all other applicable Federal requirements, including, without
> limitation, those set forth in Article XV Fair Housing Certifications;
> and
>
> \(J\) 31 U.S.C. § 1552. In accordance with this statute, **all FY 2007
> HOPE VI**
>
> **funds must be expended by September 30, 2013.** Any funds that are
> not expended by that date will be cancelled and recaptured by the
> Treasury, and thereafter will not be available for obligation or
> expenditure for any purpose.

ARTICLE II. [HOPE VI Revitalization Plan]{.underline}

\(A\) [General]{.underline}. The HOPE VI Revitalization Plan consists of
a series of documents and submissions that are reviewed and approved by
HUD to govern the revitalization of the Development under this Grant
Agreement.

\(B\) [Components of the Revitalization Plan]{.underline}. The
Grantee\'s HOPE VI revitalization plan (\"Revitalization Plan\")
includes each of the following components, as approved by HUD. Because
some of these documents may be submitted to HUD for approval throughout
the implementation of the Grant Agreement, an approved Revitalization
Plan shall be deemed to mean any or all of the following documents that
have been submitted to HUD on a timely basis (as set forth in paragraph
(E) of this Article II), and that are approved by HUD:

\(1\) the Grantee\'s HOPE VI Revitalization application, submitted in
response to the HOPE VI NOFA (the \"HOPE VI Application\");

\(2\) requests for funds for predevelopment costs, as described in
Article VII(C);

\(3\) supplemental submissions that HUD requires the Grantee to submit
following HUD\'s review of the HOPE VI Application and as a result of a
site visit to the Development, including, but not limited to:

\(a\) any waiver requests;

\(b\) any additional information required in order for HUD to approve
demolition based on the HOPE VI Application;

(c) certifications and assurances;

(d) a Program Schedule, in accordance with the timeframes established in
    part (E) of this Article and the format of the Quarterly Reports;

\(e\) an HOPE VI Budget (all phases), as described in Article VII(A)(1)
and (C); and

\(f\) any other information or documentation that is not otherwise
required under any other component of the Revitalization Plan that is
requested by HUD to supplement or refine information provided in the
HOPE VI Application or to meet any terms or conditions of the Grant
Agreement.

> (Subparagraphs (a) through (f) are hereafter collectively referred to
> as the \"Supplemental Submissions\".)

\(4\) the Community and Supportive Services Plan, as approved by HUD
(the \"CSS Plan\");

\(5\) the Grantee\'s submissions to HUD in connection with an Endowment
Trust, if applicable, in accordance with Article III(H) (including but
not limited to submission of a HOPE VI Endowment Trust Addendum);

\(6\) a Demolition Application, if applicable, as described in Article
III(D);

\(7\) a Disposition Application relating to the Development, as
described in Article III(E), to the extent applicable;

\(8\) a Section 202 Mandatory Conversion Plan, as described in Article
III(D)(1)(c), to the extent applicable;

\(9\) a Standard or Mixed Finance development proposal(s), as described
in Article III(A);

\(10\) a Homeownership Proposal, as applicable, as described in Article
III(C); and

\(11\) any amendment or modification of the foregoing, as approved in
writing by HUD.

\(C\) [Consistency with the Revitalization Plan]{.underline}. Any
submissions provided to HUD as part of the Revitalization Plan under
paragraph (B) of this Article, and that are approved in writing by HUD,
will be deemed to amend the Revitalization Plan.

\(D\) [Incorporation into Grant Agreement]{.underline}. As each
component of the Revitalization Plan is approved in writing by HUD, it
will be deemed to be incorporated into this Grant Agreement.

\(E\) [Time Periods for Implementation]{.underline}. The Grantee agrees
to implement its Revitalization Plan in accordance with the approved
Program Schedule, including but not limited to the following time
periods:

(1) In accordance with 31 U.S.C. § 1552, and Article I(I), **all FY
    2007**

> **HOPE VI funds must be expended by September 30, 2013.** Any funds
> that are not expended by that date will be cancelled and recaptured by
> the Treasury, and thereafter will not be available for obligation or
> expenditure for any purpose.

\(2\) The Grantee must submit its Supplemental Submissions, as required
by paragraph (B)(3) of this Article, to HUD within 90 days from the date
of HUD\'s written request for the Supplemental Submissions, in form and
substance acceptable to HUD.

\(3\) The Grantee must start case management services as soon as
possible, if they have not already, in accordance with the commitments
made in the Grantee's application. If the Grantee committed to start
case management within 30 days of the grant award, it must have started
these services within 30 days of the date of the award letter (April 20,
2008 (30 days from the March 20, 2008 award letter)). It is imperative
that case management services begin immediately so that residents who
will be relocated have time to participate in and benefit from CSS
activities before leaving the site; and that residents who have already
been relocated are able to participate in and benefit from CSS
activities.

(4) The Grantee must submit the CSS Plan, as required by paragraph

> (B)(4) of this Article, to HUD within 90 days from the execution of
> this Grant Agreement.

(5) Components of the Revitalization Plan other than those listed in

> paragraphs (B)(2), (B)(5) and (B)(8) of this Article and any other
> submissions required by HUD must be submitted in accordance with the
> Quarterly Report Administration and Phase Compliance Checkpoints
> Report, as approved by HUD.

(6) The Grantees must submit the development proposal for the first

> phase of construction within 12 months of Grant Agreement execution. A
> development proposal for the first phase of construction is required
> regardless of the type of units being built.

\(7\) The closing of the first phase must take place within 15 months of
grant award. For this purpose, "closing" means all financial and legal
arrangements have been executed and actual activities (construction,
etc.) are ready to commence.

> \(8\) The Grantee must start construction within 12 months from the
> date of
>
> HUD\'s approval of the Supplemental Submissions, which period may not
> exceed 18 months from the date this Grant Agreement is executed.
>
> \(9\) The Grantee must complete construction within 48 months from the
> date
>
> of HUD\'s approval of the Supplemental Submissions, which period may
> not exceed 54 months from the date this Grant Agreement is executed.

\(10\) In accordance with Section 24(i) of the 1937 Act, if the Grantee
does not proceed within a reasonable time frame, as described in
Sections (E)(1) through (8) above, HUD may withdraw any unobligated
grant amounts. HUD shall redistribute any withdrawn amounts to one or
more other applicants eligible for HOPE VI assist­ance or to one or more
other entities capable of proceeding expeditiously in the same locality
in carrying out the Revitalization Plan of the original Grantee. HUD may
also pursue actions as described in Article XXI, "Unsatisfactory
Performance/Default."

\(F\) [Time Extensions]{.underline}. All requests for extensions of the
time periods for implementation listed in section II(E) above must be
requested by the Grantee in advance of the deadline date. All requests
for extensions must be made in writing, and will be reviewed and
approved or disapproved by the Assistant Secretary of Public and Indian
Housing or the Deputy Assistant Secretary for the Office of Public
Housing Investments.

\(G\) [Special Conditions]{.underline}. HUD has the right to establish
special conditions with respect to the Grantee\'s performance of
activities under this Grant Agreement, either prior to the execution of
this Grant Agreement, or under the circumstances set forth in Article
XXI(A).

\(H\) [PHA Annual Plan]{.underline}. The Grantee agrees that its PHA
Plan and revised five-year action plan, as required under 24 CFR part
903, or MTW Annual Plan, as applicable, must reflect the use of funds
provided under this Grant Agreement for the implementation of activities
under the Revitalization Plan.

\(I\) [Section 202 Conversion Plan]{.underline}. As applicable, the
Grantee agrees to comply with the Section 202 Requirements, as described
in Article III(D)(1)(c), with respect to the Development or other
properties assisted under this Grant Agreement that are subject to
Mandatory Conversion. Information provided in the Grantee\'s approved
Revitalization Plan shall constitute an acceptable Section 202 Mandatory
Conversion Plan.

ARTICLE III. [Revitalization Activities and Requirements]{.underline}

\(A\) [Development Activities]{.underline}.

\(1\) For any standard (non-mixed finance) public housing development
activity under the Revitalization Plan (whether on-site reconstruction
or off-site development), the Grantee must obtain HUD approval of a
development proposal submitted under 24 CFR part 941 (or successor
part), as this part may be amended from time to time (\"Standard
Development Proposal\").

\(2\) For mixed-finance housing development under the Revitalization
Plan, the Grantee must obtain HUD approval of a mixed finance proposal
submitted under 24 CFR part 941, subpart F (or successor part and
subpart), as may be amended from time to time ("Mixed Finance
Development Proposal\").

\(3\) For new construction of community facilities primarily intended to
facilitate the delivery of community and supportive services for
residents of the Development and residents of off-site replacement
housing, the Grantee must comply with 24 CFR part 941 (or successor
part) as this part may be amended from time to time. Information
required for this activity must be included in either a Standard or
Mixed Finance Development Proposal.

\(B\) [Rehabilitation Activities]{.underline}. For rehabilitation and
physical improvement of public housing and/or community facilities
primarily intended to facilitate the delivery of community and
supportive services for residents of the Development and residents of
off-site replacement housing under the Revitalization Plan, the Grantee
will comply with 24 CFR § 968.112(b), (d), (e), and (g)-(o) and 24 CFR
§§ 968.130 and 968.135(b) and (d) or successor part, as may be amended
from time to time.

> \(C\) [Homeownership Activities]{.underline}. For homeownership
> replacement activities under a Revitalization Plan, the Grantee is
> required to obtain HUD approval of a homeownership proposal
> ("Homeownership Proposal"). The Homeownership Proposal must serve
> low-income families consistent with the 80% Area Median Income (AMI)
> limitations and any other applicable provisions under the 1937 Act.
> The Homeownership Proposal must conform to either:
>
> \(1\) section 24(d)(1)(J) of the 1937 Act; or
>
> \(2\) section 32 of the 1937 Act (see 24 CFR part 906).

\(D\) [Demolition]{.underline}.

\(1\) The Grantee must submit one of the following to HUD for approval,
as applicable, before demolition activities under the Revitalization
Plan may be carried out:

\(a\) any additional information required in order for HUD to approve
demolition based on the HOPE VI Application, in accordance with Article
II(B)(3)(b) (\"HOPE VI Demolition Information\");

\(b\) a demolition application under Section 18 of the Act, as approved
by HUD, to the extent applicable (the "Section 18 Demolition
Application;\"); or

\(c\) a Section 202 Mandatory Conversion Plan, in compliance with the
regulations at 24 CFR part 971 and other applicable HUD requirements, if
the Development or other property assisted under this Grant Agreement is
subject to Mandatory Conversion (section 202 of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (Pub. L. No. 104-134,
approved on April 26, 1996)), which concerns the required conversion of
certain distressed public housing to vouchers (the "Section 202
Requirements\").

\(2\) For the purposes of this Grant Agreement, the HOPE VI Demolition
Information described in subparagraph (D)(1)(a), the Section 18
Demolition Application described in subparagraph (D)(1)(b), and the
Section 202 Requirements described in subparagraph (D)(1)(c) shall
heretofore collectively be referred to as the \"Demolition
Application.\"

\(3\) The Grantee will not carry out, nor permit others to carry out the
demolition of the Development or any portion thereof until HUD approves,
in writing, the demolition of the development. In order for HUD to
approve the demolition HUD must also have 1) approved a Request for
Release of Funds submitted in accordance with 24 CFR part 58, or, 2) if
HUD performs an environmental review under 24 CFR part 50, approved the
property for demolition, in writing, following its environmental review.

\(E\) [Disposition]{.underline}.

\(1\) The Grantee will comply with the provisions of section 18 of the
1937 Act, 24 CFR part 970, as may be modified or amended from time to
time, and the provisions of its approved disposition application (the
approved \"Disposition Application\"), unless otherwise modified in
writing by HUD.

\(2\) A lease of one year or more which is not incident to the normal
operation of a Development is considered to be a disposition that is
subject to section 18 of the 1937 Act.

\(F\) [Relocation]{.underline}.

\(1\) [General]{.underline}. The Grantee will provide suitable, decent,
safe, and sanitary housing for each family required to relocate as a
result of revitalization activities under the Revitalization Plan.

\(2\) [Standard Relocation Plan]{.underline}. The Grantee must carry out
its relocation activities in compliance with a relocation plan that
conforms with the following statutory and regulatory requirements, as
applicable (the "Standard Relocation Plan"):

\(a\) Relocation or temporary relocation carried out as a result of
**rehabilitation** under an approved Revitalization Plan is subject to
the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (42 U.S.C. § 4601 [et]{.underline} [seq]{.underline}; 49 CFR
part 24) (URA) and regulations at 24 CFR § 968.108 or successor part.

\(b\) Relocation carried out as a result of **acquisition** under an
approved Revitalization Plan is subject to the URA and regulations at 24
CFR § 941.207 or successor part.

\(c\) Relocation carried out as a result of **disposition** under an
approved Revitalization Plan is subject to section 18 of the 1937 Act as
amended.

\(d\) Relocation carried out as a result of **demolition** under an
approved Revitalization Plan is subject to the URA.

\(3\) [HOPE VI Relocation Plan]{.underline}.

(a) In addition to the requirements under subparagraph (F)(2) of this
    Article, the Grantee is required to implement a HOPE VI relocation
    plan (as certified to in its FY 2007 HOPE VI Revitalization
    application) that describes the assistance and the services to be
    provided to affected families and otherwise conforms with the
    Uniform Relocation Assistance and Real Property Acquisition for
    Federal and Federally-Assisted Programs Final Rule, which was
    published in the Federal Register on January 4, 2005 at 70 FR 590
    and became effective February 3, 2005.

(b) The HOPE VI Relocation plan is intended to ensure that PHAs adhere
    to the URA and that all residents who have been or will be
    temporarily or permanently relocated from the site are tracked for
    the term of the Grant Agreement and are provided with CSS activities
    such as mobility counseling and direct assistance in locating
    housing. Your HOPE VI Relocation plan must serve to minimize
    permanent displacement of current residents of the public housing
    site who wish to remain in or return to the revitalized community.
    Your HOPE VI Relocation plan must also furnish alternative permanent
    housing for current residents of the public housing site who do not
    wish to remain in or return to the revitalized community. Your CSS
    program must provide for the delivery of community and supportive
    services to residents prior to any relocation, temporary or
    permanent.

\(G\) [Acquisition]{.underline}.

\(1\) [Rental Units]{.underline}. The Grantee will comply with 24 CFR
part 941 or successor part for acquisition of rental units in existing
or new apartment buildings, single family subdivisions, etc., with or
without rehabilitation, for use as public housing replacement units.

\(2\) [Land for Off-Site Replacement Units]{.underline}. Before the
Grantee may undertake acquisition activities of land for public housing
or homeownership development with HOPE VI or other public housing funds,
the Grantee must submit an acquisition proposal to HUD that meets the
requirements of 24 CFR § 941.303.

(3) [Land for Economic Development]{.underline}. The Grantee will comply
    with 24 CFR part 941, subpart F, or successor part for acquisition
    of land for economic development-related activities. The Grantee
    may, with HUD approval, use funds provided under this Grant
    Agreement for acquisition of land and for limited infrastructure and
    site improvements associated with developing retail, commercial, or
    office facilities. The Grantee must enter into a restrictive
    covenant to govern the development and use of land acquired for
    economic development purposes. The Grantee may **not** use funds
    provided under this Grant Agreement to pay hard development costs or
    to buy equipment for retail, commercial, or office facilities.

\(H\) [Community and Supportive Services]{.underline}.

\(1\) [General]{.underline}. Consistent with section 24(d)(1)(L) and
24(j)(3) of the 1937 Act and the HOPE VI NOFA, the Grantee may use an
amount up to 15 percent of the total HOPE VI Grant to pay the costs of
community and supportive service programs. The Grantee may spend
additional sums on community and supportive services programs using
donations, HUD funds made available for that purpose, or other PHA
funds. The Grantee must develop and submit to HUD for approval a CSS
Plan. The Grantee must provide current public housing residents,
relocated public housing residents, and returning and new public housing
residents with community and supportive services for the term of the
Grant Agreement. CSS programs and services must be carefully planned so
that they will be sustainable after the HOPE VI grant period ends. The
Grantee is responsible for tracking and providing CSS programs and
services to residents currently living on the targeted public housing
site and residents already relocated from the site. It is imperative
that case management services begin immediately so that residents who
will be relocated have time to participate in and benefit from CSS
activities before leaving the site; and that residents who have already
been relocated are able to participate in and benefit from CSS
activities. CSS activities must be well integrated with the physical
development process, both in terms of timing and the provision of
facilities to house on-site service and educational activities.

\(2\) [CSS Endowment Trust]{.underline}. The Grantee may deposit up to
15 percent of the HOPE VI Grant amount (the maximum amount of the grant
allowable for CSS programs) into an endowment trust to provide CSS
activities (the \"Endowment Trust\").

\(a\) The Grantee may not draw down funds provided under this Grant
Agreement for deposit into an Endowment Trust until it has a
HUD-approved Endowment Trust plan and has executed with HUD an addendum
to this Grant Agreement (the \"HOPE VI Endowment Trust Addendum\"), as
directed by HUD. The HOPE VI Endowment Trust Addendum establishes the
requirements governing the establishment, operation, and management of
an Endowment Trust.

\(b\) In reviewing the amount of the Grantee\'s proposed allocation of
HOPE VI Grant funds to an Endowment Trust, HUD will take into account
the Grantee\'s demonstrated ability to pay for current CSS activities
with HOPE VI or other funds, and the projected long-term sustainability
of the Endowment Trust to carry out such activities.

\(c\) Endowment Trust funds (including any non-HOPE VI funds donated or
otherwise made available to the Endowment Trust, and any interest earned
on HOPE VI and non-HOPE VI funds) may only be used for eligible and
necessary CSS activities, as set forth in the approved CSS Plan.

(I) Necessary management improvements, including transitional security
    activities.

\(J\) Leveraging other resources, including additional housing
resources, supportive

> services, job creation, and other economic development uses on or near
> the project that will benefit future residents of the site.

\(K\) Reasonable costs for administration, planning, technical
assistance, and fees and costs, as established by HUD guidance and
policies regarding cost controls. These costs are limited to the costs
of implementing the Revitalization Plan, as specifically approved by
HUD, such as fees for architectural and engineering work, program
management (if any), and reasonable legal fees.

\(L\) [Administration, Fees and Costs]{.underline}.

(1) [Cost Controls]{.underline}. The Grantee will comply with HUD
    guidance and policies regarding cost controls that establish
    reasonable costs for administration, planning, technical assistance,
    and fees and costs. These costs are limited to the costs of
    implementing the development as specifically approved by HUD, such
    as fees for development services, architectural and engineering
    work, program management (if any), and reasonable legal fees. You
    may not use HOPE VI Revitalization Grant funds to pay for any
    revitalization activities carried out on or before the date of the
    letter announcing the award of the HOPE VI Grant (March 20, 2008).

\(2\) [Lobbying]{.underline}. The Grantee hereby certifies that no funds
provided under this Grant Agreement will be expended for lobbying
activities, as prohibited by Section 319 of Public Law 101-121 (which
prohibits recipients of Federal contracts, grants, and loans from using
appropriated funds for lobbying the Executive or Legislative Branches of
the Federal Government), and implemented for HUD at 24 CFR part 87, as
the same may be amended from time to time. The Grantee will disclose
promptly any commitment or expenditure of non-appropriated funds for
lobbying activities if those activities would be prohibited if paid with
appropriated funds.

[]{.mark}

> \(M\) [Eminent Domain and Public Use.]{.underline} Pursuant to section
> 105 of the 2007 HOPE VI Appropriations Act states, under which this
> HOPE VI NOFA is funded, no funding made available under that Act shall
> be used for purposes specifically excluded by the 2006 HOPE VI
> Appropriations Act. Section 726 of the FY 2006 HUD Appropriations Act
> prohibits any use of these funds \"to support any Federal, State, or
> local projects that seek to use the power of eminent domain, unless
> eminent domain is used only for a public use.\" The term \"public
> use\" is expressly stated [not]{.underline} \"to include economic
> development that primarily benefits private entities.\" Accordingly,
> grantees may not propose mixed-use projects in which housing is
> complemented appreciably with commercial facilities (i.e., economic
> development) if eminent domain is used for the site.

ARTICLE IV. [Changes to the Revitalization Plan]{.underline}

\(A\) [Changes Requiring Prior HUD Approval]{.underline}. If the
following activities in the Revitalization Plan are to be modified or
amended, the Grantee must request and obtain prior HUD approval:

\(1\) the Program Schedule. The Grantee must inform HUD immediately, in
writing, of any problems, delays or adverse conditions that will impair
materially the Grantee\'s ability to comply with the Program Schedule,
and include a statement of action taken, or proposed to be taken, and
any assistance needed to resolve the situation. HUD must approve any
proposed changes to the Program Schedule that would modify any date or
time period.

\(2\) the form of program oversight;

\(3\) the procedures for community involvement;

\(4\) the approved Disposition Application;

\(5\) the approved Demolition Application;

\(6\) the total number of public housing units and other housing units
on-site and to be developed or rehabilitated, whether or not there is an
associated budgetary revision requiring prior approval;

\(7\) changes in any HOPE VI Budget or phase budget that propose an
increase or decrease in any line item, except as permitted by Article
VIII(C) (Drawdowns);

\(8\) an extension of the period of availability of the HOPE VI Grant
funds provided under this Grant Agreement, not to go beyond the
statutory timeframes;

\(9\) changes in the entities or individuals specified in the
Revitalization Plan as having key responsibilities for carrying out the
Revitalization Plan (or any component(s) of the Revitalization Plan).
Subgranting, subcontracting or otherwise obtaining the services of a
third party to perform activities that are central to the purposes of
the Revitalization Plan will constitute such a change in entities or
individuals; and

\(10\) changes requested by a subgrantee that relate to any of the
itemized categories listed in this paragraph (A) of this Article.

\(B\) [Changes Requiring Grant Agreement Amendment]{.underline}. For the
following types of revisions to the Revitalization Plan, the Grantee
must request prior approval in writing to HUD. Upon HUD approval, the
change will be implemented by the execution of an amendment to this
Grant Agreement, and shall consist of a revised Form HUD-1044 that
defines the changes.

\(1\) change in the total dollar amount of the grant; and/or

\(2\) change in the Development for which funds provided under this
Grant Agreement are made available.

ARTICLE V. [Replacement Units]{.underline}

\(A\) [General]{.underline}.

\(1\) [ACC]{.underline}. The Grantee acknowledges that the Development
currently is subject to an ACC with HUD and agrees that the ACC will
remain in full force and effect with respect to the Development for so
long as the Development is required by the Revitalization Plan to remain
as public housing.

\(2\) [Compliance with HOPE VI Requirements]{.underline}. The Grantee
agrees that any replacement units that are developed under the
Revitalization Plan will be developed, operated, and maintained in
accordance with the HOPE VI Requirements for the requisite time period.

\(B\) [Rental Units]{.underline}.

[Implementing Agreements]{.underline}. After HUD approves the Grantee\'s
Development Proposal(s), the Grantee agrees to take promptly all steps
necessary to enable HUD to approve the execution of an implementing
agreement to cover the replacement housing.

\(1\) [Mixed Finance Development]{.underline}. For each mixed finance
phase of development of public housing rental units, the Grantee will
enter into a Mixed-Finance ACC Amendment with HUD in accordance with 24
CFR part 941 subpart F or successor part.

\(2\) [Standard Development]{.underline}. For Development Proposals
involving the development of public housing rental units (but not mixed
finance public housing units), the Grantee and HUD will execute an ACC
Amendment.

\(C\) [Homeownership Units]{.underline}.

\(1\) For each phase of development of mixed finance homeownership
replacement housing (which does not include the provision of HOPE VI
funds for only subordinate mortgage assistance to eligible families),
the Grantee will enter into an Addendum to this HOPE VI Grant Agreement
for the Mixed Finance Development of Homeownership Replacement Units.

\(2\) Homeownership units may only be deemed to be replacement units if
such units do not exceed the total number of units that have been or
will be demolished and/or disposed of at the targeted severely
distressed project and otherwise meet the requirements listed in Article
III(C) of this Grant Agreement.

\(D\) [Market Rate Units]{.underline}. The Grantee **may not** use funds
provided under this Grant Agreement to develop market rate units or
affordable housing units which do not qualify as public housing or
homeownership replacement units described in paragraphs (B) or (C) of
this Article.

ARTICLE VI. [Revitalized Public Housing]{.underline}

\(A\) [Waiver Requests]{.underline}.

\(1\) [Standard for Approval]{.underline}. The activities to be
conducted under this Grant Agreement are subject to the terms of this
Grant Agreement and the HOPE VI Requirements. Nevertheless, HUD seeks
innovative solutions under the HOPE VI Program to the long-standing
problems of severely distressed public housing developments, and will
consider granting a waiver of specific regulatory requirements, provided
that:

\(a\) such a waiver would be consistent with applicable statutory
requirements; and

\(b\) the Grantee is able to demonstrate good cause to support HUD\'s
granting of such a waiver.

\(2\) [Waiver Request Procedure]{.underline}. If the Grantee wants HUD
to approve a waiver of a regulatory requirement, it must submit a
request with sufficient information and justification to enable HUD to
make a determination of good cause for granting any such request to
deviate from existing regulations. Until such time as the Grantee
requests and HUD, in its discretion, approves any such requests in
writing, the Grantee does not have authority to implement the activities
described in the HOPE VI Application to which the request for approval
applies (or for which a request for approval is needed).

\(B\) [Special Conditions for Revitalized Housing]{.underline}. The
following is an overview of certain issues that may be important to the
Grantee as it seeks to develop its Revitalization Plan. The Grantee is
reminded that this information is accurate and current as of the time
this Grant Agreement was issued by HUD. The Grantee must, however,
ensure that the provisions described below have not been modified by
subsequent statutory or regulatory enactments before implementing them.
Any authority exercised by the Grantee under this Article must also be
set forth in the Grantee\'s Revitalization Plan, and PHA Plan (or MTW
Annual Plan, as applicable), as required.

\(1\) [Site and Neighborhood Standards for Replacement
Housing]{.underline}.

\(a\) [Goals of the HOPE VI Program]{.underline}. The HOPE VI Program
provides resources to address the needs of severely distressed public
housing developments within an administrative framework of less
intrusive Federal oversight and increased reliance on informed local
decision making. HOPE VI Grants are made so that Grantees can develop
and implement comprehensive strategies that address not only the
physical and management needs of the developments, but also the social
and economic needs of the residents and the surrounding community. The
Grantee is expected to ensure that its Revitalization Plan will expand
assisted housing opportunities in non-poor and non-minority
neighborhoods and/or will accomplish substantial revitalization in the
Development and its surrounding neighborhood. The Grantee is also
expected to ensure that eligible households of all races and ethnic
groups will have equal and meaningful access to the housing.

\(b\) [Objectives in Selecting HUD-Assisted Sites]{.underline}. The
fundamental goal of HUD\'s fair housing policy is to make full and free
housing choice a reality. Housing choice requires that households of all
races can freely decide the type of neighborhood where they wish to
reside, that minority neighborhoods are no longer deprived of essential
public and private resources, and that stable, racially-mixed
neighborhoods are available as a meaningful choice for all. To make full
and free housing choice a reality, sites for HUD-assisted housing
investment should be selected so as to advance two complementary goals:

\(i\) expand assisted housing opportunities in non-minority
neighborhoods, opening up choices throughout the metropolitan area for
all assisted households; and

\(ii\) reinvest in minority neighborhoods, improving the quality and
affordability of housing there to represent a real choice for assisted
households.

\(c\) Compliance with Fair Housing Act, Title VI of the Civil Rights Act
of 1964, and Section 504 of the Rehabilitation Act of 1973. The Grantee
must comply with the Fair Housing Act and Title VI of the Civil Rights
Act of 1964, Section 504 of the Rehabilitation Act of 1973, and
implementing regulations in determining the location of any replacement
housing.

\(d\) [Grantee\'s Election of Requirements]{.underline}. A Grantee may,
at its election, separately with regard to each site it proposes, comply
with the development regulations regarding Site and Neighborhood
Standards (24 CFR § 941.202), or with the Site and Neighborhood
Standards contained in this Article.

\(e\) [Replacement Housing Located on Site or in the Surrounding
Neighborhood]{.underline}. Because the objective of the HOPE VI program
is to alleviate distressed conditions at the Development and in the
surrounding neighborhood, replacement housing under HOPE VI that is
located on the site of the existing Development or in its surrounding
neighborhood will not require independent approval by HUD under Site and
Neighborhood Standards. The term \"surrounding neighborhood\" means the
neighborhood within a three-mile radius of the site of the existing
development.

\(f\) [Replacement Housing Located Outside of the Surrounding
Neighborhood.]{.underline} Unless the Grantee demonstrates that there
are already significant opportunities in the metropolitan area for
assisted households to choose non-minority neighborhoods (or these
opportunities are under development), HOPE VI replacement housing not
covered by subparagraph (B)(1)(e) of this Article may not be located in
an area of minority concentration (as defined below) without the prior
approval of HUD. Such approval may be granted if the Grantee
demonstrates to the satisfaction of HUD that:

\(i\) the Grantee has made determined and good faith efforts, and found
it impossible with the resources available, to acquire an appropriate
site(s) in an area not of minority concentration; or

(ii) the replacement housing, taking into consideration both the
     community and supportive services or other revitalizing activities
     included in the Revitalization Plan, and any other revitalization
     activities in operation or firmly planned, will contribute to the
     stabilization or improvement of the neighborhood in which it is
     located, by addressing any serious deficits in services, safety,
     economic opportunity, educational opportunity, and housing stock;
     or

> \(iii\) the replacement housing is located in a neighborhood that is
> not an area of high poverty rate (30 percent or more).

\(g\) [Area of Minority Concentration]{.underline}. The term \"area of
minority concentration\" is any neighborhood in which:

\(i\) The percentage of households in a particular racial or ethnic
minority group is at least 20 points higher than the percentage of that
particular minority group for the housing market area; i.e., the
Metropolitan Statistical Area (MSA) in which the proposed housing is to
be located; or

(ii) The neighborhood\'s total percentage minority is at least 20 points
     higher than the total percentage of all minorities for the MSA as a
     whole; or

> \(iii\) In the case of a metropolitan area, the neighborhood's total
> percentage of minority persons exceeds 50 percent of its population.

\(2\) [Admission to Redeveloped HOPE VI Units]{.underline}. The 1937 Act
applies to public housing units, including the Development to be
revitalized and any replacement units developed as public housing. One
objective of the HOPE VI Program is to explore alternative methods for
operating successfully revitalized public housing within the statutory
framework, including the Fair Housing Act and Title VI of the Civil
Rights Act of 1964.

\(a\) [Preferences for Admission]{.underline}.

\(i\) [Authority]{.underline}. The Grantee is permitted to establish a
local system of preferences in accordance with applicable HUD
requirements, including those governing the PHA Agency Plan (see 24 CFR
part 903), as may be amended.

\(ii\) [Applicability of Civil Rights Requirements]{.underline}. The
Grantee is reminded that, in adopting any local preference, it must
comply with all applicable civil rights requirements, including the Fair
Housing Act and Title VI of the Civil Rights Act of 1964 and all
implementing regulations. Because of the overriding importance of fair
housing rights and the likelihood of private litigation or a public
enforcement action if fair housing laws are violated, the Grantee is
strongly encouraged to consult with HUD (including Fair Housing staff)
prior to establishing preferences that may involve fair housing issues
(such as neighborhood preferences).

\(b\) [Resident Screening]{.underline}. The Grantee is permitted to
implement a screening process that uses a resident advisory board and/or
advisory board. However, the Grantee must establish objective and
reasonable criteria to determine if an applicant is likely to be a
suitable resident, and must develop adequate procedures to verify
information concerning each applicant. The Grantee also should amend its
admissions policies and PHA Plan, or MTW Annual Plan and MTW Agreement,
as applicable, to reflect any such changes in its procedures.

\(c\) [Site-Based Waiting Lists]{.underline}. The Grantee may establish
a separate, site-based waiting list. The method of establishment and
operation must comply with the PHA Agency Plan requirements at 24 CFR §
903.7, as may be amended, or MTW Annual Plan and MTW Agreement, as
applicable.

ARTICLE VII. [HOPE VI Budget and Funding Requests]{.underline}

\(A\) [Types of Budgets]{.underline}. The Grantee must ensure that funds
provided under this Grant Agreement are expended in accordance with the
HOPE VI Requirements and:

\(1\) a HOPE VI Budget. Each Grantee must submit to HUD for approval a
HOPE VI Budget as part of the Supplemental Submissions. The HOPE VI
Budget allocates ALL HOPE VI Grant funds, for ALL phases, into Budget
Line Items. The HOPE VI Budget will serve as the primary budget and may
be subject to revision; and

\(2\) a budget for each phase of a Standard, Mixed Finance, or
Homeownership Development Proposal, as approved by HUD.

\(B\) [Budget Form]{.underline}. Each budget submitted in accordance
with paragraph (A) of this Article must be submitted on Form
HUD-52825-A, Parts I and II (\"HOPE VI Budget Form\"). Part I must be
signed and dated by the Executive Director, and Part II must include a
detailed description of the uses of the funds.

\(C\) [Predevelopment Costs]{.underline}.

\(1\) [Funding Requests]{.underline}. Before receiving HUD\'s written
approval of the Supplemental Submissions, the Grantee may submit a HOPE
VI Budget for the purpose of requesting HOPE VI Grant funds for
predevelopment costs. Upon written approval by HUD of the HOPE VI Budget
(with any modifications required by HUD), funds may be drawn down for
eligible Predevelopment Costs (as defined in subparagraph (2) below),
subject to the requirement for an environmental review under Article
VIII(B), in accordance with the provisions of this Grant Agreement.

\(2\) [Eligible Predevelopment Costs]{.underline}. Eligible
predevelopment costs (\"Predevelopment Costs\") may include funds for:

\(a\) administration costs related to having additional and/or existing
staff work on the HOPE VI Grant;

\(b\) fees and costs related to procuring goods and services from third
parties in connection with eligible predevelopment activities such as
architectural and engineering (A&E) fees;

\(c\) resident relocation;

\(d\) limited community and supportive services costs, including costs
dedicated to case management and services and the cost of preparing the
CSS Plan;

\(e\) costs associated with carrying out environmental reviews, in
accordance with 24 CFR § 58.23; and

\(f\) site remediation and demolition costs, provided that HUD has
notified the Grantee in writing of the approval of the Grantee\'s
Demolition Application.

\(3\) [Pre-Grant Agreement Execution Costs]{.underline}. After the
execution of this Grant Agreement, the Grantee may include in its HOPE
VI Budget, and draw down funds for, costs that were incurred under the
Revitalization Plan prior to execution of this Grant Agreement, provided
that such costs:

\(a\) were incurred after the date of HUD\'s notification letter
awarding this HOPE VI Revitalization Grant to the Grantee (March 20,
2008); and

\(b\) are directly associated with the activities under the
Revitalization Plan to be funded HOPE VI Grant funds.

\(4\) [Predevelopment Funds]{.underline}. Upon review and approval of
the HOPE VI Budget, as described in Article VII(C)(1), HUD will make the
approved predevelopment funds available to the Grantee for drawdown in
LOCCS. The Grantee will ensure that the funds are expended in
conformance with the HUD-approved Predevelopment Budget.

\(D\) [Program Income]{.underline}. Unless otherwise approved by HUD in
accordance with 24 CFR § 85.25, if the Grantee receives program income
prior to grant closeout (e.g., from repayment of loans or sale of
homeownership replacement units) the program income:

\(1\) must be reinvested in the Development and used for low-income
housing purposes, as approved by HUD; and

\(2\) must be used for eligible activities authorized under this Grant
Agreement before the Grantee may draw down additional cash payments from
the HOPE VI Grant.

ARTICLE VIII. [Project Drawdowns]{.underline}

\(A\) [LOCCS Payment System]{.underline}. Notwithstanding any contrary
provisions of 24 CFR § 85.21, the Grantee will request all drawdowns of
HOPE VI Grant funds under the Line of Credit Control System (e-LOCCS),
unless and until another payment system is designated by HUD. The
Grantee will comply with all rules, guidelines, and notices established
for HOPE VI under LOCCS, or any substitute system, in connection with
any drawdown of HOPE VI Grant funds. If HUD designates a different
payment system, it will be based upon the provisions of section 85.21
(subject to the provisions of Article XIX(D)).

\(B\) [Environmental Review]{.underline}. The Grantee may not carry out
activities with respect to demolition, disposition, acquisition,
development, and/or any off-site replacement public housing until HUD
has approved a request for release of funds in accordance with 24 CFR
part 58 or has completed an environmental review on each affected site
in accordance with 24 CFR part 50. The costs of environmental reviews
are eligible expenses in accordance with an approved HOPE VI Budget (as
provided in Article VII(C)(2)(e)).

\(C\) [Drawdowns]{.underline}.

\(1\) Without HUD approval, the Grantee may draw down HOPE VI Grant
funds for a Budget Line Item (BLI) in an amount up to 110 percent of the
amount of that BLI that HUD has approved and made available for
drawdown.

\(2\) With HUD approval, the Grantee may request funds that exceed 110
percent of a BLI, provided that any such change does not cause, or
result from, a revision to the scope or objectives of the Revitalization
Plan and that:

\(a\) HUD\'s total grant obligation will not be increased;

\(b\) the average per unit hard costs for units to be reconstructed or
rehabilitated will not exceed 100 percent of the Total Development Cost
Limits (\"TDC Limits\") and the Housing Construction Cost Limits (\"HCC
Limits\"); and

\(c\) the Grantee will comply with the requirements of Article IX(B),
relating to the percentage of funding that may be expended for community
and supportive service activities.

\(3\) Notwithstanding sections (C)(1) and (C)(2) above, the Grantee may
not request more than 100 percent of the amount authorized for BLIs 1408
(Management Improvements/Community and Supportive Services) and 1410
(Administration).

\(4\) Any request for funds in excess of 5 percent of the entire grant
amount in any month must be approved by HUD.

\(D\) [Drawdown Consequences of Default]{.underline}.

\(1\) [Withholding of Payments]{.underline}. HUD may withhold payments
in accordance with 24 CFR § 85.21(g).

\(2\) [Grantee Representations]{.underline}. Each drawdown request by
the Grantee will constitute, and be deemed to be, a representation that
the Grantee is not in default under this Grant Agreement (except as the
Grantee previously may have disclosed to HUD in writing).

\(3\) [Overdue Reports]{.underline}. No funds provided under this Grant
Agreement may be released during any period in which the Grantee has
failed to file with HUD any overdue Quarterly Report.

ARTICLE IX. [Matching Funds]{.underline}

\(A\) [Overall Match]{.underline}. The Grantee agrees to provide
resources, other than HOPE VI Grant funds, in an amount that is not less
than 5 percent of the HOPE VI Grant amount. Matching funds must be
directly applicable to the revitalization of the site and the
transformation of the lives of residents.

(B) [Additional Community and Supportive Services Match]{.underline}. In
    addition to the amount provided in paragraph (A) above, if the
    Grantee uses more than 5 percent of the HOPE VI Grant for community
    and supportive services programs, the Grantee will provide resources
    other than HOPE VI Grant funds in an amount equal to the amount of
    HOPE VI Grant funds used that is over 5 percent.

> \(C\) [Eligible Match Contributions]{.underline}. Matching funds may
> include amounts from other Federal sources, any State or local
> government sources, any private contributions, the value of any
> donated material or building, the value of any lease on a building,
> the value of the time and services contributed by volunteers, and the
> value of any other in-kind services or administrative costs provided.
> Other Federal sources may include funds provided by the MROP, Public
> Housing Capital Fund Program, or other HUD-provided public housing
> funds, including funds derived from program income. You may not
> include as match amounts from HOPE VI program funding, including
> HOPE VI Revitalization, HOPE VI Demolition, and HOPE VI Neighborhood
> Networks grants.

\(D\) [Enforcement of Leveraged Resources]{.underline}. The Grantee
agrees that it will pursue and enforce any commitment (including
commitments for services) obtained from any public or private entity for
any contribution or commitment to the Development or surrounding area,
as included in its HOPE VI Application.

ARTICLE X. [Finance and Accounting]{.underline}

\(A\) [Commingling of Grant Funds]{.underline}. The Grantee agrees that,
in its accounts and recordkeeping, it will not commingle HOPE VI Grant
funds with funds from any other sources including, but not limited to,
other HUD program funds or funds from other Federal, State or local
government agencies. (Such other funds may be used to carry out the
Revitalization Plan, so long as they are not commingled in the
Grantee\'s accounts and recordkeeping.)

\(B\) [Duplication of Funding]{.underline}. The Grantee will ensure that
HOPE VI Grant funds are not used to duplicate work that is funded with
any other HUD funds, funds from any other Federal program, or from any
other funding source identified under the Revitalization Plan, and will
establish controls to assure non-duplication of funding.

\(C\) [Cost Limitations]{.underline}.

\(1\) HOPE VI Grant funds may be used for eligible expenditures, as
authorized under this Grant Agreement and the HOPE VI Requirements.
HUD\'s TDC Limits and HCC Limits apply to the expenditure of public
housing funds (including funds provided under this Grant Agreement) for
the development of replacement housing units under this Grant Agreement.

\(2\) If funds provided under this Grant Agreement are used in
combination with other HOPE VI funds or with Capital Funds to carry out
the Revitalization Plan, the TDC limits and the HCC Limits that apply to
this HOPE VI Grant Agreement will apply to the expenditure of all such
funds.

\(D\) [HUD Reform Act]{.underline}. The Grantee will comply with Section
102 of the Department of Housing and Urban Development Reform Act of
1989, as implemented at 24 CFR part 4, subpart A, which contains
provisions regarding documentation of funding decisions to subgrantees,
the disclosure of any pecuniary interest of any interested party, and
the amount of government assistance made available to the Grantee. A
subsidy layering review will be performed to ensure that the Grantee
will not provide to the development or any off-site replacement housing
more assistance under the HOPE VI Program than is necessary to provide
affordable housing after taking into account other governmental
assistance provided.

ARTICLE XI. [Recordkeeping]{.underline}

\(A\) [Recordkeeping Authorities]{.underline}. The Grantee will comply
with and be subject to all Federal recordkeeping requirements,
including, but not limited to:

\(1\) the retention and access requirements for records under 24 CFR §
85.41;

\(2\) the non-Federal audit requirements under 24 CFR § 85.26,
including, without limitation, the requirements relating to each
subgrantee to which the Grantee provides \$300,000 or more of HOPE VI
Grant funds in any fiscal year; and

\(3\) the requirements of 24 CFR § 85.20 that facilitate an effective
audit to determine compliance with program requirements.

\(B\) [Recordkeeping Requirements]{.underline}. Grantees must retain
records in accordance with the requirements of paragraph (A) of this
Article, including, but not limited to:

\(1\) the amount and disposition of funds received under this HOPE VI
Grant, including sufficient records that document the reasonableness and
necessity of each expenditure;

\(2\) the amount and nature of any other assistance, including cash,
services, or other items contributed in accordance with the
Revitalization Plan or as a condition of receiving this HOPE VI Grant;

\(3\) any other proceeds received for, or otherwise used in connection
with, the Revitalization Plan; and

\(4\) fair housing and equal opportunity data, including racial and
ethnic beneficiary data, information on the affirmative marketing
strategy and any other information to demonstrate compliance with the
fair housing and equal opportunity requirements of this program as
identified in Article XV.

\(C\) [Access to Records]{.underline}. For the purpose of audit,
examination, monitoring, and evaluation, the Grantee will give HUD
(including any duly authorized representatives and the Inspector
General) access, and will ensure that any participating party will give
HUD such access, to any books, documents, papers, and records of the
Grantee, or such participating party, that are pertinent to assistance
received under this HOPE VI Grant or under the Revitalization Plan,
including all records required to be kept by paragraph (B) of this
Article.

ARTICLE XII. [Subgrantees and Contractors]{.underline}

\(A\) [General Grantee Responsibilities]{.underline}.

\(1\) [Implementation Team]{.underline}. The Grantee agrees to promptly
assemble a competent implementation team, if they have not already, to
assist the Grantee in working with the Grantee\'s partners and
collaborators and coordinating all phases of the development process.
HUD reserves the right to require a Grantee to procure program
management services from an independent private entity.

\(2\) [HOPE VI Requirements]{.underline}. The Grantee shall ensure that
any entity to which it makes grant funds available will comply with the
HOPE VI Requirements.

\(3\) [Administrative Requirements]{.underline}. Administrative
requirements applicable to PHAs are:

(a) 24 CFR part 85 (Administrative Requirements for Grants and

> Cooperative Agreements to State, Local and Federally Recognized Indian
> Tribal Governments), as modified by 24 CFR part 941 or successor part,
> subpart F, relating to the procurement of partners in mixed finance
> developments; and
>
> \(b\) OMB Circular A-87 (Cost Principles for State, Local and Indian
> Tribal Governments).

\(4\) [Required Certifications]{.underline}.

\(a\) The Grantee must ensure that all subgrantees and contractors
execute an original document in the form of Exhibit A or B, as
appropriate, to this Grant Agreement at the time the Grantee executes
any contract with any subgrantee or contractor to provide goods or
services under this Grant Agreement. The Grantee will retain the
executed original certification together with the executed contract
documents.

\(b\) The Grantee must ensure that the requirements contained in the
General Conditions for Construction Form (Form 5370) are included in any
solicitation for bids related to a construction contractor that will be
made by the Grantee and paid for with assistance under this Grant
Agreement. Such conditions must also be included in any construction
contract entered into by the Grantee. If a construction contract is
solicited by the Grantee\'s Developer, Form 5370 is recommended but not
required. The Developer may use any General Conditions form that has
been approved by the American Institute of Architects.

(c) The Grantee must ensure that the requirements contained in the

> General Conditions for Non-Construction Form (Form 5370-C) are
> included in any solicitation in connection with non-construction
> contracts that will be made by the Grantee and paid for with
> assistance under this Grant Agreement. Such conditions must also be
> included in any non-construction contract entered into by the Grantee.
> If a construction contract is solicited by the Grantee\'s Developer,
> Form 5370-C is recommended but not required. The Developer may use any
> General Conditions form that has been approved by the American
> Institute of Architects.
>
> \(5\) [Executive Order 13202, Preservation of Open Competition and
> Government Neutrality Towards Government Contractors' Labor Relations
> on Federal and Federally Funded Construction Projects.]{.underline}
> Consistent with Executive Order 13202, "Preservation of Open
> Competition and Government Neutrality Towards Government Contractors'
> Labor Relations on Federal and Federally Funded Construction
> Projects," as amended, it is required that neither the Grantee nor any
> subrecipient or program beneficiary receiving funds under an award
> granted under the FY 2007 HOPE VI Revitalization Notice of Funding
> Availability (NOFA), nor any construction manager acting on behalf of
> the Grantee or any such subrecipient or program beneficiary, may
> require bidders, offerors, contractors, or subcontractors to enter
> into or adhere to any agreement with any labor organization on any
> construction project funded in whole or in part by such award or on
> any related federally funded construction project; or prohibit
> bidders, offerors, contractors, or subcontractors from entering into
> or adhering to any such agreement on any such construction project; or
> otherwise discriminate against bidders, offerors, contractors, or
> subcontractors on any such construction project because they become or
> refuse to become or remain signatories or otherwise to adhere to any
> such agreements. Contractors and subcontractors are not prohibited
> from voluntarily entering into such agreements. A recipient or its
> construction manager may apply to HUD under Section 5(c) of the
> Executive Order for an exemption from these requirements for a project
> where a construction contract on the project had been awarded as of
> February 17, 2001, and was subject to requirements that are prohibited
> under the Executive Order.

\(B\) [Subgrant Agreements]{.underline}

\(1\) [Community and Supportive Services Providers]{.underline}. The
Grantee may enter into subgrant agreements with non-profit entities or
state or local governments (as defined in 24 CFR part 85) for the
performance of CSS activities under the Revitalization Plan. Although
the Grantee is not required to undertake a competitive procurement under
24 CFR part 85 to select a non-profit or state or local government
subgrantee, the Grantee affirms that before it executes any subgrant
agreements, it will:

\(a\) evaluate alternative service providers for the specific services
to be provided;

\(b\) select the entity that it reasonably believes will most
effectively provide such services; and

\(c\) ensure that the amount to be awarded under the subgrant agreement
is consistent with the cost principles of OMB Circular A-87.

\(2\) [Grantee Responsibilities Regarding Subgrantees]{.underline}. The
Grantee will be responsible for:

(a) ensuring that subgrantees are aware of the requirements imposed

> upon them by Federal statutes, regulations, and this Grant Agreement;

(b) ensuring that all subgrant agreements between HOPE VI Grantees

> and non-profit subgrantees contain all the provisions required by 24
> CFR § 84.48 and Appendix A to Part 84;

\(c\) ensuring that subgrant agreements include any clauses required by
Federal statutes and executive orders, and their implementing
regulations; and

\(d\) monitoring subgrantees\' performance to ensure compliance with the
HOPE VI Requirements.

\(3\) [State or Local Subgrantee Requirements]{.underline}. State or
local government subgrantees are subject to, and required to comply
with, the Administrative requirements at 24 CFR part 85
(\"Administrative Requirements for Grants and Cooperative Agreements to
State, Local and Federally Recognized Indian Tribal Governments\") and
the cost principles of OMB Circular A-87 (\"Cost Principles for State,
Local and Indian Tribal Governments\").

\(4\) [Nonprofit Subgrantee Requirements]{.underline}. Nonprofit
subgrantees are subject to, and required to comply with, the provisions
and standards set forth in the regulations at 24 CFR part 84 (\"Grants
and Agreements with Institutions of Higher Education, Hospitals, and
other Non-Profit Organizations\" or the \"Nonprofit Administrative
Requirements\") and OMB Circular A-122 (\"Cost Principles for Nonprofit
Organizations\" or the \"Nonprofit Cost Principles\").

\(C\) [Contractors and Subcontractors]{.underline}

\(1\) [For-Profit Entities and CSS Coordinator]{.underline}

\(a\) The Grantee may [not]{.underline} enter into a subgrant agreement
with a for-profit entity, or an entity that has the responsibility for
coordinating all of the community and supportive services to be provided
under the Revitalization Plan.

\(b\) The Grantee must obtain the services of an entity described in
subparagraph (C)(1)(a) of this Article through a competitive procurement
under 24 CFR part 85. However, if the Grantee can demonstrate to HUD
that the services to be provided by the for-profit entity or by the
proposed community and supportive services coordinator can be obtained
only from that one source, the Grantee may request HUD approval to
select the applicant under a sole-source procurement in accordance with
24 CFR § 85.36(d)(4).

(2) Consultant services provided under an independent contractor
    relationship

> are governed by the procurement requirements in 24 CFR § 85.36 and the
> principles of cost reasonableness contained in OMB Circular A-87.

\(3\) [Administrative Requirements]{.underline}. Administrative
requirements applicable to for-profit organizations are:

(a) 24 CFR part 84 (Grants and Agreements with Institutions

> of Higher Education, Hospitals, and other Non-Profit Organizations;
> and

(b) 48 CFR part 31 (contract cost principles and procedures).

\(4\) [Trigger for the Submission of Contracts]{.underline}. The Grantee
will submit to HUD, for prior approval, the contract documents for any
contract if such approval is required by HUD under the Grantee\'s
contract approval threshold amount (as established for the Grantee under
the Comprehensive Grant Program or the Capital Fund Program, as
applicable). Alternatively, contract documents must be submitted to HUD
for prior approval if otherwise required or requested by HUD under 24
CFR § 85.36. Any modification of such contracts is also subject to
HUD\'s approval before execution.

\(5\) [Debarred or Suspended Parties]{.underline}. Prior to executing
any contract, the Grantee will comply with, and ensure compliance with,
24 CFR § 85.35 and 24 CFR part 24, which prohibit the employment,
engagement of services, awarding of contracts, subgrants, or funding of
any recipients, or contractors or subcontractors, during any period of
debarment, suspension, or placement in ineligibility status.

(6) [Minority, Women\'s, and Resident-Controlled Business
    Enterprises]{.underline}. In

> accordance with Executive Orders 11246, 11625, 12432, and 12138, the
> Grantee will adopt the goal of awarding a specified percentage of the
> dollar value of the total of the HOPE VI contracts to be awarded as a
> result of this grant to minority business enterprises and take
> appropriate affirmative action to assist resident-controlled and
> women\'s business enterprises.

ARTICLE XIII. [Resident and Community Involvement]{.underline}

\(A\) [General]{.underline}.

\(1\) The HOPE VI Program is designed to involve full consultation and
collaboration among the Grantee, affected residents, and the broader
community. The term \"affected residents\" includes residents of public
housing units that are subject to revitalization under this HOPE VI
Grant Agreement. The Grantee is required to involve affected residents
and the broader community into the revitalization process, beginning
with the Grantee\'s preparation of its HOPE VI Application and
throughout the implementation of activities under this Grant Agreement
and the Revitalization Plan. The Grantee shall consider the advice,
counsel, recommendations, and input of affected residents and the
broader community in its decisionmaking. Nevertheless, the Grantee
retains the final decisionmaking authority to assure fiscal
responsibility and accountability for funds provided under this Grant
Agreement. Where affected residents and/or community representatives are
included on selection panels, the Grantee must constitute the majority
of the panel membership.

\(2\) Residents and members of the community shall be involved in the
HOPE VI process in accordance with the provisions of the Grant Agreement
and other resident and community participation guidelines as issued by
HUD.

\(B\) [Resident Involvement]{.underline}. The Grantee will foster the
involvement of, and gather input and recommendations from, affected
residents throughout the entire development process. This involvement of
affected residents is broader than resident participation in the
Community Task Force provided for in paragraph (C) of this Article. The
Grantee\'s specific responsibilities for involving affected residents in
revitalization efforts include:

\(1\) providing substantial opportunities for affected residents to
provide input, advice, counsel, recommendations, and opinions as the
Grantee plans and carries out its revitalization efforts;

\(2\) providing reasonable resources, as approved by HUD, for technical
assistance, training, and capacity building to prepare affected
residents to participate meaningfully in the planning and implementation
of the Grantee\'s revitalization efforts;

\(3\) holding regular meetings with affected residents and their
representatives to provide the status of revitalization efforts and to
obtain comments, opinions, advice, and recommendations from affected
residents; and

\(4\) providing affected residents with access to a contact person who
can answer their questions about the Grantee\'s Revitalization Plan and
also ensure that affected residents receive accurate information in
languages that they understand.

\(C\) [Community Involvement]{.underline}. The Grantee will facilitate
and convene a Community Task Force as one means of developing
collaboration among the Grantee, affected residents, and the broader
community. The Grantee also will provide information to keep the
Community Task Force fully apprised of the planning and implementation
of revitalization efforts. The Community Task Force shall be comprised
of affected public housing residents, local government officials,
service providers, community groups, and others. The Community Task
Force will provide advice, counsel and recommendations to the Grantee on
all aspects of the HOPE VI development process, including shaping the
goals and outcome of the Community and Supportive Services Plan.
Community Task Force participants also will disseminate information
throughout the community about the Grantee\'s revitalization efforts.
The Grantee\'s responsibilities with regard to the Community Task Force
include:

\(1\) convening and participating in the Community Task Force and other
advisory groups;

\(2\) ensuring that regular meetings of the Community Task Force are
held to apprise participants of the status of the development process
and to solicit comments, opinions, advice, and recommendations on the
planning and implementation of the Grantee\'s revitalization efforts;
and

\(3\) if requested by HUD, entering into a memorandum of understanding
with the members of the Community Task Force setting forth the manner
and frequency of task force meetings, the method (if any) for
designating resident and community participants, and the issues that the
task force will discuss and develop.

> \(D\) [Neighborhood Networks Centers (NNCs)]{.underline}. The Grantee
> must establish a Neighborhood Networks Center. The Neighborhood
> Networks Centers are community centers or rooms that provide public
> housing and other Low-Income HOPE VI Revitalization Development
> residents access to computers and the internet for the purpose of:

(1) Training in digital technology. Digital technology can consist of
    items such as interactive computer learning sessions, Internet web
    access, Internet web telecasts, and producing and receiving
    satellite broadcasts; and

(2) Accessing information about Community and Supportive Services.

\(E\) [No Third Party Rights]{.underline}. The Grantee and HUD are the
sole parties to this Grant Agreement and do not intend to create any
third party beneficiaries to this Grant Agreement. Notwithstanding the
provisions set forth in this Grant Agreement concerning consultations
with residents and dissemination of information to residents, nothing in
this Grant Agreement may be construed as conferring the status of third
party beneficiary upon the residents or the Community Task Force; and in
no event shall any entity other than the Grantee have direct rights to
the HOPE VI funds provided for under this Grant Agreement.

ARTICLE XIV. [Environmental Review]{.underline}

\(A\) [Requirement for Review]{.underline}. The Grantee may not
undertake any actions that are choice-limiting or could have
environmentally adverse effects, including demolition, disposition,
development, and/or any off-site replacement public housing, and may not
expend HUD or local funds for such activities, until HUD has approved a
Request for Release of Funds following a responsible entity\'s
environmental review under 24 CFR part 58 or until HUD has completed an
environmental review and given approval for the action under 24 CFR part
50.

\(B\) [Responsible Entity]{.underline}.

\(1\) Environmental review responsibilities for projects funded with
assistance under this Grant Agreement must be assumed by the
\"responsible entity.\" As defined in 24 CFR § 58.2(a)(7), the
responsible entity for public housing agencies is the unit of general
local government within which the project is located that exercises land
use responsibility, or if HUD determines this infeasible, the county, or
if HUD determines this infeasible, the State.

\(2\) If the Grantee objects to the responsible entity conducting the
environmental review, on the basis of performance, timing, or
compatibility of objectives, HUD will review the facts and determine who
will perform the environmental review. At any time, HUD may reject the
use of a responsible entity to conduct the environmental review in a
particular case on the basis of performance, timing, or compatibility of
objectives, or in accordance with 24 CFR § 58.77(d)(1).

\(3\) If a responsible entity objects to performing an environmental
review, or if HUD determines that the responsible entity should not
perform the environmental review, HUD may designate another responsible
entity to conduct the review or may itself conduct the environmental
review in accordance with the provisions of 24 CFR part 50. After
selection by HUD for Review, the Grantee shall provide any documentation
to the responsible entity (or HUD, where applicable) that is needed to
perform the environmental review.

\(C\) [Review]{.underline}. The Grantee must have a Phase I
environmental site assessment completed in accordance with the American
Society for Testing and Material (ASTM) Standards E 1527-00, as amended,
for each affected site. A Phase I assessment is required whether the
environmental review is completed under 24 CFR part 50 or 24 CFR part
58. The results of the Phase I assessment must be included in the
documents that must be provided to the responsible entity (or HUD) for
the environmental review. If the Phase I assessment recognizes
environmental concerns or if the results are inconclusive, a Phase II
environmental site assessment will be required.

\(D\) [Documentation of Part 58 Review]{.underline}. Two forms are
required to complete the Environmental Review under Part 58 for HOPE VI
projects.

\(1\) Form 7015.15 is the Request for Release of Funds and Certification
(RROF), signed and dated by the Certifying Officer of the Responsible
entity (typically the Mayor or City Manager of a city) and the Grantee.

\(2\) Form 7015.16 authorizes the Grantee to use the funds provided
under this Grant Agreement. This form is signed by HUD.

\(E\) [HUD Notification of Environmental Conditions]{.underline}. Where
the environmental review is completed before HUD approval of the
Supplemental Submissions and the Grantee has submitted its RROF, HUD\'s
letter approving the Supplemental Submissions shall state any
conditions, modifications, or prohibitions as a result of the
environmental review, including the need for any further environmental
review. The Grantee must carry out any mitigating or remedial measures
required by HUD, or select an alternate eligible property, if permitted
or required by HUD. If the remediation plan is not approved by HUD and a
fully-funded contract with a qualified contractor licensed to perform
the required type of remediation is not executed, HUD reserves the right
to determine that the grant is in default.

\(F\) [Restrictions on Activities Pending Environmental Review
Approval]{.underline}. Where the environmental review is not completed
and/or the Grantee has not submitted the RROF before HUD approval of the
Supplemental Submissions, HUD\'s letter approving the Supplemental
Submissions shall instruct the Grantee to refrain from undertaking, or
obligating or expending funds on, physical activities or other
choice-limiting actions, until HUD issues the RROF and the related
certification of the responsible entity (or HUD has completed the
environmental review). The letter approving the Supplemental Submissions
also shall advise the Grantee that the Revitalization Plan may be
modified on the basis of the results of the environmental review.

\(G\) [Costs of Environmental Review]{.underline}. In accordance with 24
CFR § 58.23, the costs of environmental reviews, including costs
incurred in complying with any of the related laws and authorities cited
in 24 CFR §§ 58.5 and 58.6, are eligible costs under this Grant
Agreement.

\(H\) [Environmental Certifications]{.underline}.

\(1\) [Flood Hazards]{.underline}. The Grantee certifies neither the
Development nor any property identified in the Revitalization Plan for
replacement housing is located in an area identified by the Federal
Emergency Management Agency (FEMA) as having special flood hazards. HUD
has relied on this certification in executing the Grant Agreement in
order to comply with the Flood Disaster Protection Act of 1973 (42
U.S.C. §§ 4001-4128). The Grantee will also ensure that no property that
is hereafter identified for replacement housing will be in an area
identified by FEMA as having special flood hazards, unless:

\(a\) the community in which the replacement housing is situated is
participating in the National Flood Insurance Program (see 44 CFR parts
59 through 79), or less than one year has passed since FEMA notification
regarding such hazards; and

\(b\) flood insurance is obtained as a condition of approval of any
demolition or disposition application.

\(2\) [Coastal Barriers]{.underline}. The Grantee certifies that neither
the Development nor any property identified in the Revitalization Plan
for replacement housing is located in the Coastal Barrier Resources
System. HUD has relied upon this certification in executing this Grant
Agreement in order to comply with the Coastal Barrier Resources Act (16
U.S.C. § 3501). The Grantee also will ensure that no property that is
hereafter identified for replacement housing will be in the Coastal
Barrier Resources System.

\(3\) [Environmental Justice]{.underline}. The Grantee certifies that
its HOPE VI Application was consistent with Environmental Justice
Executive Order 12898 and acknowledges that HUD has relied upon this
certification in executing the Grant Agreement. The Grantee will ensure
that:

\(a\) the proposed public housing under the Revitalization Plan will be
developed only in environmentally sound and desirable locations that
will avoid disproportionately high and adverse environmental effects on
minority and low-income communities, and

\(b\) the proposed activities will not have the effect of

\(i\) excluding persons (including populations) from participation in
the program,

\(ii\) denying persons (including populations) the benefits of the
program, or

\(iii\) subjecting persons (including populations) to discrimination
because of their race, color, or national origin.

\(4\) [Lead-Based Paint]{.underline}. The Grantee agrees to assure
compliance with lead-based paint testing and abatement requirements for
HUD-associated housing, as provided for under the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. § 4821, [et]{.underline}
[seq]{.underline}.). The Grantee also will comply with 24 CFR part 35,
24 CFR § 965.701, and 24 CFR § 968.110(k), as they may be amended or
revised from time to time. Unless otherwise provided, the Grantee will
be responsible for testing and abatement activities.

ARTICLE XV. [Fair Housing Certifications]{.underline}

The following Federal Fair Housing requirements are applicable to HOPE
VI. The Grantee will comply with all of the applicable requirements of
the following, as the same maybe amended from time to time, and any
additional Fair Housing requirements that may become applicable to the
Development:

\(A\) the Fair Housing Act (42 U.S.C. §§ 3601-19) and regulations
pursuant thereto 24 CFR part 100;

\(B\) Executive Order 11063 (Equal Opportunity in Housing) and
regulations pursuant thereto (24 CFR part 107);

\(C\) the fair housing poster regulations (24 CFR part 110) and
advertising guidelines (24 CFR part 109);

\(D\) Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d) and
regulations pursuant thereto (24 CFR part 1) relating to
nondiscrimination in housing;

\(E\) the prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. §§ 6101-07) and
regulations issued pursuant thereto (24 CFR part 146);

\(F\) the prohibitions against discrimination on the basis of
disability, including requirements that the Grantee make reasonable
modifications and accommodations and make units accessible, under
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and
regulations issued pursuant thereto (24 CFR part 8);

\(G\) the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.)
and its implementing regulation at 28 CFR part 36; and

\(H\) the Architectural Barriers Act of 1968, as amended (42 U.S.C. §
4151) and regulations issued pursuant thereto (24 CFR part 40).

\(I\) [Accessible Technology]{.underline}. The Rehabilitation Act
Amendments of 1998 apply to all electronic information technology (EIT)
used by a grantee for transmitting, receiving, using, or storing
information to carry out the responsibilities of any Federal grant
awarded. It includes, but is not limited to, computers (hardware,
software, word processing, email and web pages) facsimile machines,
copiers and telephones. When developing, procuring, maintaining or using
EIT, grantees must ensure that the EIT allows:

\(1\) Employees with disabilities to have access to and use information
and data that is comparable to the access and use of data by employees
who do not have disabilities; and

(2) Members of the public with disabilities seeking information or
    service

> from a grantee must have access to and use of information and data and
> comparable to the access and use of data by members of the public who
> do not have disabilities. If these standards impose on a grantee, they
> may provide an alternative means to allow the individual to use the
> information and data. No grantee will be required to provide
> information services to a person with disabilities at any location
> other than the location at which the information services are
> generally provided.

ARTICLE XVI. [Building Standards and Design]{.underline}

\(A\) [Sustainability of Units]{.underline}. Because the units that are
the subject of this Grant Agreement are expected to be sustainable over
the long term, the Grantee is encouraged to develop physical structures
that serve the needs of public housing residents over the long term and
have the lowest possible life-cycle costs, taking into account future
operating and replacement costs as well as original capital investments.

\(B\) [Construction Standards]{.underline}.

\(1\) [Local Building Codes]{.underline}. The Grantee must meet or
exceed local building codes for all activities that include
construction, rehabilitation, lead-based paint removal, and related
activities.

\(2\) [Deconstruction]{.underline}. The Grantee is encouraged to design
programs that incorporate sustainable construction and demolition
practices, such as the dismantling or \"deconstruction\" of public
housing units, recycling demolition debris, and reusing salvage
materials in new construction.

\(3\) [Energy Efficiency]{.underline}

(a) HUD is committed to reducing energy costs in HUD-assisted and
    HUD-financed housing, as codified in the Department's Energy

> Action Plan. The Plan can be found at:
> [www.hud.gov/offices/cpd](http://www.hud.gov/offices/cpd). The Plan
> calls for HOPE VI to be a leader in cost-effective, energy-efficient
> new construction. Grantees must read and follow as appropriate PIH
> Notice 2005-25, "Using Energy Star to Promote Energy Efficiency in
> Public Housing," and any successor notices. Grantees should also 2003
> International Energy Conservation Code (and any successor
> International Energy Conservation Code) for additional information on
> energy efficiency and conservation.

(b) Accordingly, HUD strongly encourages the Grantee to set higher

> standards for energy and water efficiency in HOPE VI new construction,
> as such standards can achieve utility savings of 30 to 50 percent with
> minimum extra cost.

(c) New construction must comply with the latest HUD-adopted

> Model Energy Code issued by the Council of American Building
> Officials.

(d) New housing built through the program must achieve an Energy

> Star rating for new homes (30 percent above the 1995 Model Energy
> Code), unless the housing authority demonstrates that the higher
> standard cannot be achieved within Total Development Cost (TDC)
> limits.
>
> \(e\) The Grantee must use new technologies that will conserve energy
>
> and decrease operating costs where cost effective. Examples of such
> technologies are listed below. HUD's Energy website is located at
> <http://www.hud.gov/offices/cpd/energyenviron/energy/index.cfm>.

(i) Geothermal heating and cooling;

> \(ii\) Placement of buildings and size of eaves that take advantage of
> the directions of the sun throughout the year:
>
> \(iii\) Photovoltaics (technologies that convert light into electrical
> power);
>
> \(iv\) Extra insulation;

(v) Smart windows; and

\(vi\) Energy Star appliances.

\(C\) [Design Standards]{.underline}.

\(1\) Physical structures must be designed, constructed, and equipped so
as to improve or harmonize with the neighborhoods they occupy, meet
contemporary standards of modest comfort and livability, and be
attractive and marketable to the people they are intended to serve.

\(2\) Building design should strive to encourage in the residents a
proprietary sense, whether or not homeownership is intended or
contemplated.

\(3\) New construction must comply with the accessibility standards of
the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990, and the Architectural Barriers
Act of 1968. The Grantee is also encouraged to read the policy statement
and Final Report of the HUD Review of Model Building Codes that
identifies the variances between the design and construction
requirements of the Fair Housing Act and several model building codes.

\(4\) The Grantee is encouraged to use PATH technologies in the
construction and delivery of replacement housing. PATH (Partnership for
Advancing Technology in Housing) is a voluntary initiative that seeks to
accelerate the creation and widespread use of advanced technologies to
radically improve the quality, durability, environmental performance,
energy efficiency, and affordability of our Nation\'s housing.

\(5\) The Grantee is encouraged to incorporate the principles of
Universal Design when developing housing and community facilities. The
intent of Universal Design is to make housing units and community
facilities more usable by as many people as possible, regardless of age
and ability, at little or no extra cost. Examples include designing
wider doorways, installing levers instead of doorknobs, and putting
bathtub/shower grab bars in all units.

ARTICLE XVII. [Labor Standards]{.underline}

\(A\) The Grantee will comply with the following labor standards:

\(1\) [Davis-Bacon]{.underline} wage rates, which apply to demolition
followed by construction on the site (including any public housing
rental units or homeownership units developed with assistance under this
Grant agreement);

\(2\) [HUD-determined wage rates]{.underline}, which apply to:

\(a\) the development or operation of revitalized housing to the extent
required under Section 12(a) of the 1937 Act, and

\(b\) demolition followed only by filling in the site and establishing a
lawn.

\(B\) [Exclusions]{.underline}. Under Section 12(b) of the 1937 Act, the
wage rate requirements do not apply to individuals who:

\(1\) perform services for which they volunteered;

\(2\) do not receive compensation for those services or are paid
expenses, reasonable benefits, or a nominal fee for the services; and

\(3\) are not otherwise employed in the work involved (24 CFR part 70).

\(C\) [Other Program Requirements]{.underline}. If other Federal
programs are used in connection with the Grantee\'s HOPE VI Program,
such labor standards shall also apply to the extent required by the
other Federal programs. In addition, if HOPE VI Grant funds will be used
to develop a mixed finance Development in which public housing units are
not specifically designated units, the Grantee shall ensure that
applicable labor wage rates are met with respect to the development of
all units in the Development that may, at any time, be used as the
public housing units in accordance with 24 CFR § 941.610(a)(8)(vi).

\(D\) [Section 3]{.underline}. The Grantee will comply with section 3 of
the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701u)
(Employment Opportunities for Lower Income Persons in Connection with
Assisted Projects) and its implementing regulation at 24 CFR part 135.

\(E\) [Salary Cap]{.underline}. In accordance with section 408 of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2001, no HOPE VI Grant funds
may be used to pay (or provide reimbursement for payment of) the salary
of a consultant (as opposed to a contractor) at more than the daily
equivalent of the maximum rate paid to level IV of the Executive
Schedule for Federal Employees.

ARTICLE XVIII. [Conflict of Interest]{.underline}

\(A\) [Prohibition]{.underline}. In addition to the conflict of interest
requirements in 24 CFR part 85, no person who is an employee, agent,
officer, or elected or appointed official of the Grantee and who
exercises or has exercised any functions or responsibilities with
respect to activities assisted under this HOPE VI Grant, or who is 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 in any
contract, subcontract, or agreement with respect thereto, or the
proceeds thereunder, either for himself or herself or for those with
whom he or she has family or business ties, during his or her tenure or
for one year thereafter.

\(B\) [HUD-Approved Exception]{.underline}.

\(1\) [Standard]{.underline}. HUD may grant an exception to the
exclusion in paragraph (A) of this Article on a case-by-case basis when
it determines that such an exception will serve to further the purposes
of HOPE VI and its effective and efficient administration.

\(2\) [Procedure]{.underline}. HUD will consider granting an exception
only after the Grantee has provided a disclosure of the nature of the
conflict, accompanied by:

\(a\) an assurance that there has been public disclosure of the
conflict;

\(b\) a description of how the public disclosure was made; and

\(c\) an opinion of the Grantee\'s attorney that the interest for which
the exception is sought does not violate State or local laws.

\(3\) [Consideration of Relevant Factors]{.underline}. In determining
whether to grant a requested exception under paragraph (B) of this
Article, HUD will consider the cumulative effect of the following
factors, where applicable:

\(a\) whether the exception would provide a significant cost benefit or
an essential degree of expertise to the Revitalization Plan that would
otherwise not be available;

\(b\) whether an opportunity was provided for open competitive bidding
or negotiation;

\(c\) whether the person affected is a member of a group or class
intended to be the beneficiaries of the Revitalization Plan and the
exception will permit such person to receive generally the same
interests or benefits as are being made available or provided to the
group or class;

\(d\) whether the affected person has withdrawn from his or her
functions or responsibilities, or the decision making process, with
respect to the specific activity in question;

\(e\) whether the interest or benefit was present before the affected
person was in a position as described in paragraph (A) of this Article;

\(f\) whether undue hardship will result either to the Grantee or the
person affected when weighed against the public interest served by
avoiding the prohibited conflict; and

\(g\) any other relevant considerations.

ARTICLE XIX. [Reporting Requirements]{.underline}

\(A\) [Quarterly Report]{.underline}.

\(1\) The Grantee will submit to HUD a Quarterly Report, the form and
substance of which will be specified by HUD, by the due dates
established by HUD.

\(2\) Failure to submit to HUD a timely Quarterly Report will result in
a suspension of HOPE VI Grant funds in LOCCS until such time as the
report is received and approved by HUD, and/or any other default remedy
authorized by Article XXI.

\(B\) [Obligations and Expenditures]{.underline}. The Grantee must enter
cumulative obligation and expenditure data into LOCCS by the due dates
established by HUD, whether or not there has been any change in the
cumulative amounts since the end of the last quarter.

\(C\) [Additional Information Requests]{.underline}. Subject to
paragraph (D) of this Article, the Grantee will comply with all other
reporting requirements from time to time established by HUD, in its sole
discretion, in connection with the HOPE VI Program. The Grantee will:

\(1\) fully cooperate with all reasonable information gathering requests
made by HUD or contractors of HUD in the course of authorized
evaluations of the HOPE VI Program; and

\(2\) submit any post-closeout and post-revitalization reports, in the
forms prescribed by HUD, for the period of years designated by HUD.

\(D\) [Additional Requirements]{.underline}. The Grantee agrees to
comply with all other terms and conditions HUD may establish to
administer, monitor, or evaluate the HOPE VI Program in an effective and
efficient manner. Notwithstanding the foregoing, however, except as
provided in Article XXI, HUD hereafter will not establish any additional
terms and conditions without:

\(1\) consideration of the burden imposed on the Grantee by such
conditions or requirements;

\(2\) consideration of the availability of less burdensome conditions or
requirements; and

\(3\) in the case of a term or condition applicable solely to the
Grantee, consulting in advance with the Grantee.

ARTICLE XX. [Technical Assistance]{.underline}.

\(A\) [Site Visits]{.underline}. The Grantee acknowledges and agrees
that HUD, or its designees, may conduct site visits and inspections as
deemed necessary by HUD based upon the Grantee\'s needs under the
Revitalization Plan or the needs of the HOPE VI Program. Technical
assistance site visits may be provided by HUD or its designees:

\(1\) in response to requests from the Grantee; or

\(2\) based upon demonstrated needs of the HOPE VI Program; or

\(3\) as provided in paragraph (B) of this Article.

\(B\) [HUD Assessment]{.underline}. HUD representatives will visit the
Development and make an assessment of any technical assistance and/or
training that the Grantee may require for the proper and effective
implementation of the Revitalization Plan. HUD will consult with the
Grantee in determining the Grantee\'s specific technical assistance and
training needs, and will carry out subsequent on-site assessments as
necessary.

\(C\) [Technical Assistance Provider]{.underline}. If HUD determines, in
its discretion, that technical assistance and/or training is necessary
for the proper implementation of the Revitalization Plan, it will assign
a technical assistance provider to work with the Grantee for this
purpose.

\(D\) [Grantee Training/TA]{.underline}. The Grantee agrees to use its
best efforts to attend any training and to accept any technical
assistance provided or sponsored by HUD.

ARTICLE XXI. [Unsatisfactory Performance/Default]{.underline}

\(A\) [Special Conditions]{.underline}.

\(1\) [General]{.underline}. HUD may require the Grantee, or any
subgrantee, to comply with any or all of the following special
conditions, in a manner satisfactory to HUD, if HUD determines that such
action will assist in the proper and efficient implementation of the
Revitalization Plan, regardless of whether the Grantee is in default
under paragraph (B) of this Article.

\(2\) [Types of Special Conditions]{.underline}. The special conditions
that HUD may impose under paragraph (A)(1) of this Article include:

\(a\) withholding authority to proceed to the next phase of activities
until it receives evidence from the Grantee of acceptable performance
over such period of time as specified by HUD;

\(b\) requiring additional, more detailed financial reports;

\(c\) requiring additional project monitoring;

\(d\) requiring the Grantee (or subgrantee) to obtain technical or
management assistance;

\(e\) establishing additional prior approvals; and

\(f\) making arrangements satisfactory to HUD, in its sole discretion,
for use of an entity other than the Grantee to carry out activities
assisted under the Revitalization Plan.

\(3\) [Notice of Conditions]{.underline}. If HUD decides to impose any
such conditions or restrictions upon the Grantee (or subgrantee), HUD
will notify the Grantee (or subgrantee) in writing, as early as
possible. Such notice will contain the following information:

\(a\) a description of the special conditions or restrictions;

\(b\) the nature of the unsatisfactory performance and the reason for
imposing such special conditions or restrictions;

\(c\) the corrective actions which must be taken before the conditions
or restrictions will be removed, and the time allowed for completing the
corrective actions; and

\(d\) the method for requesting reconsideration of the conditions or
restrictions imposed.

\(B\) [Default]{.underline}. Each of the following events or
occurrences, to the extent it constitutes a material breach or
occurrence, may constitute a default by the Grantee under this Grant
Agreement, as determined by HUD in its sole discretion:

\(1\) use of funds provided under this Grant Agreement for any purpose,
in any manner or at any time, other than as authorized by this Grant
Agreement;

\(2\) failure to comply with the HOPE VI Requirements or any other
Federal, State, or local laws, regulations or requirements applicable in
implementing the Revitalization Plan;

\(3\) failure to make any submission under Article II(B), perform any
obligation, or otherwise fail to proceed in a manner consistent with the
Revitalization Plan, (including, without limitation, failure to
accomplish an activity by the date specified in the Program Schedule);

\(4\) any material misrepresentation in any of the required submissions,
including, without limit, any misrepresentations in any of the
submissions required by Article II(B);

(5) failure to comply with, or any material breach of, any other
    requirements, conditions or terms of this Grant Agreement;

(6) failure to adhere to the time periods for implementation under
    Article

II(E);

\(7\) failure to demonstrate in its Revitalization Plan that the Grantee
has made necessary and appropriate arrangements, through staffing and/or
contracts, to implement its Revitalization Plan; or

> \(8\) failure to comply with the provisions of the ACC, which default
> relates to the Development or the Grantee\'s ability to perform all of
> its obligations under this Grant Agreement.

(C) [Notice of Default and Action(s) to Cure]{.underline}.

> \(1\) [General]{.underline}. HUD will give the Grantee written notice
> of any default. The notice will give the Grantee the opportunity to
> cure such default within 30 days of the date of the notice, or to
> demonstrate within this time period, by submitting substantial
> evidence satisfactory to HUD, that it is not in default. If the
> default is not able to be cured within the 30-day period, the Grantee
> will demonstrate, to HUD\'s satisfaction, that the Grantee has taken
> actions necessary to cure the default and that the default is curable
> within 90 days from the date of the default notice. Additionally, the
> Grantee must agree to carry out such cure diligently and to complete
> the cure within the 90-day period.

\(2\) [Immediate Default]{.underline}. Notwithstanding the provisions of
paragraph (C)(1) of this Article, HUD in its sole discretion may place
the Grantee into immediate default for not being in compliance with its
Program Schedule once written notification of default has been provided
to the Grantee. At that time, HUD may immediately begin imposing
consequences of default, including specifically the deduction of funds
from the HOPE VI grant.

\(3\) [Failure to Submit Supplemental Submissions]{.underline}.
Notwithstanding the provisions of subparagraph (C)(1) of this Article,
if default is caused by failure to submit Supplemental Submissions
acceptable to HUD within the time period required in Article II(E) of
this Grant Agreement, HUD at its sole discretion may either:

\(a\) require the Grantee, within a time period established by HUD, to
submit acceptable Supplemental Submissions; or

\(b\) institute any of the remedies under paragraph (C)(5) of this
Article, without any grace period.

\(4\) [Imminent Threat]{.underline}. Notwithstanding the provisions of
subparagraph (C)(1) of this Article concerning the opportunity to cure
defaults, if HUD determines, in HUD\'s sole discretion, that there is an
imminent threat that the Grantee will expend additional HOPE VI Grant
funds in violation of the provisions of this Grant Agreement, HUD may
implement the remedial action provided for under subparagraph (C)(4)(d)
of this Article to prevent any such unauthorized expenditure until such
time as the Grantee has complied with the cure provisions set forth
above. HUD will implement such remedial action by written notice set
forth either in the notice of default given under paragraph (C)(1) of
this Article or by subsequent written notice to the Grantee.

\(5\) [Consequences of Default]{.underline}. If the Grantee fails to
cure all defaults specified in the notice of default within the time
periods set forth in paragraph (C)(1) of this Article, or fails to
diligently pursue or complete any cure as provided in paragraph (C)(1),
HUD may take any of the following remedial actions, upon written notice
to the Grantee:

\(a\) require the Grantee, within a time period established by HUD, to
prepare a revised Program Schedule, obtain HUD\'s approval thereto, and
follow such revised Program Schedule to complete the activities under
the Revitalization Plan;

\(b\) require the Grantee, within a time period established by HUD, to
revise any activity under the Revitalization Plan in order to
successfully complete the activities under the Revitalization Plan in a
manner satisfactory to HUD, including, without limitation, exclusion or
revision of affected activities, revision of the HOPE VI Budget as
necessary, and substitution of other eligible activities;

\(c\) require submission of additional documentation before any
additional request for funds will be approved;

\(d\) temporarily suspend the Grantee\'s authority to draw down HOPE VI
Grant funds for affected activities, or at HUD\'s sole discretion for
all activities, for not more than ninety (90) days, pending action to
cure the defaults;

\(e\) if, after the 90 days, the default is not cured, then restrict the
Grantee\'s authority to draw down HOPE VI Grant funds under LOCCS by
prohibiting payment or reimbursement for all grant activities or, if
more appropriate (in HUD\'s sole discretion), only for those activities
affected by the default, for an unspecified period of time pending final
action by HUD;

\(f\) disallow use of HOPE VI Grant funds for all or part of the cost of
the activity or action not in compliance;

\(g\) recover amounts determined by HUD to have been improperly
expended, including any property obtained by the Grantee with such grant
funds;

(h) require reimbursement by the Grantee for HOPE VI Grant funds

> determined by HUD to have been improperly expended;

(i) require the Grantee to pay monetary fines in an amount determined by
    HUD. These fines may be in the form of deductions from the HOPE VI
    grant funds; and

\(j\) make arrangements satisfactory to HUD, in its sole discretion, for
use of an entity other than the Grantee to carry out activities assisted
under the Revitalization Plan.

\(6\) [Additional Enforcement Actions]{.underline}. If HUD determines
that the remedial actions taken by HUD under paragraph (C)(4) of this
Article have not been effective in curing the default, or if the Grantee
has not complied with the requirements imposed by HUD under paragraph
(C)(4) and has not otherwise cured the default, or if HUD exercises its
discretion under subparagraph (C)(2) of this Article to institute any of
the following actions, HUD may take any of the following remedial or
enforcement actions (in addition to any of the remedies permitted under
paragraph (C) of this Article upon written notice to the Grantee):

\(a\) petition for the appointment of a receiver (which may be a public
housing agency, a private management corporation, or some other entity)
for the HOPE VI Development to any district court of the United States
or to any court of the State in which the Development is located;

\(b\) reduce the HOPE VI Grant in the amount affected by the default;

\(c\) terminate the HOPE VI Grant as to all further activities and
initiate closeout procedures;

\(d\) recapture any HOPE VI Grant funds not obligated by the Grantee.

\(i\) If the basis for the Grantee\'s default is its failure to comply
with the reasonable time periods established by HUD under Article II(E),
HUD shall, in accordance with section 24(i) of the 1937 Act, and unless
otherwise approved by HUD under paragraph XXI(C)(4)(i), recapture any
HOPE VI Grant funds not obligated by the Grantee.

\(ii\) If the Grantee fails to comply with the reasonable time periods
established in Article II(E), HUD may take into account whether factors
beyond the Grantee\'s control are the cause of the delay.

\(e\) take action against the Grantee under 24 CFR part 24 and Executive
Order 12549 with respect to future HUD or Federal grant awards; and

\(f\) take any other available legal or equitable remedial action,
including, but not limited to, any remedial actions available under the
Grantee\'s ACC.

ARTICLE XXII. [Project Close-Out]{.underline}

\(A\) [Termination of Disbursements Letter]{.underline}. Within 90 days
after completion of all Revitalization Grant funded activities, the
Grantee will initiate close-out, in accordance with procedures
established by HUD, by submitting a Termination of Disbursements letter,
which states that:

\(1\) The Grantee has completed all activities to be performed using
HOPE VI Revitalization grant funds.

\(2\) All requirements of the Grant Agreement have been met.

\(3\) All obligated HOPE VI grant funds have been disbursed;

\(4\) The Grantee will abide by any continuing Federal requirements; and

\(5\) The Grantee will complete non-HOPE VI funded activities associated
with the revitalization effort and will continue to report in the HOPE
VI Quarterly Report until all revitalization activities have been
completed.

At HUD\'s option, the Grantee may delay initiation of close-out until
the

resolution of any HUD monitoring findings. If HUD exercises this option,
the

Grantee must promptly resolve the findings.

\(B\) [Preliminary Closeout Materials]{.underline}. The Grantee must
submit the following Preliminary Close-Out Materials along with the
Termination of Disbursements Letter:

\(1\) Final HOPE VI Budget;

\(2\) Final Financial Status Report (Form SF-269-A), which contains a
cumulative summary of all expenditures and indicates the balance of
unexpended funds.

(3) Actual HOPE VI Cost Certificate (AHCC) (Form HUD-53001-A), which
    summarizes the information on the Financial Status Report and serves
    as the document that officially closes out the grant.

(4) Community and Supportive Services (CSS) Close-Out Report.

\(C\) [HUD Review of Preliminary Close-Out Materials]{.underline}. HUD
will review Preliminary

Close-Out Materials to confirm that:

\(1\) The amounts on the final HOPE VI Budget and AHCC agree as to funds
approved, obligated and expended.

\(2\) The amount of funds approved and disbursed on the AHCC agrees with
HUD records in LOCCS.

> \(3\) If HUD disbursed more funds that the Grantee expended, the
> Grantee will immediately remit to HUD the excess funds, without
> waiting for completion of the final audit.

\(D\) [Final Audit]{.underline}. Following HUD approval of the
Preliminary Close-Out Materials, the Grantee must conduct a final audit
of the Revitalization Grant in accordance with the requirements of 24
CFR 85.26 and forward the audit to HUD for approval.

\(E\) [AHCC]{.underline}. Upon receipt of the final audit, the
designated HUD official will execute the AHCC once HUD determines to its
satisfaction that:

\(1\) the expenditure of funds provided under this Grant Agreement was
allowable and reasonable, as determined by the final audit;

\(2\) the activities to be completed using HOPE VI Grant funds were
completed, as required by the Grant Agreement; and

\(3\) all Federal requirements, were satisfied.

\(F\) [Final Close-Out]{.underline}. Following execution of the AHCC,
any funds remaining in the

Revitalization Grant will be recaptured by HUD. A Post-Audit Date will
be

entered into LOCC and the grant will be closed.

ARTICLE XXIII. [Effective date]{.underline}

The effective date of this agreement is the date that HUD executes the
Cover Sheet (HUD 1044) to this Grant Agreement.

**FY 2007 HOPE VI REVITALIZATION GRANT AGREEMENT**

**TABLE OF CONTENTS**

ARTICLE I HOPE VI Requirements 2

ARTICLE II HOPE VI Revitalization Plan 3

ARTICLE III Revitalization Activities and Requirements 7

ARTICLE IV Changes to the Revitalization Plan 13

ARTICLE V Replacement Units 15

ARTICLE VI Revitalized Public Housing 16

ARTICLE VII HOPE VI Budget and Funding Requests 20

ARTICLE VIII Project Drawdowns 22

ARTICLE IX Matching Funds 24

ARTICLE X Finance and Accounting 25

ARTICLE XI Recordkeeping 26

ARTICLE XII Subgrantees and Contractors 27

ARTICLE XIII Resident and Community Involvement 31

ARTICLE XIV Environmental Review 33

ARTICLE XV Fair Housing Certifications 36

ARTICLE XVI Building Standards and Design 38

ARTICLE XVII Labor Standards 40

ARTICLE XVIII Conflict of Interest 41

ARTICLE XIX Reporting Requirements 43

ARTICLE XX Technical Assistance 44

ARTICLE XXI Unsatisfactory Performance/Default 45

ARTICLE XXII Project Closeout 50

ARTICLE XXIII Effective Date 51