program start-up

HOME Investment Partnerships Program HOME Administration Manual Montana Department of Commerce April 2012

CHAPTER 1

PROGRAM START-UP

TABLE OF CONTENTS

I. OVERVIEW ............................................................................................... 1

II. GRANTEE RESPONSIBILITIES .............................................................. 1A. MANAGEMENT AND COMPLIANCE ISSUES .................................................... 1B. ADMINISTRATIVE STEPS .................................................................................. 2

1. GRANT AWARD LETTER .............................................................................. 22. PREPARING THE CONTRACT ...................................................................... 23. INCURRING START-UP COSTS.................................................................... 44. ESTABLISHING A MANAGEMENT PLAN FOR PROGRAM

ADMINISTRATION ......................................................................................... 55. ESTABLISHING HOME FILES ....................................................................... 66. RECORD RETENTION ................................................................................. 107. GRANT ADMINISTRATION WORKSHOPS ................................................. 10

III. PROJECT SET-UP ............................................................................... 11A. SINGLE FAMILY NONCOMPETITIVE PROGRAM ........................................... 11

EXHIBITS .................................................................................................... 12

HOME Investment Partnerships Program HOME Administration Manual Montana Department of Commerce 1-1 April 2012

CHAPTER 1

PROGRAM START-UP

I. OVERVIEW

In accordance with the state of Montana’s Consolidated Plan and guidelines adopted by the state, the following language provides requirements under which the MDOC HOME Program operates.

This chapter outlines the Grantee’s Responsibilities as they relate to management and compliance, important administrative steps that must be taken before implementing a Home Investment Partnerships (HOME) Program project, and introduces project set-up, all of which must be addressed prior to drawing HOME funds.

The first part of Section II summarizes the management and compliance considerations for which the Grantee is responsible and to which the Grantee must agree prior to HOME funds being drawn.

The second part of Section II outlines the important administrative steps that must occur prior to implementing a HOME Program project and drawing funds, including: Receiving the grant award letter Incurring start-up costs Preparing the contract Establishing a management plan for program administration Establishing program and project files Completing project set-up activities

Section III introduces project-set up and describes its importance in the implementation process.

II. GRANTEE RESPONSIBILITIES

A. MANAGEMENT AND COMPLIANCE ISSUES

Grantees receiving HOME funds are responsible for conducting their programs in compliance with state and federal regulations. Major responsibilities of HOME recipients are as follows: Carrying out their local programs in a timely and satisfactory manner Carrying out the projects described in their HOME applications and contract documents Ensuring that only eligible activities are undertaken with HOME funding


Ensuring that 100% of HOME funding benefits go to low- and very-low income persons Maintaining a system for financial management that provides accurate information

about HOME expenditures, and assures financial accountability and control Promoting fair housing and equal opportunity in the implementation of HOME project

activities

Complying with the National Environmental Policy Act (NEPA) (see Chapter 2, ENVIRONMENTAL REVIEW)

Complying with Lead-Based Paint regulations (see Chapter 2, ENVIRONMENTAL REVIEW)

Complying with all other applicable laws and regulations

B. ADMINISTRATIVE STEPS

1. GRANT AWARD LETTER

The letter you received from the Director of the Montana Department of Commerce (MDOC) announced that you were selected for HOME funding and specified the amount of funds "tentatively" allocated for your program. This letter stated that MDOC cannot commit funds to your program until you have completed budget and contract negotiations with MDOC. The contract with MDOC outlines the Grantee's duties and responsibilities and insures compliance with any conditions imposed as a prerequisite to issuance of HOME funds.

Individual grants were awarded based on the scope of the identified problem, the proposed project activities, and the resources, and administrative capacity of the applicants. Amounts different from the original amount requested may have been awarded at the discretion of MDOC. The tentative award of funds, as outlined in the letter from the Director of MDOC, does not imply approval of all activities or specific costs proposed in your application. The proposed project activities and budget are subject to modification during subsequent contract negotiations between the Grantee and MDOC.

2. PREPARING THE CONTRACT

As part of the program start-up process, MDOC and the grant recipient will work together to prepare the grant agreement or contract. The grant contract is the legal document governing the administration of the grant, and includes the following items: Scope of work to be completed The amount of HOME funds to be provided A detailed budget for the HOME funds and any other funds involved in the program and

its projects The detailed schedule for implementation of project activities The general and special terms and conditions associated with the grant All requirements found in 24 CFR §92.504(c), Provisions in written agreements


The contract negotiation process includes: finalizing the Program Budget and the Implementation Schedule; identifying special conditions to be included in the contract; and defining key elements of the program in the Management Plan. If during this negotiation process, major changes in the project, its activities, and/or major changes in the HOME portion of the project budget occur, it may be necessary for the HOME Program to reevaluate the program's ranking score within the original grant competition. (See Exhibit 1-B: HOME CONTRACT TEMPLATES.)

Each contract consists of: Provisions common to all HOME contracts (generally referred to as "boilerplate"

language) such as provisions regarding contract termination, modification andamendment; method of payment; conflict of interest; and compliance with applicablelaws and regulations; and

Provisions specific to the agreement between MDOC and the Grantee, such asprovisions regarding the amount of the grant, scope of services, program budget,program implementation schedule, minimum “match” requirement, and any specialconditions.

Each provision is legally enforceable and designed to spell out the respective obligations of MDOC and the Grantee.

A draft contract reflecting key elements of the program will be sent to the Grantee for review. MDOC recommends the Grantee's attorney review the draft contract to ensure consistency with the organization's legal authority and interests. The HOME Program will prepare the final contract for signature by MDOC Director and the Grantee’s Chief Elected Official(s) (in the case of a local government grantee) or Executive Officer (in the case of a CHDO or PHA Grantee). Three copies of the contract must have original signatures. After the contract has all the necessary signatures, one copy will be returned to the Grantee and two will be retained by MDOC.

It is very difficult to prepare a scope of services, a budget, and an implementation schedule that anticipates all eventualities throughout the term of the project. Therefore, during program start-up and during the course of the program, MDOC will consider requests for contract amendments or budget adjustments. All Grantees must request approval of modifications to the program, in advance, and provide a written justification that clearly demonstrates the modification is appropriate and will enhance the overall impact of the project. This request may include the following:

Alteration of the existing project(s), the budget, or program implementation schedule

Adjustment of the boundaries of the program area, as originally proposed in the grantapplication or defined in the grant contract

MDOC will determine whether the modification necessitates reevaluating the project's original ranking score. If the analysis shows the amended project would not have been funded during the original grant competition, the amendment will not be approved. Substantial changes in project or in the geographic area covered by the program may also obligate the grant recipient to publish legal notices, hold a public hearing


and conduct an additional environmental analysis in order to comply with federal environmental requirements.

If a project can be completed for less than the grant amount, the grant contract will be amended to reflect the reduced costs and the difference will be reallocated to other projects.

After program start-up if the Grantee needs to make budget adjustments, the procedure for processing these adjustments is outlined in Chapter 3, FINANCIAL MANAGEMENT.

3. INCURRING START-UP COSTS

At this point in the program start-up process, Grantees do NOT have authorization to expend or obligate any HOME funds for hiring staff, consultants or engineers, or for the payment of any salaries. Likewise, the Grantee CANNOT take physical action on a site, or make a commitment or expenditure of HOME OR non-HOME funds for property acquisition, rehabilitation, conversion, lease, repair, or construction activities until an environmental review is completed and MDOC or HUD, as applicable, has issued an environmental clearance (Release of Funds). “Non-HOME funds” means ANY Federal, state, local, private, or other funds. An overview of the entire environmental review process is described in Chapter 2, ENVIRONMENTAL REVIEW.

The following information outlines the procedure for initially incurring expenses. You should contact your assigned MDOC HOME Program Officer for guidance before incurring any program or project costs.

a. Administrative Activities Exempt from Environmental Review Requirements:Federal law requires that all projects financed with HOME funds conform to HUDEnvironmental Review Procedures, which state a Grantee shall not expend orencumber any HOME or non-HOME funds for any activity until a HOME Grantee hascompleted an Environmental Review Record covering all project activities and MDOCand/or HUD, as applicable, has issued a formal Release of Funds. MDOC will issue aspecific authorization for each Grantee allowing them to incur costs for "environmentallyexempt" activities that are unlikely to cause any environmental impact. If you have anyquestions regarding "environmentally exempt" activities, contact MDOC HOMEProgram Officer assigned to your HOME program for guidance.

b. Reimbursement of Activities: HOME funds will not be released to the Granteeuntil a grant contract is fully executed and all grant conditions have been met.These conditions include, but are not limited to: Completion by the Grantee of an Environmental Review Record (ERR). Issuance by MDOC or HUD, as applicable, of the Notice of Release of Funds. Upon

receiving written authorization from MDOC, the Grantee may incur administrativecosts necessary for the preparation of the Environmental Review Record(s) and forplanning activities defined as exempt under 24 CFR §58.34.


Evidence of the firm commitment of the other resources necessary for the completion of the project.

Approval by MDOC of a Program Management Plan and administrative guidelines and terms for financial assistance.

Approval by MDOC of a Program Income or CHDO Proceeds Plan. Establishment by the Grantee of a separate HOME account or accounting

classification within the approved accounting and management system to be used exclusively for the receipt and disbursement of HOME and related funds.

Submission to MDOC of all the following:

Exhibit 1-A: Combined Resolution for the appropriation of HOME funds

Exhibit 3-B.1: Signature Certification Form

Exhibit 3-B.2: Designation of Depository Form

The Grantee pays start-up expenses until reimbursement occurs. All costs incurred become the responsibility of the Grantee if any of the following occur: A grant agreement is not executed

A Grantee is unable to comply with the terms and conditions of the contract

The Grantee's program budget did not include a line item or sufficient funds for aparticular expenditure

The Grantee expands the scope of the project

Funds are obligated or costs are incurred without proper authorization

Procedures outlining what the Grantee must do to be reimbursed for program administration and project activity costs are discussed in Chapter 3, FINANCIAL MANAGEMENT.

4. ESTABLISHING A MANAGEMENT PLAN FOR PROGRAM ADMINISTRATION

MDOC requires that Grantees have the administrative capacity to undertake and satisfactorily complete their HOME program. As part of the HOME application, each applicant prepared a preliminary management plan describing how it intends to manage its program. The management plan specifically outlines how the program will be managed and by whom, and designates the person(s) responsible for guaranteeing compliance with all necessary requirements before any project proceeds. (For a copy of the management plan Template, see HOME Program Application Guidelines, Exhibit 14 for competitive grants and the Qualification Package for the Single Family Noncompetitive Program.)

Key elements of the program, including information that is crucial to the timely completion of each project activity, are included in the management plan. Grantees have some flexibility in designing and implementing project activity procedures as long as they are substantially in accordance with the program design and mechanisms proposed in the Grantee's application. While all activities have some requirements in common, individual


activities must comply with specific requirements. The management plan is customized by type of project and activities. Grantees are only required to address sections related to their specific project and activity.

The management plan directs the project from signing the contract with the HOME Program to the end of the project activity and closeout, and continues through the period of affordability.

Grantees will work with their HOME Program Officer to finalize a Management Plan, which is incorporated into MDOC Contract by reference, that addresses all relevant project activities. The local governing body or CHDO and the HOME Program must sign the approved Management Plan. Similarly, any subsequent modifications to the Management Plan or Project Activity Procedures must be submitted to the HOME Program for review and approval. It is the responsibility of the Grantee to administer the project in accordance with the final Management Plan.

A copy of the final Management Plan should be given to all those involved in managing the program. In the event of staff turnovers, the plan helps familiarize new staff with the responsibilities and operating procedures required to handle program administration.

5. ESTABLISHING HOME FILES

Keeping complete and detailed records is crucial to the successful management of a HOME Program.

This section provides a general outline of the HOME file system for program and project records that meet monitoring requirements. The Grantee’s Program Manager will gather and organize all the information needed to assure effective management and document compliance with state and federal requirements.

Grantees are required to maintain sufficient records to determine whether HOME Program requirements have been met. Below is an outline of file category descriptions that provides information required to maintain an adequate record keeping system. The Grantee must maintain project and program records as required by paragraphs outlined in 24 CFR §§92.508(a)(2), (a)(3), (a)(4), (a)(5), (a)(6), and (a)(7). The file categories appropriate foryour program will vary depending on the type of project activities involved.

a. Application or Qualification File. The Application or Qualification file shouldcontain a copy of the Grantee's application or qualification package as submitted toMDOC and all supporting documentation. This includes the publication notices forand records of the required public hearings and any survey or other data used toprepare the application, such as an income survey, a housing conditions survey, orany correspondence related to the application.

b. Contract File. The Contract file should contain the executed copy of the contractbetween the Grantee and MDOC, including all attachments. Related


correspondence, telephone notes, or subsequent amendments to the contract must be retained in this file.

c. Program Management File. The Program Management file should contain a copyof the Program Management Plan as approved by MDOC. It also contains a copy ofthe Grantee's adopted policies and procedures for administering its HOME project.Related correspondence, telephone notes, or subsequent changes to the Plan mustbe retained in this file. Copies of any legal opinions or recommendations from theGrantee's attorney or from MDOC, which are relevant to the program or individualproject, should also be kept in this file.

The Grantee shall also include information about the following in the ProgramManagement File:

All interested parties in the program, including: Any developer, contractor or consultant involved in the application or in the

planning, development or implementation of the program or any project Any other person or entity having a financial interest in the program or any

project activity. Residency in housing for which assistance is to be given isnot, by itself, considered financial interest

The sources of funds that are to be made available for the program or anyproject activity and the expected uses of the funds. The report must identify thegross amount of funds from all sources, including governmental and non-governmental sources and private capital resulting from tax benefits.

d. Environmental Review File. The Environmental Review file should contain alldata and documentation prepared in response to the environmental review. Thisincludes all notices, public comments, the preliminary environmental review orenvironmental assessment, the request for release of funds, and MDOC notice thatfunds have been released.

e. Lead-Based Paint Activity File. The Lead-Based Paint Activity file should containrecords demonstrating compliance with the lead-based paint requirements of 24CFR Part 35, Subparts A, B, J, K, M, and R for residential property built before1978. This includes all notices, certifications, and documentation that all lead-basedpaint activities are performed in compliance with applicable Federal laws andregulations.

f. Financial Management File. The Financial Management file will include financialinformation regarding the status of HOME funds and other funds involved in theproject. A complete record must be maintained of all financial transactionsconcerning the grant. The official and detailed financial records, including all originalsource documentation for expenditures, must be maintained by the Grantee'sfinancial office. Copies of payroll records for local staff administering the HOMEProgram, including hourly time and attendance records and brief logs summarizingdaily HOME activities should also be included.


g. Procurement Standards File. The Procurement Standards file includes information regarding the procurement of goods and services with HOME program funds and should contain records of the procedures followed in the solicitation for services, and a copy of the agreement between the Grantee and their consultant(s), when applicable.

h. Construction Bidding & Contracting/Labor Standards File. The Construction Bidding & Contracting/Labor Standards file should contain all the information documenting procedures used in soliciting and awarding contracts for any construction activities. This includes preparing bid packages, advertising for bids, conducting bid openings, awarding the contracts, and compliance with applicable state and federal labor requirements. The Grantee must keep a separate section for each contract awarded.

i. Civil Rights File. The Civil Rights file will contain all documentation related to Grantee compliance with state and federal civil rights requirements. It will include any records regarding program benefits, employment practices and procedures, contractor affirmative action, affirmative fair housing marketing plan and procedures, and accessibility for persons with disabilities. See Chapter 5 for additional guidance.

j. Acquisition/Relocation File. The Acquisition/Relocation file will contain documentation outlining the procedures used to acquire any real property and policies and procedures for relocating any displaced households and/or businesses. The Grantee must keep a separate section on each case including copies of all notices, case information, and evidence of successful relocations, with documentation of appropriate compensation or other assistance. See Chapter 6 for additional guidance.

k. Public Relations File. The Public Relations file will contain copies of public notices, press releases or announcements, newspaper articles, council or commission minutes, citizen comments or complaints (with the Grantee's responses to them), and summaries of meetings related to the HOME project. Other records to increase public awareness of the overall program or any individual project, such as photographs of any project sign erected near project activities, should be included in the file. See Chapter 8 for additional guidance.

l. Project Audit/Program Closeout File. The Project Audit/Program Closeout file should contain copies of any audit performed and the preliminary and final closeout reports. The time period covered is between award of the HOME funds and project closeout by MDOC. The file should include a copy of any correspondence to or from MDOC regarding audits and closeout, as well as copies of Grantee comments prepared in response to audit findings. See Chapter 9 for additional guidance.

l. Program Monitoring File. All written correspondence and telephone notes regarding monitoring of the grant by MDOC or any other agency should be retained in the Program Monitoring file. It is especially important to include all monitoring


letters from MDOC along with any responses to those letters from the chief elected official or others. A copy of each year’s ANNUAL CERTIFICATION OF INCOME AND AFFORDABILITY MONITORING FORM should be filed here. See Chapter 10 for additional guidance.

m. Participant Files. All documentation necessary to demonstrate that a HOME-assisted unit is properly occupied by an eligible participant should be included in a file, one for each participant. See Chapter 7 for additional guidance on maintaining participant files.

For rental properties, tenant files should include at minimum the tenant’s application, initial income verification documents, subsequent income recertification documents, the tenant’s lease, and annual HQS inspections. Specific records of a personal nature relating to a family’s income or disability may be segregated and filed separately to protect the privacy of applicants.

For homeownership housing activities, participant files should contain at minimum: Documents certifying each participant’s income eligibility Records of appraisals and computations used to determine property value or

after-rehabilitation value Documents demonstrating compliance with the provisions of the Lead-Based

Paint Poisoning and Prevention Act Documentation that each homebuyer has completed the HOME Program-

approved homebuyer counseling training course As applicable, copies of any documents used to secure resale and affordability

provisions (i.e., deed covenant, deed restriction, covenants running with the land, etc)

A copy of the agreement for the acquisition of the property (buy-sell) or documentation verifying ownership (for rehab-only activities)

The contract between the Grantee and the participant, and as applicable, copies of all work write-ups, contracts, permits, and inspection reports

Records certifying that the property meets HQS standards at time of acquisition, or required property standards after rehabilitation

The original and complete documentation for all files should be retained in the official offices of the Grantee. These files must be available during normal business hours to any persons authorized to review them, including MDOC or representatives of HUD. Copies of key documents may be retained by the Program Manager at a separate location.

Access to records and all applicable state and federal laws govern all other documentation relating to the program as they pertain to disclosure of information to the public and individual right of privacy. These laws govern what information has to be disclosed about


the parties involved in the program or any individual project and the sources and uses of funds for the program.

Both federal and state laws require that most records and information held by public agencies be made available for public inspection. However, when the information that is sought is of a personal nature, the decision to release it must be based on balancing the public's right to know against the competing right of individual privacy. The "right to privacy" laws will most affect the clients that the Grantee will be serving. If a Grantee has questions regarding these matters, they should contact their local attorney for further assistance.

6. RECORDS RETENTION

All records pertaining to each fiscal year of HOME funds must be retained for the most recent five year period, except as provided below:

a. For rental housing projects, records may be retained for five years after the projectcompletion date; except that records of individual tenant income verifications,project rents and project inspections must be retained for the most recent five yearperiod, until five years after the affordability period terminates.

b. For homeownership housing projects, records may be retained for five years afterthe project completion date, except for documents imposing recapture/resalerestrictions which must be retained for five years after the affordability periodterminates.

c. For tenant-based rental assistance projects, records must be retained for five yearsafter the period of rental assistance terminates.

d. Written agreements must be retained for five years after the agreement terminates.

e. Records covering displacements and acquisition must be retained for five yearsafter the date by which all persons displaced from the property and all personswhose property is acquired for the project have received the final payment to whichthey are entitled in accordance with 24 CFR 92.353, Displacement, relocation, andacquisition.

f. If any litigation, claim, negotiation, audit, monitoring, inspection or other action hasbeen started before the expiration of the required record retention period recordsmust be retained until completion of the action and resolution of all issues whicharise from it, or until the end of the required period, whichever is later.

7. GRANT ADMINISTRATION WORKSHOPS

Contact the MDOC HOME Program Officer assigned to your HOME program for guidance.


III. PROJECT SET-UP

A Project Set-up Report must be prepared after the Grantee submits an approved Management Plan, executes a contract with MDOC for HOME funds, submits the required banking and security documents, complies with environmental review requirements, and requests a release of funds. Directions for completing a Project Set-up Report are found in Chapter 3, FINANCIAL MANAGEMENT, in the Project Set-up, Draw Down and Completion Processes section. Submission of the project set-up report identifies a specific project for which project activities will begin within six months. Note: Projects must be completed within 36 months from the date MDOC Director signs the contract with the Grantee. Contracts between the Grantee and MDOC must be signed within 4 months of grant award and funds must be released within 6 months, which must be reflected in the Grantee’s Project Implementation Schedule.

Once the first draw for the project/activity occurs, subsequent draw requests MUST BE SUBMITTED AND PROCESSED NO LESS THAN EVERY 120 DAYS.

A. SINGLE FAMILY NONCOMPETITIVE PROGRAM

NOTE: The HOME Program instituted a program for noncompetitive allocation of HOME funds to homebuyer assistance (HBA) and homeowner rehabilitation (HR) programs that took effect June 1, 2006. Entities conducting single-family programs that are accessing the single-family pool of funds will be required to submit a qualification package.

Details of the Single Family Noncompetitive Program and qualification package can be found at the HOME Program website - http://housing.mt.gov/Hous_HM.asp or by contacting the HOME Program office at 406-841-2820.


EXHIBITS

EXHIBIT 1-A Sample of Combined Resolution/Motion

EXHIBIT 1-B.1 HOME Contract Template – Competitive Grants

EXHIBIT 1-B.2 HOME Contract Template – Single Family Noncompetitive Program Grants

HOME Investment Partnerships Program HOME Administration Manual Montana Department of Commerce 1A.1 April 2012

EXHIBIT 1-A

Sample of Combined Resolution (NOTE: Only the bold text is required; the remainder of the document is for Grantee use and may be

modified as necessary)

RESOLUTION NO. ______ WHEREAS, in 20__ the (name of Grantee) applied for federal, state, local and private funding to (insert information regarding the type of housing project being funded). WHEREAS, (name of Grantee) may appropriate federal or state money received during the fiscal year by formal resolution. NOW, THEREFORE, BE IT RESOLVED that: The (name of Grantee) is authorized to accept the following grant funding to perform the above stated project The (name of Grantee) is authorized to borrow $(insert relevant private funding sources and amounts) The (name of Grantee) will ensure that it and all of its contractor’s or agents shall conduct all program matters in a non-discriminatory matter such that all persons regardless of race, gender, age, disability, or other protected class shall be treated equally and further each shall comply with the policies and procedures attached hereto and known as the 20 (name of Grantee and/or Project Name) Management Plan, approved by the Montana Department of Commerce HOME Investment Partnerships Program The (name of Grantee) hereby appropriates the sum of $_______________ and directs the (name of Grantee) to allocate said amount to the following program activities:

EXPENDITURE CODE SOFTCOST ACTIVITY COST $ $ $ $ $ $ $ $ TOTALS: $ $

BE IT FURTHER RESOLVED that the above appropriation shall become effective on _________________________, 20___. (NAME OF GRANTEE) _____________________County, Montana By ______________________________ By ________________________________ CHIEF ELECTED OFFICIAL or EXECUTIVE DIRECTOR Member (if applicable) Attest ___________________________ ____________________________________ Member (if applicable) Attest ___________________________ ____________________________________ Member (if applicable)

of 21 Montana Home Investment Partnerships Program Contract # ____________ Montana Department of Commerce [INSERT NAME OF GRANTEE] HOME Investment Partnerships Program HOME Administration Manual Montana Department of Commerce 1B.1-1 April 2012

EXHIBIT 1-B.1

HOME CONTRACT TEMPLATE – COMPETITIVE GRANTS Insert or select language as appropriate, and remove highlighting. Delete language NOT selected

CFDA # 14.239

MONTANA DEPARTMENT OF COMMERCE

HOME INVESTMENT PARTNERSHIPS PROGRAM CONTRACT # _________________

This Contract is entered into by [NAME OF GRANTEE],Tax ID # [insert tax ID], DUNS # [insert DUNS #], [CITY], Montana (the “Grantee”), and the Montana Department of Commerce, Helena, Montana (the “Department”). The Grantee and the Department hereby agree to the following terms: Section 1. PURPOSE The purpose of this Contract is to provide funding for [insert project activities] approved by the Department under the Montana Home Investment Partnerships Program (HOME), and to achieve the purposes of Title II of the Cranston-Gonzalez National Affordable Housing Act (Title II, Public Law 101-625, approved November 1990, 104 Stat. 4079, 42 U.S.C. 12701-12839), as amended. Section 2. AUTHORITY This contract is issued under authority of Title 90, Chapter 1, Part 1, Montana Code Annotated (MCA), and the Administrative Rules of Montana, Title 8, Chapter 111. Section 3. DOCUMENTS INCORPORATED BY REFERENCE (a) The HOME Investment Partnerships Program, 24 CFR Part 92; and Title II of the

Housing and Community Development Act of 1992, Public Law 102-550 (H.R. 5334), October 28, 1992;

(b) The Department’s HOME Investment Partnership Program Application Guidelines

and HOME Administration Manual (applicable year’s versions, as amended); and (c) The Grantee’s application for HOME grant assistance and the representations

contained therein, which are binding upon the Grantee.


Section 4. ACCEPTANCE OF PROGRAM REQUIREMENTS (a) The Grantee will comply with the Certifications for Application as signed and

submitted with the Grantee’s HOME application. The Grantee will comply with all applicable parts and requirements of the National Affordable Housing Act of 1990 (as amended), now in effect or as amended during the term of this Contract; all requirements established by the Department; applicable state and Federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions.

(b) The Grantee agrees that all contracts entered into by the Grantee for the

completion of the activities described in Section 6 of this Contract will contain special provisions requiring contractors to comply with all applicable requirements.

(c) The Grantee expressly agrees to repay to the Department any funds advanced to

the Grantee under this Contract which the Grantee, its subcontractors or subrecipient entities, or any public or private agent or agency to which it delegates authority to carry out portions of this Contract, expends in violation of the terms of this Contract or the Federal statutes and regulations governing the HOME Program.

(d) The Grantee agrees that one hundred percent (100%) of HOME funds will be

used to benefit low- and very low-income persons. (e) The Grantee will not obligate or expend any funds, regardless of source, for any

activities provided for by this Contract until the Grantee:

• completes an Environmental Review Record(s) and a Notice of Release of Funds is issued.

(f) The Grantee will not be reimbursed by the Department for any HOME-eligible

costs for any activities provided for by this Contract until the Grantee:

• submits to the Department evidence of the firm commitment of the other resources necessary for the completion of the project, as defined in Section 7, BUDGET and Attachment B of this Contract;

• [If project management services are being provided by an entity other than the Grantee, insert the following, otherwise, delete this section in the contract:] finalizes and submits to the Department a signed copy of the management contract between [GRANTEE] and [ENTITY PROVIDING SERVICES], for the project management services of this project;


• submits, and the Department approves, a Program Management Plan and administrative guidelines and terms for financial assistance;

• submits [SELECT ONE OF THESE OPTIONS and delete the other:] a detailed Program Income/Recaptured Funds Plan, --OR-- a CHDO Proceeds Plan, attached as Attachment C and incorporated herein, for review and written approval by the Department prior to the release of any funds.

• establishes a separate HOME account or accounting classification within the

approved accounting and management system to be used exclusively for the receipt and disbursement of HOME and related funds, including [SELECT ONE OF THESE OPTIONS and delete the other:] program income/recaptured funds, --OR-- CHDO proceeds receipts and disbursements. An original of the Signature Certification Form and the Designation of Depository Form will be sent to the Department.

(g) The Grantee will provide and document matching contributions in the minimum

amount of [MATCH AMOUNT] prior to project completion. Matching contributions must be an eligible form of matching contribution as defined in 24 CFR § 92.220, Form of Matching Contribution.

(h) The Grantee will comply with Federal requirements set forth in 24 CFR Part 5,

Subpart A, Generally Applicable Definitions and Federal Requirements; Waivers, which includes nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended, or ineligible contractors; and drug-free workplace.

(i) The Grantee will adopt affirmative marketing and minority outreach procedures

and requirements in accordance with 24 CFR § 92.351, Affirmative Marketing; Minority Outreach Program, for HOME-assisted housing if the housing assisted with HOME funds contains five or more assisted units.

(j) The Grantee will comply with displacement, relocation and acquisition

requirements set forth in 24 CFR § 92.353, Displacement, Relocation, and Acquisition; labor standards set forth in 24 CFR § 92.354, Labor; and conflict of interest detailed in 24 CFR § 92.356, Conflict of Interest.

(k) Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning

Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, Lead-Based Paint Poisoning Prevention in Certain Residential Structures, Subpart A, Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale or Lease of Residential Property; Subpart B, General Lead-Based Paint Requirements and Definitions for All Programs;


Subpart J, Rehabilitation; Subpart K, Acquisition, Leasing, Support Services, or Operation; Subpart M, Tenant-Based Rental Assistance; and Subpart R, Methods and Standards for Lead-Paint Hazard Evaluation and Hazard Reduction Activities, of this title.

[SELECT ONE OF THESE OPTIONS] [Rental:] (l) The Grantee will require that all housing assisted with HOME funds meet

affordability requirements set forth in 24 CFR § 92.252, Qualification as Affordable Housing: Rental Housing, and will require the repayment of any HOME funds disbursed for a project if the assisted housing unit does not meet the affordability requirements for the specified time period. The Grantee shall establish initial rents and procedures for rent increases on rental projects.

[--OR-- Homebuyer Assistance:] (l) The Grantee will require that all housing assisted with HOME funds meet

affordability requirements set forth in 24 CFR § 92.254 Qualification as Affordable Housing: Homeownership, and will require the repayment of any HOME funds disbursed for a project if the assisted housing unit does not meet the affordability requirements for the specified time period. Homeownership projects in accordance with 24 CFR § 92.254(a), Acquisition with or without rehabilitation, must set forth resale or recapture requirements imposed on the housing units.

[--OR-- Homeowner Rehabilitation:] (l) As required by the HOME Program, the Grantee will require that all housing

rehabilitated with HOME funds meet affordability requirements set forth in 24 CFR § 92.254 Qualification as Affordable Housing: Homeownership, and will require the repayment of any HOME funds disbursed for a homeowner rehabilitation project if the assisted housing unit does not meet the affordability requirements for the specified time period. Homeowner rehabilitation projects must set forth recapture requirements imposed on the housing units specified in 24 CFR § 92.254(a), Acquisition with or without rehabilitation

[NOTE: There is no affordability requirement for TBRA, so if doing TBRA, section (k) would be removed and the following sections re-numbered.]

(m) The Grantee will comply with the project requirements found in 24 CFR Part 92,

Subpart F, Project Requirements, as applicable, in accordance with the type of project assisted.

(n) The Grantee will carry out each activity in compliance with all Federal laws and

regulations described in 24 CFR Part 92, Subpart H, Other Federal Requirements, except that the Grantee does not assume the responsibility for


release of funds under 24 CFR § 92.352, Environmental Review, or the intergovernmental review process described in 24 CFR § 92.357, Executive Order 12372, Intergovernmental Review of Federal Programs.

(o) When applicable, the Grantee will follow the provisions governing the use of

HOME funds by religious organizations, as contained in 24 CFR § 92.257, Religious Organizations.

(p) In all contracts with its subcontractors and subrecipients, the Grantee will require

all contract provisions, clauses and conditions detailed in Chapter 4 of the applicable year’s version of the HOME Administration Manual.

(q) The Grantee will require the following language in all contracts with its

subcontractors and subrecipients: The contractor will ensure that, to the greatest extent feasible, opportunities for training and employment arising in connection with this HOME-assisted project will be extended to lower income project area residents. Further, the contractor will, to the greatest extent feasible, utilize business concerns located in or substantially owned by residents of the project area, in awarding contracts and procuring services and supplies.

[SELECT ONE OF THE FOLLOWING] (r) Governmental Entities. The requirements of OMB Circular No. A-87, Cost

Principles for State, Local and Indian Tribal Governments, and the following requirements of 24 CFR Part 85, Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments, apply to State Recipients, and any governmental subrecipient receiving HOME funds. --OR-- Nonprofit Entities. The requirements of OMB Circular No. A-122, Cost Principles for Non-Profit Organizations, and certain provisions of 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, apply to a Department certified Community Housing Development Organization (CHDO) receiving HOME funds.

(s) Title to real property or equipment acquired under a grant or subgrant will vest

upon acquisition in the Grantee or Subgrantee, respectively. The Grantee or Subgrantee will use, manage, and dispose of this property or equipment in accordance with all applicable State and Federal requirements.

(t) If any housing assisted with HOME funds fails to meet the affordability

requirements for the period(s) set forth in Section 5 EFFECTIVE DATE AND TIME OF PERFORMANCE the Qualified Entity will repay to the Department all HOME funds expended on this housing.


(u) If at project completion, the Grantee will be the owner of real property, the enforcement of the affordable housing requirements of the HOME Program will be assured by the imposition of a lien on the property, deed restrictions, or covenants running with the land. In the case of rental housing projects, affordability requirements will be enforced through the imposition of deed restrictions. Breach of the HOME requirements through the period of affordability will result in one or more of the actions identified in 24 CFR § 85.43, Enforcement.

If the Grantee provides HOME funds for a project that will be owned by another entity, the Grantee and the entity will execute a written agreement that implements the requirements described in the preceding paragraph.

Section 5. EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect upon date of signature of the Director of the Department and will be in effect for the "period of affordability," which, from the date of project completion, is [NUMBER] years. The Grantee’s Implementation Schedule is included as part of this Contract as Attachment A. For State recipients the duration of this Contract will be for 36 months beginning the date the Director of the Department of Commerce signs this Contract. [NOTE: If the Implementation Schedule changes, the contract will need to be formally amended to incorporate the revised Implementation Schedule.] [Select potion of table for affordability requirements according to project terms; delete inapplicable requirements]

ACTIVITY Minimum period of

affordability, in years RENTAL HOUSING ACTIVITY (24 CFR § 92.252(e)

Rehabilitation or acquisition of existing rental housing per unit amount of HOME funds:

Under $15,000 5 years $15,000 to $40,000 10 years Over $40,000 or rehabilitation involving refinancing 15 years

New Construction or acquisition of newly constructed housing 20 years

HOMEOWNERSHIP ACTIVITY (24 CFR § 92.254 (4)

Homeownership Activity assistance HOME amount per-unit

Under $15,000 5 years $15,000 to $40,000 10 years Over $40,000 15 years


ACTIVITY Minimum period of

affordability, in years HOMEOWNER REHABILITATION ACTIVITY

Homeowner rehabilitation activity assistance HOME amount per-unit


Section 6. SCOPE OF WORK The Grantee will carry out the activities as set forth in the Grantee’s application for HOME grant assistance received [DATE], which by this reference is incorporated into this Contract. [Insert activity, including, but not limited to type of project/activity, total number of units, number of HOME units (by each unit size, if applicable), fixed or floating (if applicable), identification of fixed units (if applicable), etc.] In addition, the Grantee will be responsible for administering this Contract. The Grantee will be responsible for monitoring the performance of all entities receiving HOME funds to assure compliance with the requirements of the HOME program, and to take appropriate action when performance problems arise. Section 7. BUDGET (a) The total amount to be awarded to the Grantee under this Contract will not

exceed $[TOTAL GRANT AMOUNT]. (b) A copy of the PROGRAM BUDGET is included as Attachment B to this Contract

and by this reference is incorporated into this Contract and is binding upon the Grantee. The Grantee shall follow guidance provided in Section (d) below to modify the attached budget.

(c) All projects set up in the Integrated Disbursement and Information System (IDIS)

will require a separate budget. The Department will not disburse funds to the Grantee for a particular project until the Grantee has submitted and the Department has approved the budget for that project.

(d) Budget modifications to the HOME portion of the budget (see Attachment B) must be approved in advance by the Department. The Department may approve HOME budget adjustments of $5,000 or less, through the Request for Payment form. When the Grantee submits the request, the Grantee shall provide justification for these adjustments through its Project Progress Report. Department approval of these adjustments occurs when the Department


approves the payment request. For budget adjustments greater than $5,000, the Grantee will submit its written request and justification to the Department for approval in advance of the proposed modification. If these proposed modifications change the scope of the project, the Grantee’s request may require a re-evaluation of the project. Budget modifications for an amount greater than $5,000 are subject to contract amendment by the Department.

Section 8. METHOD OF COMPENSATION (a) The Grantee will request that the Department disburse funds when the funds are

needed for payment of eligible costs. The amount of each request will be limited to the amount needed. In accordance with 24 CFR § 92.502(c), Disbursement of HOME funds, the Grantee will use the HOME funds on HOME-eligible project costs within fifteen (15) days of receipt. Any funds not disbursed within 15 days must be returned to the Department.

[SELECT ONE OR BOTH, AS APPROPRIATE:] The Grantee will disburse program income/recaptured funds AND/OR CHDO proceeds received before requesting HOME funds from the Department. In drawing against the amount reserved for the Grantee by the Department, the Grantee will follow instructions supplied by the Department.

(b) If the actual total cost of completing the project is less than that projected by the

Grantee in the preliminary budget (Attachment B), the Department may, at its discretion, reduce the amount of HOME funds to be provided under this Contract in proportion to the overall savings. If actual construction bids are less than the estimates included in the preliminary budget, the construction budget in the Contract will be established at the bid price. The Department will reallocated the difference between actual project costs and the original grant award to unfunded or partially funded projects, or use it to expand the scope of the Grantee’s program.

(c) If the Department determines the Grantee has failed to satisfactorily carry out its

responsibilities under this Contract, the Department will notify the Grantee in writing of the deficiency. If after receiving this notification, the Grantee does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Department may suspend the Grantee’s authority to draw against the reserve described in this Contract. The suspension will continue until the Department and the Grantee agree on a plan to remedy the deficiency.

(d) All project funds must be committed and spent within thirty-six (36) months of the date the Director of the Department signed this Contract. Any funds not expended by this date may be withdrawn from the Grantee and used for other HOME eligible activities.


(e) The Department is allowed 30 days to process requests for payments. The Grantee shall provide banking information at the time of Contract execution in order to facilitate electronic funds transfer payments. The Department may withhold payments to the Grantee if the Grantee has breached the terms of the Contract.

Section 9. REPORTING REQUIREMENTS Each Request for Payment form must be accompanied by a signed Project Progress Report. The Project Progress Report must provide a written narrative on activities that have occurred relating to Match, Soft Costs Activity, Project Activity and Program Income as detailed in Chapter 3 of the HOME Administration Manual. Grantee shall also submit sufficient documentation to justify expenditures as applicable to each type of project. A Project Progress Report must also be submitted by the Grantee every 30 days that includes information relevant to the implementation of project activities, including a description of the cumulative progress and accomplishments achieved and any problems or delays that could affect the program implementation schedule or budget since program start-up and since the last progress report submitted. The Grantee agrees to submit the project Completion Report to the Department within 100 days of the final project drawdown in order for the Department to comply with the requirements of with 24 CFR § 92.502(d)(1): within 120 days after the final draw the Department must enter the completion data into HUD’s IDIS system. Section 10. LIAISONS The contact persons for this Contract are: For the Department: [NAME OF PROJECT SPECIALIST] (or successor) [TITLE], [PROGRAM], MDOC 301 S. Park Ave. P.O. Box 200545 Helena, MT 59620-0545 406-841-____ For the Grantee: [NAME] [TITLE] [MAILING ADDRESS] [BUSINESS LOCATION] [PHONE NUMBER]


Section 11. PROJECT MEETINGS (a) Progress Meetings. During the term of the Contract, the Department may plan

and schedule progress meetings with the Grantee to discuss the progress made by the Grantee and the Department in the performance of their respective obligations. These progress meetings may include the parties’ liaisons and any other additional personnel involved in the performance of the contract as required. At each such meeting, the Grantee shall provide the Department with a written status report that identifies any problem or circumstance encountered by the Grantee, or of which the Grantee gained knowledge during the period since the last such status report, which may prevent the Grantee from completing any of its obligations or may generate charges in excess of those previously agreed to by the parties. This may include the failure or inadequacy of the Department to perform its obligation under the Contract. Grantee shall identify the amount of excess charges, if any, and the cause of any identified problem or circumstance and the steps taken to remedy the same.

(b) Technical or Contractual Problems. The Grantee is required to consult with the

Department’s liaison to resolve technical or contractual problems that may occur during the term of the Contract, at no additional cost to the Department. Consultations will occur as problems arise and will be coordinated by the Department. Failure to participate in problem resolution or failure to make a good faith effort to resolve problems may result in termination of the Contract.

Section 12. ACCESS TO AND RETENTION OF RECORDS The Grantee will maintain reasonable records of its performance under this Contract and will allow access to these records at any time during normal business hours by the Department, the U.S. Department of Housing and Urban Development, the Comptroller General and, when required by law, the Montana Legislative Auditor. The project and program records that must be on file in the Grantee’s offices are described in the applicable year’s edition of the Department’s HOME Administration Manual. These records will be kept at the Grantee’s offices in [CITY], Montana. In accordance with 24 CFR § 92.508, Recordkeeping, all records pertaining to each fiscal year of HOME funds must be retained for the most recent five-year period, except as provided below: [SELECT ONE] (a) For rental housing projects:

• records must be retained for five years after the project completion date; and


• records of individual tenant income verifications, project rentals, and project inspections must be retained for the most recent five-year period, until five years after the affordability period terminates.

--OR-- (a) For homeownership housing projects:

• records must be retained for five years after the project completion date; and

• Documents imposing recapture/resale restrictions must be retained for five

years after the affordability period terminates --OR-- (a) For tenant-based rental assistance projects, records must be retained for five

years after the period of rental assistance terminates (b) Written agreements must be retained for five years after the agreement

terminates. (c) Records covering displacements and acquisition must be retained for five years

after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled under 24 CFR § 92.353, Displacement, Relocation, and Acquisition.

(d) If any litigation, claim, negotiation, audit, monitoring, inspection or other action

has been started before the expiration of the required record retention period, records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.

Access to the records described above and all other documentation relating to the program is governed by all applicable state and Federal laws pertaining to the disclosure of information to the public and to the individual’s right of privacy. Section 13. PROJECT MONITORING (a) The Department or any of its authorized agents may monitor and inspect all

phases and aspects of the Grantee’s performance to determine compliance with the SCOPE OF WORK, the proper use of Program funds, and other technical and administrative requirements of this Contract, including the adequacy of the Grantee’s records and accounts. The Department will advise the Grantee of any specific areas of concern and provide the Grantee opportunity to propose corrective actions acceptable to the Department.


(b) Failure by the Grantee to proceed with reasonable promptness to take necessary corrective actions shall be a default. If the Grantee’s corrective actions remain unacceptable, the Department may terminate this Contract in whole or in part, or reduce the contract price or award to reflect the reduced value of services received.

Section 14. COMPLIANCE WITH LAWS (a) The Grantee must, in performance of work under this Contract, fully comply with

all applicable federal, state, and tribal laws, rules, policies, and regulations, concerning, but not limited to, human rights, civil rights, employment law, and labor law. Any subletting or subcontracting by the Grantee subjects subcontractors to the same provision.

(b) The Grantee shall promptly refer to the Department any credible evidence that a

principal, employee, agent, contractor, sub-grantee, subcontractor, or other person has submitted any false claim or has committed any criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving funds provided under this Contract.

Section 15. AVOIDANCE OF CONFLICT OF INTEREST The Grantee will comply with all applicable laws regarding the avoidance of conflict of interest, including but not limited to 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, and 24 CFR Part 85, Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments, 24 CFR § 92.356, Conflict of Interest, and HUD guidance found in the HOME management plan guidelines. In addition, the Grantee agrees that none of its officers, employees, or agents will solicit or accept gratuities, favors, or anything of monetary value from contractors, subcontractors, or potential contractors and subcontractors, who provide or propose to provide services relating to the project funded under this Contract. Section 16. LOBBYING RESTRICTIONS (a) The Grantee shall comply with the provisions of 31 U.S.C. § 1352 and

implementing regulations published at 15 CFR Part 28, New Restrictions on Lobbying. These provisions generally prohibit the use of Federal funds for lobbying the Executive or Legislative Branches of the Federal government in connection with the award, and require the disclosure of the use of non-Federal funds for lobbying.


(b) The Grantee shall submit a completed Form SF-LLL, Disclosure of Lobbying Activities, regarding the use of non-Federal funds for lobbying. The Form SF-LLL shall be submitted within 30 days following the end of the calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed. The recipient must submit the Forms SF-LLL, including those received from subrecipients, contractors, and subcontractors, to the Department for submission to the appropriate federal government agency.

Section 17. ACCOUNTING, COST PRINCIPLES, AND AUDITING (a) The Grantee, in accordance with Section 18-4-311, MCA; 5 U.S.C.App. 3 §§ 1

et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, must maintain for the purposes of this Contract an accounting system of procedures and practices that conforms to Generally Accepted Accounting Principles (GAAP).

(b) The Department, Montana Legislative Auditor, Inspector General of the U.S.

Department of Commerce, or any other legally authorized governmental entity or their authorized agents may, at any time during or after the term of this Contract, conduct, in accordance with Sections 5-13-304 and 18-1-118, MCA; 5 U.S.C.App. 3 §§ 1 et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, audits for the purposes of ensuring the appropriate administration and expenditure of the monies provided through this Contract and to ensure the appropriate administration and delivery of services provided through this Contract.

(c) The Grantee, for purposes of audit and other administrative activities, in

accordance with 18-1-118, MCA; 5 U.S.C.App. 3 §§ 1 et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, must provide the Department, Montana Legislative Auditor, Inspector General of the U.S. Department of Commerce, or any other legally authorized governmental entity or their authorized agents access at any time to all of their respective records, materials and information, including any and all audit reports with supporting materials and work documents, pertinent to the services provided under this Contract until the expiration of three (3) years from the completion date of this Contract. The Department and any other legally authorized governmental entity or their authorized agents may record any information and make copies of any materials necessary for the conduct of an audit or other necessary administrative activity.


Section 18. OWNERSHIP AND PUBLICATION OF MATERIALS All reports, information, data, and other materials prepared by the Grantee, or any of its contractors or subcontractors, in furtherance of this Contract are the property of the Grantee and the Department, which both have the royalty-free, nonexclusive, and irrevocable right to reproduce, publish or otherwise use, and to authorize others to use, in whole or part, such property and any information relating thereto. No material produced in whole or part under this Contract may be copyrighted or patented in the United States or in any other country without the prior written approval of the Department and the Grantee. Section 19. ASSIGNMENT, TRANSFER, AND SUBCONTRACTING (a) The Grantee may not assign, transfer, delegate, or subcontract, in whole or part,

this Contract or any right or duty arising under this Contract, unless the Department in writing approves the assignment, transfer, delegation, or subcontract.

(b) Any assignment, transfer, delegation, or subcontract entered into by the Grantee

must be in writing, must be subject to the terms and conditions of this Contract, and must contain any further conditions as may be required by the Department.

(c) The Department’s approval of any assignment, transfer, delegation, or

subcontract neither makes the Department a party to that contract nor creates any right, claim, or interest in favor of any party to that contract against the Department.

(d) The Grantee must immediately notify the Department of any litigation concerning

any assignment, transfer, delegation, or subcontract. Section 20. HOLD HARMLESS AND INDEMNIFICATION The Grantee agrees to protect, defend, and save the Department, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, causes of action of any kind or character, including the cost of defense thereof, to the extent arising in favor of the Grantee’s employees or third parties on account of bodily or personal injuries, death, or damage to property arising out of Grantee’s negligence in connection with services performed or omissions of services or in any way resulting from the negligent acts or omissions of the Grantee and/or its agents, employees, representatives, assigns, contractors, subcontractors, except the negligence of the Department under this agreement.


Section 21. INSURANCE [select one or the other; CITIES/TOWNS get this section; COUNTIES & NON-PROFITS get the other one.] [FOR CITIES/TOWNS – USE THIS SECTION] (a) General Requirements. Grantee shall maintain and shall assure that its

representatives, assigns, and subcontractors maintain for the duration of the Contract, at their own cost and expense, liability insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the duties and obligations in the Contract by Grantee, its agents, employees, representatives, assigns, or subcontractors. This insurance shall cover such claims as may be caused by any negligent act or omission. The Department, its officers, officials, employees, and volunteers are to be covered as additional insured's for all claims arising out of the use of grant proceeds provided by the State of Montana.

(b) General Liability Insurance. At its sole cost and expense, the Grantee shall

purchase occurrence coverage with minimum combined single limits of $1 million per occurrence and $2 million aggregate per year, or as established by statutory Tort limits of $750,000 per claim and $1,500,000 per occurrence as provided by a self-insurance pool insuring counties, cities, or towns, as authorized under Section 2-9-211, MCA.

(c) Professional Liability Insurance. Grantee shall assure that any representatives,

assigns, and subcontractors performing professional services under this Contract purchase occurrence coverage with combined single limits for each wrongful act of $1,000,000 per occurrence and $2,000,000 aggregate per year. Note: if "occurrence" coverage is unavailable or cost prohibitive, the Contractor may provide "claims made" coverage provided the following conditions are met: (I) the commencement date of the contract must not fall outside the effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years; and (2) the claims made policy must have a three (3) year tail for claims that are made (filed) after the cancellation or expiration date of the policy.

(d) Property Insurance. At its sole cost and expense, the Grantee shall maintain

property and hazard insurance, including course of construction coverage, and earthquake insurance in areas where there is a shaking level above 10g (see map at http://rmtd.mt.gov/aboutus/publicationslfiles/NEHRP.pdf) for loss or damage for any building and all related improvements and contents therein on the premises on a replacement cost basis throughout the term of the contract.

(e) General Provisions. All insurance coverage shall be placed with a carrier

licensed to do business in the State of Montana or by a domiciliary state and with a Best's rating of at least A-, or by a public entity self-insured program either


individually or on a pool basis as provided by Title 2, MCA. All certificates and endorsements are to be received by the Department prior to beginning any activity provided for under the Contract. Grantee shall notify the Department immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. The Department reserves the right to request complete copies of Grantee's insurance policy at any time, including endorsements.

[--OR-- FOR COUNTIES & CHDO / NONPROFITS – USE THIS SECTION] (a) General Requirements. Grantee shall maintain and shall assure that its

representatives, assigns, and subcontractors maintain for the duration of the Contract, at their own cost and expense, primary liability insurance against claims for injuries to persons or damages to property, including contractual liability, which may arise from or in connection with the performance of the duties and obligations in the Contract by Grantee, its agents, employees, representatives, assigns, or subcontractors. This insurance shall cover such claims as may be caused by any negligent act or omission. The State, its officers, officials, employees, and volunteers are to be covered as additional insured’s for all claims arising out of the use of grant proceeds provided by the State of Montana.

(b) Primary Insurance. Grantee’s insurance coverage shall be primary insurance with respect to the State of Montana, its elected or appointed officers, officials, employees, or volunteers and shall not contribute with it.

(c) General Liability Insurance. At its sole cost and expense, the Grantee shall


(d) Professional Liability Insurance. Grantee shall assure that any representatives,

assigns, and subcontractors performing professional services under this Contract purchase occurrence coverage with combined single limits for each wrongful act of $1,000,000 per occurrence and $2,000,000 aggregate per year. Note: if "occurrence" coverage is unavailable or cost prohibitive, the Contractor may provide "claims made" coverage provided the following conditions are met: (1) the commencement date of the contract must not fall outside the effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years; and (2) the claims made policy must have a three (3) year tail for claims that are made (filed) after the cancellation or expiration date of the policy.


(e) Property Insurance. At its sole cost and expense, the Grantee shall maintain property and hazard insurance, including course of construction coverage, and earthquake insurance in areas where there is a shaking level above 10g (see map at http://rmtd.mt.gov/aboutus/publications/files/NEHRP.pdf) for loss or damage for any building and all related improvements and contents therein on the premises on a replacement cost basis throughout the term of the contract.

(f) General Provisions. All insurance coverage shall be placed with a carrier

licensed to do business in the State of Montana or by a domiciliary state and with a Best’s rating of at least A-, or by a public entity self-insured program either individually or on a pool basis as provided by Title 2, MCA. All certificates and endorsements are to be received by the Department prior to beginning any activity provided for under the Contract. Grantee shall notify the Department immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. The Department reserves the right to request complete copies of Grantee’s insurance policy at any time, including endorsements.

Section 22. INDEPENDENT CONTRACTOR Grantee and his or her employees or agents performing under this Contract are not employees or agents of the Department. Grantee will not claim to be an officer or employee of the Department by reason of this Contract, nor will it make any claim of right, privilege or benefit which would accrue to a civil service employee of the State of Montana. Section 23. DEBARMENT The Grantee certifies and agrees to ensure during the term of this Contract that neither it nor its principals, contractors, or subcontractors are debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this Contract by any governmental department or agency. If the Grantee cannot certify this statement, it has attached a written explanation for review by the Department. Section 24. CONTRACT AMENDMENT Except as otherwise set forth herein, this Contract may not be enlarged, modified, or altered except upon written agreement by all parties to the Contract. (a) The Department will consider requests by the Grantee for grant amendments. A

request for an amendment must clearly demonstrate that the amendment is justified and will enhance the overall impact of the original project. The Department will consider each request to determine whether the amendment is substantial enough to require reevaluating the projects original ranking. If


warranted, the Department will analyze the proposed amendment and its impact on the scores originally assigned to the application in the original grant competition.

(b) The Department will not approve amendments that would materially alter the

circumstances under which the grant was originally ranked and selected. (c) If the Department determines that the proposed amendment represents a

substantial change in the project activities as proposed in the original application for HOME funds, the Department will require the Grantee to hold a local public hearing on the amendment with reasonable notice.

Section 25. TERMINATION OF CONTRACT This Contract may be terminated as follows: (a) Termination Due to Loss of Funding. This Contract will terminate in whole or in

part, at the sole discretion of the Department, in the event that the Department suffers a loss of funding or termination of the Federal grant which permits it to fund the Grantee in whole or in part, thereby rendering the Department unable to make payment to the Grantee. In this event, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

(b) Termination Due to Noncompliance with Contract Terms. If the Department

determines that the Grantee has failed to comply with the general terms and conditions of this Contract, the project schedule, or any special conditions, and, if upon notification of the defect, the Grantee does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Department may terminate this Contract in whole or in part at any time before the expiration of the period of affordability specified in Section 5. The Department will promptly notify the Grantee in writing of the decision to terminate, the reasons for termination, and the effective date of the termination.

(c) Termination Due to Adverse Environmental Impact. This Contract will terminate

at the conclusion of the environmental review process if the Grantee or the Department determines that the project would have a significant adverse impact on the quality of the human environment, and that this impact cannot be avoided or sufficiently mitigated by reasonable means.

(d) Effect of Termination. In the event of termination due to Grantee’s failure to

comply with the terms of this Contract or the project’s adverse environmental impact, any costs incurred will be the responsibility of the Grantee.


Section 26. DEFAULT Failure on the part of either party to perform the provisions of the Contract constitutes default. Default may result in the pursuit of remedies for breach of contract as set forth herein or as otherwise legally available, including but not limited to damages and specific performance. Section 27. NO WAIVER OF BREACH No failure by the Department to enforce any provisions hereof after any event of breach shall be deemed a waiver of its rights with regard to that event, or any subsequent event. No express failure of any event of breach shall be deemed a waiver of any provision hereof. No such failure or waiver shall be deemed a waiver of the right of the Department to enforce each and all of the provisions hereof upon any further or other breach on the part of the Grantee. Section 28. COMPLIANCE WITH WORKERS’ COMPENSATION ACT The Grantee accepts responsibility for requiring all contractors and subcontractors being reimbursed with Program grant funds to supply the Department with proof of compliance with the Montana Workers' Compensation Act while performing work for the State of Montana. (MCA §§ 39-71-120, 39-71-40 I, and 39-71-405.) Neither the Grantee nor its employees are employees of the Department. The proof of insurance/exemption must be in the form of workers' compensation insurance, an independent contractor exemption, or documentation of corporate officer status, and must be received by the Department within 10 working days of the execution of this Contract and must be kept current for the entire term of the Contract. CONTRACTS WILL BE TERMINATED PURSUANT TO THE PROVISIONS OF SECTION 25 IF THE GRANTEE FAILS TO PROVIDE THE REQUIRED DOCUMENTATION WITHIN THE ALLOTTED TIME FRAME. Coverage may be provided through a private carrier or through the State Compensation Insurance Fund (406) 444-6500. An exemption can be requested through the Department of Labor and Industry, Employment Relations Division (406) 444-1446. Corporate officers must provide documentation of their exempt status. Section 29. FORCE MAJEURE Neither party shall be responsible for failure to fulfill its obligations due to causes beyond its reasonable control, including without limitation, acts or omissions of government or military authority, acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars, terrorist acts, or any other causes,


directly or indirectly beyond the reasonable control of the non-performing party, so long as such party is using its best efforts to remedy such failure or delays.

Section 30. SEPARABILITY A declaration by any court, or any other binding legal forum, that any provision of the Contract is illegal and void shall not affect the legality and enforceability of any other provision of the Contract, unless the provisions are mutually dependent. Section 31. NOTICE All notices required under the provisions of the Contract must be in writing and delivered to the parties’ liaisons identified herein either by first class mail or personal service. Section 32. NO ARBITRATION Unless otherwise agreed to in writing or provided for by law, arbitration is not available to the parties as a method of resolving disputes that would arise under the Contract. Section 33. REFERENCE TO CONTRACT The Contract number must appear on all invoices, reports, and correspondence pertaining to the Contract. Section 34. JURISDICTION AND VENUE This Contract is governed by the laws of Montana. The parties agree that any litigation concerning this Contract must be brought in the First Judicial District in and for the County of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees. (Section 18-1-401, MCA). Section 35. FUNDING ACKNOWLEDGEMENT All materials developed wholly or in part by the funding provided under the Contract shall state that “The funding for the (insert name of project) was funded (in part, if applicable) by a grant from the Montana Department of Commerce.” Any variations from this language must be approved by the Department prior to use. The Department of Commerce logo is also available for use upon request. Section 36. INTEGRATION This contract contains the entire agreement between the parties, and no statements, promises, or inducements of any kind made by either party, or the agents of either

of 21 Montana Home Investment Partnerships Program Contract # ____________ Montana Department of Commerce [INSERT NAME OF GRANTEE]

HOME Investment Partnerships Program HOME Administration Manual Montana Department of Commerce 1B.1-21 April 2012

party, not contained herein or in a properly executed amendment hereto are valid or binding. Amendments to this contract must be signed by both parties.

IN WITNESS OF THE TERMS SET OUT ABOVE, the parties hereto have caused this Contract to be executed on the dates set out below.

By: ________________________________________________________________ [NAME] Date [TITLE]

By: ________________________________________________________________ Meg O'Leary DateDirector, Montana Department of Commerce


EXHIBIT 1-B.2

HOME CONTRACT TEMPLATE – SINGLE FAMILY NONCOMPETITIVE GRANTS Insert or select language as appropriate, and remove highlighting. Delete language NOT selected

CFDA # 14.239

MONTANA DEPARTMENT OF COMMERCE

HOME INVESTMENT PARTNERSHIPS PROGRAM CONTRACT # _________________

This Contract is entered into by [NAME OF GRANTEE],Tax ID # [insert tax ID], DUNS # [insert DUNS #], [CITY], Montana (the “Grantee”), and the Montana Department of Commerce, Helena, Montana (the “Department”). The Grantee and the Department hereby agree to the following terms: Section 1. PURPOSE The purpose of this Contract is to provide funding for [select activity—homebuyer assistance or homeowner rehabilitation] approved by the Department under the Montana Home Investment Partnerships Program (HOME), and to achieve the purposes of Title II of the Cranston-Gonzalez National Affordable Housing Act (Title II, Public Law 101-625, approved November 1990, 104 Stat. 4079, 42 U.S.C. 12701-12839), as amended. Section 2. AUTHORITY This contract is issued under authority of Title 90, Chapter 1, Part 1, Montana Code Annotated (MCA), and the Administrative Rules of Montana, Title 8, Chapter 111. Section 3. DOCUMENTS INCORPORATED BY REFERENCE (a) The HOME Investment Partnerships Program, 24 CFR Part 92; and Title II of the

Housing and Community Development Act of 1992, Public Law 102-550 (H.R. 5334), October 28, 1992;

(b) The Department’s HOME Investment Partnership Program Single Family

Noncompetitive Program Qualification Package Template and Guidelines and HOME Administration Manual (applicable year’s versions, as amended); and


(c) The Grantee’s Single Family Noncompetitive Program Qualification Package and the representations contained therein, which are binding upon the Grantee.

(d) The Grantee’s Single Family Noncompetitive Program Management Plan, as

approved by the Department, and the representations contained therein, which are binding upon the Grantee.

(e) The Grantee’s Program Income and Recaptured Funds Plan, as approved by the Department, and the representations contained therein, which are binding upon the Grantee.

Section 4. ACCEPTANCE OF PROGRAM REQUIREMENTS (a) The Grantee will comply with the Certifications for Application as signed and

submitted with the Grantee’s HOME Qualification Package. The Grantee will comply with all applicable parts and requirements of the National Affordable Housing Act of 1990 (as amended), now in effect or as amended during the term of this Contract; all requirements established by the Department; applicable state and Federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions.

(b) The Grantee agrees that all contracts entered into by the Grantee for the

completion of the activities described in Section 6 of this Contract will contain special provisions requiring contractors to comply with all applicable requirements.

(c) The Grantee expressly agrees to repay to the Department any funds advanced to

the Grantee under this Contract which the Grantee, its subcontractors or subrecipient entities, or any public or private agent or agency to which it delegates authority to carry out portions of this Contract, expends in violation of the terms of this Contract or the Federal statutes and regulations governing the HOME Program.

(d) The Grantee agrees that one hundred percent (100%) of HOME funds, including

any program income and recaptured funds, will be used to benefit low- and very low-income persons.

(e) The Grantee will not obligate or expend HOME funds, including any program

income and recaptured funds, for any activities provided for by this Contract until the Grantee:

• completes an Environmental Review Record and a Notice of Release of

Funds is issued; [if the entity operates in a multiple jurisdictions, substitute the following: The entity will need to complete the Environmental


Review Record and a Notice of Release of Funds must be issued for each jurisdiction, as outlined in Attachment B, Special Requirements for Operating in Multiple Jurisdictions.

(f) The Grantee will not be reimbursed by the Department for any HOME-eligible costs for any activities provided for by this Contract until the Grantee:

• [If management services are being provided by an entity other than the

Grantee, insert the following, otherwise, delete this section in the contract:] finalizes and submits to the Department a signed copy of the management contract between [GRANTEE] and [ENTITY PROVIDING SERVICES], for management services of this Grant;

• submits, and the Department approves, a Program Management Plan and supporting documents;

• submits, and the Department approves, a detailed Program Income and Recaptured Funds Plan,

• establishes a separate HOME account or accounting classification within the

approved accounting and management system to be used exclusively for the receipt and disbursement of HOME and related funds, including program income and recaptured funds receipts and disbursements. An original of the Signature Certification Form and the Designation of Depository Form will be sent to the Department.

(g) The Grantee will provide and document matching contributions of no less than

five percent (5%) of the amount of HOME assistance provided for each participant receiving HOME assistance. Matching contributions must be an eligible form of matching contribution as defined in 24 CFR §92.220, Form of Matching Contribution, and must be approved in writing by the Department.

(h) The Grantee will comply with Federal requirements set forth in 24 CFR Part 5,

Subpart A, Generally Applicable Definitions and Federal Requirements; Waivers, which includes nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended, or ineligible contractors; and drug-free workplace.

(i) The Grantee will adopt affirmative marketing and minority outreach procedures

and requirements in accordance with 24 CFR §92.351, Affirmative Marketing; Minority Outreach Program, for HOME-assisted housing if the housing assisted with HOME funds contains five or more assisted units.


(j) The Grantee will comply with displacement, relocation and acquisition requirements set forth in 24 CFR §92.353, Displacement, Relocation, and Acquisition; labor standards set forth in 24 CFR §92.354, Labor; and conflict of interest detailed in 24 CFR §92.356, Conflict of Interest.

(k) Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning

Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, Lead-Based Paint Poisoning Prevention in Certain Residential Structures, Subpart A, Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards Upon Sale or Lease of Residential Property; Subpart B, General Lead-Based Paint Requirements and Definitions for All Programs; Subpart J, Rehabilitation; Subpart K, Acquisition, Leasing, Support Services, or Operation; Subpart M, Tenant-Based Rental Assistance; and Subpart R, Methods and Standards for Lead-Paint Hazard Evaluation and Hazard Reduction Activities, of this title.

[SELECT ONE OF THESE OPTIONS] [Homebuyer Assistance:] (l) The Grantee will require that all housing assisted with HOME funds meet

affordability requirements set forth in 24 CFR §92.254 Qualification as Affordable Housing: Homeownership, and will require the repayment of any HOME funds disbursed for an activity if the assisted housing unit does not meet the affordability requirements for the specified time period. Homeownership activities in accordance with 24 CFR §92.254 must set forth resale or recapture requirements imposed on the housing units. [--OR-- Homeowner Rehabilitation:]

(l) As required by the HOME Program, the Grantee will require that all housing rehabilitated with HOME funds meet affordability requirements set forth in 24 CFR §92.254 Qualification as Affordable Housing: Homeownership, and will require the repayment of any HOME funds disbursed for a homeowner rehabilitation activity if the assisted housing unit does not meet the affordability requirements for the specified time period. Homeowner rehabilitation activities must set forth recapture requirements imposed on the housing units specified in 24 CFR §92.254.

(m) The Grantee will comply with the requirements found in 24 CFR Part 92,

Subpart F, Project Requirements, as applicable, in accordance with the type of activity assisted.

(n) The Grantee will carry out each activity in compliance with all Federal laws and

regulations described in 24 CFR Part 92, Subpart H, Other Federal Requirements, except that the Grantee does not assume the responsibility for


release of funds under 24 CFR §92.352, Environmental Review, or the intergovernmental review process described in 24 CFR §92.357, Executive Order 12372, Intergovernmental Review of Federal Programs.

(o) When applicable, the Grantee will follow the provisions governing the use of

HOME funds by religious organizations, as contained in 24 CFR §92.257, Religious Organizations.

(p) In all contracts with its subcontractors and subrecipients, the Grantee will require

all contract provisions, clauses and conditions detailed in Chapter 4 of the applicable year’s version of the HOME Administration Manual.

(q) The Grantee will require the following language in all contracts with its

subcontractors and subrecipients: The contractor will ensure that, to the greatest extent feasible, opportunities for training and employment arising in connection with this HOME-assisted project will be extended to lower income project area residents. Further, the contractor will, to the greatest extent feasible, utilize business concerns located in or substantially owned by residents of the project area, in awarding contracts and procuring services and supplies.

[SELECT ONE OF THE FOLLOWING] (r) Governmental Entities. The requirements of OMB Circular No. A-87, Cost

Principles for State, Local and Indian Tribal Governments, and the following requirements of 24 CFR Part 85, Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments, apply to State Recipients, and any governmental subrecipient receiving HOME funds. --OR--

(r) Nonprofit Entities. The requirements of OMB Circular No. A-122, Cost Principles for Non-Profit Organizations, and certain provisions of 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, apply to a Department certified Community Housing Development Organization (CHDO) receiving HOME funds.

(s) Title to real property or equipment acquired under a grant or subgrant will vest

upon acquisition in the Grantee or Subgrantee, respectively. The Grantee or Subgrantee will use, manage, and dispose of this property or equipment in accordance with all applicable State and Federal requirements.

(t) If any housing assisted with HOME funds fails to meet the affordability

requirements for the period(s) set forth in Section 5 EFFECTIVE DATE AND TIME OF PERFORMANCE the Qualified Entity will repay to the Department all HOME funds expended on this housing.


(u) Before completion of each activity, the Grantee will ensure the enforcement of the affordable housing requirements of the HOME Program by the imposition of a recorded lien on the property, trust indenture, deed restriction, or covenant running with the land. Breach of the HOME requirements through the period of affordability will result in one or more of the actions identified in 24 CFR §85.43, Enforcement.

Section 5. EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect upon date of signature of the Director of the Department. The duration of this Contract will be for 24 months beginning the date the Director of the Department of Commerce signs this Contract. It is understood and agreed to by the parties to this Contract that the period of affordability extends the tenure of this contract beyond the two-year duration. The terms of this contract survive throughout the “period of affordability”, which, from the date of completion for each activity (each household), is five, ten, or fifteen years, as specified in the following table. [If the Grantee elects to implement a different period of affordability than what is specified by HUD, the table must be modified to reflect the Grantee’s actual PoA, which cannot be less than what is specified by HUD.] [need to select portion of table for affordability requirements according to project terms]

ACTIVITY

HUD Minimum Period of Affordability, in

Years HOMEOWNERSHIP ACTIVITY (24 CFR §92.254 (4)

Homeownership Activity assistance HOME amount per-unit


HOMEOWNER REHABILITATION ACTIVITY

Department Minimum Period Of Affordability, in

Years Homeowner rehabilitation activity assistance HOME amount per-unit



Section 6. SCOPE OF WORK The Grantee will carry out the activities as set forth in the Grantee’s Single Family Noncompetitive Program Qualification Package for HOME grant assistance received [DATE], which by this reference is incorporated into this Contract. [insert project activities details for homebuyer assistance or homeowner rehabilitation to include: Type of activity: Down payment and closing cost assistance with no rehabilitation

OR homeowner (owner-occupied) rehabilitation Complete service area, e.g., “All counties within the state of Montana, except for

XYZ County and the city limits of Billings, Great Falls, and Missoula, as outlined in Attachment B, Special Requirements for Operating in Multiple Jurisdictions.”

Minimum amount of HOME funds ($1,000 or higher if specified by qualified entity in Management Plan)

Maximum amount of HOME funds specified by Qualified Entity in Management Plan If the Qualified Entity will allow exceptions to its maximum amount of assistance

add: “with exceptions, as noted in the Management Plan dated _____” Compliance with front end and back-end ratios, as specified in the Management

Plan dated _____ Compliance with minimum contribution by homebuyers, as specified in the

Management Plan dated _____ In addition, the Grantee will be responsible for administering this Contract. The Grantee will be responsible for monitoring the performance of all households receiving HOME funds to assure compliance with the requirements of the HOME program, and to take appropriate action when performance problems arise. Section 7. BUDGET [select one] (a) For homebuyer assistance activities, the purchase price of each assisted unit

must not exceed the current Maximum Purchase Price Limit (for Homebuyer Assistance) as established by HUD and posted on the HOME program’s web page. Soft costs, as defined in the Management Plan dated ____, will be limited to $1,500 per unit of actual documented costs required to provide the HOME assistance to each homebuyer. Soft costs will not be reimbursed for households that ultimately do not receive HOME assistance.

(a) For homeowner rehabilitation activities, the appraised after-rehabilitation values

of each assisted unit must not exceed the current After-Rehabilitation Value (for Homeowner Rehabilitation) as established by HUD and posted on the HOME program’s web page. The appraised after-rehabilitation value must be established before the rehabilitation contract is signed with the homeowner. Soft


costs, as defined in the Management Plan dated ____,, will be limited to twelve percent (12%) of the eligible rehabilitation construction costs per unit for each homeowner assisted. In addition, the Grantee may be reimbursed for the actual documented costs of code inspections and lead-based paint inspections, testing and clearance for each unit that receives HOME assistance. Soft costs may not be calculated on the cost of such inspections. Soft costs will not be reimbursed for households that ultimately do not receive HOME assistance.

(c) All activities set up in the Integrated Disbursement and Information System (IDIS)

will require a separate budget as identified the Setup Report, [select one: Exhibit 3-K [for homebuyer or] Exhibit 3-L [for homeowner rehab], Chapter 3 of the HOME Grant Administration Manual, submitted to the Department. The Department will not disburse funds to the Grantee for a particular activity until the Grantee has submitted and the Department has approved the budget for that activity.

(d) The initial budget for each [select one: homebuyer --OR-- homeowner

rehabilitation] activity will be established when the Grantee submits to the Department the appropriate version of the Set-Up Report and applicable back-up documentation, [select one: Exhibit 3-A.1 [for homebuyer or] Exhibit 3-A.3 [for homeowner rehab], Chapter 3 of the HOME Grant Administration Manual, The budgeted amount is subject to written approval by the Department and the availability of HOME Single Family Noncompetitive Program funds. If modification to the activity budget is necessary, the Grantee will submit a revised Set-Up Report along with justification for the modification and applicable back-up documentation. Budget modifications are subject to written approval by the Department and the availability of HOME Single Family Noncompetitive Program funds.

Section 8. METHOD OF COMPENSATION (a) The Grantee will request that the Department disburse funds when the funds are

needed for payment of eligible costs. The amount of each request will be limited to the amount needed. In accordance with 24 CFR §92.502(c), Disbursement of HOME funds, the Grantee will use the HOME funds on HOME-eligible activity costs within fifteen (15) days of receipt. Any funds not disbursed within 15 days for [SELECT ONE] down payment and closing costs assistance –OR—rehabilitation costs and eligible soft costs must be returned to the Department.

(b) The Grantee will disburse program income and recaptured funds received before

requesting HOME funds from the Department. In drawing against the amount reserved by the Department for the Grantee for an activity, including program income and recaptured funds, the Grantee will follow Section 7, BUDGET,


instructions supplied by the Department, and according to the approved Management Plan and/or Program Income and Recaptured Funds Plan.

(c) If the Department determines the Grantee has failed to satisfactorily carry out its

responsibilities under this Contract, the Department will notify the Grantee in writing of the deficiency. If after receiving this notification, the Grantee does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Department may suspend the Grantee’s authority to draw against the reserve described in this Contract. The suspension will continue until the Department and the Grantee agree on a plan to remedy the deficiency.

[SELECT ONE]

[for homebuyer assistance] (d) All funds for each homebuyer activity must be drawn and spent and the

Completion Report, Exhibit 3-K, page 2 and 3, Chapter 3 of the HOME Grant Administration Manual submitted to the Department within 120 days of the date the funds are committed to the specific activity. Further, the Completion Report must be submitted within 100 days of the final draw or within 120 days of activity commitment, whichever comes first. Unless otherwise agreed to in writing by the Department, any funds not expended within 120 days may be withdrawn from the Grantee and used for other HOME eligible activities.

[for homeowner rehab]

(d) All funds for each homeowner rehabilitation activity must be drawn and spent and the Completion Report, Exhibit 3-L, pages 2 and 3, Chapter 3 of the HOME Grant Administration Manual submitted to the Department within 180 days of the date the funds are committed to the specific activity. Further, the Completion Report must be submitted within 100 days of the final draw or within 180 days of activity commitment, whichever comes first. Unless otherwise agreed to in writing by the Department, any funds not expended within 180 days may be withdrawn from the Grantee and used for other HOME eligible activities.

(e) The Department is allowed 30 days to process requests for payments. The

Grantee shall provide banking information at the time of Contract execution in order to facilitate electronic funds transfer payments. The Department may withhold payments to the Grantee if the Grantee has breached the terms of the Contract.

Section 9. REPORTING REQUIREMENTS Each Request for Payment form must be accompanied by a signed Progress Report, Exhibit 3-J, Chapter 3 of the HOME Grant Administration Manual. The Progress Report must provide a written narrative on activities that have occurred relating to Match, Soft Costs Activity, [select one]: homebuyer or homeowner rehabilitation Activity, and


Program Income and Recaptured Funds as detailed in Chapter 3 of the HOME Administration Manual. Grantee shall also submit sufficient documentation to justify expenditures as applicable to each type of activity. If no draw request and Progress Report have been submitted by the Grantee for an uncompleted, open activity during any calendar quarter, the Grantee will submit a Progress Report within 15 days after the end of that calendar quarter that includes information relevant to the implementation of the activity, including a description of the cumulative progress and accomplishments achieved and any problems or delays that could affect the program implementation schedule or budget since activity start-up and since the last progress report submitted. Section 10. LIAISONS The contact persons for this Contract are: For the Department: [NAME OF PROGRAM SPECIALIST] (or successor) [TITLE], [PROGRAM], MDOC 301 S. Park Ave. P.O. Box 200545 Helena, MT 59620-0545 406-841-____ For the Grantee: [NAME] [TITLE] [MAILING ADDRESS] [BUSINESS LOCATION] [PHONE NUMBER] Section 11. PROJECT MEETINGS (a) Progress Meetings. During the term of the Contract, the Department may plan

and schedule progress meetings with the Grantee to discuss the progress made by the Grantee and the Department in the performance of their respective obligations. These progress meetings may include the parties’ liaisons and any other additional personnel involved in the performance of the contract as required. At each such meeting, the Grantee shall provide the Department with a written status report that identifies any problem or circumstance encountered by the Grantee, or of which the Grantee gained knowledge during the period since the last such status report, which may prevent the Grantee from completing any of its obligations or may generate charges in excess of those previously agreed to by the parties. This may include the failure or inadequacy of the Department to


perform its obligation under the Contract. Grantee shall identify the amount of excess charges, if any, and the cause of any identified problem or circumstance and the steps taken to remedy the same.

(b) Technical or Contractual Problems. The Grantee is required to consult with the

Department’s liaison to resolve technical or contractual problems that may occur during the term of the Contract, at no additional cost to the Department. Consultations will occur as problems arise and will be coordinated by the Department. Failure to participate in problem resolution or failure to make a good faith effort to resolve problems may result in termination of the Contract.

Section 12. ACCESS TO AND RETENTION OF RECORDS The Grantee will maintain reasonable records of its performance under this Contract and will allow access to these records at any time during normal business hours by the Department, the U.S. Department of Housing and Urban Development, the Comptroller General and, when required by law, the Montana Legislative Auditor. The activity and program records that must be on file in the Grantee’s offices are described in the approved Management Plan dated ____. These records will be kept at the Grantee’s offices in [CITY], Montana. (a) In accordance with 24 CFR §92.508, Recordkeeping, all records pertaining to each fiscal year of HOME funds must be retained for the most recent five-year period, except records must be retained for five years after the activity completion date and documents imposing recapture/resale restrictions must be retained for five years after the affordability period terminates for each household assisted, as specified in Section 5, EFFECTIVE DATE AND TIME OF PERFORMANCE (b) Records covering displacements and acquisition must be retained for five years

after the date by which all persons displaced from the property and all persons whose property is acquired for the activities have received the final payment to which they are entitled under 24 CFR §92.353, Displacement, Relocation, and Acquisition.

(c) If any litigation, claim, negotiation, audit, monitoring, inspection or other action

has been started before the expiration of the required record retention period, records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the required period, whichever is later.

Access to the records described above and all other documentation relating to the program is governed by all applicable state and Federal laws pertaining to the disclosure of information to the public and to the individual’s right of privacy.


Section 13. PROJECT MONITORING (a) The Department or any of its authorized agents may monitor and inspect all

phases and aspects of the Grantee’s performance to determine compliance with the SCOPE OF WORK, the proper use of Program funds, and other technical and administrative requirements of this Contract, including the adequacy of the Grantee’s records and accounts. The Department will advise the Grantee of any specific areas of concern and provide the Grantee opportunity to propose corrective actions acceptable to the Department.

(b) Failure by the Grantee to proceed with reasonable promptness to take necessary

corrective actions shall be a default. If the Grantee’s corrective actions remain unacceptable, the Department may terminate this Contract in whole or in part.

Section 14. COMPLIANCE WITH LAWS (a) The Grantee must, in performance of work under this Contract, fully comply with

all applicable federal, state, and tribal laws, rules, policies, and regulations, concerning, but not limited to, human rights, civil rights, employment law, and labor law. Any subletting or subcontracting by the Grantee subjects subcontractors to the same provision.

(b) The Grantee shall promptly refer to the Department any credible evidence that a

principal, employee, agent, contractor, sub-grantee, subcontractor, or other person has submitted any false claim or has committed any criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving funds provided under this Contract.

Section 15. AVOIDANCE OF CONFLICT OF INTEREST The Grantee will comply with all applicable laws regarding the avoidance of conflict of interest, including but not limited to 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, and 24 CFR Part 85, Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments, 24 CFR §92.356, Conflict of Interest, and HUD guidance found in the HOME management plan guidelines. In addition, the Grantee agrees that none of its officers, employees, or agents will solicit or accept gratuities, favors, or anything of monetary value from contractors, subcontractors, or potential contractors and subcontractors, who provide or propose to provide services relating to the activities funded under this Contract.


Section 16. LOBBYING RESTRICTIONS (a) The Grantee shall comply with the provisions of 31 U.S.C. §1352 and

implementing regulations published at 15 CFR Part 28, New Restrictions on Lobbying. These provisions generally prohibit the use of Federal funds for lobbying the Executive or Legislative Branches of the Federal government in connection with the award, and require the disclosure of the use of non-Federal funds for lobbying.

(b) The Grantee shall submit a completed Form SF-LLL, Disclosure of Lobbying

Activities, regarding the use of non-Federal funds for lobbying. The Form SF-LLL shall be submitted within 30 days following the end of the calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed. The recipient must submit the Forms SF-LLL, including those received from subrecipients, contractors, and subcontractors, to the Department for submission to the appropriate federal government agency.

Section 17. ACCOUNTING, COST PRINCIPLES, AND AUDITING (a) The Grantee, in accordance with Section 18-4-311, MCA; 5 U.S.C.App. 3 §§ 1

et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, must maintain for the purposes of this Contract an accounting system of procedures and practices that conforms to Generally Accepted Accounting Principles (GAAP).

(b) The Department, Montana Legislative Auditor, Inspector General of the U.S.

Department of Commerce, or any other legally authorized governmental entity or their authorized agents may, at any time during or after the term of this Contract, conduct, in accordance with Sections 5-13-304 and 18-1-118, MCA; 5 U.S.C.App. 3 §§ 1 et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, audits for the purposes of ensuring the appropriate administration and expenditure of the monies provided through this Contract and to ensure the appropriate administration and delivery of services provided through this Contract.

(c) The Grantee, for purposes of audit and other administrative activities, in

accordance with 18-1-118, MCA; 5 U.S.C.App. 3 §§ 1 et seq.; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and other authorities, must provide the Department, Montana Legislative Auditor, Inspector General of the U.S. Department of Commerce, or any other legally authorized governmental entity or their authorized agents access at any time to all of their respective records, materials and information, including any and all audit reports with supporting materials and work documents, pertinent to the


services provided under this Contract until the expiration of three (3) years from the completion date of this Contract. The Department and any other legally authorized governmental entity or their authorized agents may record any information and make copies of any materials necessary for the conduct of an audit or other necessary administrative activity.

Section 18. OWNERSHIP AND PUBLICATION OF MATERIALS All reports, information, data, and other materials prepared by the Grantee, or any of its contractors or subcontractors, in furtherance of this Contract are the property of the Grantee and the Department, which both have the royalty-free, nonexclusive, and irrevocable right to reproduce, publish or otherwise use, and to authorize others to use, in whole or part, such property and any information relating thereto. No material produced in whole or part under this Contract may be copyrighted or patented in the United States or in any other country without the prior written approval of the Department and the Grantee. Section 19. ASSIGNMENT, TRANSFER, AND SUBCONTRACTING (a) The Grantee may not assign, transfer, delegate, or subcontract, in whole or part,

this Contract or any right or duty arising under this Contract, unless the Department in writing approves the assignment, transfer, delegation, or subcontract.

(b) Any assignment, transfer, delegation, or subcontract entered into by the Grantee

must be in writing, must be subject to the terms and conditions of this Contract, and must contain any further conditions as may be required by the Department.

(c) The Department’s approval of any assignment, transfer, delegation, or

subcontract neither makes the Department a party to that contract nor creates any right, claim, or interest in favor of any party to that contract against the Department.

(d) The Grantee must immediately notify the Department of any litigation concerning

any assignment, transfer, delegation, or subcontract. Section 20. HOLD HARMLESS AND INDEMNIFICATION The Grantee agrees to protect, defend, and save the Department, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, causes of action of any kind or character, including the cost of defense thereof, to the extent arising in favor of the Grantee’s employees or third parties on account of bodily or personal injuries, death, or damage to property arising out of Grantee’s negligence in connection with services


performed or omissions of services or in any way resulting from the negligent acts or omissions of the Grantee and/or its agents, employees, representatives, assigns, contractors, subcontractors, except the negligence of the Department under this agreement. Section 21. INSURANCE [select one or the other; CITIES/TOWNS get this section; COUNTIES & NONPROFITS get the other one.] [FOR CITIES/TOWNS – USE THIS SECTION: (a) through (e)] (a) General Requirements. Grantee shall maintain and shall assure that its

representatives, assigns, and subcontractors maintain for the duration of the Contract, at their own cost and expense, liability insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the duties and obligations in the Contract by Grantee, its agents, employees, representatives, assigns, or subcontractors. This insurance shall cover such claims as may be caused by any negligent act or omission. The Department, its officers, officials, employees, and volunteers are to be covered as additional insured's for all claims arising out of the use of grant proceeds provided by the State of Montana.

(b) General Liability Insurance. At its sole cost and expense, the Grantee shall


(c) Professional Liability Insurance. Grantee shall assure that any representatives,

assigns, and subcontractors performing professional services under this Contract purchase occurrence coverage with combined single limits for each wrongful act of $1,000,000 per occurrence and $2,000,000 aggregate per year. Note: if "occurrence" coverage is unavailable or cost prohibitive, the Contractor may provide "claims made" coverage provided the following conditions are met: (I) the commencement date of the contract must not fall outside the effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years; and (2) the claims made policy must have a three (3) year tail for claims that are made (filed) after the cancellation or expiration date of the policy.

(d) Property Insurance. At its sole cost and expense, the Grantee shall maintain

property and hazard insurance, including course of construction coverage, and earthquake insurance in areas where there is a shaking level above 10g (see map at http://rmtd.mt.gov/aboutus/publicationslfiles/NEHRP.pdf) for loss or


damage for any building and all related improvements and contents therein on the premises on a replacement cost basis throughout the term of the contract.

(e) General Provisions. All insurance coverage shall be placed with a carrier

licensed to do business in the State of Montana or by a domiciliary state and with a Best's rating of at least A-, or by a public entity self-insured program either individually or on a pool basis as provided by Title 2, MCA. All certificates and endorsements are to be received by the Department prior to beginning any activity provided for under the Contract. Grantee shall notify the Department immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. The Department reserves the right to request complete copies of Grantee's insurance policy at any time, including endorsements.

[FOR COUNTIES & CHDO / NONPROFITS – USE THIS SECTION: (a) through (f)] (a) General Requirements. Grantee shall maintain and shall assure that its

representatives, assigns, and subcontractors maintain for the duration of the Contract, at their own cost and expense, primary liability insurance against claims for injuries to persons or damages to property, including contractual liability, which may arise from or in connection with the performance of the duties and obligations in the Contract by Grantee, its agents, employees, representatives, assigns, or subcontractors. This insurance shall cover such claims as may be caused by any negligent act or omission. The State, its officers, officials, employees, and volunteers are to be covered as additional insured’s for all claims arising out of the use of grant proceeds provided by the State of Montana.

(b) Primary Insurance. Grantee’s insurance coverage shall be primary insurance with respect to the State of Montana, its elected or appointed officers, officials, employees, or volunteers and shall not contribute with it.

(c) General Liability Insurance. At its sole cost and expense, the Grantee shall


(d) Professional Liability Insurance. Grantee shall assure that any representatives,

assigns, and subcontractors performing professional services under this Contract purchase occurrence coverage with combined single limits for each wrongful act of $1,000,000 per occurrence and $2,000,000 aggregate per year. Note: if "occurrence" coverage is unavailable or cost prohibitive, the Contractor may provide "claims made" coverage provided the following conditions are met: (1)


the commencement date of the contract must not fall outside the effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years; and (2) the claims made policy must have a three (3) year tail for claims that are made (filed) after the cancellation or expiration date of the policy.

(e) Property Insurance. At its sole cost and expense, the Grantee shall maintain

property and hazard insurance, including course of construction coverage, and earthquake insurance in areas where there is a shaking level above 10g (see map at http://rmtd.mt.gov/aboutus/publications/files/NEHRP.pdf) for loss or damage for any building and all related improvements and contents therein on the premises on a replacement cost basis throughout the term of the contract.

(f) General Provisions. All insurance coverage shall be placed with a carrier

licensed to do business in the State of Montana or by a domiciliary state and with a Best’s rating of at least A-, or by a public entity self-insured program either individually or on a pool basis as provided by Title 2, MCA. All certificates and endorsements are to be received by the Department prior to beginning any activity provided for under the Contract. Grantee shall notify the Department immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. The Department reserves the right to request complete copies of Grantee’s insurance policy at any time, including endorsements.

Section 22. INDEPENDENT CONTRACTOR Grantee and his or her employees or agents performing under this Contract are not employees or agents of the Department. Grantee will not claim to be an officer or employee of the Department by reason of this Contract, nor will it make any claim of right, privilege or benefit which would accrue to a civil service employee of the State of Montana. Section 23. DEBARMENT The Grantee certifies and agrees to ensure during the term of this Contract that neither it nor its principals, contractors, or subcontractors are debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this Contract by any governmental department or agency. If the Grantee cannot certify this statement, it has attached a written explanation for review by the Department. Section 24. CONTRACT AMENDMENT Except as otherwise set forth herein, this Contract may not be enlarged, modified, or altered except upon written agreement by all parties to the Contract.


(a) The Department will consider requests by the Grantee for grant amendments. A request for an amendment must clearly demonstrate that the amendment is justified and will enhance the overall impact of the original project. The Department will consider each request to determine whether the amendment is substantial enough to require reevaluating the projects original ranking. If warranted, the Department will analyze the proposed amendment and its impact on the scores originally assigned to the application in the original grant competition.

(b) The Department will not approve amendments that would materially alter the

circumstances under which the grant was originally ranked and selected. (c) If the Department determines that the proposed amendment represents a

substantial change in the project activities as proposed in the original application for HOME funds, the Department will require the Grantee to hold a local public hearing on the amendment with reasonable notice.

Section 25. TERMINATION OF CONTRACT This Contract may be terminated as follows: (a) Termination Due to Loss of Funding. This Contract will terminate in whole or in

part, at the sole discretion of the Department, in the event that the Department suffers a loss of funding or termination of the Federal grant which permits it to fund the Grantee in whole or in part, thereby rendering the Department unable to make payment to the Grantee. In this event, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

(b) Termination Due to Noncompliance with Contract Terms. If the Department

determines that the Grantee has failed to comply with the general terms and conditions of this Contract, the project schedule, or any special conditions, and, if upon notification of the defect, the Grantee does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Department may terminate this Contract in whole or in part at any time before the expiration of the period of affordability specified in Section 5. The Department will promptly notify the Grantee in writing of the decision to terminate, the reasons for termination, and the effective date of the termination.

(c) Termination Due to Adverse Environmental Impact. This Contract will terminate

at the conclusion of the environmental review process if the Grantee or the Department determines that the project would have a significant adverse impact


on the quality of the human environment, and that this impact cannot be avoided or sufficiently mitigated by reasonable means.

(d) Effect of Termination. In the event of termination due to Grantee’s failure to

comply with the terms of this Contract or the project’s adverse environmental impact, any costs incurred will be the responsibility of the Grantee.

Section 26. DEFAULT Failure on the part of either party to perform the provisions of the Contract constitutes default. Default may result in the pursuit of remedies for breach of contract as set forth herein or as otherwise legally available, including but not limited to damages and specific performance. Section 27. NO WAIVER OF BREACH No failure by the Department to enforce any provisions hereof after any event of breach shall be deemed a waiver of its rights with regard to that event, or any subsequent event. No express failure of any event of breach shall be deemed a waiver of any provision hereof. No such failure or waiver shall be deemed a waiver of the right of the Department to enforce each and all of the provisions hereof upon any further or other breach on the part of the Grantee. Section 28. COMPLIANCE WITH WORKERS’ COMPENSATION ACT The Grantee accepts responsibility for requiring all contractors and subcontractors being reimbursed with Program grant funds to supply the Department with proof of compliance with the Montana Workers' Compensation Act while performing work for the State of Montana. (MCA §§ 39-71-120, 39-71-40 I, and 39-71-405.) Neither the Grantee nor its employees are employees of the Department. The proof of insurance/exemption must be in the form of workers' compensation insurance, an independent contractor exemption, or documentation of corporate officer status, and must be received by the Department within 10 working days of the execution of this Contract and must be kept current for the entire term of the Contract. CONTRACTS WILL BE TERMINATED PURSUANT TO THE PROVISIONS OF SECTION 25 IF THE GRANTEE FAILS TO PROVIDE THE REQUIRED DOCUMENTATION WITHIN THE ALLOTTED TIME FRAME. Coverage may be provided through a private carrier or through the State Compensation Insurance Fund (406) 444-6500. An exemption can be requested through the Department of Labor and Industry, Employment Relations Division (406) 444-1446. Corporate officers must provide documentation of their exempt status.


Section 29. FORCE MAJEURE Neither party shall be responsible for failure to fulfill its obligations due to causes beyond its reasonable control, including without limitation, acts or omissions of government or military authority, acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars, terrorist acts, or any other causes, directly or indirectly beyond the reasonable control of the non-performing party, so long as such party is using its best efforts to remedy such failure or delays. Section 30. SEPARABILITY A declaration by any court, or any other binding legal forum, that any provision of the Contract is illegal and void shall not affect the legality and enforceability of any other provision of the Contract, unless the provisions are mutually dependent. Section 31. NOTICE All notices required under the provisions of the Contract must be in writing and delivered to the parties’ liaisons identified herein either by first class mail or personal service. Section 32. NO ARBITRATION Unless otherwise agreed to in writing or provided for by law, arbitration is not available to the parties as a method of resolving disputes that would arise under the Contract. Section 33. REFERENCE TO CONTRACT The Contract number must appear on all invoices, reports, and correspondence pertaining to the Contract. Section 34. JURISDICTION AND VENUE This Contract is governed by the laws of Montana. The parties agree that any litigation concerning this Contract must be brought in the First Judicial District in and for the County of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees. (Section 18-1-401, MCA). Section 35. FUNDING ACKNOWLEDGEMENT All activities developed wholly or in part by the funding provided under the Contract shall state that “The funding for the (insert name of activity) was funded (in part, if applicable) by a U.S. Department of Housing & Urban Development HOME Investment Partnerships grant from the Montana Department of Commerce.” Any variations from this language must be approved by the Department prior to use.


Section 36. INTEGRATION This contract contains the entire agreement between the parties, and no statements, promises, or inducements of any kind made by either party, or the agents of either party, not contained herein or in a properly executed amendment hereto are valid or binding. Amendments to this contract must be signed by both parties. IN WITNESS OF THE TERMS SET OUT ABOVE, the parties hereto have caused this Contract to be executed on the dates set out below. By: ________________________________________________________________

[NAME] Date [TITLE]

By: ________________________________________________________________

[MDOC DIRECTOR NAME] Date Director, Montana Department of Commerce