Box 8, Folder 20, Document 3

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SEC. 201. Use of the Grant. -- Grant funds shall be used only for those
costs which the Government determines to be applicable to this Agreement.
Grant funds shall not be used (1) for the general administration of the local
government or (2) to replace non-Federal contributions in any federally aided
undertaking included in the Program if prior to the filing of an application
for assistance under Section 104 of the Act an agreement has been entered into
with any Federal agency obligating such non-Federal contribution with respect

to such undertaking.

SEC. 202. Restrictions on Disbursements. --
(A) No grant funds shall be disbursed in payment of:

a Costs incurred with respect to any action after HUD has
requested that the City furnish data concerning such action prior
to proceeding further therewith, unless and until the City is
thereafter advised by HUD that the Government has no objection to
the City so proceeding;

2. Costs incurred for a project, activity or for Program
Administration prior to the approval by HUD of the respective budget,
unless specifically approved by HUD.

(B) No grant funds shall be disbursed to an Operating Agency or
Contractor except pursuant to a written contract which incorvorates the epplica-
ble Supplementary General Conditions and unless the Operating Agency or
Contractor is in compliance with HUD requirements relating to accounting and
fiscal matters, to the extent they are applicable.

SEC. 203. Safeguarding of Funds. -- The City shall deposit all Grant
funds in a depository acceptable to HUD and otherwise safeguard sucn funds
pursuant to such instructions as HUD may from time to time issue. If any
interest shall be earned on the funds, the interest shall accrue to the bene-

fit of the Government.

ARTICLE III — Records, Reports and Inspections

SEC. 300. Records. --

(A) Establishment and Maintenance of Records. -- The City shall establish
and maintain records in accordance witn requirements prescribed by EUD, with
respect to all matters covered by this Agreement. Except as otherwise euthor-
ized by HUD, the City shall retain such records for a period of three years

after completion of the Program.

(B) Documentation of Costs. -- All costs, including contri-
buted by the City or others, shall be supported by properly executed vayrolls,

time records, invoices, contracts, or vouchers, or other official documentaticn



HUD-7047.2 (11-68)

evidencing in proper detail the nature and propriety of the charges. All
checks, payrolls, invoices, contracts, vouchers, orders, or other accounting
documents pertaining in whole or in part to this Agreement shall be clearly
identified and readily accessible.

SEC. 301. Reports and Information. -- The City, at such times and in
such forms as HUD may require, shall furnish HUD such statements, records,
reports, data and information, as HUD may request pertaining to matters
covered by this Agreement.

SEC. 302. Audits and Inspections. -- The City will, at any time during
normal business hours and as often as HUD and/or the Comptroller General of
the United States may deem necessary, make available to HUD and/or representa-
tives of the Comptroller General for examination all of its records with
respect to all matters covered by this Agreement and will permit HUD and/or
representatives of the Comptroller General to audit, examine and make excerpts
or transcripts from such records, and to make audits of all contracts,
invoices, materials, payrolls, records of personnel, conditions of employment
and other data relating to all matters covered by this Agreement.

ARTICLE IV — Suspension or Termination

SEC. 400. Suspension or Termination. -- HUD may suspend or. terminate
payment of the Grant in whole or in part for cause. Cause shall include the

following:. (1) ineffective or_*mroner_use of Grant funds; (2) failure to

comply with either these terms and conditions or the Program: (3) submittal
to HUD of reports which are incorrect or incomplete in any meterial respect;
or (4) if for any reason the carrying out of this Agreement is rendered
improbable or infeasible. HUD may also withhold payment of any unearned por-
tion of the Grant if the City is unable or unwilling to accent any additional
conditions that may be provided by law, by executive order, by regulations,
or by other policy announced by HUD at.any time. If EUD withholds payment,
it shall advise the City and specify the actions that must be taken, in case
of suspension, as a condition precedent to the resumption of payments. The
City will remit any unexpended balance of the payments on account of the Grant
as well as such other portions of such payments previously received as deter-
mined by HUD to be due the Government. The ection of the Government in
accepting any such amount shall not constitute a waiver of any claim which
the Government may otherwise have arising out of this Agreement.

ARTICLE V — Controls and Restrictions
SEC. 500. Conflict of Interest: Certain Federal Officials. -- No member

of or Delegate to the Congress of the United States, and no xesident Commissioner
shall be admitted to any share or part of this Agreement or to any benefit to

‘arise from the same.

SEC. 501. Conflict of Interest; Public Officials and Others. --

(A) General. -- (1) No member of the City's governing body or of the
governing body of the locality and (2) no official or employee of the City or

HUD-7047.2 (11-68)

of the locality or any person who exercises any functions or responsi-
bilities in connection with this Agreement (a) may be admitted, directly or
indirectly, to any share or part of this Agreement or to any benefit to
arise from the same, or (b) shall own or acquire any personal interest in
any property, contract, or proposed contract which would conflict with the
performance of his duties or responsibilities under this Agreement, except
to the extent provided for in this Section. If any such member, official,
employee or other person (hereafter referred to collectively as "person")
presently, or in the future, acquires, owns, or controls any such share,
benefit, or personal interest, he shall immediately disclose such share,
benefit, or personal interest to the City. Upon such disclosure, such person
shall not continue his participation unless the City and Government shall
determine that, in the light of such share, benefit, or personal interest,
the participation of such person in any such action would not be contrary to
the public interest. The City will promptly advise HUD of the facts and
circumstances concerning any disclosure made to it pursuant hereto or any
information obtained by it relating to conflicts of interest.

(B) Citizen Participation. -- It is the understanding of the parties
that the ebove provision will be imviemented in such a manner so as not to
unreasonably impede attainment of widespread citizen participation in the
carrying out of this Agreement.

SEC. 502.- Opportunities for Residents. -- In all work made possible by

_ or resulting from this_Agreemen4t, the City and each employer will take affirma-
tive action to ensure that residents of the model neighborhood area are given
maximum opportunities for training and employment and that business concerns
located in, or owned in substantial part by, residents of the model neighbor-
hood are to the greatest extent feasible awarded contracts.

SEC. . 5033. Discrimination Prohibited. --

(A) In all hiring or employment made possible by or resulting from this
Agreement, the City and each employer (1) will not discriminate against any
employee or applicant for employment because of race, color, religion, sex, or
national origin, and (2) will take affirmative action to ensure that applicants
are employed, and that emoloyees are treated during employment without regard
to their race, color, religion, sex, or national origin. This requirement shall
apply to but not be limited to, the following: employment, uograding, demotion,
or transfer; recruitment or recruitment advisertising; layoff or termination;
rates of pay or other forms of compensation; and selection for training, including
apprenticeship. The City agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the
Government setting forth the provisions of this nondiscrimination clause. The
City will, in all solicitations or advertisements for employees placed by or
. on behalf of the City, state that all qualified applicants will receive

consideration for employment without regard to race, color, religion, sex, or
national origin.

HUD-7047.2 (11-68)

(B) The City hereby agrees that it will incorporate or cause to be
incorporated into any contract for construction work, or modification thereof,
as defined in the regulations of the Secretary of Labor at 41 CFR Chavter 60,
which is paid for in whole or in part with Grant funds, the equal opportunity
clause which is a part of the labor standards provisions attached hereto.

The City further agrees that it will be bound by the above equal
opportunity clause with respect to its own employment practices when it parti-
cipates in federally assisted construction work: Provided, That if the City
so participating is a State or local government, the above equal opportunity
clause is not applicable to any agency, instrumentality or subdivision of
such government which does not participate in work on or under the contract.

The City agrees that it will assist and cooperate actively with HUD end
the Secretary of Labor in obtaining the compliance of contractors and subcon-
tractors with the equal opportunity clause and the rules, regulations, and
relevant orders of the Secretary of Labor, that it will furnish HUD énd the
Secretary of Labor such information as they may require for the supervision of
such compliance, and that it will otherwise assist HUD in the discharge of its
primary responsibility for securing compliance.

The City further agrees that it will refrain from entering into any
contract or contract modification subject to Executive Order 11246 of
September 24, 1965, with a contractor debarred from, or who has not demonstrated
_ eligibility for, Government _cortracts and federally assisted construction con-
tracts pursuant to the Executive Order. In addition, the City agrees that if
it fails or refuses to comply with these undertakings, HvD may teke any or all


of the following actions: susvend or terminate vayment of pres Grant “2 wnole
or in part; refrain from extending any further assistance to the City under
the program with respect to which the failure or refusal occurred until setis-
factory assurance of future compliance has been received from sucn City; and
refer the case to the Department of Justice for appropriate legal proceedings.

(Cc) No person in the United States shall, on the ground of race, color,
religion, or national origin, be excluded from participation in, be denied the
benefits of, or be subject to discrimination under any program or activity
made possible by or resulting from this Agreement. The City and each exoloyer
will comply with all reauirements imposed by or pursuant to the regulations of
‘HUD effectuating Title VI of the Civil Rights Act of 1964.

SEC. 505. Copyrights. -- If this Agreement results in a book or other
copyrightable material, the author is free to copyright the work, but HUD
reserves a royalty- eres, nonexclusive, and irrevocable license to reproduce,
publish, or otherwise use, and to authorize others to use, ail copyrighted
material and all material which can be copyrighted.

SEC. 506. Patents. -- Any discovery or invention arising out of or
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developed in the course of work aided by this Agreement shall be promptly and
fully reported to HUD for determination by HUD as to whether -patent protection

HUD-7047.2 (11-68)
on such invention or discovery shall be sought and how the rights in the
invention or discovery, including rights under any patent issued thereon,
shall be disposed of and administered, in order to protect the public

SEC. 507. Government Not Obligated to Third Parties. -- The Government
will not be obligated or liable hereunder to any party other than the City.

SEC. 508. Provisions Concerning Certain Waivers. -- Subject to applicable
Federal law, any right or remedy which the Government may have under this
Agreement may be waived by the Government, if, in the judgment of HUD, this
Agreement, as so modified, will still conform to the terms and requirements of
pertinent laws.

SEC. 509. When Rights and Remedies Not Waived. -- In no event shall any
payment by the Government hereunder constitute or be construed to be a waiver
by the Government of any breach of covenant or any default which may then
exist on the part of the City, and the making of any such payment while any
such breach or defeult shall exist shall in no way impair or prejudice any
right or remedy available to the Government with respect to such breach or

SEC. 510. Severability of Provisions. -- If any provision of this Agree-
ment is held invalid, the remainder of this Agreement shall not be affected
thereby if such remainder would then continue to conform to the terms and

requirements of applicable law.

SEC. 511. Approvals and Notices. --

(A) HUD approvel shall be required for any substantial change in the
Program, or for any substantial change in the work program of any item included
in the Grant Budget, or for the addition or deletion of a project or activity
from the Grant Budget.

(B) Whenever under the Agreement HUD epprovals, authorizations, waivers,
instructions or determinations are required, they shall be effective only when
given either (1) in writing and signed by HUD or (2) by general issuances or
regulations issued from time to time by HUD.

SEC. 512. Maintenance of Effort. -- Payment by the Government shall be
conditioned upon the maintenance during the period of this Agreement by the
locality a level of aggregate expenditures for projects or activities similar
to those being assisted under this Agreement, which is not less than the level
of aggregate expenditures for such projects or activities prior to the execu-
tion of this Agreement. The City will promotly notify HUD of any matters
Which have a material tendency to affect compliance with this requirement.

SEC. 513. Political Activity Prohibited. -- None of the funds, materials,
property or services provided directly or indirectly under this. Agreement shall

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be used in the performance of this Agreement for any partisan political
activity, or to further the election or defeat of any candidate for public

SEC. 514. Fair Housing. -- In all housing projects and activities and
in all relocation activities made possible by or resulting from this Agreement,
the City agrees to take affirmative action to further the fair housing
policies of the Government.

SEC. 515. Lobbying Prohibited. -- None of the Grant funds shall be
used for publicity or propaganda purposes designed to support or defeat
legislation pending before the Congress.

SEC. 516. Labor Standards. -- There shall be included in all construc-
tion contracts, made possible by or resulting from this Agreement, with private
entities the applicable labor standards provisions, if the work being
carried on is not otherwise subject to provision of Federal law imposing
labor standards on federally assisted construction and in the case of resi-
dential projects if the project is designed for the residential use of eight
or more families. :

HUD-7047.2 (11-68) HUD-Wosh., D.C. 233739-P

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