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HomeMy WebLinkAboutPR 25056: RESCISSION OF A cOMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBRECIPIENT AWARD TO CATHOLIC CHARITTIES P. R.#25056 07/13/2026 M. Essex-TNR INTEROFFICE MEMORANDUM Date: August 11, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM City Manager 'From: Pam Langford,Asst. City Manager—Operations Development Services Manager RE: P. R #25056-Rescission of a Community Development Block Grant (CDBG) Subrecipient Award to Catholic Charities of Southeast Texas and Reallocation of Funds to the Housing Assistance Infrastructure Project Introduction: This Agenda Item seeks the City Council's approval of P.R. #25056 to rescind and reallocate the $30,000 Community Development Block Grant funds allocated to the Catholic Charities of Southeast Texas (ACCOUNT NUMBER 105-13-033-00-40-000; PROJECT # CD25107-GRE- OCS) and transfer the funding to the Housing Assistance Infrastructure Project (ACCOUNT NUMBER 105-13-033-5470-00-40-000; PROJECT#CD24118). Background: On February 11, 2026, the City Council adopted Resolution No. 26-053 approving ten (10) Community Development Block Grant (CDBG) subrecipient agreements for the 2025-2026 Program Year.One of the approved awards allocated$30,000.00 to Catholic Charities of Southeast Texas to support operations of its Hospitality Center Soup Kitchen, which provides services benefiting low- and moderate-income residents of the City of Port Arthur. Following Council approval, Catholic Charities of Southeast Texas notified the City that it has elected to decline the CDBG award due to the eligibility verification requirements associated with accepting and administering CDBG funding. The correspondence declining the award is attached as Exhibit "A." The U.S. Department of Housing and Urban Development (HUD) has issued policy guidance requiring recipients of certain federal public benefits to use the Systematic Alien Verification for Entitlements (SAVE) Verification System or another federally approved verification system to verify eligibility for those benefits. Although the Houston HUD Field Office has advised the City that implementation of the SAVE verification requirement is not currently mandatory for the City's CDBG Program, Catholic Charities has chosen not to accept the grant under these conditions. Because the subrecipient has declined the award, the$30,000.00 previously allocated to Catholic Charities is available for reallocation to another eligible CDBG activity. Budget Impact: P. R.#25056 07/13/2026 M. Essex-TNR The proposed action does not require any additional appropriation of funds. It reallocates $30,000.00 in existing 2025-2026 Community Development Block Grant funds from the Catholic Charities subrecipient award to the Housing Assistance Infrastructure Project. Recommendation: The proposed resolution rescinds the portion of Resolution No. 26-053 that awarded $30,000.00 to Catholic Charities of Southeast Texas under Account No. 105-13-033-00-40-000, Project No. CD25107-GRE-OCS, and reallocates those funds to the City of Port Arthur Housing Assistance Infrastructure Project,Account No. 105-13-033-5470-00-40-000, Project No. CD24118. The Housing Assistance Infrastructure Project is an eligible CDBG activity that supports the development of affordable housing by funding infrastructure improvements such as water and sewer line extensions, sidewalks, driveways, and other related site improvements. P. R.#25056 07/13/2026 M. Essex-TNR RESOLUTION NUMBER A RESOLUTION RESCINDING A PORTION OF RESOLUTION NO.26- 053 TO WITHDRAW THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBRECIPIENT AWARD TO CATHOLIC CHARITIES OF SOUTHEAST TEXAS IN THE AMOUNT OF$30,000.00 FROM THE 2025-2026 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOLLOWING THE SUBRECIPIENT'S DECLINATION OF THE AWARD; REALLOCATING SAID FUNDS TO THE CITY OF PORT ARTHUR HOUSING ASSISTANCE INFRASTRUCTURE PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS (ACCOUNT NUMBER 105-13-033-5470-00-40-000; PROJECT #CD24118). WHEREAS, on February 11, 2026, the City Council adopted Resolution No. 26-053 approving Community Development Block Grant ("CDBG") subrecipient agreements, including an allocation of$30,000.00 to Catholic Charities of Southeast Texas to provide public services benefiting low- and moderate-income residents of the City of Port Arthur through its Hospitality Center Soup Kitchen; and WHEREAS, subsequent to the approval of Resolution No. 26-053, Catholic Charities of Southeast Texas notified the City that it has elected to decline the CDBG award due to eligibility verification requirements associated with the acceptance and administration of CDBG funds, as reflected in the correspondence attached hereto as Exhibit "A"; and WHEREAS,the United States Department of Housing and Urban Development("HUD") has adopted policy guidance providing that recipients of certain federal public benefits must utilize the Systematic Alien Verification for Entitlements (SAVE) Verification System, or another federally approved verification system, to verify eligibility for applicable federal public benefits; and WHEREAS,the Houston Office of HUD has advised the City that implementation of the SAVE verification requirement is forthcoming and is not presently required for the administration of the City's CDBG Program; and WHEREAS, because Catholic Charities of Southeast Texas has declined the award, the previously allocated CDBG funds in the amount of$30,000.00,currently assigned to Account No. 105-13-033-00-40-000,Project No. CD25107-GRE-OCS, are available for reallocation to another eligible CDBG activity, as delineated in Exhibit"B"; and WHEREAS, the City Council finds that reallocating the available CDBG funds to the City's Housing Assistance Infrastructure Project, Account No. 105-13-033-5470-00-40-000, ,r ._ P. R.#25056 07/13/2026 M. Essex-TNR Project No. CD24118, is an eligible use of CDBG funds and serves an important public purpose by supporting infrastructure improvements necessary to facilitate the development of affordable housing for low- and moderate-income households. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1.The findings and recitals contained in the preamble of this Resolution are hereby found to be true and correct and are incorporated herein for all purposes. Section 2. The City Council hereby rescinds that portion of Resolution No. 26-053 approving the Community Development Block Grant subrecipient award to Catholic Charities of Southeast Texas in the amount of$30,000.00. The corresponding allocation in Account No. 105- 13-033-00-40-000, Project No. CD25107-GRE-OCS, is hereby canceled. Section 3. The City Council hereby reallocates the $30,000.00 in Community Development Block Grant funds to the City of Port Arthur Housing Assistance Infrastructure Project, Account No. 105-13-033-5470-00-40-000, Project No. CD24118, to support eligible infrastructure improvements consistent with HUD Community Development Block Grant requirements, as delineated in Exhibit"B". Section 4. That a copy of the caption of this Resolution shall be spread upon the minutes of the City Council. READ, ADOPTED, AND APPROVED this day of A. D., 2026, at a Regular Meeting of the City Council of the City of Port Arthur,Texas,by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: Charlotte M. Moses,Mayor T - - _- P. R.#25056 07/13/2026 M. Essex-TNR ATTEST: CHRISTE WHITLEY NED CITY SECRETARY APPROVED FOR FORM: ROXANN PAIS COTRONEO CITY ATTORNEY APPROVED FOR ADMINISTRATION: RONALD RT PM CITY MANAG kkvi. D1, 170 PAMELA LANGFORD ASSISTANT CITY MANAGER—OPERATIONS/ DIRECTOR OF DEVELOPMENT SERVICES APPROVED AS FOR AVAILABILITY OF FUNDS 14,4" LYNDA BOSWEL , MA,ICMA-CM DIRECTOR OF FINANCE f P. R.#25056 07/13/2026 M. Essex EXHIBIT "A" Mary Essex From: Carolyn Fernandez<cfernandez@ccsetx.org> Sent: Monday,April 20,2026 5:00 PM To: Mary Essex Subject: [NON-CoPA]Re:[NON-CoPA]Re:[NON-CoPA]Re:[NON-CoPA]Re:2025 Community Development Block Grant Hi Mary and good afternoon!After much deliberation and prayer, I am writing to let you know I will not be signing the contract for the CDBG Program Year 2025 grant award because of the newness and uncertainty around the implementation of Exhibit F and its requirements. I understand you have stated by email that Exhibit F will not be enforced. However, because this statement is not part of the written contract, as long as that attachment is a part of the contract, under Section 23, I would be promising to perform in accordance with its terms. 4 We are grateful to have been selected to receive the funding but respectfully decline for this year. Peace and prayers, Carol Carolyn R. Fernandez President/CEO Catholic Charities of Southeast Texas 2780 Eastex Freeway Beaumont,TX 77703 • 409-924-4400 www.ccsetx.org tee `' 144eie. From:Mary Essex<mary.essex@portarthurtx.gov> Sent: Friday,April 17,2026 11:36 AM To:Carolyn Fernandez<cfernandez@ccsetx.org> Subject: RE: [NON-CoPA] Re:[NON-CoPAJ Re: [NON-CoPA] Re:2025 Community Development Block Grant Ms.Carol, Exhibit F will remain with all the Community Development Block Grant contracts. Exhibit F is currently not being enforced,but the City will have to enforce it in the future. From:Carolyn Fernandez<cfernandez@ccsetx.org> Sent:Thursday,April 16,2026 1:20 PM To:Mary Essex<mary.essex@portarthurtx.gov> Subject: [NON-CoPA] Re: [NON-CoPAJ Re: [NON-CoPA] Re:2025 Community Development Block Grant 1 ,.,....�--_.._ . • - Hi Mary and good afternoon! I look at this almost daily to discern what's the appropriate decision.Since it isn't being enforced this year, is there any chance for Exhibit F being removed from the contract? Carolyn R. Fernandez President/CEO Catholic Charities of Southeast Texas 2780 Eastex Freeway Beaumont,TX 77703 409-924-4400 www.ccsetx.org 4, 4e. From:Mary Essex<mary.essex@portarthurtx.Qov> Sent:Thursday,April 16,2026 1:00 PM To:Carolyn Fernandez<cfernandez@ccsetx.org> Subject:FW: [NON-CoPA]Re: [NON-CoPA] Re:2025 Community Development Block Grant Good afternoon, Ms.Carol, Please provide an update on Catholic Charities'decision regarding its 2025 Community Development Block Grant contract. Please provide a written response by April 20,2026. Don't hesitate to contact me with any questions. Thank you From:Mary Essex Sent:Tuesday,March 10,2026 9:59 AM To:'Carolyn Fernandez'<cfernandez@ccsetx.org> Subject: RE: [NON-CoPA] Re: [NON-CoPA] Re:2025 Community Development Block Grant Good morning, At this time,enforcement of the federal SAVE(Systematic Alien Verification for Entitlements)verification system is not required for the Community Development Block Grant contract. However,Exhibit F of the contract states that the SAVE verification is required,and it will be enforced in the near future. The contract does not say the SAVE system isn't required. From:Carolyn Fernandez<cfernandezpccsetx.org> Sent:Monday, March 9,2026 5:18 PM To:Mary Essex<mary.essex@portarthurtx.gov> Subject: [NON-CoPA] Re: [NON-CoPA]Re:2025 Community Development Block Grant Mary, Thanks for sending this to me. I will look over it but, if the SAVE system isn't required,does it say that in the agreement? 2 Carolyn R. Fernandez President/CEO Catholic Charities of Southeast Texas 2780 Eastex Freeway Beaumont, TX 77703 409-924-4400 www.ccsetx.org u 4ste. From:Mary Essex<mary.essex@portarthurtx.gov> Sent:Monday,March 9,2026 1:11 PM To:Carolyn Fernandez<cfernandez(E ccsetx.org> Subject: RE: [NON-CoPA] Re:2025 Community Development Block Grant Good morning, • Please see the attached 2025 CDBG contract for Catholic Charities. Item#8 on the last page of the contract(Exhibit F) references the SAVE verification system. Presently,the SAVE verification system is not required;however,the Department of Housing and Urban Development will eventually require the City of Port Arthur to mandate that each subrecipient use the SAVE system. Don't hesitate to contact me with any questions. From:Carolyn Fernandez<cfernandez@ccsetx.org> Sent:Friday, March 6,2026 1:22 PM To: Mary Essex<mary.essex@portarthurtx.gov> Subject:[NON-CoPAJ Re:2025 Community Development Block Grant Hi Mary and good afternoon! Can you please email me a copy of the agreement so I can read it?If it contains that new policy requirement that we discussed,then I will need to respectfully decline. But, I would like to review it please. Peace and prayers, Carol Carolyn R. Fernandez President/CEO Catholic Charities of Southeast Texas 2780 Eastex Freeway Beaumont, TX 77703 409-924-4400 www.ccsetx.orq 204t-e From:Mary Essex<marv.essex@portarthurtx.gov> Sent:Wednesday, February 25,2026 8:51 AM To:Dana Wasser<danaw678@sbcglobal.net>;elaina@consultant.com<elaina@consultant.com>;elaina@fosterafriend.org <elaina@fosterafriend.org>;skellv@casaset.org<skellv@casaset.org>;Carolyn Fernandez<cfernandez@yccsetx.org>;Cindy Callahan<accounting@ giftoflifebmt.org>;Calvin Shepherd Jr<calvinshepherd@hotmail.com>;Janci Kimball <ikimball@seniormeals.org>;Janci Kimball<ianci@seniormeals.org>;Willie Carter Community Outreach Center <wccocinfo@gmail.com> Subject:2025 Community Development Block Grant CDBG recipients: Please get in touch with Mary E. Essex, Grants Manager, to provide a day and time you are available to come to my office to sign your 2025 Community Development Block Grant (CDBG)Agreement. Thank you Mary E. Essex Grants Manager This email and its attachments may be DEVELOPMENT SERVICES DEPARTMENT confidential and are intended solely for the use of the individual to whom it is P.O. BOX 1089 addressed.Any views or opinions expressed are solely those of the author and PORT ARTHUR,TEXAS 77641-1089 do not necessarily represent those of the City of Port Arthur. If you are not the c (409) 983-8251 intended recipient of this email and its attachments,you must take no action ® mary.essex@portarthurtx.gov based upon them, nor must you copy or show them to anyone.Please reply to t www.portarthurtx.gov the sender if you believe you have received this email in error. Caution:This email originated from an outside source.Do not click on links or open attachments unless you recognize the 'sender and you know the content is safe! This email and its attachments may be confidential and are intended solely for the use of the individual to whom it is addressed.Any views or opinions expressed are solely those of the author and do not necessarily represent those of the City of Port Arthur. If you are not the intended recipient of this email and its attachments,you must take no action based upon them,nor must you copy or show them to anyone. Please reply to the sender if you believe you have received this email in error. Caution:This email originated from an outside source.Do not click on links or open attachments unless you recognize the sender and you know the content is safer This email and its attachments may be confidential and are intended solely for the use of the individual to whom it is addressed.Any views or opinions expressed are solely those of the author and do not necessarily represent those of the City of Port Arthur. If you are not the intended recipient of this email and its attachments,you must take no action based upon them, nor must you copy or show them to anyone. Please reply to the sender if you believe you have received this email in error. Caution:This email originated from an outside source. Do not click on links or.open attachments unless you recognize the sender and you know the content is safe This email and its attachments may be confidential and are intended solely for the use of the individual to whom it is addressed.Any views or opinions expressed are solely those of the author and do not necessarily 4 represent those of the City of Port Arthur: If you are not the intended recipient of this email and its attachments,you must take no action based upon them, nor must you copy or show them to anyone. Please reply to the sender if you believe you have received this email in error. Caution:This email originated from an outside source. Do not click on links or open attachments unless you recognize the sender and you know the content is safe! 5 P. R.#25056 07/13/2026 M. Essex EXHIBIT "B" • •" Qp0"/g- U.S. Department of Housing and Urban Development t�� `�* Houston Field Office, Region VI Office of Community Planning&Development 0 �= 1331 Lamar, Suite 550 y410 DEW' Houston,Texas 77010 (713)718-3199-FAX(713)718-3256 . www.hud.gov • January 7,2026 Mr.Ronald Burton City Manager City of Port Arthur ill 4th Street Port Arthur,Texas 77641 SUBJECT:Fiscal Year 2025 Grant Agreement Transmittal Dear Mr.Burton: The Houston Field Office would like to thank you for your continued partnership in providing quality affordable housing,a suitable living environment,and expanding economic opportunities through the Department of Housing and Urban Development(HUD)programs. One Grant Agreement is attached for each program awarded as follows: Community Development Block Grant Program(CDBG) $1,006,766 HOME Investment Partnerships(HOME) $321,504.70 Total FY 2025 Award $1,328,270.70 Federal Award Agreement Transmittal of a grant agreements does not constitute approval of the activities described in your Consolidated Plan or Annual Action Plan. You are reminded that you, as grantee,are responsible for ensuring that all grant funds are used in accordance with all program requirements.By executing the Federal Award Agreement,you are entering into a legally binding agreement with HUD to use the awarded funds and carry out the funded activities in accordance with all Federal statutes,regulations, Federal Register notices,and award terms and conditions that apply to those funds and activities. Please carefully note the addenda that are part of each agreement. HUD recognizes that federal courts including the U.S.District Court of Rhode Island in Rhode Island Coalition Against Domestic Violence, et al. v. Kennedy, et al., 1:25-cv-00342(D.R.I.) have issued injunction orders which now impact all CPD Federal Award Agreements and grantees. To preserve all legal rights and defenses,the enclosed agreement contains the same conditions at issue in those orders. For grantees who are plaintiffs covered by those orders or for non-plaintiff grantees who are otherwise covered by those orders, be advised that HUD will comply with all applicable injunction orders and will not implement or enforce the challenged conditions consistent with those orders while those orders are in effect.This will include HUD disregarding any"certifications"or"compliance"statements as covered by those orders. • Accordingly,kindly return an executed copy of the Federal Award Agreement,as discussed below, and HUD will make grant funds at issue in your agreement available.Please be further advised that should the injunction order that currently prohibits HUD from enforcing the challenged conditions as to your grant or award be stayed, dissolved,or reversed,the agreement, with the challenged conditions,will become effective. Executing the Agreement The authorized official must complete Addendum 3. Indirect Cost Rate Schedule for each agreement,even if no indirect costs will be charged under the grant.Please mark one(and only one)checkbox to reflect how indirect costs will be calculated and charged under the grant. Please note that the Office of Management and Budget(OMB)issued revised Guidance and the de minimis indirect cost rate increased from 10 percent to up to 15 percent of Modified Total Direct Costs. After inputting their name and title,the authorized official must execute each agreement,with a signature, and date.No other additions other than those described here should be made to the grant agreement without prior written approval. Please ensure the Chief Elected Official or authorized official signs the agreement. You must return the entire Federal Award Agreement, including all addenda,to this office via the Field Office General Correspondence Email Inbox: CPD GeneralCorr-HOS@hud.gov with a cc to Acting CPD Director,Nancy Sanchez at:nancy.e.sanchez@hud.gov and Senior CPD • Representative,Darlene Swearington,at Darlene.B.Swearington@hud.gov.HUD will be signing the grant agreement second and will return to your office a copy of each signed agreement for you to maintain in your local program files. HUD congratulates the City of Port Arthur on your grant awards,and we look forward to assisting you in accomplishing your program goals.If you have any questions or need further information or assistance,please contact your assigned Field Office representative Darlene Swearington,at Darlene.B.Swearington@hud.gov or email our Office at CPD GeneralCorr- HOS@hud.gov. Sincerely, . Nancy Sanchez, CPD Director(Acting) Office of Community Planning and Development Enclosure(s) cc: Mary Essex, Community Development Director, City of Port Arthur i U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT FEDERAL AWARD AGREEMENT A.General Federal Award Information 1.Recipient name(must match Unique Entity Identifier 12.Assistance listing number and title: name)and address: • 14.218,Community Development Block Grant City of Port Arthur Program for Entitlement Communities 4444TH STREET • 14.225,Community Development Block Grant SUITE 203 Program for Insular Areas PORT ARTHUR,TX 77640-0000 • 14.228,Community Development Block Grant Program for States and Non-Entitlement Grants in Hawaii 2.Recipient's Unique Entity Identifier: 13.Amount of federal funds obligated by this action: EMVNEFYW2KN4 $1,006,766.00 3.Tax identification number: 14.Total amount of federal funds obligated: 746001885 $1,006,766.00 4.Federal Award Identification Number(FAIN): 15.Total approved cost sharing(if applicable): B25MC480005 N/A 5.Instrument type: 16.Total federal award amount,including approved Grant ® Cooperative agreement ❑ cost sharing: Loan Guarantee ❑ $1,006,766.00 6. Period of performance start and end date: 17.Budget approved by HUD: 10/1/2024-See Addendum 2 7.Budget period start and end date: 18.Fiscal year: 10/1/2024-See Addendum 2 2025 8.InitialAgreement ® Amendment # 19.Statutory authority: 42 U.S.C.5301 et seq. 9.Indirect cost rate(per§200.414): 20.Applicable appropriations act(s): Recipients must complete Addendum 3:Indirect Cost Public Law 119-4 Rate Schedule 10.Is this award for research and development(per 2 21.Notice/notice of funding opportunity this award is C.F.R.§200.1)?Yes ❑ No® made under(if applicable): N/A 11.Awarding official name and contact information: 22.Program regulations(if applicable): 24 C.F.R.Part 570 23.Federal award description: The CDBG program provides funding to eligible grantees for the development of viable urban communities,by providing decent housing and a suitable living environment and expanding economic opportunities,principally for persons of low and moderate income. • Addendum 1.Policy Requirements • Addendum 2.Program-Specific Requirements • Addendum 3.Indirect Cost Rate Schedule AuthorityandAgreement.This agreement between the U.S.Department of Housing and Urban Development(HUD) and the Recipient is made pursuant to the statutory authority above(box 19)and is subject to the applicable appropriations act(s)(box 20).This agreement incorporates by reference the Community Development Block Grant program statute 42 U.S.C.5301 et seq.,the program regulations at 24 C.F.R.§570(as now in effect and as may be Page 1 of 8 U.S. Department of Housing and Urban Development—Federal Award Agreement • amended from time to time),Recipient's consolidated plan/action plan,the relevant funding notice(box 21),any attached Specific Terms and Conditions,and the attached addenda(box 23). B.Terms and Conditions 1. General terms and requirements.The Recipient must comply with all applicable federal laws,regulations,and requirements,unless otherwise provided through HUD's formal waiver authorities.This agreement,including any attachments and addenda,may only be amended in writing executed by parties to this agreement and any addenda. 2. Administrative requirements. The Recipient must comply with the following requirement(s)if checked below: ❑ The administrative requirements in the HUD General Administrative,National,and Departmental Policy Requirements and Terms for HUD's Financial Assistance Programs 2025,as indicated in the relevant NOFO,apply to this agreement. ® The grantee shall comply with requirements established by the Office of Management and Budget(OMB) concerning the Unique Entity Identifier(UEI);the System for Award Management(SAM.gov);the Federal Funding Accountability and Transparency Act as provided in 2 C.F.R.part 25,Universal Identifier and General Contractor Registration;and 2 C.F.R.part 170,Reporting Subaward and Executive Compensation Information. 3. Applicability oft C.F.R.part200. ® The Recipient must comply with the applicable requirements at 2 C.F.R.part 200,as may be amended from time to time.If any previous or future amendments to 2 C.F.R.part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations,the amended part 200 requirements will govern award activities carried out after the amendments'effective date. ❑ The Recipient must comply with the applicable requirements at 2 C.F.R.part 200.If any previous amendments to 2 C.F.R.part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations,the amended part 200 requirements will govern award activities carried out after the amendments'effective date. 4. Future budget periods.If the period of performance spans multiple budget periods,subsequent budget periods are subject to the availability of funds,program authority,satisfactory performance,and compliance with the terms and conditions of the Federal award. 5. Indirect Cost Rate.If the Recipient intends to use a negotiated or de minimis rate for indirect costs,the Recipient must submit an Indirect Cost Rate form to HUD,either with its application using HUD-426 (competitive grants)or with this agreement using"Addendum#3"Indirect Cost Rate Schedule"(formula and congressional grants).The submitted form/addendum will be incorporated into and made part of this agreement,provided that the rate information is consistent with the applicable requirements under 2 C.F.R.§ 200.414.If there is any change in the Recipient's indirect cost rate,it must immediately notify HUD and execute an amendment to this agreement to reflect the change if necessary. 6. Recipient integrity and performance matters.If the Federal share of this award is more than$500,000 over the period of performance(box 6),the terms and conditions in 2 C.F.R.part 200 Appendix XII apply to this agreement. 7. Recordkeeping and Access to Records.The Recipient hereby agrees to maintain complete and accurate books of account for this award and award activities in such a manner as to permit the preparation of statements and reports in accordance with HUD requirements,and to permit timely and effective audit.The Recipient agrees to furnish HUD such financial and project reports,records,statements,subrecipient data, and documents at such times,in such form,and accompanied by such reporting data as required by HUD. HUD and its duly authorized representative shall have full and free access to all Recipient offices and facilities,and to all books,documents,and records of the Recipient relevant to the administration,receipt, and use of this award and award activities,including the right to audit and make copies.The Recipient agrees to maintain records that identifythe source and application of funds,including relevant subrecipient data,in [14.218,14.225,14.228,CDBG,FY 20251 Page 2 of 8 1. U.S. Department of Housing and Urban Development—Federal Award Agreement such a manner as to allow HUD to determine that all funds are and have been expended in accordance with program requirements and in.amanner consistent with applicable law. - • . Further,the Recipient hereby acknowledges that HUD is in the process of implementing new grants management and reporting tools,which will be made available for the Recipient's use in the future.The Recipient agrees to report on grant performance and financial activities(including vendor and cash disbursement supporting details for the Recipient and its subrecipients)using these new tools when they are released.HUD will work with the Recipient to support the Recipient's transition to this new reporting environment.Once implemented,timely reporting in this new environment will be mandatory.HUD reserves the right to exercise all of its available rights and remedies for any noncompliance with these grants management and financial reporting requirements,to include,without limitation,requiring 100%review, suspension of disbursements,and all other legally available remedies,to the furthest extent permitted by law, as amended. 8. Noncompliance.If the Recipient fails to comply with the provisions of this agreement,HUD may take one or more of the actions provided in program statutes,regulations or 2 C.F.R.§200.339,as applicable.Nothing in this agreement shall limit any remedies otherwise available to HUD in the case of noncompliance by the Recipient.No delay or omissions by HUD in exercising any right or remedy available to it under this agreement shall impair any such right or remedy or constitute a waiver of or acquiescence in any Recipient noncompliance. 9. Termination provisions.Unless superseded by program statutes,regulations or NOFOs,the termination provisions in 2 C.F.R.§200.340 apply. 10. Build America,BuyAmerica.The Recipient must comply with the requirements of the Build America,Buy America(BABA)Act,41 U.S.C.§8301 note,and all applicable rules and notices,as may be amended,if applicable.Pursuant to HUD's Notice,"Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America,Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance"(88 Fed.Reg.17001),BABA requirements apply to any infrastructure projects HUD has obligated funds for after the effective dates,unless excepted by a waiver. 11. Waste,Fraud,Abuse,and Whistleblower Protections.Any person who becomes aware of the existence or apparent existence of fraud,waste,or abuse of any HUD award must report such incidents to both the HUD official responsible for the award and to HUD's Office of Inspector General(OIG).Allegations of fraud,waste, and abuse related to HUD programs can be reported to the HUD OIG hotline via phone at 1-800-347-3735 or online hotline form.The Recipient must comply with 41 U.S.C.§4712,which includes informing employees in writing of their rights and remedies,in the predominant native language of the workforce.Under 41 U.S.C.§ 4712,employees of a government contractor,subcontractor,recipient,and subrecipient—as well as a personal services contractor—who make a protected disclosure about a Federal award or contract cannot be discharged,demoted,or otherwise discriminated against if they reasonably believe the information they disclose is evidence of(1)gross mismanagement of a Federal contract or award;(2)waste of Federal funds; (3)abuse of authority relating to a Federal contract or award;(4)substantial and specific danger to public health and safety;or(5)violations of law,rule,or regulation related to a Federal contract or award. 12. Third-Party Claims.Nothing in this agreement shall be construed as creating or justifying any claim against the federal government or the Recipient by any third party. 13. Rule of Construction and No Construction Against Drafter.Notwithstanding anything contained in this agreement,the terms and conditions hereof are to be construed to have full and expansive effect in both interpretation and application,and the parties agree that the principle of interpretation that holds that ambiguities in terms or conditions are construed against the drafter shall not apply in interpreting this agreement. C.Federal Award Performance Goals The Recipient must meet any applicable performance goals,indicators,targets,and baseline data as required by applicable program requirements. [14.218,14.225,14.228,CDBG,FY 2025] Page 3 of 8 US. Department of Housing and Urban Development—Federal Award Agreement D.Specific Terms and Conditions Not applicable® Attached❑ For the U.S.Department of HUD Signature Date (name and title of authorized official) For the Recipient Signature Am Date (name and title of authorized official) ronct,IOarMama I B.-abate • [14.218,14.225,14.228,CDBG,FY 2025] Page 4 of 8 U.S. Department of Housing and Urban Development—Federal Award Agreement • . ADDENDUM 1.POLICY REQUIREMENTS If applicable: • • . - 1. The Recipient shall not use grant funds to promote"gender ideology,"as defined in Executive Order • (E.O.)14168,Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; 2. The Recipient agrees that its compliance in all respects with all applicable Federal anti- discrimination laws is material to the U.S.Government's payment decisions for purposes of section 3729(b)(4)of title 31,United States Code; 3. The Recipient certifies that it does not operate any programs that violate any applicable Federal anti-discrimination laws,including Title VI of the Civil Rights Act of 1964; 4. The Recipient shall not use any grant funds to fund or promote elective abortions,as required by E.O.14182,Enforcing the Hyde Amendment;and that, 5. Notwithstanding anything in the NOFO or Application,this Grant shall not be governed by Executive Orders revoked by E.O.14154,including E.O.14008,or NOFO requirements implementing Executive Orders that have been revoked. 6. The Recipient must administer its grant in accordance with all applicable immigration restrictions and requirements,including the eligibility and verification requirements that.apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,as amended(8 U.S.C. 1601-1646)(PRWORA)and any applicable requirements that HUD,the Attorney General,or the U.S. Citizenship and Immigration Services may establish from time to time to comply with PRWORA, Executive Order 14218,or other Executive Orders or immigration laws. 7. No state or unit of general local government that receives funding under this grant may use that funding in a manner that by design or effect facilitates the subsidization or promotion of illegal immigration or shields illegal aliens from deportation,including by maintaining policies or practices that materially impede enforcement of federal immigration statutes and regulations. 8. The Recipient must use SAVE,or an equivalent verification system approved by the Federal government,to prevent any Federal public benefit from being provided to an ineligible alien who entered the United States illegally or is otherwise unlawfully present in the United States. 9. Faith-based organizations may be subrecipients for funds on the same basis as any other organization. Recipients may not,in the selection of subrecipients,discriminate against an organization based on the organization's religious character,affiliation,or exercise. [14.218,14.225,14.228,CDBG,FY 2025] Page 5 of 8 • • • U.S. Department of Housing and Urban Development—Federal Award Agreement • • - ADDENDUM 2.PROGRAM-SPECIFIC REQUIREMENTS • Assistance Listing 14.218,Community Development Block Grant Program for Entitlement Communities Assistance Listing 14.225,Community Development Block Grant Program for Insular Areas • • Assistance Listing 14.228,Community Development Block Grant Program for States and Non- Entitlement Grants in Hawaii • 1. Environmental Review.The Recipient agrees to assume all the responsibilities for environmental review,decision making,and actions,as specified and required in regulations issued by the Secretary pursuant to section 104(g)of title I of the Housing and Community Development Act of 1974 and published in 24 C.F.R.part 58;except that if the Recipient is a state,the Recipient must require the unit of general local government to assume that responsibility and must comply with the state's responsibilities under 24 C.F.R.58.4. 2. Public Use.The Recipient shall ensure that no CDBG funds are used to support any Federal,State, or local projects that seek to use the power of eminent domain,unless eminent domain is employed only for public use.For the purposes of this requirement,public use shall not be construed to include economic development that primarily benefits private entities.Any use of funds for mass transit,railroad,airport,seaport,or highway projects as well as utility projects that benefit or serve the general public(including energy-,communication-,water-,and wastewater- related infrastructure),other structures designated for use by the general public or which have other common-carrier or public-utility functions that serve the general public and are subject to regulation and oversight by the government,and projects for the removal of an immediate threat to public health and safety or brownfield as defined in the Small Business Liability Relief and Brownfields Revitalization Act(Pub.Law No.107-118)shall be considered a public use for purposes of eminent domain. 3. Prohibition on Selling, Trading,and Transferring Funds.The Recipient or unit of general local government that directly or indirectly receives CDBG funds may not sell,trade,or otherwise transfer all or any such portion of such funds to another such entity in exchange for any other funds,credits or non-Federal considerations,but must use such funds for activities eligible under title I of the Housing and Community Development Act of 1974. 4. Construction of Water and Sewer Facilities.Notwithstanding any other provision of this agreement, the Recipient may not obligate or expend award funds to plan or construct water or sewer facilities, including any new or revised activities,until after 1)it completes the review procedures required under Executive Order 12372,Intergovernmental Review of Federal Programs,and 24 C.F.R.part 52 and 2)HUD provides written notice of the release of funds. 5. Funds for For-Profit Entities.Under 42 U.S.C.§5305(a)(17),CDBG funds may not be provided to a for-profit entity unless such activity or project has been evaluated and selected in accordance with Appendix A to 24 C.F.R.§570,Guidelines and Objectives for Evaluating Project Costs and Financial Requirements. 6. Violence Against Women Act.The Recipient will comply with the right to report crime and emergencies protections at 34 U.S.C.§12495 of the Violence Against Women Act. [14.218,14.225,14.228,CDBG,FY 2025] Page 6 of 8 f U.S. Department of Housing and Urban Development—Federal Award Agreement • 7. Funding Information and Period of Performance and Budget Period End Dates Source of Funds Amount Period of Performance End Date Budget Period End Date • - 2025 $1,006,766.00 9/30/2033 9/30/2033 : -- [14.21844.225,14.228,CDBG,FY 2025] Page 7 of 8 em l • . - U.S.-Department of Housing and Urban Development Federal Award Agreement ADDENDUM 3.INDIRECT COST RATE SCHEDULE • As the duly authorized representative of the Recipient,I certify that the Recipient: Cie Will not use an indirect cost rate to calculate and charge indirect costs under the grant. ❑ Will calculate and charge indirect costs under the grant by applying a de minimis rate as provided by 2 C.F.R.§200.414(f),as may be amended from time to time. ❑ Will calculate and charge indirect costs under the grant using the indirect cost rate(s)listed below, and each rate listed is included in an indirect cost rate proposal developed in accordance with the applicable appendix to 2 C.F.R.part 200 and,if required,was approved by the cognizant agency for indirect costs. Agency/department/major function Indirect cost rate Type of Direct Cost Base Instructions for the Recipient: The Recipient must mark the one(and only one)checkbox above that best reflects how the Recipient's indirect costs will be calculated and charged under the grant. Do not include indirect cost rate information for subrecipients. The table following the third box must be completed only if that box is checked. When listing a rate in the table,enter both the percentage amount(e.g.,10%)and the type of direct cost base to be used.For example,if the direct cost base used for calculating indirect costs is Modified Total Direct Costs,then enter"MTDC"in the"Type of Direct Cost Base"column. If using the Simplified Allocation Method for indirect costs,enter the applicable indirect cost rate and type of direct cost base in the first row of the table. If using the Multiple Allocation Base Method,enter each major function of the organization for which a rate was developed and will be used under the grant,the indirect cost rate applicable to that major function,and the type of direct cost base to which the rate will be applied. If the Recipient is a government and more than one agency or department will carry out activities under the grant,enter each agency or department that will carry out activities under the grant,the indirect cost rate(s)for that agency or department,and the type of direct cost base to which each rate will be applied. To learn more about the indirect cost requirements,see 2 C.F.R.part 200,subpart E and Appendix VII to Part 200(for state and local governments). [14.218,14.225,14.228,CDBG,FY 2025] Page 8 of 8 i U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT FEDERAL AWARD AGREEMENT A.General Federal Award Information 1.Recipient name(must match Unique Entity Identifier 12.Assistance listing number and title: • - . . _ name)and address: .14.239,HOME Investment Partnerships Program . _ . . . City of Port Arthur 444 4TH STREET Suite 203 PORT ARTHUR,TX 77640 2.Recipient's Unique Entity Identifier: 13.Amount of federal funds obligated by this action: EMVNEFYW2KN4 $321,504.70 3.Tax identification number: 14.Total amount of federal funds obligated: 746001885 $321,504.70 4.Federal Award Identification Number(FAIN): 15.Total approved cost sharing(if applicable): M25MC480217 See Addendum 2 5.Instrument type: 16.Total federal award amount,including approved cost Grant ® Cooperative agreement ❑ sharing: Loan Guarantee ❑ $321,504.70 6.Period of performance start and end date: 17.Budget approved by HUD: -09/30/2034 7.Budget period start and end date: 18.Fiscal year: FY 2025 through FY 2033 See Addendum 2 8.Initial Agreement ® Amendment # 19.Statutory authority: 42 U.S.C.12701 et seq 9.Indirect cost rate(per§200.414): 20.Applicable appropriations act(s): Recipients must complete Addendum 3:Indirect Cost Public Law 118-158,Public Law 119-4 Rate Schedule 10.Is this award for research and development(per 2 21.Notice/notice of funding opportunity this award is C.F.R.§200.1)?Yes ❑ No® made under(if applicable): N/A 11.Awarding official name and contact information: 22.Program regulations(if applicable): 24 C.F.R.Part 92 23.Federal award description: Under the HOME Investment Partnerships Program,HUD allocates funds by formula among eligible State and local governments to strengthen public-private partnerships and to expand the supply of decent,safe,sanitary,and affordable housing,with primary attention to rental housing,for very low-income and low-income families. • Addendum 1.Policy Requirements • Addendum 2.Program-Specific Requirements • Addendum 3.Indirect Cost Rate Schedule AuthorityandAgreement.This agreement between the U.S.Department of Housing and Urban Development(HUD) and the Recipient is made pursuant to the statutory authority above(box 19)and is subject to the applicable appropriations act(s)(box 20).This agreement incorporates by reference the HOME Investment Partnerships program statute 42 U.S.C.12701 et seq.,the program regulations at 24 C.F.R.§92(as now in effect and as may be amended Page 1 of 8 • U.S. Department of Housing and Urban Development—Federal Award Agreement from time to time),Recipient's consolidated plan/action plan,the relevant funding notice(box 21),any attached Specific Terms and Conditions,and the attached addenda(box 23). • - B.Terms and Conditions 1. General terms and requirements.The Recipient must comply with all applicable federal laws,regulations,and requirements unless otherwise provided through HUD's formal waiver authorities.This agreement,including any attachments and addenda,may only be amended in writing executed by parties to this agreement and any addenda. . • •• 2. Administrative requirements. The Recipient must comply with the following requirement(s)if checked below: ❑ The administrative requirements in the HUD General Administrative,National,and Departmental Policy Requirements and Terms for HUD's Financial Assistance Programs 2025,as indicated in the relevant NOFO,apply to this agreement. ® The grantee shall comply with requirements established bythe Office of Management and Budget(OMB) concerning the Unique Entity Identifier(UEI);the System for Award Management(SAM.gov);the Federal Funding Accountability and Transparency Act as provided in 2 C.F.R.part 25,Universal Identifier and General Contractor Registration;and 2 C.F.R.part 170,Reporting Subaward and Executive Compensation Information. 3. Applicability of 2 C.F.R.part200. ® The Recipient must comply with the applicable requirements at 2 C.F.R.part 200,as may be amended from time to time.If any previous or future amendments to 2 C.F.R.part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations,the amended part 200 requirements will govern award activities carried out after the amendments'effective date. ❑ The Recipient must comply with the applicable requirements at 2 C.F.R.part 200.If any previous amendments to 2 C.F.R.part 200 replace or renumber any part 200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations,the amended part 200 requirements will govern award activities carried out after the amendments'effective date. 4. Future budget periods.If the period of performance spans multiple budget periods,subsequent budget periods are subject to the availability of funds,program authority,satisfactory performance,and compliance with the terms and conditions of the Federal award. 5. Indirect Cost Rate.lithe Recipient intends to use a negotiated or de minimis rate for indirect costs,the Recipient must submit an Indirect Cost Rate form to HUD,either with its application using HUD-426 (competitive grants)or with this agreement using"Addendum#3"Indirect Cost Rate Schedule"(formula and congressional grants).The submitted form/addendum will be incorporated into and made part of this agreement,provided that the rate information is consistent with the applicable requirements under 2 C.F.R.§ 200.414.If there is any change in the Recipient's indirect cost rate,it must immediately notify HUD and execute an amendment to this agreement to reflect the change if necessary. 6. Recipient integrity and performance matters.lithe Federal share of this award is more than$500,000 over the period of performance(box 6),the terms and conditions in 2 C.F.R.part 200 Appendix XII apply to this agreement. 7. RecordkeepingandAccess to Records.The Recipient hereby agrees to maintain complete and accurate books of account for this award and award activities in such a manner as to permit the preparation of statements and reports in accordance with HUD requirements,and to permit timely and effective audit.The Recipient agrees to furnish HUD such financial and project reports,records,statements,subrecipient data, and documents at such times,in such form,and accompanied by such reporting data as required by HUD. HUD and its duly authorized representative shall have full and free access to all Recipient offices and facilities,and to all books,documents,and records of the Recipient relevantto the administration,receipt, and use of this award and award activities,including the right to audit and make copies.The Recipient agrees to maintain records that identify the source and application of funds,including relevant subrecipient data,in [14.239,HOME,FY 2025] Page 2 of 8 U.S. Department of Housing and Urban Development—Federal Award Agreement • such a manner as to allow HUD to determine that all funds are and have been expended in accordance with • program requirements and in:a.manner consistent with applicable law. - Further,the Recipient hereby acknowledges that HUD is in the process of implementing new grants management and reporting tools,which will be made available for the Recipient's use in the future.The Recipient agrees to report on grant performance and finandial activities(including vendor and cash disbursement supporting details for the Recipient and'its ubrecipients)using these new tools when they are released.HUD will work with the Recipient to support the Recipient's transition to this new reporting environment.Once implemented,timely reporting in this new environment will be mandatory.HUD reserves the right to exercise all of its available rights and remedies for any noncompliance with these grants management and financial reporting requirements,to include,without limitation,requiring 100%review, suspension of disbursements,and all other legally available remedies,to the furthest extent permitted by law, as amended. 8. Noncompliance.If the Recipient fails to comply with the provisions of this agreement,HUD may take one or more of the actions provided in program statutes,regulations or 2 C.F.R.§200.339,as applicable.Nothing in this agreement shall limit any remedies otherwise available to HUD in the case of noncompliance by the Recipient.No delay or omissions by HUD in exercising any right or remedy available to it under this agreement shall impair any such right or remedy or constitute a waiver of or acquiescence in any Recipient noncompliance. 9. Termination provisions.Unless superseded by program statutes,regulations or NOFOs,the termination provisions in 2 C.F.R.§200.340 apply. 10. Build America,BuyAmerica.The Recipient must comply with the requirements of the Build America,Buy America(BABA)Act,41 U.S.C.§8301 note,and all applicable rules and notices,as may be amended,if applicable.Pursuant to HUD's Notice,"Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America,Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance"(88 Fed.Reg.17001),BABA requirements apply to any infrastructure projects HUD has obligated funds for after the effective dates,unless excepted by a waiver. 11. Waste,Fraud,Abuse,and Whistleblower Protections.Any person who becomes aware of the existence or apparent existence of fraud,waste,or abuse of any HUD award must report such incidents to both the HUD official responsible for the award and to HUD's Office of Inspector General(OIG).Allegations of fraud,waste, and abuse related to HUD programs can be reported to the HUD OIG hotline via phone at 1-800-347-3735 or online hotline form.The Recipient must comply with 41 U.S.C.§4712,which includes informing employees in writing of their rights and remedies,in the predominant native language of the workforce.Under 41 U.S.C.§ 4712,employees of a government contractor,subcontractor,recipient,and subrecipient as well as a personal services contractor—who make a protected disclosure about a Federal award or contract cannot be discharged,demoted,or otherwise discriminated against if they reasonably believe the information they disclose is evidence of(1)gross mismanagement of a Federal contract or award;(2)waste of Federal funds; (3)abuse of authority relating to a Federal contract or award;(4)substantial and specific danger to public health and safety;or(5)violations of law,rule,or regulation related to a Federal contract or award. 12. Third-Party Claims.Nothing in this agreement shall be construed as creating or justifying any claim against the federal government or the Recipient by any third party. 13. Rule of Construction and No Construction Against Drafter.Notwithstanding anything contained in this agreement,the terms and conditions hereof are to be construed to have full and expansive effect in both interpretation and application,and the parties agree that the principle of interpretation that holds that ambiguities in terms or conditions are construed against the drafter shall not apply in interpreting this agreement. C.Federal Award Performance Goals The Recipient must meet any applicable performance goals,indicators,targets,and baseline data as required by applicable program requirements. [14.239,HOME,FY 2025] Page 3 of 8 U.S. Department of Housing and Urban Development—Federal Award Agreement D.Specific Terms and Conditions Not applicable® Attached D • For the U.S.Department of HUD Signature Date (name and title of authorized official) • - • For the Recipient Signature r Date (name and title of authorized official) ICI 3u an C;• 'windy"- � l'�owe r � [14.239,HOME,FY2025] Page 4 of 8 t Th U.S. Department of Housing and Urban Development—Federal Award Agreement • ADDENDUM 1.POLICY REQUIREMENTS. • • If applicable: • - 1. The Recipient shalt not use grant funds to promote"gender ideology,"as defined in Executive Order (E.O.)14168,Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; 2. The Recipient agrees that its compliance in all respects with all applicable Federal anti- discrimination laws is material to the U.S.Government's payment decisions for purposes of section 3729(b)(4)of title 31,United States Code; 3. The Recipient certifies that it does not operate any programs that violate any applicable Federal anti-discrimination laws,including Title VI of the Civil Rights Act of 1964; 4. The Recipient shall not use any grant funds to fund or promote elective abortions,as required by E.O.14182,Enforcing the Hyde Amendment;and that, 5. Notwithstanding anything in the NOFO or Application,this Grant shall not be governed by Executive Orders revoked by E.O.14154,including E.O.14008,or NOFO requirements implementing Executive Orders that have been revoked. 6. The Recipient must administer its grant in accordance with all applicable immigration restrictions and requirements,including the eligibility and verification requirements that apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,as amended(8 U.S.C. .1601-1646)(PRWORA)and any applicable requirements that HUD,the Attorney General,or the U.S. Citizenship and Immigration Services may establish from time to time to comply with PRWORA, Executive Order 14218,or other Executive Orders or immigration laws. 7. No state or unit of general local government that receives funding under this grant may use that funding in a manner that by design or effect facilitates the subsidization or promotion of illegal immigration or shields illegal aliens from deportation,including by maintaining policies or practices that materially impede enforcement of federal immigration statutes and regulations. 8. The Recipient must use SAVE,or an equivalent verification system approved by the Federal government,to prevent any Federal public benefit from being provided to an ineligible alien who entered the United States illegally or is otherwise unlawfully present in the United States. 9. Faith-based organizations maybe subrecipients for funds on the same basis as any other organization. Recipients may not,in the selection of subrecipients,discriminate against an organization based on the organization's religious character,affiliation,or exercise. [14.239,HOME,FY2025] Page 5 of 8 r. U.S. Department of Housing and Urban Development—Federal Award Agreement: • ADDENDUM 2.PROGRAM-SPECIFIC REQUIREMENTS • .._ - • Assistance Listing 14.239,HOME Investment Partnerships Program • 1. For the purposes of this Agreement and any applicable addenda,the term"recipient"shall have the meaning of"grantee","participating jurisdiction"as defined in 24 C.F.R.92.2.,or"insular area"as • ' ' defined in 24 C.F.R.92.2. • 2. Community Housing Development Organizations(CHDOs).When 42 U.S.C.12771(b)is suspended by a given year's appropriations,the Secretary shall not deduct funds set aside for CHDOs from the Recipient's HOME Investment Trust Fund for failure to reserve those funds for projects owned, developed,or sponsored by CHDOs within 24 months after the last day of the month in which HUD notifies the Recipient of HUD's execution of this Agreement. 3. Commitment.When 42 U.S.C.12749(g)is suspended by a given year's appropriations,the Recipient's ability to commit funds provided through this Agreement will not expire 24 months after ' the last day of the month in which such funds are deposited in the jurisdiction's HOME Investment Trust Fund. 4. Deobligations.To the extent authorized by HUD regulations at 24 C.F.R.Part 92,HUD may,by its execution of an amendment to this Agreement,deobligate funds previously awarded to the Recipient without the Recipient's execution of the amendment or other consent. 5. State Environmental Review. If a Recipient is a State,as defined in 24 C.F.R.92.2,and the Recipient provides HOME funds to a"State recipient",as that term is defined in 24 CFR 92.2,then the Recipient must require that the"State recipient"shall assume responsibility for the environmental review in accordance with 24 CFR 92.352 in the written agreement entered into pursuant to 24 CFR 92.504. Notwithstanding the foregoing,as per 24 CFR 92.504(c)(1)(vi),the "State recipient"shall not assume the Recipient's responsibilities for release of funds under 24 CFR 92.352. 6. Reallocations.All funds for the specified Fiscal Year provided by HUD by formula reallocation are covered by this Agreement upon execution of an amendment by HUD,without the Recipient's execution of the amendment or other consent. 7. Repayments.The Recipient agrees that funds invested in affordable housing under 24 C.F.R.Part 92 are repayable when the housing no longer qualifies as affordable housing.Repayment shall be made as specified in 24 C.F.R.Part 92. 8. Cost Sharing.This award is subject to match provisions in 24 C.F.R.92.64(a)(1)and 24 C.F.R. 92.218-222,as applicable. The amount of match that a recipient may be required to provide in a year is not based upon the amount of the recipient's award. Under 24 C.F.R.92.218,the amount of match that a recipient may be required to provide is determined by the type of eligible costs incurred by the recipient and the amount of funds drawn from the HOME Investment Trust Fund Treasury Account in that year. Since these factors are fact-sensitive,the amount of match is not included in either Box 15 or Box 16 of this Agreement. [14.239,HOME,FY 2025] • Page 6 of 8 - U.S. Department of Housing and Urban Development—Federal Award Agreement • • 9. Funding Information: Source of Funds Appropriation Code PAS Code Amount - 2023 86 3/6 0205 HMF(M) $1,597.37 2024 864/70205 HMF(N) $1,198.90 2025 - •865/8 0205 HMF(P) - $318,708.43 [14.239,HOME,FY.2025] Page 7 of 8 ..... ....—•---. • U.S. Department of Housing and Urban Development—Federal Award Agreement ADDENDUM 3.INDIRECT COST RATE SCHEDULE As the duly authorized representative of the Recipient,I certify that the Recipient: [Will not use an indirect cost rate to calculate and charge indirect costs under the grant. ❑ Will calculate and charge indirect costs under the grant by applying a de minimis rate as provided by 2 C.F.R.§200.414(f),as may be amended from time to time. 0 Will calculate and charge indirect costs under the grant using the indirect cost rate(s)listed below, and each rate listed is included in an indirect cost rate proposal developed in accordance with the applicable appendix to 2 C.F.R.part 200 and,if required,was approved by the cognizant agency for indirect costs. Agency/department/major function Indirect cost rate Type of Direct Cost Base Instructions for the Recipient: The Recipient must mark the one(and only one)checkbox above that best reflects how the Recipient's indirect costs will be calculated and charged under the grant. Do not include indirect cost rate information for subrecipients. The table following the third box must be completed only if that box is checked. When listing a rate in the table,enter both the percentage amount(e.g.,10%)and the type of direct cost base to be used.For example,if the direct cost base used for calculating indirect costs is Modified Total Direct Costs,then enter"MTDC"in the"Type of Direct Cost Base"column. If using the Simplified Allocation Method for indirect costs,enter the applicable indirect cost rate and type of direct cost base in the first row of the table. If using the Multiple Allocation Base Method,enter each major function of the organization for which a rate was developed and will be used under the grant,the indirect cost rate applicable to that major function,and the type of direct cost base to which the rate will be applied. If the Recipient is a government and more than one agency or department will carry out activities under the grant,enter each agency or department that will carry out activities under the grant,the indirect cost rate(s)for that agency or department,and the type of direct cost base to which each / rate will be applied. To learn more about the indirect cost requirements,see 2 C.F.R.part 200,subpart E and Appendix VII to Part 200(for state and local governments). [14.239,HOME,FY2025] Page 8 of 8 Port Arthur 2025 Community Development Block Grant Projects Original Budgets Organization Award Amount Housing Assistance Administration $217,000.00 Housing Assistance — Emergency and Minor Home $325,000.00 Repairs Housing Assistance — Down Payment and Closing $150,000.00 Cost Assistance Grant Administration $200,000.00 Court Appointed Special Advocates $14,000.00 Nutrition and Services for Seniors $20,250.00 Lion Hearted $3,500.00 Community Retirement Home, Inc. $3,500.00 Legacy Community Development Corporation $11,500.00 Catholic Charities $30,000.00 Julie Rogers "Gift of Life" Program $6,500.00 Willie Carter Community Outreach Center $11,500.00 Port Cities Rescue Mission $12,526.00 Foster A Friend Foundation $1,500.00 Total Allocation Amount $1,006,776.00 Port Arthur 2025 Community Development Block Grant Projects Revised Budgets Organization Award Amount Housing Assistance Administration $217,000.00 Housing Assistance — Emergency and Minor Home $325,000.00 Repairs Housing Assistance — Down Payment and Closing $150,000.00 Cost Assistance Grant Administration $200,000.00 Court Appointed Special Advocates $14,000.00 Nutrition and Services for Seniors $20,250.00 Lion Hearted $3,500.00 Community Retirement Home, Inc. $3,500.00 Legacy Community Development Corporation $11,500.00 Housing Assistance — Infrastructure Project $30,000.00 Julie Rogers "Gift of Life" Program $6,500.00 Willie Carter Community Outreach Center $11,500.00 Port Cities Rescue Mission $12,526.00 Foster A Friend Foundation $1,500.00 Total Allocation Amount $1,006,776.00 �._� -_,