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FY 2025 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
SUBRECIPIENT AGREEMENT BETWEEN FRANKLIN COUNTY AND
HABITAT FOR HUMANITY OF FRANKLIN COUNTY
THIS AGREEMENT entered this _8th__ day of __June___, 2026 by and between Franklin County,
Pennsylvania, with a business address of 272 N. Second St, Chambersburg, Pennsylvania 17201, hereinafter
referred to as the COUNTY, and HABITAT FOR HUMANITY OF FRANKLIN COUNTY, with an address
of 1502 Lincoln Way E, Chambersburg, PA 17202, hereinafter referred to as GRANTEE.
WHEREAS, the COUNTY has submitted a grant application, on behalf of the GRANTEE, to the
Pennsylvania's Department of Community and Economic Development, hereinafter referred to as the
DEPARTMENT; and
WHEREAS, the DEPARTMENT has entered into an agreement with the US Department of Housing and
Urban Development, hereinafter referred to as HUD, to execute and implement the Community Development
Block Grant program, hereinafter referred to as CDBG or PROGRAM, with a goal of funding community
development activities in housing rehabilitation, public services, community facilities, infrastructure
improvements, development and planning.
WHEREAS, the COUNTY has determined HABITAT FOR HUMANITY OF FRANKLIN COUNTY to be
a SUBRECIPIENT according to the Uniform Guidance; and
WHEREAS, said PROGRAM provides that the DEPARTMENT will contract with public or private for-
profit or non-profit investor developers or non-profit investor CHDO's to complement the project(s) set forth
therein; and
WHEREAS, the COUNTY has applied to the DEPARTMENT for a CDBG grant in the amount of three-
hundred fifty-seven thousand two-hundred and nineteen dollars ($358,280.00) in FY 2025; and
WHEREAS, the COUNTY is entitled to retain an amount up to and equaling eighteen percent (18%) of the
CDBG grant as an administrative fee, with the requested amount sixty-four thousand, two hundred ninety-
nine dollars and forty-two cents ($64,490.40) in FY 2025; and
WHEREAS, the COUNTY has entered into a contract for the 2025 CDBG grant programs with the
DEPARTMENT to make CDBG funding available; and
WHEREAS, the COUNTY and the DEPARTMENT administer said grant; and
WHEREAS, the COUNTY has agreed to make said grant available under the terms contained herein,
pursuant to the authority of at 24 CFR Part 570, which establishes the CDBG Program, and other applicable
federal statutes and regulations; and
WHEREAS, projects titled "Acquisition of Real Property" for FY 2025; has been approved for funding from
said PROGRAM; and
WHEREAS, the COUNTY desires to enter into an agreement with GRANTEE to undertake and complete
said projects:
NOW, THEREFORE, intending to be 1egally bound the parties do mutually agree as follows:
1. SCOPE OF SERVICES
Procurement of contracted services for the following under FY 2025: Acquisition of Real
Property – Habitat for Humanity will be searching for a lot that is outside of the Boroughs of
Waynesboro and Chambersburg which will provide a home to a low-to-moderate income
family in Franklin County
All new construction projects must meet the accessibility requirements of 24 CFR part 8,
which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and Titles
II and Ill of the Americans with Disabilities Act (42 U.S.C. 12131-12189) implemented at 28
CFR Parts 35 and 36, as applicable.
The parties expressly acknowledge and agree that the COUNTY has no role whatsoever in
the selection, purchase, and/or acquisition of any real estate or other real property described
herein, and that it is not a party to any such selection, purchase and/or acquisition.
2. AMOUNT
The total CDBG dollars available to GRANTEE and covered by this Agreement shall not
exceed fifty thousand dollars ($50,000) under FY 2025.
GRANTEE understands and agrees it is responsible for all costs incurred with the PROJECT
that exceed the grant amount. All professional services, contracted services, materials and
supplies procured for the work covered in this agreement must be done in accordance with 2
CFR Part 200, and all other State and Local requirements as applicable. Payment will be
made as further outlined in Section 9 below.
The COUNTY will be eligible to receive up to eighteen (18%) of the total amount of the
CDBG grant and program income as an administrative fee. All PROJECT delivery costs will
be taken out of the budget line item amount. The GRANTEE will provide the COUNTY
with an accurate up to date budget prior to approval of the application by the COUNTY. In
addition, the COUNTY will provide the GRANTEE with a monthly financial statement and
balance sheet for the CDBG Program. GRANTEE shall provide the COUNTY with an
updated budget upon request
GRANTEE further understands that any expenditure and/or reimbursement pursuant to the
CDBG Program is subject to review and authorization by the DEPARTMENT. In the event
that DCED refuses to authorize payment for work performed or materials purchased under
this Agreement for any reason whatsoever, including action or inaction on the part of the
COUNTY, GRANTEE agrees that it shall be exclusively liable for the payment of said work
and materials. The GRANTEE further agrees that it shall reimburse the COUNTY for any
and all amounts paid to it pursuant to this Agreement in the event that DCED determines that
the sums were not properly paid pursuant to the terms of the CDBG Program.
In addition, this Agreement shall be subject to all attached appendices as well as all statutes
and/or regulations stated herein and incorporated by reference as if set forth in full.
GRANTEE agrees that acquisitions of real estate are subject to appropriate environmental
reviews performed by duly qualified consultants. GRANTEE acknowledges and agrees that
all fees, costs, assessments, and/or expenses of said consultants are the sole responsibility of
GRANTEE, and that the COUNTY shall have no liability whatsoever therefor.
In the event that GRANTEE does not become the fee simple owner of the real estate
described herein for any reason whatsoever, the COUNTY shall not be liable for any fee,
cost, assessment and/or expense of GRANTEE of any kind whatsoever, and GRANTEE
agrees to release, indemnify and hold the COUNTY harmless for any such fee, costs,
assessment and/or expense.
3. TIME OF PERFORMANCE
The terms of this Agreement shall commence on the date of execution and shall conclude
upon FEBRUARY 10, 2029, or GRANTEE'S completion of the contracted services,
whichever is earlier.
In the event that GRANTEE is unable to complete the PROJECT, the GRANTEE may
submit an extension request of the terms of this Agreement to the COUNTY in writing;
however, GRANTEE understands the COUNTY has no duty to extend and makes no
promise of extension, Sufficient cause, as determined solely by COUNTY, with
DEPARTMENT guidance, as required, must be shown for COUNTY to consider such an
extension.
4. PROJECT SCHEDULE
For the COUNTY to effectively monitor the PROJECT, a project schedule must be
submitted by GRANTEE or by the entity/individual selected by GRANTEE to oversee
construction of the contracted services. The project schedule applies to all construction
projects and shall outline the specific PROJECT milestones including but not limited to:
plans/specs/bid package and advertisement, bid opening tabulation and awarding, execution
of the contract, construction progress inspections, and completion of the PROJECT with
final inspection report.
Failure of GRANTEE to adhere to the project schedule shall be deemed a material breach
unless GRANTEE has requested a modification of the project schedule in writing and said
modification has been approved by the COUNTY.
Timely completion of the work specified in this agreement is an integral and essential part of
performance. The expenditure of CDBG funds is subject to Federal deadlines. Failure to use
the funding properly and in a timely manner could result in the loss of the Federal funds. By
the acceptance and execution of this agreement, it is understood and agreed by the
GRANTEE that the PROJECT will be completed as expeditiously as possible and that the
GRANTEE will make every effort to ensure that the PROJECT will proceed and will not be
delayed. Failure to meet these deadlines can result in cancellation of this contract and the
revocation of CDBG funds.
Since it is mutually agreed that time is of the essence as regards this agreement, the
GRANTEE shall cause appropriate provisions to be inserted in all contracts or subcontracts
relative to the work tasks required by this agreement, in order to ensure that the PROJECT
will be completed according to the timetable set forth. It is intended that such provisions
inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for
the benefit of the COUNTY and enforceable by the COUNTY against the GRANTEE and
its successors and assigns to the PROJECT or any part thereof or any interest therein.
5. SPECIFIC USE OF CDBG FUNDS
FY 2025 CDBG contract funds shall be used to purchase a lot that is outside the Boroughs of
Waynesboro and Chambersburg.
The Failure to use the FY 2025 CDBG contract funds in compliance with the Activity
Descriptions in Appendix A shall constitute a material breach of the terms of this agreement
and a violation of this Agreement. Each Activity Description lists the scope of work,
together with a budget for the completion of that work. All work shall be complete in
compliance with the provisions of 24 CFR Part 570.
The Subrecipient agrees that funds provided under this Agreement will not be utilized for
inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious
instruction, or proselytization.
6. COUNTY RESPONSIBILITIES
The COUNTY will undertake the following activities on behalf of the GRANTEE with
respect to the application, administration and monitoring of the CDBG Program.
1. The COUNTY will designate a fair housing officer and publish a Fair Housing
Notice, and, on an annual basis, organize a Fair Housing activity as required by
the DEPARTMENT.
2. The COUNTY will respond to any of the DEPARTMENT'S review comments
on the application.
3. The COUNTY will enter into the CDBG grant agreement with the
Commonwealth on behalf of the GRANTEE.
4. The COUNTY will be fully responsible for the administration and management
of all CDBG activities and will be eligible to receive compensation based on the
eighteen (18%) Administrative Cap for the CDBG Program.
5. The COUNTY will review the advertisements, bid documentation and awards
for all proposed GRANTEE contracts for approved CDBG eligible activities.
6. The COUNTY will be responsible for all monitoring by the DEPARTMENT of
the CDBG activities, and the correction of any and all deficiencies or findings.
GRANTEE will cooperate fully with any request by the COUNTY for
information relating to the PROJECT and will assist the COUNTY in correcting
any and all deficiencies and findings.
7. The COUNTY will be responsible for completing and filing all reports required
by the DEPARTMENT for the CDBG Program.
8. The COUNTY will be responsible for the IDIS system and financial
recordkeeping requirements.
9. The COUNTY will be responsible for maintaining all records related to the
administration of the CDBG program.
10. The COUNTY will advertise and/or approve program modifications or revisions
as necessary and as requested and prepared by the GRANTEE, at the
GRANTEE'S expense.
11. The COUNTY will be responsible for the closeout of the grant program.
12. The COUNTY will provide and perform all items necessary for the successful
completion of the FY 2025 CDBG Program.
13. The COUNTY will perform oversight and monitoring of the CDBG activities,
including, but not limited to: job site oversight to ensure work is completed in a
workmanlike manner for all construction work; labor standards enforcement
(wage rate monitoring and on-site employees); and, acceptance of the final work
product.
7. GRANTEE RESPONSIBILITIES
1. GRANTEE shalt contract for engineering services in accordance with current HUD
regulations for preparation of specifications and contract documents for bidding and
construction of the PROJECT. GRANTEE shall obtain necessary right-of-ways,
easements, State and Local permits prior to start of construction and provide to the
COUNTY when requested.
2. GRANTEE shall submit contract change-orders to the COUNTY for approval prior to
the work being initiated and will proceed with the same only after receiving approval for
said change-order from the COUNTY in writing.
3. GRANTEE shall be responsible for inspection of all work of any contractor, engineer, or
architect working on the PROJECT and shall certify completion of work in accordance
with the existing contract to the COUNTY.
4. GRANTEE will provide the services as outlined in the Project Description (Appendix A)
in accordance with minimum standards as may be required or prescribed by the
applicable Federal, State, and Local agencies and services.
5. The GRANTEE will provide the COUNTY with a list of eligible activities along with a
budget estimate, and description of the activity.
6. The GRANTEE will cooperate with the COUNTY's program administrator to ensure the
effective, efficient, and timely implementation of the PROJECT.
7. The GRANTEE agrees to cooperate with the COUNTY in the administration of the
CDBG grant.
8. The GRANTEE agrees to assist the COUNTY with the monitoring of the CDBG
contract by the DEPARTMENT.
9. The GRANTEE will assist in the preparation and approval of invoices for submission to
the COUNTY for expenses incurred related to the administration and delivery of the
CDBG Program.
10. The GRANTEE will assist in the preparation of documentation for any modification or
revision for submission to the COUNTY including required advertising for
modifications.
11. The GRANTEE will be responsible for any cost overruns that are not or cannot be
covered by the program.
12. GRANTEE will ensure work to be performed under this contract is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968 as
amended, 12. U.S.C. 170lu. The purpose of §1701u is to ensure that employment and
other economic opportunities generated by HUD assistance or HUD-assisted projects
shall, to the greatest extent feasible, be directed to low-and very low- income persons,
particularly persons who are recipients of HUD assistance for Housing. The parties to
this contract agree to comply with HUD's regulations in 24 CFR Part 75.
a. The GRANTEE agrees to comply with HUD’s regulations in 24 CFR Part 75,
which implement Section 3. As evidenced by execution of this contract certify
that they are under no contractual or other impediment that would prevent them
from complying with the requirements of 24 CFR Part 75.
b. The GRANTEE agrees to identify current employees on its payroll when the
contract or subcontract was awarded who will be working on the Section 3
covered project or activity and certify that any vacant employment
opportunities, including training positions, that are filled:
i. After the contractor is selected; and
ii. With persons other than those that meet the definition of a Section 3
resident, were not filled to circumvent the contractor’s Section 3
obligations.
c. The GRANTEE agrees to maintain records documenting Section 3 residents that
were hired to work on previous Section 3 covered projects or activities that were
retained by the GRANTEE for subsequent Section 3 covered projects or
activities.
d. The GRANTEE agrees to post signs advertising new employment, training, or
Sub-contracting opportunities that will be available as a result of the Section 3
covered projects and activities in conspicuous places at the work site where
potential applicants can review them.
e. The GRANTEE agrees to hire, to the greatest extent feasible, Section 3 residents
as new hires, or provide written justification to the recipient that is consistent
with 24 CFR Part 75, describing why it was unable to meet minimum numerical
hiring goals, despite its efforts to comply with the provisions of this clause.
f. The GRANTEE agrees that in order for a Section 3 resident to be counted as a
new hire, the resident must work a minimum of 50 percent of the average staff
hours worked for the category of work for which they were hired throughout the
duration of time that the category of work is performed on the covered project.
g. The GRANTEE agrees to award, to the greatest extent feasible, 10 percent of
the total dollar amount of subsequent subcontracts awarded in connection with
the Section 3 covered project 24 or activity to Section 3 businesses, or provide
written justification that is consistent with 24 CFR Part 75 describing why it was
unable to meet that goal, despite their efforts to comply with the provisions of
this clause.
h. The GRANTEE agrees to notify Section 3 residents and businesses about the
availability of new employment, training, or contracting opportunities created as
a result of the receipt of Section 3 covered financial assistance, as stipulated by
the awarding agency.
i. The GRANTEE agrees to verify the eligibility of prospective Section 3 residents
and businesses for employment, training, or subcontracting opportunities, in
accordance with the recipient’s policies and procedures.
j. The GRANTEE agrees to provide priority consideration to eligible residents and
businesses in accordance with 24 CFR Part 75, as applicable.
k. The GRANTEE agrees to notify potential bidders on subcontracts that are
associated with Section 3 covered projects and activities about the requirements
of Section 3 and include this Section 3 clause in its entirety into every
subcontract awarded.
l. The GRANTEE agrees to impose sanctions upon any subcontractor that has
violated the requirements of this clause in accordance with the awarding
agency’s Section 3 policies and procedures.
m. The GRANTEE agrees to comply with all monitoring, reporting, recordkeeping,
and other procedures specified by the awarding agency.
n. If applicable, the GRANTEE agrees to notify each labor organization or
representative of workers with which the recipient, sub-recipient, or contractor
has a collective bargaining or similar labor agreement or other understanding, if
any, about its obligation to comply with the requirements of Section 3 and
ensure that new collective bargaining or similar labor agreements provide
employment, registered apprenticeship, training, subcontracting, or other
economic opportunities to Section 3 residents and businesses, and to post notices
in conspicuous places at the work site advising the labor union, organization, or
workers’ representative of the contractor’s commitments under this part.
o. Failure to comply with this clause shall result in the imposition of sanctions.
Appropriate sanctions for noncompliance may include: Requiring additional
certifications or assurances of compliance; termination or cancelation of the
contract for default; refraining from entering into subsequent contracts;
repayment of funds, and withholding a portion of contract awards.
13. The GRANTEE shall not proceed with the following, if applicable, without final
approval from the COUNTY:
a. Providing public services to eligible persons;
b. Site preparation or construction;
c. Approve any change orders involving scope of work or changes in the
PROJECT.
14. The GRANTEE shall provide a progress report to the COUNTY in form and content as
required by the COUNTY quarterly following the execution of this agreement.
8. PAYMENT PROVISIONS
The COUNTY shall release payment to GRANTEE upon receipt of an executed invoice
from the GRANTEE in the total amount of the certified payment request for work completed
or supplies provided by the GRANTEE and upon approval by the DEPARTMENT.
GRANTEE agrees that it will use the funds granted hereunder, or as much as may be
necessary, to carry out the PROJECT in accordance with the terms of this Agreement.
Costs allocated to the PROJECT shall be limited to that set forth in the CDBG application
budget and scope of services. GRANTEE acknowledges that COUNTY is not responsible
for payment of invoices for work and/or materials that are expended which are outside
of the scope of services and/or are not approved by the DEPARTMENT.
COUNTY shall have the right to disapprove any expenditure made by the GRANTEE that is
not in accordance with the terms of this Agreement and the COUNTY may adjust payment
to the GRANTEE accordingly. In the event that the COUNTY has approved
expenditure and paid an invoice to GRANTEE that is later disapproved by the
DEPARTMENT, GRANTEE shall reimburse the COUNTY for any funds which were
disapproved upon request by the COUNTY within ten (10} days of the request by the
COUNTY.
If the GRANTEE does not use all or a portion of the funds paid under the terms of this
Agreement for the purposes of and in accordance with this Agreement, the GRANTEE shall
be liable to the COUNTY for the amount of funds unused or improperly used and shall
return said funds to the COUNTY on its own initiative or within 10 days upon written
demand.
In the event the COUNTY shall be entitled to repayment of all or portion of the funds
granted herein, the repayment shall include all interest income, accumulations and the
monetary equivalent of any appreciation in value of any property (real, personal or mixed)
purchased with the funds granted them.
SUBRECIPIENT acknowledges that payments for services under this Agreement are federal
funds and as such: SUBRECIPIENT shall be bound by the requirements for Subrecipients as
outlined in Appendix D- Uniform Guidance. If SUBRECIPIENT is contributing toward the
general contract cost, SUBRECIPIENT certifies that the federal funds to be used under this
Agreement do not replace or supplant in any way state, local, or private funds used for
already existing services.
GRANTEE shall retain financial records relating to the PROJECT for at least twelve (12)
years from the date of completion.
The GRANTEE shall report quarterly all program income (as defined at 24 CFR 570.500(a))
generated by activities carried out with CDBG funds made available under this contract. The
use of program income by the GRANTEE shall comply with the requirements set forth at 24
CFR 570.504. By way of further limitations, the GRANTEE may use such income during
the contract period for activities permitted under this contract and shall reduce requests for
additional funds by the amount of any such program income balances on hand. All
unexpended program income shall be returned to the COUNTY at the end of the contract
period. Any interest earned on cash advances from the U.S. Treasury and from funds held in
a revolving fund account is not program income and shall be remitted promptly to the
COUNTY.
9. FISCAL RESPONSIBILITIES
As a GRANTEE of Federal funding, the GRANTEE is subject to provisions of 2 CFR Part
200 Subpart F that establishes audit requirements and defines responsibilities for non-federal
or nonprofit organizations.
10. PROCUREMENT STANDARDS
The GRANTEE shall establish procurement procedures to ensure that materials and services
are obtained in a cost-effective manner. When procuring materials and/or services to be
provided under this agreement, GRANTEE shall comply, at a minimum, with 2 CFR Part
200.
11. NON-DISCRIMINATION
The GRANTEE shall not discriminate against any person or family on the ground of race,
color, national origin, sex, religion, family status, or handicap in the use, lease, rental sale, or
occupancy of any residential unit in the Property. Age discrimination and discrimination
against minor dependents are also not permitted. GRANTEE shall further meet the equal
opportunity and fair housing requirements of 24 CFR Part 570.
12. INSURANCE AND TAX LIABILITY REQUIREMENTS
GRANTEE shall hold the COUNTY harmless from and indemnify the COUNTY against
any and all claims, demands and actions based or arising out of any activities performed by
the GRANTEE and its employees and agents under this Agreement, and shall defend any
and all actions brought against the COUNTY based upon any such claims or demands. It is
understood and agreed that the GRANTEE's standard liability insurance policies shall
protect, or shall be endorsed to protect, the COUNTY from claims of bodily injury and/or
property damage arising out of any services performed by GRANTEE or its employees
under this Agreement, including business and non-business invitees, and their property and
all other property sustaining damage as a direct or indirect result of the execution of this
PROJECT when validly present on GRANTEE's premises whether or not actually engaged
in the PROJECT at the time the claim inures. Such policies shall not include any provision
limiting the existing sovereign immunity of the COUNTY or of its agents or employees.
Upon request, GRANTEE shall furnish to the COUNTY proof of insurance as required by
this paragraph.
GRANTEE shall provide workman's compensation insurance where the same is required and
shall accept full responsibility for the payment of premiums for workmen's compensation
and social security and any other taxes or payroll deductions required by law for its
employees who are performing services specified by this Agreement.
GRANTEE shall carry minimum Commercial General Liability limits of $1,000,000 per
occurrence and $1,000,000 aggregate.
GRANTEE shall maintain Workers' compensation and Employers' Liability Coverage at
statutory limits.
A certificate of insurance shall be provided by the GRANTEE as evidence of coverage,
naming the County of Franklin as both the Certificate Holder and Additional Insured for the
PROJECT. The GRANTEE agrees to provide the County at least 30 days' notice of policy
cancelation or non-renewal.
The Grantee shall comply with the bonding and insurance requirements of 2 CFR Part 200.
13. ENVIRONMENTAL CLEARANCE
The GRANTEE will be responsible for complying with the Environmental Review and
subsequent environmental clearance procedures, of the PROJECT site before PROJECT
commencement and release of funding.
14. ENVIRONMENTAL CONDITIONS
1. Air and Water
The GRANTEE agrees to comply with the following requirements insofar as they apply
to the performance of this Agreement: Clean Air Act, 42 U.S.C. , 7401, et seq.; Federal
Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318
relating to inspection, monitoring, entry, reports, and information, as well as other
requirements specified in said Section 114 and Section 308, and all regulations and
guidelines issued thereunder; Environmental Protection Agency (EPA) regulations
pursuant to 40 CFR Part 50, as amended.
2. Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4001), the COUNTY shall assure that for activities located in an area identified
by the Federal Emergency Management Agency (FEMA) as having special flood
hazards, flood insurance under the National Flood Insurance Program is obtained and
maintained as a condition of financial assistance for acquisition or construction purposes
(including rehabilitation).
3. Lead-Based Paint
The GRANTEE agrees that any construction or rehabilitation of residential structures
with assistance provided under this Agreement shall be subject to HUD Lead-Based
Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations
pertain to all CDBG-assisted housing and require that all owners, prospective owners,
and tenants of properties constructed prior to 1978 be properly notified that such
properties may include lead-based paint. Such notification shall point out the hazards of
lead-based paint and explain the symptoms, treatment and precautions that should be
taken when dealing with lead-based paint poisoning and the advisability and availability
of blood lead level screening for children under seven. The notice should also point out
that if lead-based paint is found on the property, abatement measures may be
undertaken. The regulations further require that, depending on the amount of Federal
funds applied to a property, paint testing, risk assessment, treatment and/or abatement
may be conducted.
In addition, housing assisted with CDBG funds is subject to the Lead-Based Paint
Poisoning Prevention Act (42 USC 4821-4846), the Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42 USC 4851-4856), and implementing regulations at 24
CFR Part 35, subparts A, B, J, K, M, and R.
4. Historic Preservation
The GRANTEE agrees to comply with the Historic Preservation requirements set forth
in the National Historic Preservation Act of 1966, as amended (16 U.S.C.
470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties, insofar as they apply to the
performance of this agreement.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty years old or older or that
are included on a federal, state, or local historic property list.
15. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS
GRANTEE agrees to abide by all federal, state, and local laws and regulations contained in the
Statement of Assurance included herein as Appendix C. GRANTEE guarantees that it will comply
with all applicable federal, state and program specific rules, regulations, laws and procedures
whether contained in this Agreement or otherwise.
GRANTEE will comply with future requirements determined by the DEPARTMENT or
COUNTY. GRANTEE shall assure that any contractor, engineer, or architect wilt follow
said requirements and include all federal and state regulations as part of Agreements with
such providers
.
16. CONTACTOR RESPONSIBILITY PROGRAM COMPLIANCE
GRANTEE certifies that it is not currently under suspension or debarment by the
Commonwealth of Pennsylvania or federal government and agrees that it will not conduct
business or enter into any binding agreement for services, material or other activities with
persons, partnership or corporations or any other entity who have been or are currently under
suspension or debarment by the Commonwealth of Pennsylvania or federal government. If,
under this Agreement, the GRANTEE employs or enters into any subcontracts with
subcontractors/individuals who are currently suspended or debarred by the Commonwealth
of Pennsylvania or federal government, or who becomes suspended or debarred during the
term of this Agreement, the COUNTY shall have the right to require the GRANTEE to
terminate such subcontracts or employment.
17. ASSIGNMENT, TRANSFER, COLLATERAL USE
This Agreement shall be binding upon and benefit the parties hereto and their successor and
assigned where permitted hereunder. The GRANTEE may not assign or transfer its right
hereunder without the prior written consent of the COUNTY. Approval of an assignment or
transfer does not establish any legal relationship between the COUNTY and any other third
party, and under no circumstances shall the COUNTY be held liable for any act or omission
committed pursuant to such an assignment.
18. INDEPENDENT CONTRACTOR
Notwithstanding, anything contained herein to the contrary, the rights and duties hereby
granted to and assumed by the GRANTEE are those of an independent contractor only.
Nothing contained herein shall be so construed as to create an employment, agency or
partnership relationship between the COUNTY and the GRANTEE.
19. ACKNOWLEDGEMENT OF COMMONWEALTH ASSISTANCE
Any publication concerning a PROJECT financed by the DEPARTMENT will acknowledge
assistance as follows: "This Project was financed in part by a grant from the U.S.
Department of Housing & Urban Development, under the administration of the PA
Department of Community and Economic Development". GRANTEE will purchase, erect
and dismantle signs acknowledging said financial assistance at the PROJECT site at
commencement and completion.
20. INDIRECT COSTS
If indirect costs are charged, the GRANTEE will develop an indirect cost allocation plan for
determining the appropriate GRANTEE's share of administrative costs and shall submit such
plan to the COUNTY for approval, in a form specified by the COUNTY.
21. USE AND REVERSION OF ASSETS
The use and disposition of real property and equipment under this Agreement shall be in
compliance with the requirements of 2 CFR Part 200 and 24 CFR Part 570.502, 570.503, and
570.504 as applicable, which include but are not limited to the following:
The GRANTEE shall transfer to the COUNTY any CDBG funds on hand and any accounts
receivable attributable to the use of funds under this Agreement at the time of expiration,
cancellation, or termination.
Real property under the GRANTEE'S control what was acquired or improved, in whole or in
part, with CDBG funds under this Agreement in excess of $25,000 shall be used to meet one
of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after
expiration of this Agreement. If the GRANTEE fails to use CDBG assisted real property in a
manner that meets a CDBG National Objective for the prescribed period of time, the
GRANTEE shall pay the COUNTY an amount equal to the current fair market value of the
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, the property. Such payment shall constitute program
income to the COUNTY. The COUNTY retains real property acquired or improved under
this Agreement after the expiration of the five-year period. The COUNTY may, after grant
closure by DCED, convey said property to the GRANTEE as they chose.
In all cases in which equipment acquired, in whole or in part, with funds under this
Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to
that funds received under this Agreement were used to acquire the equipment). Equipment
not needed by the GRANTEE for activities under this Agreement shall be (a) transferred to
the COUNTY for the CDBG program or (b) retained after compensating the COUNTY [an
amount equal to the current fair market value of the equipment less the percentage of non-
CDBG funds used to acquire the equipment].
22. COST PRINCIPLES
The GRANTEE shall administer its program in conformance with 2 CFR Part 200. These
principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
23. CLIENT DATA
The GRANTEE shall maintain client data demonstrating client eligibility for services
provided. Such data shall include, but not be limited to, client name, address, income level or
other basis for determining eligibility, and description of service provided. Such information
shall be made available to COUNTY monitors or their designees for review upon request.
The COUNTY will assist with data collection, upon request.
24. DISCLOSURE
The GRANTEE understands that client information collected under this contract is private
and the use or disclosure of such information, when not directly connected with the
administration of the COUNTY's or GRANTEE's responsibilities with respect to services
provided under this contract, is prohibited unless written consent is obtained from such
person receiving service and, in the case of a minor, that of a responsible parent/ guardian.
25. FEES
The GRANTEE is prohibited from charging servicing, origination, or other fees for the costs
of administering the CDBG Program, except as permitted by 24 CFR Part 570.
26. RECORDS
1. All original records pertinent to this agreement shall be retained by the GRANTEE for
twelve (12) years following the date of termination of this agreement or of submission of
the final close-out report, whichever is later, with the following exceptions:
A. If any litigation, claim or audit is started before the expiration of the twelve (12)
year period and extends beyond the twelve (12) period, the records will be
maintained until all litigation, claims or audit findings involving the records have
been resolved;
B. Records for the disposition of non-expendable personal property valued at
$1,000 or more at the time of acquisition shall be retained for twelve (12) years after
final disposition;
C. Records relating to real property acquisition shall be retained for the period of
affordability.
2. All records, including supporting documentation of all acquisition costs, shall be
sufficient to determine compliance with the requirements and objectives of related laws
and regulations.
3. The GRANTEE, its employees and agents, including all subcontractors or consultants to
be paid from funds provided under this agreement, shall allow access to its records at
reasonable times to the COUNTY its employees and agents, to the DEPARTMENT, and
to HUD. 'Reasonable' shall be construed according to the circumstances, but ordinarily
shall mean during normal business hours of 8:30 AM to 4:30 PM, local time, on Monday
through Friday. The term 'agents' shall include, but is not limited to, auditors retained by
the COUNTY, the DEPARTMENT, and/or HUD.
4. During construction, at a minimum, the GRANTEE shall provide the COUNTY with a
narrative quarterly report and a close-out report. The GRANTEE shall comply with any
additional reporting requirements contained in 24 CFR Part 570. Please refer to Section
8 of this Agreement.
5. Failure to provide access to records will be considered default of said agreement.
27. NOTICES
Notices, approvals, letters from DCED, etc. required by this Agreement shall be in writing
and delivered via mail {postage prepaid), commercial courier, or personal delivery, or other
electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of
delivery or sending. All notices and other written communications under this Agreement
shall be addressed to the individuals in the capacities indicated below, unless otherwise
modified by subsequent written notices.
Communication and details concerning this Agreement shall be directed to the attention of
the parties' respective designees at the following contact addresses:
FRANKLIN COUNTY
COMMISSIONERS OFFICE
Attn: Carrie E. Gray, County Administrator
272 North Second Street
Chambersburg, Pennsylvania 17201
HABITAT FOR HUMANITY OF FRANKLIN COUNTY
Attn: Mark Story
502 Lincoln Way E
Chambersburg, PA 17201
28. AUDITS & INSPECTIONS
All GRANTEE records with respect to any matters covered by this Agreement shall be made
available to the COUNTY, grantor agency, and the Comptroller General of the United States
or any of their authorized representatives, at any time during normal business hours, as often
as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data.
Any deficiencies noted in audit reports must be fully cleared by the GRANTEE within 30
days after receipt by the GRANTEE. Failure of the GRANTEE to comply with the above
audit requirements will constitute a violation of this contract and may result in the
withholding of future payments. The GRANTEE hereby agrees to have an annual agency
audit conducted in accordance with current Grantee policy concerning GRANTEE audits
and 2 CFR Part 200. GRANTEE further agrees that it is bound by and shall comply with all
requirements of Uniform Guidance, 2 C.F.R. §200 et seq.
29. CONFLICT OF INTEREST
1. No person who is an employee, agent, consultant, officer, or elected official or appointed
official of the COUNTY, or of any designated public agencies, or subcontractors which
are receiving CDBG funds or who exercise or have exercised any functions or
responsibilities with respect to CDBG activities or who are in the position to participate
in a decision making process or gain inside information with regard to such activities,
may obtain a personal or financial interest or benefit from the activity, or have an
interest in any contract, subcontract, or agreement with respect thereto, or the proceeds
thereunder, either for themselves or those with whom they have family or business ties
during their tenure or for one year thereafter.
2. Upon the written request of the GRANTEE, a HUD loan/grant may be an exception to
the provisions of this section on a case by case basis if the COUNTY determines that
such an exception will serve to further the purpose of the CDBG Program and the
effective and efficient administration of the GRANTEE's PROJECT and if the Auditor
permits such expenditure.
30. PERSONNEL & PARTICIPANT CONDITIONS
1. Civil Rights
a. Compliance - The GRANTEE agrees to comply with the state civil rights
ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title
VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section
109 of Title I of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with
Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order
11063, and Executive Order 11246 as amended by Executive Orders 11375,
11478, 12107 and 12086.
b. Nondiscrimination - The GRANTEE agrees to comply with the
non-discrimination in employment and contracting opportunities laws,
regulations, and executive orders referenced in 24 CFR Part 570.607 or its
successor, as revised by Executive Order 13279. The applicable
non-discrimination provisions in Section 109 of the HCDA are still applicable.
2. Affirmative Action
a. Approved plan
The GRANTEE agrees that it shall be committed to carry out pursuant to the
HUD's specifications, an Affirmative Action Program in keeping with the
principles as provided in President's Executive Order 11246 of September 24,
1966, as amended.
b. Women-and Minority-Owned Businesses (W/MBE)
The GRANTEE will use its best efforts to afford small businesses, minority
business enterprises, and women's business enterprises the maximum practicable
opportunity to participate in the performance of this contract. As used in this
contract, the terms "small business" means a business that meets the criteria set
forth in Section 3(a) of the Small Business Act, as amended (15 U.S.C. 632),
and "minority and women's business enterprise" means a business at least fifty-
one (51) percent owned and controlled by minority group members or women.
For the purpose of this definition, "minority group members" are African
Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage
Americans, Asian Americans, and American Indians. The GRANTEE may rely
on written representations by businesses regarding their status as minority and
female business enterprises in lieu of an independent investigation.
3. Employment Restrictions
a. Labor Standards
Labor in accordance with the Davis-Bacon Act as amended, the provisions of
Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all
other applicable Federal, state and local laws and regulations pertaining to labor
standards insofar as those acts apply to the performance of this Agreement. The
GRANTEE agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C.
874 et seq.) and it's implementing regulations of the U.S. Department of Labor
at 29 CFR Part 5. The GRANTEE shall maintain documentation that
demonstrates compliance with hour and wage requirements of this part. Such
documentation shall be made available to the COUNTY for review upon
request.
The GRANTEE agrees that, except with respect to the rehabilitation or
construction of residential property containing less than eight (8) units, all
contractors engaged under contracts in excess of $2,000.00 for construction,
renovation or repair work financed in whole or in part with assistance provided
under this contract, shall comply with Federal requirements adopted by the
COUNTY pertaining to such contracts and with the applicable requirements of
the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7
governing the payment of wages and ratio of apprentices and trainees to journey
workers; provided that, if wage rates higher than those required under the
regulations are imposed by state or local law, nothing hereunder is intended to
relieve the GRANTEE of its obligation, if any, to require payment of the higher
wage. The GRANTEE shall cause or require to be inserted in full, in all such
contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
4. Conduct
a. Assignability
The GRANTEE shall not assign or transfer any interest in this Agreement
without the prior written consent of the COUNTY thereto.
b. Subcontracts
i. Monitoring
The GRANTEE will monitor all subcontracted services on a regular
basis to assure contract compliance. Results of monitoring efforts shall
be summarized in written reports and supported with documented
evidence of follow-up actions taken to correct areas of noncompliance.
ii. Content
The GRANTEE shall cause all of the provisions of this contract in its
entirety to be included in and made a part of any subcontract executed in
the performance of this Agreement.
iii. Selection Process
The GRANTEE shall undertake to ensure that all subcontracts let in the
performance of this Agreement shall be awarded on a fair and open
competition basis in accordance with applicable procurement
requirements. Executed copies of all subcontracts shall be forwarded to
the COUNTY by the GRANTEE along with documentation concerning
the selection process.
c. Hatch Act
The GRANTEE agrees that no funds provided, nor personnel employed under
this Agreement, shall be in any way or to any extent engaged in the conduct of
political activities in violation of Chapter 15 of Title V of the U.S. Constitution.
5. Lobbying
The GRANTEE hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of
it, to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions; and
c. It will require that the language of paragraph (iv) of this certification be included
in the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative agreements) and
that all subcontractors shall certify and disclose accordingly:
d. Lobbying Certification:
This certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this
certification is a prerequisite for making or entering into this transaction
imposed by section 1352, title 31, U.S.C. Any person who fails to file the
required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
31. AMENDMENTS
A properly executed Agreement amendment is required to change the effective dates of this
Agreement, to amend the grant amount or to make major changes in the approved program
scope, objectives or methods. Such an amendment must be executed if there is a significant
change in the activities or services to be conducted under this Agreement. However, the
COUNTY may, in its discretion, amend this Agreement to conform with Federal, state or
local governmental guidelines, policies and available funding amounts, or for other reasons.
Only if such amendments result in a change in the funding, the scope of services, or schedule
of the activities to be undertaken as part of this Agreement, shall such modifications require
incorporation by written amendment signed by both the COUNTY and GRANTEE. Any
amendment(s) to the Agreement shall not invalidate this Agreement, nor relieve or release
the COUNTY or GRANTEE from its obligations under this Agreement.
32. CLOSE-OUTS
The GRANTEE's obligation to the COUNTY shall not end until all close-out requirements
are completed. Activities during this close-out period shall include, but are not limited to:
making final payments, disposing of program assets (including the return of all unused
materials, equipment, unspent cash advances, program income balances, and accounts
receivable to the Grantee), and determining the custodianship of records. Notwithstanding
the foregoing, the terms of this Agreement shall remain in effect during any period that the
COUNTY has control over CDBG funds, including program income.
33. SEVERABILITY
Should any section or any part of any section of this Agreement be rendered void, invalid, or
unenforceable by any court of law, for any reason, such a determination shall not render
void, invalid, or unenforceable any other section or part of any section of this Agreement.
34. ENFORCEMENT OF THE AGREEMENT
Any violation of this agreement that remains uncured thirty (30) days after the GRANTEE's
receipt of written notice from the COUNTY (by certified or registered mail) of such
violation may, at the option of the COUNTY, be addressed by an action for damages or
equitable relief, including, but not limited to, a foreclosure on any mortgage or security
interest, an action to recover unpaid principal, accrued interest and fees, the sale, transfer,
lease or other conveyance of any property seized as a result of the legal actions described
above, or any other remedy provided at law or in equity. In addition to the remedies of the
COUNTY set forth above, if the GRANTEE materially fails to comply with the terms of this
agreement, the COUNTY may suspend or terminate this agreement and, in addition, the
COUNTY may terminate this agreement for convenience in accordance with 24 CFR Part
85.44.
The prevailing party in any action hereunder shall be entitled to receive from the non-
prevailing party reasonable attorney’s fees and costs of suit incurred therein.
All claims arising hereunder shall be filed in the Court of Common Pleas for the Thirty-
Ninth Judicial District of Pennsylvania, Franklin County Branch. This Agreement shall be
governed by, construed, interpreted and enforced in accordance with the law of the
Commonwealth of Pennsylvania, without regard to conflict of laws principles.
35. FAILURE TO PERFORM
Should the GRANTEE fail to perform the scope of services within the time of performance, and
other requirements within this Agreement may be required to return the CDBG dollars granted to the
COUNTY.
36. SUSPENSION OF THE AGREEMENT
Upon written notice by the COUNTY at any time during the period covered under this Agreement,
the COUNTY may suspend payments and/ or request suspension of all or any part of the Agreement.
The COUNTY may give such notice to suspend for the following reasons:
1. Violations of laws, rules and/ or regulations, audit exceptions, misuse of funds, failure to
submit required reports, or when responsible public officials, or private citizens make
allegations of mismanagement, malfeasance or criminal activity.
2. When, in the opinion of the COUNTY, the activities cannot be continued in such manner
as to adequately fulfill the intent of statute or regulations due to an act of God, strike, or
disaster.
3. When the COUNTY receives notice from the DEPARTMENT that the contract between
the COUNTY and DEPARTMENT has been suspended or terminated for whatever
reason.
4. Any other material breach of this agreement, as determined by the COUNTY.
(THIS SPACE LEFT BLANK INTENTIONALLY)
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37.TERMINATION OF THE AGREEMENT
The COUNTY may terminate this Agreement at any time for its convenience or for any other reason
if it determines that termination is in its best interest, or is otherwise appropriate, by giving written
notice to the GRANTEE of such termination and specifying the effective date thereof. Termination
pursuant to this section shall not be applicable to funds the GRANTEE is legally or contractually
obligated to pay as a result of PROJECT activities entered into prior to the date that it receives
written notice of termination. All grant monies not legally or contractually obligated, plus accrued
interest shall be returned to the COUNTY on or before the effective date of termination and all
PROJECT records shall be made available to the COUNTY.
IN WITNESS WHEREOF the parties have hereunto set their hands and seals on the date and year first
above written.
ATTEST:
_____________________________________
BY: CARRIE E. GRAY
ATTEST:
__________________________________
BY:
HABITAT FOR HUMANITY:
__________________________________
BY: MARK STORY
DIRECTOR OF ADVANCEMENT
COUNTY ADMINISTATOR
COUNTY OF FRANKLIN
___________________________________
BY: DEAN A. HORST
CHAIRMAN, BOARD OF COMMISSIONERS
___________________________________
BY: JOHN T. FLANNERY
MEMBER, BOARD OF COMMISSIONERS
___________________________________
BY: ROBERT G. ZIOBROWSKI
MEMBER, BOARD OF COMMISSIONERS
Mark Story (Jun 9, 2026 08:32:51 EDT)
Mark Story
Beth Wilber (Jun 9, 2026 11:05:25 EDT)
Beth Wilber