Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
https://www.hudexchange.info/programs/cdbg-dr/toolkits/program-launch/
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GENERAL DISCLAIMER: This CDBG Disaster Recovery (CDBG-DR) subrecipient agreement template is a
sample only. It identifies the minimum amount of content for consistency with the Entitlement and State CDBG
Program requirements, including 24 CFR 570.503 (applicable to local government grantees, and to some state
grantees by waiver and alternative requirement published in the Federal Register) and 2 CFR 200.330 through
200.332 (applicable to state and local government grantees). This sample notes some differences between
requirements for state and local government grantees. CDBG-DR awards generally are subject to waivers and
modifications of the Entitlement and State CDBG Program requirements. As a result, this template will require
modifications to conform to the requirements attached to the particular CDBG-DR award as outlined in
applicable Federal Register Notices.
Grantees must ensure that every subrecipient agreement satisfies applicable CDBG-DR award requirements
as well as state and local laws. Grantees should also include provisions that in the grantee’s determination are
sufficient to reduce risk to the grantee from subrecipient noncompliance and to ensure that the grantee can
meet its own responsibility to HUD for performance and financial reporting.
Grantees should tailor the subrecipient agreement to the program or project that the subrecipient will carry out,
deleting requirements that do not apply to the use of the funds, and adding additional information about the
eligible activity, national objective, recordkeeping, and other requirements for the use of the funds. Grantees
may attach the applicable regulations from 24 CFR part 570, or incorporate them into the agreement.
TEMPLATE – SUBRECIPIENT AGREEMENT*
AGREEMENT BETWEEN [Grantee] AND [Subrecipient]
FOR
[NAME OF CDBG-DR PROJECT OR PROGRAM]
THIS AGREEMENT is entered this day of , 20 by and between the
(the
“Grantee”) and [insert name of subrecipient, which must match the name associated with the subrecipient’s
unique entity identifier under the “General Award Information” section below] (the “Subrecipient”).
I. RECITALS
WHEREAS, Pursuant to Public Law XXX-XXX (the Appropriations Act) and the Federal Register Notice dated
[date], at [insert citation to the Federal Register Notice that allocated CDBG-DR funds awarded to Grantee], the
U.S. Department of Housing and Urban Development (“HUD”) has awarded $X in Community Development
Block Grant Disaster Recovery (CDBG-DR) funds to the Grantee for activities authorized under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) and described in the Grantee’s
Action Plan (the “Action Plan”); and
WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds to carry
out a part of the Grantee’s Federal award by committing $[indicate portion of Grantee’s Federal award available
for use by Subrecipient] of the Grantee’s Federal award, pursuant to this Subrecipient Agreement (the
“Agreement”); and
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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WHEREAS, the CDBG-DR funds made available for use by the Subrecipient under this Agreement constitute a
subaward of the Grantee’s Federal award, the use of which must be in accordance with requirements imposed
by Federal statutes, regulations, and the terms and conditions of the Grantee’s Federal award; and
WHEREAS, [insert description of recovery need addressed by subaward];
WHEREAS, the Subrecipient has legal authority to enter this agreement, and the Subrecipient’s governing body
has duly adopted the [insert resolution, motion, or similar action] dated XXXX, authorizing the Subrecipient to
enter this agreement with the Grantee, and by signing this agreement, to assure the Grantee that it will comply
with all the requirements of the subaward described herein; and
NOW, THEREFORE, in consideration of the need for recovery from [insert disaster] and the premises and mutual
covenants described herein, the parties mutually agree to the terms described in this Agreement.
II. GENERAL AWARD INFORMATION
The subaward from the Grantee to the Subrecipient, which is described below, is for the purpose of carrying out
a portion of a Federal award described in section I of this agreement, and creates a Federal assistance
relationship with the Subrecipient. This agreement must be updated to reflect any changes to the federal award
and the following award information [when some of this information is not available, the pass-through entity must
provide the best information available to describe the Federal award and subaward]:
Contact information:
Grantee: Subrecipient:
(name of awarding official) (name of primary contact)
Title: Title:
Grantee Name Subrecipient Name
[Address] [Address]
[City, State, ZIP] [City, State, ZIP]
[Telephone] [Telephone]
[Fax Number] [Fax Number]
Federal Award Identification Number:
CFDA Number and Name: CFDA Number and Name [the pass-through entity must identify the dollar amount
made available under each Federal award and the CFDA number at time of disbursement]:
Federal Award Date: [the date when the Federal award is signed by the authorized official of the Federal
awarding agency]
Indirect cost rate for the Federal award (including if the de minimis rate is charged per §200.414 Indirect (F&A)
costs): [2 CFR 200.331(a)(1)(xiii) asks for this information to be included in the subrecipient agreement, however,
it should be distinguished from the indirect cost rate applicable to the subrecipient]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Federal award project description: [Award title and description of the purpose of each funding action, if any. The
description should capture the overall purpose of the award and, if there are multiple funding actions, sufficient
description to define the need for each funding action.]
Is this award for research and development? [State yes or no]
Subrecipient's unique entity identifier:
Subaward Period of Performance: [insert Start and End Date]
Total Amount of the Federal Award Committed to the Subrecipient by the Grantee: [insert amount]
Amount of Federal funds obligated by this agreement: [insert amount]
Total Amount of Federal Funds Obligated to the Subrecipient: [total funds obligated to the subrecipient by the
grantee, including the current obligation]
Indirect cost rate applicable to the Subaward to the Subrecipient (more information on indirect costs can be found
in section VI. B. below): [Insert approved federally recognized indirect cost rate negotiated between the
subrecipient and the Federal Government or, if no such rate exists, either a rate negotiated between the pass-
through entity and the subrecipient (in compliance with 2 CFR part 200), or a de minimis indirect cost rate as
defined in §200.414(f) Indirect (F&A) costs]
III. SCOPE OF SERVICE (Refer to the Guide to the Subrecipient Agreement to complete this
section)
A.
Eligible Use of Funds
As a condition of receiving this subaward, the Subrecipient shall administer the [insert name of CDBG-DR
program or project], which includes performing all of the work described in this section. The Subrecipient shall
complete the activities in a manner satisfactory to the Grantee and consistent with the terms of conditions of
this agreement and applicable Federal statutes and regulations.
Prohibited Activities
The Subrecipient may only carry out the activities described in this agreement. The Subrecipient is prohibited
from charging to the subaward the costs of CDBG ineligible activities, including those described at 24 CFR
570.207, and from using funds provided herein or personnel employed in the administration of activities under
this agreement for political activities, inherently religious activities, or lobbying.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Program Delivery (CDBG Eligible Activities)
Activity #1 [Insert CDBG eligible activity citation and regulatory language, or if subrecipient’s activities will
be eligible under a particular waiver and alternative requirement, include the specific waiver and
alternative requirement.
Also insert complete description of activity to be undertaken including what products or services
are to be performed, where they are to be provided, for whom they are to be provided, how they
are to be provided. This description should include the provision of all services, labor, materials,
supplies, and equipment that are required or reasonably inferable to complete the activity. The
description should also provide enough detail for the Grantee and HUD to be able to accurately
monitor the activities performed by the Subrecipient.]
Activity #2 [Same description as above]
Activity #3 [Same description as above]
[Add other activities as necessary]
Pre-Award Costs
[Insert specific requirements related to pre-award costs, or prohibition on pre-award costs applicable to the
Subrecipient. All Subrecipients are limited to pre-award costs permitted by the applicable Federal Register
notices governing the CDBG-DR award. For local government grantees, these costs also are limited to those
authorized under 24 CFR 570.200(h).]
General Administration of Subaward
[Add description of general administrative services to be performed by the Subrecipient in support of activities
noted above, if any, and include a limit on the amount of program administration costs allowable under the
subaward. Grantee may specify that all costs are activity delivery costs (ADCs). ADCs are those allowable
costs incurred for implementing and carrying out eligible CDBG activities. All ADCs are allocable to a CDBG
activity, including direct and indirect costs integral to the delivery of the final CDBG-assisted activity. For more
information about classifying costs as program administration costs or activity delivery costs, please see CPD
notice CPD-13-07, which is available on the HUD Exchange.]
B.
National Objectives
All activities funded with CDBG-DR funds must meet the criteria for one of the CDBG program’s National
Objectives.
The Subrecipient certifies that the activities carried out under this agreement shall meet the following national
objectives and satisfy the following criteria:
[indicate which National Objective each activity will satisfy, and include the citation for the criteria the Subrecipient
must meet for demonstrating compliance with each identified National Objective]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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[Activity #1]
[national objective, e.g. Low- to moderate-income housing]
[criteria Subrecipient must satisfy e.g., 24 CFR 570.208(a)(3)]
[records necessary to demonstrate compliance with that criteria (local government grantees follow 24
CFR 570.606)]
[Add national objective information for other activities as necessary]
C.
Levels of Accomplishment –Performance Goals and Timelines
The Subrecipient shall complete the activities required under this agreement in accordance with the following
timeframes and performance goals associated with each of the activities:
Activity
Performance Goal
Timeframe for Completion of
Performance Goal
[Activity #1]
[Description of performance goals,
e.g. # of Units]
[timeframes for each performance goal]
[Add goals, and timeframes for completion of performance goals as necessary for other activities]
D.
Staffing
The Subrecipient shall supervise and direct the completion of all activities under this agreement. Any changes
in the Key Personnel assigned or their responsibilities under the activities are subject to the prior approval of the
Grantee.
At a minimum, the Subrecipient shall assign the following staff with the identified responsibilities (the “Key
Personnel”) to the identified activities:
[Provide a narrative of how the activity will be accomplished, who will be responsible for managing the activity;
additional personnel needed to implement the program/activity and an approximate allocation of time to the
activity. Complete one chart for each activity.]
[Activity #1]
Staff Member Title
Responsibilities
Time Allocation
[Add additional charts for additional activities as necessary]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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IV. PERFORMANCE MONITORING & REPORTING
A. Monitoring
The Grantee shall monitor the performance of the Subrecipient as necessary and in accordance with regulations
on Subrecipient Monitoring and Management, 2 CFR 200.330 – 2 CFR 200.332, to ensure Subrecipient
compliance with all of the requirements of this agreement, including the timeframes and performance goals
associated with the activities. Substandard performance as determined by the Grantee will constitute
noncompliance with this agreement. If action to correct such substandard performance is not taken by the
Subrecipient within days after being notified by the Grantee, the Grantee may impose additional conditions
on the Subrecipient and its use of CDBG-DR funds consistent with 2 CFR 200.207, suspend or terminate this
agreement, or initiate other remedies for noncompliance as appropriate and permitted under 2 CFR 200.338.
B. Reporting
The Subrecipient shall submit regular X (monthly or quarterly) progress and financial reports to the Grantee
[Grantee should insert specifics on the form, content, and frequency here as necessary].
V. PERIOD OF PERFORMANCE AND TERM
The period of performance for Subrecipient, meaning the time during which the Subrecipient may incur new
obligations to carry out activities under this agreement, shall start on the day of , 20 and
end on the
day of of 20 .
This agreement and its terms and conditions shall remain in effect during any period that the Subrecipient has
control over CDBG-DR funds provided through this agreement, including program income as defined in [cite to
the appropriate definition in either 24 CFR 570.500(a) or 24 CFR 570.489(e), as amended, or the applicable
Federal Register Notice if there is an applicable Federal Register Notice that waives the regulatory definition and
provides an alternative definition. The appropriate citation will depend on the requirements applicable to the
CDBG-DR funds as imposed by Federal statute, regulations, and the terms and conditions of Federal awards].
VI. BUDGET
The Subrecipient shall complete all activities in this agreement in accordance with the following budget. Any
amendments to the budget must be approved in writing by both the Grantee and the Subrecipient.
A. Budget Table
[Grantee shall insert a detailed budget table with line items and amounts for each line item. At a minimum the
budget should identify activity delivery and administrative costs. The grantee may require the Subrecipient to
provide supplementary budget information in a timely fashion in the form and content prescribed by the Grantee.]
B. Indirect Costs
Indirect costs may be charged to the this subaward under a cost allocation plan prepared in accordance with 2
CFR part 200, subpart E.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Any indirect costs, as defined in 2 CFR part 200, that are included in the budget shall only be charged to CDBG-
DR funds to the extent that the costs are consistent with the conditions of Section VIII (E) (2) of this agreement.
[The Indirect Cost Rate applicable to this award should be identified in Section II., General Information, and may
also be listed here. 2 CFR 200.331(a)(4) requires the Grantee to include an approved federally recognized
indirect cost rate negotiated between the Subrecipient and the Federal Government or, if no such rate exists,
either a rate negotiated between the Grantee and the Subrecipient (in compliance with 2 CFR part 200), or a de
minimis indirect cost rate as defined in 2 CFR §200.414 Indirect (F&A) costs, paragraph (f).]
C. Program Income
[The Grantee should define “program income” for the Subrecipient, which may be the definition in 24 CFR
570.500(a) or the definition in the Federal Register notices governing the CDBG-DR funds. The Grantee should
specify whether program income received must be returned to the Grantee or may be retained by the
Subrecipient.
Where program income is to be retained by the Subrecipient, this section shall specify the activities that will be
undertaken with the program income and that all provisions of this agreement shall apply to the specified
activities.]
[If the Entitlement CBDG regulations apply to the grantee, the grantee must impose the program income
provisions in 24 CFR 570.502, 24 CFR 570.503, or 24 CFR 570.504, as modified by the Federal Register notice
governing the use of CDBG-DR funds.]
[If the Grantee is a State, the Grantee should indicate applicable requirements associated with the Subrecipient’s
use of program income. These requirements may be set out in the terms and conditions of the Grantee’s Federal
award, in applicable Federal Register Notices, or other Federal statutes or regulations.]
VII. PAYMENT
It is expressly agreed and understood that the total amount to be paid by the Grantee under this agreement shall
not exceed $ .
[The Grantee should describe detailed payment procedures in this Section. The language below is sample
language that may serve as a starting point, but it is not intended to be exhaustive or comprehensive. The
description should include, but not be limited to, how the Subrecipient requests payments for work under this
agreement, any documentation that Subrecipient must submit to substantiate payment requests, whether
Grantee will make payments on an advance payment or reimbursement basis, and when the Grantee shall not
be obligated to satisfy the Subrecipient’s payment request (e.g. requests seeking advances or reimbursements
for costs that are inconsistent with this agreement, federal statutes, regulations (including Cost Principles in 2
CFR part 200, subpart E), or the terms and conditions of the Grantee’s Federal award, or that would otherwise
result in the Grantee charging improper, unauthorized, or otherwise unallowable costs to the Grantee’s Federal
award). Part 200 expresses a preference for payment advance (200.305), unless a grant agreement or notice
provides otherwise or a subrecipient requests payment on a reimbursement basis. States could choose to set
up another process.]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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The Subrecipient shall submit to the Grantee requests for payments of activities under this agreement and
consistent with the approved budget (the “Request for Payment”). Each Request for Payment shall be broken
down into requested draws against the budget line items specified in Section VI.
The Grantee shall pay to the Subrecipient CDBG-DR funds available under this agreement based upon
information submitted by the Subrecipient for allowable costs permitted under this agreement and consistent
with the approved budget. With the exception of advances, payments will be made for eligible expenses actually
incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the
Grantee in accordance with advance fund and program income balances available in Subrecipient accounts.
Payment will be made upon submission by the Subrecipient of a properly executed Request for Payment,
together with all supporting invoices, bills, time sheets, and other documents necessary to justify the payment.
The Request for Payment form must also be accompanied by documentation from the Subrecipient
demonstrating that all procurements for which payment is requested have been made in accordance with this
agreement.
VIII. AMENDMENT AND TERMINATION
A. Amendments
The Grantee or Subrecipient may amend this agreement at any time provided that such amendments make
specific reference to this agreement, are approved by the Grantee’s governing body, and are signed in writing
by a duly authorized representative of the Grantee and the Subrecipient. Such amendments shall not invalidate
this agreement, nor relieve or release the Grantee or Subrecipient from its obligations under this agreement.
Amendments will generally be required when any of the following are anticipated: i) revision to the scope or
objectives of the Program, including purpose or beneficiaries; ii) need to extend the availability of Grant Funds;
iii) revision that would result in the need for additional funding; and iv) expenditures on items for which applicable
cost principles require prior approval (see 24 CFR 570.200h for pre-award/pre-agreement costs).
The Grantee 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. 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,
such modifications will be incorporated only by written amendment signed by both Grantee and Subrecipient.
B. Suspension or Termination
The Grantee may terminate this agreement, in whole or in part, upon days’ notice, whenever it determines
that the Subrecipient has failed to comply with any term, condition, requirement, or provision of this agreement.
Failure to comply with any terms of this agreement, include (but are not limited to) the following:
1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes,
regulations, executive orders, and HUD guidelines, policies or directives as may become applicable
at any time;
2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations
under this agreement;
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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3. Ineffective or improper use of funds provided under this agreement; or
4. Submission by the Subrecipient to the Grantee reports that are incorrect or incomplete in any
material respect.
The Grantee shall promptly notify the Subrecipient, in writing, of its determination and the reasons for the
termination together with the date on which the termination shall take effect [if Grantee is subject to 2 CFR part
200, subpart D, insert: “and any other notifications required under 2 CFR part 200, subpart D”]. Upon
termination, the Grantee retains the right to recover any improper expenditures from the Subrecipient and the
Subrecipient shall return to the Grantee any improper expenditures no later than thirty (30) days after the date
of termination. The Grantee may, at its sole discretion, allow Subrecipient to retain or be reimbursed for costs
reasonably incurred prior to termination, that were not made in anticipation of termination and cannot be
canceled provided that said costs meet the provisions of this agreement, 2 CFR Part 200, Subpart E, Cost
Principles, and any other applicable state or Federal statutes, regulations or requirements.
[If Grantee is subject to 2 CFR part 200, subpart D, insert: “This agreement may also be terminated in whole or
in part by either the Grantee or the Subrecipient, or based upon agreement by both the Grantee and the
Subrecipient in accordance with the requirements in 2 CFR part 200, subpart D.”]
IX. OTHER REQUIREMENTS TO COMPLY WITH FEDERAL STATUTES, REGULATIONS AND
THE TERMS AND CONDITIONS OF THE FEDERAL AWARD
The CDBG-DR funds available to the Subrecipient through this agreement constitute a subaward of the
Grantee’s Federal award under the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, 2 CFR part 200. This agreement includes terms and conditions of the
Grantee’s Federal award that are imposed on the Subrecipient, and the Subrecipient agrees to carry out its
obligations in compliance with all of the obligations described in this agreement. [Grantee may also add in
requirements from its Federal award as an Exhibit, as if they were directly imposed upon the Subrecipient].
A. General Compliance
The Subrecipient shall comply with all applicable provisions of the Housing and Community Development Act of
1974, as amended, and the regulations at 24 CFR part 570, as modified by the Federal Register notices that
govern the use of CDBG-DR funds available under this agreement. These Federal Register notices include, but
are not limited to, [cite currently published, applicable Federal Register notices, or attach them as Exhibits].
Notwithstanding the foregoing, (1) the Subrecipient does not assume the any of Grantee’s responsibilities for
environmental review, decision-making, and action, described in 24 CFR part 58 and (2) the Subrecipient does
not assume any of the Grantee’s responsibilities for initiating the review process under the provisions of 24 CFR
Part 52. The Subrecipient shall also comply with all other applicable Federal, state and local laws, regulations,
and policies that govern the use of the CDBG-DR funds in complying with its obligations under this agreement,
regardless of whether CDBG-DR funds are made available to the Subrecipient on an advance or reimbursement
basis.
B. Duplication of Benefits
The Subrecipient shall not carry out any of the activities under this agreement in a manner that results in a
prohibited duplication of benefits as defined by Section 312 of the Robert T. Stafford Disaster Relief and
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Emergency Assistance Act (42 USC 5155) and described in Appropriations Act. The Subrecipient must comply
with HUD’s requirements for duplication of benefits, imposed by Federal Register notice on the Grantee, which
are: [insert relevant language and web link to applicable requirements, or attach relevant requirements to this
agreement]. The Subrecipient shall carry out the activities under this agreement in compliance with the
Grantee’s procedures to prevent duplication of benefits in Exhibit [identify appropriate exhibit].
C. Drug-Free Workplace
Drug-free workplace. Subrecipients must comply with drug-free workplace requirements in Subpart B of part
2429, which adopts the governmentwide implementation (2 CFR part 182) of sections 5152-5158 of the Drug-
Free Workplace Act of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 701-707).
D. Insurance & Bonding
[For Grantee’s subject to 2 CFR part 200, subpart D, insert: “The Subrecipient shall comply with the bonding and
insurance requirements of 24 CFR §200.325 and §200.310”. State’s may wish to insert requirements that the
Subrecipient carry sufficient insurance coverage to protect CDBG-acquired assets from loss due to theft, fraud
and/or undue physical damage, and acquire a blanket fidelity bond covering all employees in an amount equal
to CDBG-DR funds provided by the Grantee.]
E. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
[The subparts of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, 2 CFR part 200, that apply to the Subrecipient differ based on the Grantee. The Grantee should modify
this provision to list the portions of 2 CFR part 200 that are applicable to the Subrecipient. Grantees should refer
to 24 CFR 570.502(a) and (c), 24 CFR 570.489(d), and any applicable Federal Register Notices. E.g., if the
Grantee and the Subrecipient are subject to 24 CFR 570.502, insert: “2 CFR part 200, except as provided in 24
CFR 570.502(a) and (c)”].
The Subrecipient shall comply with the applicable provisions in 2 CFR part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR part 200. These provisions
include:
[modify the following language as necessary]
1. Financial & Program Management
The Subrecipient shall expend and account for all CDBG-DR funds received under this agreement in
accordance with:
[The Grantee should identify the requirements and procedures applicable to the Subrecipient for
expending and accounting for the Grantee’s CDBG-DR funds. For Grantees subject to 24 CFR
570.489(d), these must be the Grantee’s own fiscal and administrative requirements, new fiscal and
administrative requirements adopted by the Grantee, or the requirements in 2 CFR part 200, including 2
CFR part 200, subpart D, which covers Standards for Financial and Program Management. For Grantees
subject to 24 CFR 570.502, this agreement must identify the requirements in 2 CFR part 200, including
2 CFR part 200, subpart D, which covers Standards for Financial and Program Management. Ultimately,
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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the requirements and procedures applicable to Subrecipients for expending and accounting for the
Grantee’s CDBG-DR funds will depend on the requirements imposed by Federal statute, regulations, and
the terms and conditions of the Grantee’s Federal awards.]
2. Cost Principles
Costs incurred, whether charged on a direct or an indirect basis, must be in conformance with 2 CFR
part 200, subpart E. All items of cost listed in 2 CFR part 200, subpart E, that require prior Federal agency
approval are allowable without prior approval of HUD to the extent they comply with the general policies
and principles stated in 2 CFR part 200, subpart E and are otherwise eligible under this agreement,
except for the following:
(i) Depreciation methods for fixed assets shall not be changed without the approval of the
Federal cognizant agency.
(ii) Fines penalties, damages, and other settlements are unallowable costs to the CDBG
program.
(iii) Costs of housing (e.g., depreciation, maintenance, utilities, furnishings, rent), housing
allowances and personal living expenses (goods or services for personal use) regardless
of whether reported as taxable income to the employees (2 CFR 200.445);
(iv) Organization costs (2 CFR 200.455); and
(v) Pre-Award Costs, as limited by this agreement.
F. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall establish and maintain records sufficient to enable the Grantee to (1) determine
whether the Subrecipient has complied with this agreement, applicable Federal statutes and regulations,
and the terms and conditions of the Grantee’s Federal award and (2) satisfy recordkeeping requirements
applicable to the Grantee. These records include the records described in Section III. of this agreement,
Scope of Service.
At a minimum, the Subrecipient shall maintain records required by
[If the Grantee is subject to 24 CFR 570.506, insert: “24 CFR 570.506, as if the requirements in 24 CFR
570.506 were directly imposed upon the Subrecipient” and additionally include any additional
recordkeeping requirements imposed by Federal Register notice governing the use of the funds.]
[If the Grantee is subject to 24 CFR 570.490, the Grantee should insert language to ensure that the
Subrecipient enables the Grantee to satisfy 24 CFR 570.490 and maintains records that the Grantee is
required to maintain as jointly agreed upon by HUD and the Grantee, maintains records sufficient to
enable HUD to make the determinations described at 24 CFR 570.493, and maintains any records
necessary for fair housing and equal opportunity purposes. State Grantees also must include any
additional recordkeeping requirements imposed by Federal Register notice governing the use of the
funds.]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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[The Grantee should also specify the particular records or form of records that the Subrecipient must
maintain in order meet recordkeeping requirements imposed by Federal statute, regulation, and the terms
and conditions of the Grantee’s Federal award, and to assist the Grantee in meeting its recordkeeping
and reporting requirements. This list is not exhaustive, but such records may include: Records providing
a full description of each activity undertaken; Records demonstrating that each activity undertaken meets
one of the National Objectives of the CDBG –DR program; Records required to determine the eligibility
of activities; Records required to document the acquisition, improvement, use or disposition of real
property acquired or improved with CDBG assistance; Records documenting compliance with the fair
housing and equal opportunity requirements of the CDBG program regulations; Financial records as
required by 24 CFR 570.502, and 2 CFR part 200, including records necessary to demonstrate
compliance with all applicable procurement requirements; and Other records necessary to document
compliance with this agreement, any other applicable Federal statutes and regulations, and the terms
and conditions of Grantee’s Federal award.]
2. Access to Records
[If Grantee is subject to 24 CFR 570.502 and 24 CFR 570.508, insert language governing access to
records that complies with 2 CFR 200.331(a)(5), 2 CFR 200.336 and 24 CFR 570.508.]
[If Grantee is subject to 24 CFR 570.489(m) and 24 CFR 570.490, insert language governing access to
records that complies with 2 CFR 200.331(a)(5) and 24 CFR 570.490(c).]
[For all subrecipients, add the following: “As required by 2 CFR 200.331(a)(5), the Subrecipient shall
permit the Grantee and auditors to have access to the Subrecipient's records and financial statements
as necessary for the Grantee to meet its audit requirements under the Federal award.”]
3. Record Retention and Transmission of Records to the Grantee
Prior to closeout of this agreement, the Subrecipient must transmit to the Grantee records sufficient for
the Grantee to demonstrate that all costs under this agreement met the requirements of the Federal
award.
[If the Grantee is a local government or a State government whose subrecipients are subject to 24 CFR
570.502, insert: “Subrecipient shall retain financial records, supporting documents, statistical records,
and all other Subrecipient records pertinent to this agreement and Subrecipient’s subaward for the longer
of 3 years after the expiration or termination of this agreement, or 3 years after the submission of the
Grantee’s annual performance and evaluation report, as prescribed in § 91.520 of this title or in the
applicable Federal Register notices governing the use of the funds, in which the specific activity is
reported on for the final time.
The preceding requirement is however, subject to the following exceptions:
(i) Records for activities subject to the reversion of assets provisions at 24 CFR §
570.503(b)(7) or change of use provisions at 24 CFR § 570.505 must be maintained for
as long as those provisions continue to apply to the activity, otherwise, records for real
property and equipment acquired under this agreement must be retained for 3 years after
final disposition;
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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(ii) Records for individual activities for which there are outstanding loan balances, other
receivables, or contingent liabilities must be retained until such receivables or liabilities
have been satisfied;
(iii) If any litigation, claim, or audit is started before the expiration of the 3-year period, the
records must be retained until all litigation, claims, or audit findings involving the records
have been resolved and final action taken;
(iv) When the Subrecipient is notified in writing by HUD, the cognizant agency for audit as
defined in 2 CFR 200.18, the oversight agency for audit as defined in 2 CFR 200.73, the
cognizant agency for indirect costs as defined in 2 CFR 200.19, or the Grantee, the
Subrecipient shall extend the retention period consistent with the notification;
(v) When records are transferred to or maintained by HUD or the Grantee, the 3-year retention
requirement is not applicable to the Subrecipient;
(vi) (If the Grantee is required to report on program income after the period of performance)
The retention period for the records pertaining to the earning of the program income (as
defined in this agreement) starts from the end of the Grantee's fiscal year in which the
program income is earned; and
(vii) For indirect cost rate computations or proposals, cost allocation plans, and any similar
accounting computations of the rate at which a particular group of costs is chargeable
(such as computer usage chargeback rates or composite fringe benefit rates), and their
supporting records:
a. If submitted for negotiation. If the proposal, plan, or other computation is required to
be submitted to the Federal Government (or to the Grantee) to form the basis for
negotiation of the rate, then the 3-year retention period for its supporting records starts
from the date of such submission.
b. If not submitted for negotiation. If the proposal, plan, or other computation is not
required to be submitted to the Federal Government (or to the Grantee) for negotiation
purposes, then the 3-year retention period for the proposal, plan, or computation and
its supporting records starts from the end of the fiscal year (or other accounting period)
covered by the proposal, plan, or other computation.]
[If the Grantee is a State subject to 24 CFR 570.491(d), insert: “Notwithstanding the term of this
agreement, all records the Subrecreipient is required to maintain, including supporting documentation,
shall be retained for the greater of three years from closeout of the Federal award to the Grantee, or the
period required by other applicable laws and regulations as described in 24 CFR § 570.487 and 24 CFR
§ 570.488.” Alternatively, the State may identify a shorter record retention period, and require
transmission of records to the State after that period.]
4. Client Data and Other Sensitive Information
The Subrecipient is required to maintain data demonstrating client eligibility for activities provided under
this agreement. Such data may include, but not be limited to, client name, address, income level or
other basis for determining eligibility, and description of activities provided.
[If the Grantee is subject to 2 CFR 200.303, insert: “The Subrecipient must comply with 2 CFR
§200.303 and take reasonable measures to safeguard protected personally identifiable information, as
defined in 2 CFR 200.82, and other information HUD or the Grantee designates as sensitive or the
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Subrecipient considers sensitive consistent with applicable Federal, state, local, and tribal laws
regarding privacy and obligations of confidentiality.”]
[For all grantees, insert requirements consistent with State or local requirements concerning the privacy
of personal records, consistent with 24 CFR 570.508 (local governments) and 570.490(c) (States).]
G. Close-out
The Subrecipient shall closeout its use of the CDBG-DR funds and its obligations under this agreement by
complying with the closeout procedures in 2 CFR § 200.343. Activities during this close-out period may
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 terms of 2 CFR 200.343, upon the expiration of this agreement, the Subrecipient shall
transfer to the recipient any CDBG funds on hand at the time of expiration and any accounts receivable
attributable to the use of CDBG funds, further, any real property under the Subrecipient's control that was
acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the subrecipient
in the form of a loan) shall be treated in accordance with 24 CFR 570.503(b)(7).
[This Section should be modified as needed to include any requirements of the Federal Register notice
governing the use of CDBG-DR funds, or for states, to include State closeout requirements in lieu of the
requirements of 2 CFR 200.343. Any continuing requirements on the Subrecipient that will continue after
closeout should be included in a Subrecipient agreement that is enforceable after the termination of this
agreement.]
H. Audits, Inspections, and Monitoring
1. Single Audit
The Subrecipient must be audited as required by 2 CFR part 200, subpart F when it is expected that the
Subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the
threshold set forth in §200.501 Audit requirements.
2. Inspections and Monitoring
The Subrecipient shall permit the Grantee and auditors to have access to the Subrecipient's records and
financial statements as necessary for the Grantee to meet the requirements of 2 CFR part 200.
The Subrecipient must submit to monitoring of its activities by the Grantee as necessary to ensure that
the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the
terms and conditions of this agreement.
This review must include: (1) reviewing financial and performance reports required by the Grantee; (2)
following-up and ensuring that the Subrecipient takes timely and appropriate action on all deficiencies
pertaining to the Federal award provided to the Subrecipient from the Grantee detected through audits,
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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on-site reviews, and other means; and (3) issuing a management decision for audit findings pertaining to
this Federal award provided to the Subrecipient from the Grantee as required by 2 CFR §200.521.
3. Corrective Actions
The Grantee may issue management decisions and may consider taking enforcement actions if
noncompliance is detected during audits. The Grantee may require the Subrecipient to take timely and
appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from
the pass-through entity detected through audits, on-site reviews, and other means. In response to audit
deficiencies or other findings of noncompliance with this agreement, Grantee may impose additional
conditions on the use of the CDBG-DR funds to ensure future compliance, or provide training and
technical assistance as needed to correct noncompliance.
[Some Grantees may be required by Federal Register Notice to make reviews and audits, including onsite
reviews of the Subrecipient as may be necessary or appropriate to meet the requirements of 42 U.S.C.
5304(e)(2). If so, these Grantees should insert: “The Subrecipient shall be subject to reviews and audits
by the Grantee, including onsite reviews of the Subrecipient as may be necessary or appropriate to meet
the requirements of 42 U.S.C. 5304(e)(2).”]
I. Procurement and Contractor Oversight
[If the Grantee is subject to 2 CFR part 200, subpart D, insert: “The Subrecipient shall comply with the
procurement standards in 2 CFR §200.318 - §200.326 when procuring property and services under this
agreement.]
[If the Grantee is not subject to 2 CFR part 200, subpart D, but is subject to State CDBG regulations at 24 CFR
570.489(g), and applicable Federal Register Notices require the Grantee to establish requirements for
procurement policies and procedures based on full and open competition for Subrecipients, insert language to
impose requirements on the Subrecipient that shall require their compliance with the Grantee’s procurement
policies and procedures when procuring property or services under this agreement. The Grantee’s policies and
procedures should be defined in detail, or attached as an Exhibit, and satisfy all applicable requirements,
including 24 CFR 570.489(g) as modified by applicable Federal Register Notices.]
The Subrecipient shall impose the Subrecipient’s obligations under this agreement on its contractors, specifically
or by reference, so that such obligations will be binding upon each of its contractors.
The Subrecipient must comply with CDBG regulations regarding debarred or suspended entities at [insert 24
CFR 570.609 or 24 CFR 570.489(l) as appropriate]. CDBG funds may not be provided to excluded or disqualified
persons.
The Subrecipient shall maintain oversight of all activities under this agreement and shall ensure that for any
procured contract or agreement, its contractors perform according to the terms and conditions of the procured
contracts or agreements, and the terms and conditions of this agreement.
[Grantee must impose any additional requirements on procurements and contractors that may be required by
the statute appropriating the CDBG-DR funds or the Federal Register notices governing the CDBG-DR funds.
These may include alternative requirements that impose additional requirements on 2 CFR 200.317 through
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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200.326 and 24 CFR 570.489(g) to ensure all contracts and agreements (with subrecipients, recipients, and
contractors) clearly state the period of performance or date of completion, incorporate performance requirements
and liquidated damages into each procured contract or agreement, or other similar contract oversight provisions.
They also may include limitations on the types of procurements for administrative responsibilities, or reporting
requirements that all procurements be posted on the Grantee’s website.]
J. Property Standards
Real property acquired by the Subrecipient under this agreement shall be subject to [If the Grantee is subject to
24 CFR 570.505, insert: “24 CFR 570.505”; If the Grantee is subject to 24 CFR 570.489(j), insert: “24 CFR
570.489(j)”]; and 24 CFR 570.200(j) (imposing 24 CFR §5.109 requirements regarding disposition and change
in use of real property by a faith-based organization).
[If the Grantee is subject to 24 CFR 570.502, insert: “The Subrecipient shall also comply with the Property
Standards at 2 CFR 200.310, 2 CFR 200.312, 2 CFR 200.314 through 2 CFR 200.316. The Subrecipient shall
also comply with 2 CFR 200.313 Equipment, except that when the equipment is sold, the proceeds shall be
program income, and equipment not needed by the Subrecipient for activities under this agreement shall be
transferred to the Grantee for its CDBG-DR program or shall be retained after compensating the Grantee.”]
[State Grantees subject to 24 CFR 570.489(d) that have chosen to apply the provisions of 2 CFR part 200, insert:
“The Subrecipient shall also comply with the Property Standards in 2 CFR 200.310 through 2 CFR 200.316,
except to the extent they are inconsistent with 24 CFR 570.200(j) and 24 CFR 570.489(j), in which case
Subrecipient shall comply with 24 CFR 570.200(j) and 24 CFR 570.489(j), and except to the extent that proceeds
from the sale of equipment are program income and subject to the program income requirements under this
agreement, pursuant to 24 CFR 570.489(e)(1)(ii).
[When the activity will result in patentable inventions, the Grantee may wish to require a license agreement. 37
CFR part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under
Government Awards, Contracts and Cooperative Agreements,” may affect ownership in inventions.]
K. Federal Funding Accountability and Transparency Act (FFATA)
The Subrecipient shall comply with the requirements of 2 CFR part 25 Universal Identifier and System for
Award Management (SAM). The grantee must have an active registration in SAM in accordance with 2 CFR
part 25, appendix A, and must have a Data Universal Numbering System (DUNS) number. The grantee must also
comply with provisions of the Federal Funding Accountability and Transparency Act, which includes
requirements on executive compensation, and 2 CFR part 170 Reporting Subaward and Executive
Compensation Information.
L. Relocation, Real Property Acquisition, and One-for-one Housing Replacement
The Subrecipient shall comply with the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended (URA), 42 USC 4601 – 4655, 49 CFR part 24, 24 CFR part 42, and 24 CFR 570.606.
In addition to other URA requirements, these regulations (49 CFR § 24.403(d)) implement Section 414 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 USC § 5181, which provides that
"Notwithstanding any other provision of law, no person otherwise eligible for any kind of replacement housing
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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payment under the [URA] shall be denied such eligibility as a result of his being unable, because of a major
disaster as determined by the President, to meet the occupancy requirements set by such Act".
[Grantee must insert any waivers and alternative requirements related to the URA, optional relocation assistance,
and one-for-one housing replacement that were published in the Federal Register notices governing the CDBG-
DR appropriation.]
M. Nondiscrimination
1. 24 CFR part 6
The Subrecipient will comply with 24 CFR part 6, which implements the provisions of section 109 of title
I of the Housing and Community Development Act of 1974 (Title I) (42 U.S.C. 5309). Section 109
provides that no person in the United States shall, on the ground of race, color, national origin, religion,
or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity funded in whole or in part with Federal financial assistance.
The Subrecipient will adhere to the prohibitions against discrimination on the basis of age under the
Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) (Age Discrimination Act) and the prohibitions
against discrimination on the basis of disability under section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) (Section 504). Section 109 of the HCDA makes these requirements applicable to programs
or activities funded in whole or in part with CDBG-DR funds. Thus, the Subrecipient shall comply with
regulations of 24 CFR part 8, which implement Section 504 for HUD programs, and the regulations of
24 CFR part 146, which implement the Age Discrimination Act for HUD programs.
2. Architectural Barriers Act and the Americans with Disabilities Act
The Subrecipient shall ensure that its activities are consistent with requirements of Architectural
Barriers Act and the Americans with Disabilities Act.
The Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) requires certain Federal and Federally
funded buildings and other facilities to be designed, constructed, or altered in accordance with
standards that insure accessibility to, and use by, physically handicapped people. A building or facility
designed, constructed, or altered with funds allocated or reallocated under this part after December 11,
1995, and that meets the definition of “residential structure” as defined in 24 CFR 40.2 or the definition
of “building” as defined in 41 CFR 101-19.602(a) is subject to the requirements of the Architectural
Barriers Act of 1968 (42 U.S.C. 4151-4157) and shall comply with the Uniform Federal Accessibility
Standards (appendix A to 24 CFR part 40 for residential structures, and appendix A to 41 CFR part
101-19, subpart 101-19.6, for general type buildings).
The Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218 and 225) (ADA)
provides comprehensive civil rights to individuals with disabilities in the areas of employment, public
accommodations, State and local government services, and telecommunications. It further provides
that discrimination includes a failure to design and construct facilities for first occupancy no later than
January 26, 1993, that are readily accessible to and usable by individuals with disabilities. Further, the
ADA requires the removal of architectural barriers and communication barriers that are structural in
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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Developed by HUD 18
nature in existing facilities, where such removal is readily achievable—that is, easily accomplishable
and able to be carried out without much difficulty or expense.
[Local government grantees shall insert “The Subrecipient shall comply with the laws, regulations, and
executive orders referenced in 24 CFR 570.607 regarding employment and contracting to the extent they
are applicable.”]
3. State and Local Nondiscrimination Provisions
[Grantee can insert guidelines necessary for compliance with the nondiscrimination regulations in force
during the term of this agreement. Grantee shall also insert any state and local nondiscrimination laws.]
4. Title VI of the Civil Rights Act of 1964 (24 CFR part 1)
(i) General Compliance:
The Subrecipient shall comply with the requirements of Title VI of the Civil Rights Act of 1964 (P.
L. 88-352), as amended [if the Grantee is subject to 24 CFR part 570, subpart K, insert: “and 24
CFR 570.601 and 570.602”. No person in the United States shall, on the ground of race, color, or
national origin, be excluded from participation in, be denied the benefits of, or be otherwise
subjected to discrimination under any program or activity funded by this agreement. The specific
nondiscrimination provisions at 24 CFR 1.4 apply to the use of these funds. The Subrecipient
shall not intimidate, threaten, coerce, or discriminate against any person for the purpose of
interfering with any right or privilege secured by title VI of the Civil Rights Act of 1964 or 24 CFR
part 1, or because he has made a complaint, testified, assisted, or participated in any manner in
an investigation, proceeding, or hearing under 24 CFR part 1. The identity of complainants shall
be kept confidential except to the extent necessary to carry out the purposes of 2 CFR part 1,
including the conduct of any investigation, hearing, or judicial proceeding arising thereunder.
(ii) Assurances and Real Property Covenants:
As a condition to the approval of this Agreement and the extension of any Federal financial
assistance, the Subrecipient assures that the program or activities described in this Agreement
will be conducted and the housing, accommodations, facilities, services, financial aid, or other
benefits to be provided will be operated and administered in compliance with all requirements
imposed by or pursuant to this part 1.
If the Federal financial assistance under this agreement is to provide or is in the form of personal
property or real property or interest therein or structures thereon, the Subrecipient’s assurance
herein shall obligate the Subrecipient or, in the case of a subsequent transfer, the transferee, for
the period during which the property is used for a purpose for which the Federal financial
assistance is extended or for another purpose involving the provision of similar services or
benefits, or for as long as the recipient retains ownership or possession of the property, whichever
is longer. In all other cases the assurance shall obligate the Subrecipient for the period during
which Federal financial assistance is extended pursuant to the contract or application.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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This assurance gives the Grantee and the United States a right to seek judicial enforcement of
the assurance and the requirements on real property.
In the case of real property, structures or improvements thereon, or interests therein, acquired
with Federal financial assistance under this Agreement or acquired with CDBG-DR funds and
provided to the Subrecipient Under this Agreement, the instrument effecting any disposition by
the Subrecipient of such real property, structures or improvements thereon, or interests therein,
shall contain a covenant running with the land assuring nondiscrimination for the period during
which the real property is used for a purpose for which the Federal financial assistance is
extended or for another purpose involving the provision of similar services or benefits.
If the Subrecipient receives real property interests or funds or for the acquisition of real property
interests under this Agreement, to the extent that rights to space on, over, or under any such
property are included as part of the program receiving such assistance, the nondiscrimination
requirements of this part 1 shall extend to any facility located wholly or in part in such space.
5. Affirmative Action
(i) Approved Plan
The Subrecipient agrees that it shall carry out pursuant to the Grantee’s specifications an
Affirmative Action Program in compliance with the President’s Executive Order 11246 of
September 24, 1966, as amended, and implementing regulations at 42 CFR chapter 60. The
Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation
of such program. The Subrecipient shall submit a plan for an Affirmative Action Program for
approval prior to the release of funds under this agreement.
(ii) Women- and Minority-Owned Businesses (W/MBE)
[If the Grantee is subject to 2 CFR part 200, subpart D, and more specifically 2 CFR 200.321,
insert: “
The Subrecipient shall take the affirmative steps listed in 2 CFR 200.321(b)(1) through (5) to
assure that minority businesses, women’s business enterprises, and labor surplus area firms are
used when possible when the Subrecipient procures property or services under this agreement.
(iii) Notifications
The Subrecipient will send to each labor union or representative of workers with which it has a
collective bargaining agreement or other contract or understanding, a notice, to be provided by
the agency contracting officer, advising the labor union or worker’s representative of the
Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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(iv) Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement
The Subrecipient shall, in all solicitations or advertisements for employees placed by or on behalf
of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.
N. Labor and Employment
1. Labor Standards
The Subrecipient shall comply with the in labor standards in Section 110 of the Housing and Community
Development Act of 1974, as amended and ensure that all laborers and mechanics employed by
contractors or subcontractors in the performance of construction work financed in whole or in part with
assistance received under this agreement shall be paid wages at rates not less than those prevailing on
similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-
Bacon Act, as amended (40 U.S.C. 3141, et seq.), and 29 CFR part 1, 3, 5, 6, and 7, provided, that this
requirement shall apply to the rehabilitation of residential property only if such property contains not less
than 8 units.
The Subrecipient agrees to comply with the Copeland Anti- Kick Back Act (18 U.S.C. 874) and its
implementing regulations of the U.S. Department of Labor at 29 CFR part 3 and part 5. The Subrecipient
shall maintain documentation that demonstrates compliance with applicable hour and wage
requirements. Such documentation shall be made available to the Grantee for review upon request.
O. Section 3 of the Housing and Urban Development Act of 1968
[Grantee may delete this section if Section 3 requirements do not apply to the Subrecipient’s activities
under this agreement.]
1. Compliance
The Subrecipient shall comply with the provisions of Section 3 of the Housing and Urban Development
Act of 1968, as amended, 12 USC 1701u, and implementing its implementing regulations at 24 CFR part
135.
The Subrecipient shall include the “Section 3 clause” at 24 CFR 135.38 in every “Section 3 covered
contract” (as defined in 24 CFR 135.5).
P. Conduct
1. Hatch Act
The Subrecipient shall comply with the Hatch Act, 5 USC 1501 – 1508, and shall ensure 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.C.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
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2. Conflict of Interest
[If the Grantee is subject to 24 CFR 570.489, insert: “In the procurement of supplies, equipment,
construction, and services pursuant to this agreement, the Subrecipient shall comply with the conflict of
interest provisions in the Grantee’s procurement policies and procedures. In all cases not governed by
the conflict of interest provisions in the Grantee’s procurement policies and procedures, the Subrecipient
shall comply with the conflict of interest provisions in 24 CFR 570.489(h).”]
[If the Grantee is instead subject to 24 CFR 570.611 and 2 CFR part 200, insert: “In the procurement of
supplies, equipment, construction, and services pursuant to this agreement, the Subrecipient shall
comply with the conflict of interest provisions in 2 CFR 200.317 and 200.318. In all cases not governed
by 2 CFR 200.317 and 200.318, the Subrecipient shall comply with the conflict of interest provisions in
24 CFR 570.611.”]
3. Lobbying Certification
The Subrecipient hereby certifies that:
(i) 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;
(ii) 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;
(iii) It shall require that the language of paragraph (a) through (d) 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
subrecipients shall certify and disclose accordingly; and
(iv) 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 required 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.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
https://www.hudexchange.info/programs/cdbg-dr/toolkits/program-launch/
Developed by HUD 22
Q. Religious Activities
The Subrecipient agrees that funds provided under this agreement shall not be utilized for inherently religious
activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.
R. Environmental Conditions
1. Prohibition on Choice Limiting Activities Prior to Environmental Review
The Subrecipient must comply with the limitations in 24 CFR 58.22 even though the Subrecipient is not
delegated the requirement under Section 104(g) of the HCD Act for environmental review, decision-
making, and action (see 24 CFR part 58) and is not delegated the Grantee’s responsibilities for initiating
the review process under the provisions of 24 CFR Part 52. 24 CFR 58.22 imposes limitations on activities
pending clearance, and specifically limits commitments of HUD funds or non-HUD funds by any
participant in the development process before completion of the environmental review. A violation of this
requirement may result in a prohibition on the use of Federal funds for the activity.
2. Air and Water
The Subrecipient shall comply with the following requirements insofar as they apply to the performance
of this agreement:
Air quality. (1) The Clean Air Act (42 U.S.C. 7401 et. seq.) as amended; particularly section
176(c) and (d) (42 U.S.C. 7506(c) and (d)); and (2) Determining Conformity of Federal Actions
to State or Federal Implementation Plans (Environmental Protection Agency—40 CFR parts
6, 51, and 93).
Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended,
including the requirements specified in Section 114 and Section 308 of the Federal Water
Pollution Control Act, as amended, and all regulations and guidelines issued thereunder;
3. Flood Disaster Protection
The Subrecipient shall comply with the mandatory flood insurance purchase requirements of Section 102
of the Flood Disaster Protection Act of 1973, as amended by the National Flood Insurance Reform Act of
1994, 42 USC 4012a. Additionally, the Subrecipient shall comply with Section 582 of the National Flood
Insurance Reform Act of 1994, as amended, (42 U.S.C. 5154a), which includes a prohibition on the
provision of flood disaster assistance, including loan assistance, to a person for repair, replacement, or
restoration for damage to any personal, residential, or commercial property if that person at any time has
received Federal flood disaster assistance that was conditioned on the person first having obtained flood
insurance under applicable Federal law and the person has subsequently failed to obtain and maintain
flood insurance as required under applicable Federal law on such property. Section 582 also includes a
responsibility to notify property owners of their responsibility to notify transferees about mandatory flood
purchase requirements. More information about these requirements is available in the Federal Register
notices governing the CDBG-DR award.
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
https://www.hudexchange.info/programs/cdbg-dr/toolkits/program-launch/
Developed by HUD 23
4. Lead-Based Paint
[For Entitlement grantees, enter “The Subrecipient shall comply with the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992
(42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35, subparts A, B, J, K, and R,
which apply to activities under this agreement.”]
[For State Grantees, enter “The Grantee shall follow the Grantee’s procedures with respect to CDBG
assistance that fulfill the objectives and requirements of the Lead-Based Paint Poisoning Prevention Act
(42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851-4856), and implementing regulations at part 35, subparts A, B, J, K, and R of this title. These
provisions are attached to this agreement as Exhibit .”]
5. Historic Preservation
The Subrecipient shall comply with the Historic Preservation requirements set forth in the National
Historic Preservation Act of 1966, as amended, codified in title 54 of the United States Code, and the
procedures set forth in 36 CFR part 800 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.
X. OTHER REQUIREMENTS IMPOSED BY GRANTEE
Consult with an attorney regarding any other provisions that the grantee should include in this agreement. These
may include state and local requirements, or stock/boilerplate language such as a hold harmless, assignability,
severability, entire agreement, or waiver/default provision, provisions about jurisdiction, provisions about where
notices under the award should be sent, damages/liquidated damages provisions, and provisions about how to
interpret section headings and subheadings. Grantee may wish to include a requirement requiring signage about
project funding. Grantee may include provisions clarifying that an employee/employer relationship is not created
by this agreement (sometimes called an independent contractor provision), but such provision should be
consistent with 2 CFR 200.330.
[Remainder of page left blank.]
Disclaimer: This is a sample agreement template and is not a complete legal document. Before using any part of this template, check with legal counsel
to ensure that the grantee’s subrecipient agreements comply with state and local laws and regulations, and all requirements of the grantee’s CDBG-DR
award.
https://www.hudexchange.info/programs/cdbg-dr/toolkits/program-launch/
Developed by HUD 24
THE UNDERSIGNED, as authorized officials on behalf of the parties, have executed this Contract for Loan
Guarantee Assistance, which shall be effective as of the date of execution hereof on behalf of the Grantee.
GRANTEE
By:
(signature)
Name:
Title:
Date:
SUBRECIPIENT
By:
(signature)
Name:
Title:
(Chief Elected Official/Executive Officer with Authority to Sign)
Date:
Attest:
ASSISTANT [CITY/COUNTY] CLERK
Countersigned:
FINANCE OFFICER OR CONTRACT COMPLIANCE OFFICER
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
ASSISTANT [CITY/COUNTY] ATTORNEY
