RD 3560-42 Labor Housing Grant Agreement

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FORM APPROVED
OMB No. 0575-0189
Exp. Date: MM/DD/YY

Form RD 3560-42
(02-05)

LABOR HOUSING GRANT AGREEMENT
THIS AGREEMENT dated

,20

is organized and operating under

, between

which

(Authorizing Statute)

herein called ''Grantee," and the United States of America acting through Rural Housing Service, Department
of Agriculture, herein called ''Grantor,'' WITNESSETH:
WHEREAS
Grantee has determined to undertake a project of acquisition, construction, enlargement and/or capital
improvement of a Labor Housing Project to serve domestic farm laborers at an estimated cost of
and has duly authorized the undertaking of such project.
$
Grantee is able to finance not more than $
of the development costs through revenues,
charges, taxes or assessments, or funds otherwise available to Grantee resulting in a reasonable rental rate.
Said sum of $

has been committed to and by Grantee for such project development costs.

Grantor has agreed to grant the Grantee a sum not to exceed $
subject to the
terms and conditions established by the Grantor. Provided, however, that the proportionate share of any
grant funds actually advanced and not needed for grant purposes shall be returned immediately to the
Grantor. The Grantor may terminate the grant in whole, or in part, at any time before the date of
completion, whenever it is determined that the Grantee has failed to comply with the conditions of the grant.
NOW, THEREFORE, in consideration of said grant by Grantor to Grantee, to be made pursuant to Section
percent of
516 of the Housing Act of 1949 for the purpose only of defraying a part not to exceed
the development costs, as defined by applicable Rural Development regulations. These requirements do not
supersede the applicable requirements for receipt of Federal funds stated in 7 CFR parts 3015, ''Uniform
Federal Assistance Regulations,'' 3016, ''Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments,'' or 3 019, ''Uniform Administrative Requirements for Grants
and Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations.''
GRANTEE AGREES THAT GRANTEE WILL:
A. Cause said project to be constructed within the total sums available to it, including said grant, in
accordance with the project plans and specifications and any modifications thereof prepared by Grantee and
approved by Grantor.
A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply
with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid
OMB Control Number. The OMB Control Number for this information collection is 0575-0189. Public reporting for this collection of information is
estimated to be approximately 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering, and
maintaining the data needed, completing, and reviewing the collection of information. All responses to this collection of information are voluntary.
However, in order to obtain or retain a benefit, the information in this form is required under Section 515 Rural Rental Housing, which includes Congregate
Housing, Group Homes, and Rural Cooperative Housing. Rural Development has no plans to publish information collected under the provisions of this
program. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden
to: Information Collection Clearance Officer, Rural Development Innovation Center, Regulations Management Division at [email protected]

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B. Permit periodic inspection of the construction by a representative of Grantor during construction.
C. Manage, operate, and maintain the project, including these units if less than the whole of said
project,continuously in an efficient and economic manner.
D. Make services of said project available within its capacity to all domestic farm laborers in grantee's
service area without discrimination because of race, color, religion, sex, age, disability, familial status, or
national origin at reasonable rental rates, whether for one or more types of units, adopted by resolution dated
20
, as may be revised from time to time by Grantee. The initial rental rate must be
approved by the Grantor. Thereafter, Grantee may not make changes to the rental rate structure without prior
authorization from the Grantor.
E. Adjust its operating costs and service charges from time to time to provide for adequate operation and
maintenance, emergency repair reserves, obsolescence reserves, debt service and debt service reserves.
F. Provide Grantor with such periodic reports as it may require and permit periodic inspection of its
operations by a representative of the Grantor.
G. To execute Form RD 400-1, ''Equal Opportunity Agreement,'' and to execute Form RD 400-4,
''Assurance Agreement,'' and to execute any other agreements required by Grantor which Grantee is legally
authorized to execute. If any such form has been executed by Grantee as a result of a loan being made to
Grantee by Grantor contemporaneously with the making of this grant, another form of the same type need
not be executed in connection with this grant.
H. Upon any default under its representations or agreements set forth in this instrument, Grantee, at the
option and demand of Grantor, will repay to Grantor forthwith the original principal amount of the grant
stated hereinabove, with interest at the rate of 5 percent per annum from the date of the default. Default by
the Grantee will constitute termination of the grant thereby causing cancellation of Federal assistance under
the grant. The Provisions of this Grant Agreement may be enforced by Grantor, at its option and without
regard to prior waivers by it of previous defaults of Grantee, by judicial proceedings to require specific
performance of the terms of this Grantee Agreements or by such other proceedings in law or equity, in
either Federal or State courts, as may be deemed necessary by Grantor to assure compliance with the
provisions of this Grant Agreement and the laws and regulations under which this Grant is made.
1. Return immediately to Grantor, as required by the regulations of Grantor, any grant funds actually
advanced and not needed by Grantee for approved purposes.
J. Use the real property including land, land improvements, structures, and appurtenances thereto, for
authorized purposes of the Grant as long as needed.
1. Title to real property shall vest in the recipient subject to the condition that the Grantee shall use
the real property for the authorized purpose of the original grant as long as needed.

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2. The Grantee shall obtain approval by the Grantor agency for the use of the real property in other
projects when the Grantee determines that the property is no longer needed for the original grant
purposes. Use in other projects shall be limited to those under other Federal grant programs or
programs that have purposes consistent with those authorized for support by the Grantor.
3. When the real property is no longer needed as provided in 1 and 2 above, the Grantee shall
request disposition instructions from the Grantor agency or its successor Federal agency. The
Grantor agency shall observe the following rules in the disposition instructions.
(a) The Grantee may be permitted to retain title after it compensates the Federal
Government in an amount computed by applying the Federal percentage of participation in
the cost of the original project to the fair market value of the property.
(b) The Grantee may be directed to sell the property under guidelines provided by the
Grantor agency and pay the Federal Government an amount computed by applying the
Federal percentage of participation in the cost of the original project to the proceeds from
sale (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales
proceeds). When the Grantee is authorized or required to sell the property, proper sales
procedures shall be established that provide for competition to the extent practicable and
result in the highest possible return.
(c) The Grantee may be directed to transfer title to the property to the Federal
Government provided that in such cases the Grantee shall be entitled to compensation
computed by applying the Grantee's percentage of participation in the cost of the program
or project to the current fair market value of the property.
This Grant Agreement covers the following described real property: (use continuation sheets
as necessary).
K. Abide by the following conditions pertaining to nonexpendable personal property which is furnished by
the Grantor or acquired wholly or in part with grant funds. Nonexpendable personal property means tangible
personal property having a useful life of more than one year and an acquisition cost of $300 or more per unit.
A Grantee may use its own definition of nonexpendable personal property provided that such definition
would at least include all tangible personal property as defined above.
1. Use of nonexpendable property.
(a) The Grantee shall use the property in the project for which it was acquired as long as
needed. When no longer needed for the original project, the Grantee shall use the property
in connection with its other Federally sponsored activities, if any, in the following order of
priority:
(1) Activities sponsored by the Rural Development.
(2) Activities sponsored by other Federal agencies.

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(b) During the time that nonexpendable personal property is held for use on the project for
which it was acquired, the Grantee shall make it available for use on other projects if such
other use will not interfere with the work on the project for which the property was
originally acquired. First preference for such other use shall be given to Rural Development
sponsored projects. Second preference will be given to other Federally sponsored projects.
2. Disposition of nonexpendable property. When the Grantee no longer needs the property as
provided in Item K. 1. (a), the property may be used for other activities in accordance with the
following standards:
(a) Nonexpendable property with a unit acquisition cost of less than $ 1 000. The Grantee
may use the property for other activities without reimbursement to the Federal Government
or sell the property and retain the proceeds.
(b) Nonexpendable personal property with a unit acquisition cost of $1000 or more. The
Grantee may retain the property for other uses provided that compensation is made to the
original Grantor agency or its successor. The amount of compensation shall be computed
by applying the percentage of Federal participation in the cost of the original project or
program to the current fair market value of the property. If the Grantee has no need for the
property and the property has further use value, the Grantee shall request disposition
instructions from the original Grantor agency.
The Grantor agency shall determine whether the property can be used to meet the agency's
requirements. If no requirement exists within the agency, the availability of the property
shall be reported, in accordance with the guidelines of the Federal Property Management
Regulations (FPMR), to the General Services Administration by the Grantor agency to
determine whether a requirement for the property exists in other Federal agencies. The
Grantor agency shall issue instructions to the Grantee no later than 120 days after the
Grantee request and the following procedures shall govern:
(1) If so instructed or if disposition instructions are not issued within 120 calendar
days after the Grantee's request, the Grantee shall sell the property and reimburse the
Grantor agency an amount computed by applying to the sales proceeds the
percentage of Federal participation in the cost of the original project or program.
However, the Grantee shall be permitted to deduct and retain from the Federal share
$100 or ten percent of the proceeds, whichever is greater, for the Grantee's selling
and handling expenses.
(2) If the Grantee is instructed to ship the property elsewhere the Grantee shall be
reimbursed by the benefiting Federal agency with an amount which is computed
by applying the percentage of the Grantee participation in the cost of the original
grant project or program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.

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(3) If the Grantee is instructed to otherwise dispose of the property, the Grantee
shall be reimbursed by the Grantor agency for such costs incurred in its disposition.
3. The Grantee's property management standards for nonexpendable personal property shall also
include:
(a) Property records which accurately provide for: a description of the property;
manufacturer's serial number or other identification number; acquisition date and cost;
source of the property; percentage (at the end of budget year) of Federal participation in the
cost of the project for which the property was acquired; location, use and condition of the
property and the date the information was reported; and ultimate disposition data including
sales price or the method used to determine current fair market value if the Grantee
reimburses the Grantor for its share.
(b) A physical inventory of property shall be taken and the results reconciled with the
property records at least once every two years to verify the existence, current utilization, and
continued need for the property.
(c) A control system shall be in effect to insure adequate safeguards to prevent loss,
damage, or theft of the property. Any loss, damage, or theft of nonexpendable property
shall be investigated and fully documented.
(d) Adequate maintenance procedures shall be implemented to keep the property in good
condition.
(e) Proper sales procedures shall be established for unneeded property which would provide
for competition to the extent practicable and result in the highest possible return.
This Grant Agreement covers the following described nonexpendable property (use continuation sheets as
necessary).
L. Provide Financial Management Systems which will include:
1. Accurate, current, and complete disclosure of the financial results of each grant. Financial
reporting will be on an accrual basis.
2. Records which identify adequately the source and application of funds for grant-supported
activities. Those records shall contain information pertaining to grant awards and authorizations,
obligations, unobligated balances, assets, liabilities, outlays, and income.
3. Effective control over and accountability for all funds, property and other assets. Grantees
shall adequately safeguard all such assets and shall assure that they are used solely for authorized
purposes.

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4. Accounting records supported by source documentation.
M. Retain financial records, supporting documents, statistical records, and all other records pertinent
to the grant for a period of at least three years after grant closing except that the records shall be
retained beyond the three-year period if audit findings have not been resolved. Microfilm copies may
be substituted in lieu of original records. The Grantor and the Comptroller General of the United
States, or any of their duly authorized representatives, shall have access to any books, documents,
papers, and records of the Grantee's government which are pertinent to the specific grant program for
the purpose of making audits, examinations, excerpts and transcripts.
N. provide information as requested by the Grantor to determine the need for and complete any
necessary Environmental Impact Statements.
0. Provide an audit report prepared in sufficient detail to allow the Grantor to determine that funds have
been used in compliance with the proposal, any applicable laws and regulations and this Agreement.
P. Agree to account for and to return to Grantor interest earned on grant funds pending their
disbursement for program purposes when the Grantee is a unit of local government. States and
instrumentalities of states shall not be held accountable for interest earned on grant funds pending their
disbursement.
Q. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or
acquired wholly or in part with Grantor funds without the written consent of the Grantor except as
provided in item J.
R. To include in all contracts for construction or repair a provision for compliance with the Copeland
''Anti-Kick Back'' Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part
3). The Grantee shall report all suspected or reported violations to the Grantor.
S. Pay all laborers and mechanics employed by contractors and subcontractors 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. 276a - 276a-5).
T. In construction contracts in excess of $2,000 and in other contracts in excess of $2,500 which
involve the employment of mechanics or laborers, to include a provision for compliance with Sections 103
and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by
Department of Labor regulations (29 CFR, Part 5).
U. To include in all contracts in excess of $100,000 a provision that the contractor agrees to comply with
all the requirements of Section 306 of the Clean Air Act (42 U.S.C. §7606) and Section 308 of the Water
Pollution Control Act and all regulations and guidelines issued thereunder after the award of the contract.
In so doing the Contractor further agrees:

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1. As condition for the award of contract to notify the Owner of the receipt of any communication
from the Environmental Protection Agency (EPA) indicating that a facility to be utilized in the
performance of the contract is under consideration to be listed on the EPA list of Violating
Facilities. Prompt notification is required prior to contract award.
2. To certify that any facility to be utilized in the performance of any nonexempt contractor
subcontract is not listed on the EPA list of Violating Facilities. Prompt notification is required prior
to contract award.
3. To include or cause to be included the above criteria and the requirements in every nonexempt
subcontract and that the Contractor will take such action as the Government may direct as a means
of enforcing such provisions.
As used in these paragraphs the term ''facility'' means any building, plan, installation, structure, mine, vessel
or other floating craft, location, or site of operations, owned, leased, or supervised by a Grantee, cooperator,
contractor, or subcontractor, to be utilized in the performance of a grant, agreement, contract, subgrant, or
subcontract. Where a location or site of operation contains or includes more than one building, plant,
installation, or structure, the entire location shall be deemed to be a facility except where the Director, Office
of Federal Activities, Environmental Protection Agency, determines that independent facilities are co-located
in one geographical area.
V. Not charge rents to domestic farm labor that exceed the rents approved by the Agency after
considering the income of the occupants, Agency and non-Agency rental assistance available and the
necessary costs of operation, debt service, and adequate maintenance of the housing.
W. Maintain the housing at all times in a safe and sanitary condition in accordance with standards
prescribed by state and local law, and Agency requirements.
X. When making occupancy decisions, ensure that domestic farm labor applicants will always
receive priority.

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GRANTOR AGREES THAT IT:

A. Will make available to Grantee for the purpose of this Agreement not to exceed
$
which it will advance to
percent of the development costs of the project in accordance
Grantee to meet not to exceed
with the actual needs of Grantee as determined by Grantor.
B. Will assist Grantee, within available appropriations, with such technical assistance as Grantor deems
appropriate in planning the project and coordinating the plan with local official comprehensive plans and
with any State or area plans for the area in which the project is located.
C. At its sole discretion and at any time may give any consent, deferment, subordination, release,

satisfaction, or termination of any or all of Grantee's grant obligations, with or without available consideration,

upon such terms and conditions as Grantor may determine to be (1) advisable to further the purpose of
the grant or to protect Grantor's financial interest therein and (2) consistent with both the statutory
purposes of the grant and the limitations of the statutory authority under which it is made.

TERMINATION OF THIS AGREEMENT.

This agreement may be terminated for cause in the event of default on the part of the Grantee as provided
in paragraph I above or for convenience of the Grantor and Grantee prior to the date of completion of the
grant purpose. Termination for convenience will occur when both the Grantee and Grantor agree that the
continuation of the project will not produce beneficial results commensurate with the further expenditure
of funds.
IN WITNESS WHEREOF Grantee on the date first above written has caused these presence to be
executed by its duly authorized
and attested and its corporate seal

affixed by its duly authorized

ATTEST:

By

By
(Title)

(Title)

UNITED STATES OF AMERICA
RURAL DEVELOPMENT
By

(Title)

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