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IV.6. Approval of Metropolitan Council Policy and Program Development Grant Agreement; Needham CITY OF HOPKINS City Council Report 2026-005 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Revée Needham, Community Development Manager Date: January 6, 2026 Subject: Approve Metropolitan Council Policy and Program Development Grant Agreement _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve Metropolitan Council Policy and Program Development grant agreement. OVERVIEW Policy and Program Development Program The Policy & Program Development grant program expands upon the earlier "Policy Development" program to provide support to cities to develop locally adopted policies, programs, or partnerships that influence the physical environment and further both Livable Communities Act (LCA) and Imagine 2050 goals, with an emphasis on equitable development. Policy & Program Development Goals: • Remove barriers to producing or preserving affordable housing and/or prevent displacement in areas receiving new investment; • Support wealth building and economic opportunity for communities of historic and ongoing wealth extraction; • Minimize climate impact by reducing greenhouse gas emissions and conserving natural resources through housing, land use, and other policies that affect the built environment. Approximately $800,000 was available in funding for 2025, with a limit of $50,000 per City. There is no local match required for the program. City of Hopkins Application The City was notified that we would be receiving $50,000 in funding to remove barriers to preserving and producing affordable housing, which will involve hiring a consultant to evaluate the City’s housing stock, demographics and forecasts, analyze the most effective use of affordable housing tools including the Affordable Housing Trust Fund and Local Affordable Housing Aid funds and provide spending recommendations. The Request for Proposals (RFP) to hire a consultant will be published after the grant agreement has been signed. The Grant Agreement has been reviewed by the City Attorney. Planning & Economic Development SUPPORTING INFORMATION • Grant Agreement U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 1 of 21 SUBRECIPIENT: City of Hopkins GRANT NO. SG-23HP-04 SUBRECIPIENT UEI: PROJECT: Housing Assessment & LAHA Planning (See ATTACHMENT A) GRANT AMOUNT: $50,000 COUNCIL GRANT CYCLE: 2025 – Round 2 PROJECT ACTIVITY PERIOD: September 11, 2025 – December 31, 2027 FEDERAL AWARDING AGENCY: U.S. Department of Housing and Urban Development FEDERAL AWARD NAME: Pathways to Reducing Obstacles to Housing DATE OF FEDERAL AWARD: August 23, 2024 COUNCIL ACTION: September 10, 2025 EXPIRATION DATE: December 31, 2027 (Reviewed by OGC 11/18/25) PATHWAYS TO REDUCING OBSTACLES TO HOUSING GRANT PROGRAM LIVABLE COMMUNITIES POLICY & PROGRAM DEVELOPMENT GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made and entered into by the Metropolitan Council (“Council”) and the County, City, Town, or Development Authority identified above as “Subrecipient.” 1.The Council has applied for and received a grant award from the United States Government under Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law 93-383. 2.The Council received the grant through the 2023 U.S. Department of Housing and Urban Development’s Pathways to Reducing Obstacles to Housing grant program (“HUD PRO Housing”), which included the “Project” identified on Page 1 of this Agreement. 3.This Agreement establishes the terms and conditions under which the Subrecipient will receive and expend the HUD grant funding. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 2 of 21 4.The Council awarded HUD PRO Housing grant program funds to the Subrecipient with the understanding that the Policy and Affordable Housing Program Development Project described in the application will proceed to completion in a timely manner and all program funding under this Agreement will be expended prior to the Expiration Date identified above. NOW THEREFORE, in reliance on the above statements and in consideration of the mutual promises and covenants contained in this Agreement, the Subrecipient and the Council agree as follows: I.DEFINITION OF TERMS The terms defined in this section have the meanings given them in this section unless otherwise provided or indicated by the context. (a)Approved Budget. “Approved Budget” means the Project budget contained in the attachment to this Agreement (“Attachment A”) that details the costs associated with each activity. Attachment A is incorporated into and is part of this Agreement. (b)Council Action. “Council Action” means the action or decision of the governing body of the Metropolitan Council, on the meeting date identified at Page 1 of this Agreement, by which the Subrecipient was awarded the Policy and Program Development grant funded by HUD Pathways to Reducing Obstacles to Housing Grant Program funds. (c)Development Authority. “Development Authority” means a statutory or home rule charter city, a housing and redevelopment authority, an economic development authority, or a port authority in the Metropolitan Area. (d)Municipality. “Municipality” means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254. (e)Participating Municipality. “Participating Municipality” means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account program and negotiated affordable and life-cycle housing goals for the municipality pursuant to Minnesota Statutes section 473.254. (f)Metropolitan Area. “Metropolitan Area” means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (g)Project Activity Period. “Project Activity Period” means the time period identified on Page 1 within which eligible activities must be completed. The Project Activity Period may have commenced before the Effective Date of this Agreement. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 3 of 21 (h)Project. “Project” means the grant-funded activities for which funding is awarded and described in Attachment A of this Agreement. II.SCOPE OF SERVICE 2.01 Source of Funds. The grant funds made available to the Subrecipient under this Agreement are from the FY23 HUD Pathways to Reducing Obstacles (PRO) to Housing grant award to the Council. 2.02 Grant Amount. The Council will grant to the Subrecipient the “Grant Amount” identified at Page 1 of this Agreement. The Council’s obligation to reimburse the Subrecipient for eligible grant-funded expenditures shall not exceed the Grant Amount. Notwithstanding any other provision of this Agreement, the Subrecipient understands and agrees that a condition precedent to the Council paying Subrecipient under this Agreement is that the HUD PRO Housing grant funds are available to the Council. Subrecipient understands that any reduction or termination of the HUD PRO Housing grant funds made available to the Council will result in a like reduction in the Grant Amount made available to the Subrecipient. 2.03 Authorized Use of Grant Funds. The Subrecipient must use Grant Funds only for the costs that are: (1) HUD-eligible expenses; (2) in accordance with Attachment A; and (3) directly incurred for the Project during the Project Activity Period. 2.04 Eligible Costs. Costs incurred by the Subrecipient before the Project Activity Period and costs incurred by the Subrecipient after the Project Activity Period are not eligible for reimbursement. All expenses are subject to HUD regulations and guidance, as applicable. 2.05 Ineligible Uses. Grant funds must be used for eligible costs directly associated with the Project activities for which the Council awarded grant funds. A detailed list of ineligible and eligible costs is available from the Community Development/Metropolitan Transportation Services Finance and Administration Department. Grant funds also shall not be used by the Subrecipient or others to supplant or replace: (a) grant or loan funds obtained for the Project from other sources; (b) Subrecipient contributions to the Project, including financial assistance or other resources of the Subrecipient; or (c) funding or budgetary commitments made by the Subrecipient or others prior to the Council Action, unless specifically authorized in Attachment A. The Council shall bear no responsibility for cost overruns which may be incurred by the Subrecipient or others in the implementation or performance of the Project activities. The Subrecipient agrees to comply with any “business subsidy” requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Subrecipient’s expenditures or uses of the grant funds. 2.06 National Objectives. All activities funded with grant funds must meet one of the Community Development Block Grant (CDBG) program’s National Objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 C.F.R. 570.208. The Subrecipient certifies that the activities carried out under this Agreement will benefit low- and U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 4 of 21 moderate-incomes persons and meet community development needs having a particular urgency through breaking down barriers to improve availability and access to affordable housing. III.PAYMENT 3.01 Payment Requests and Disbursements. The Council will disburse grant funds in response to payment requests submitted by the Subrecipient through the Council’s online grants management system and reviewed and approved by the Council’s Authorized Agent. The Council will make the final determination whether the expenditures are eligible for reimbursement under this Agreement and verify the total amount requested from the Council. Reimbursement of any cost does not constitute a waiver by the Council of any Subrecipient noncompliance with this Agreement. The Council shall disburse grant funds for grant-eligible expenditures within thirty-five (35) days of the receipt of satisfactory documentation from the Subrecipient. Subrecipient may submit for reimbursement as often as monthly. Notwithstanding the provisions of this Section 3.01, the Council will not disburse any grant funds to the Subrecipient unless the governing body of the subrecipient (or the governing body of the Participating Municipality with which the Project is located) has adopted a Fair Housing Policy as required by Section 7.12. The Council will reimburse up to 90 percent of the awarded grant funds. The remaining 10 percent may be withheld before a final payment is issued until the Subrecipient: (a) completes the Project or grant deliverables identified in the project summary; and (b) submits a final request for payment and the Final Report as required under Section 9.01. If the required deliverables are not submitted within the term and closeout period specified in Section 8.03, the Council shall have no obligation to disburse the remaining 10 percent. In such cases, the Council may revert the remaining funds for redistribution through future funding cycles or as otherwise permitted by law. 3.02 Interest Earnings. If the Subrecipient earns any interest or other income from the grant funds received from the Council under this Agreement, the Subrecipient will use the interest earnings or income only for: (a) implementing the Project activities described or identified in Attachment A. IV.AMENDMENTS 4.01 Amendments and Extension. The Council and the Subrecipient may amend this Agreement by mutual agreement. Amendments or an extension of this Agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Subrecipient. If the Subrecipient needs a change to the Project, additional time within which to complete the grant-funded activities, a change in the budget, or a change in grant- funded activities, the Subrecipient must submit to the Council at least ninety (90) calendar days prior to the Expiration Date, , a complete, written amendment request. All requirements must be U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 5 of 21 met for a request to be considered complete. The Expiration Date may be extended, but the period of any extension(s) shall not exceed one (1) year beyond the original Expiration Date identified on page 1 of this Agreement. 4.02 Project Changes. The Subrecipient must promptly inform the Council in writing of any significant changes to the Project activities described or identified in Attachment A. Failure to inform the Council of any significant changes to the Project or significant changes to grant-funded Project activities, and use of grant funds for ineligible or unauthorized purposes, may jeopardize the Subrecipient’s eligibility for future awards. Grant funds will not be disbursed prior to Council approval of significant changes to the Project. 4.03 Budget Variance. The Subrecipient may reallocate up to twenty percent (20%) of the Grant Amount among the grant-funded activities provided: (a) the grant funds may be used only for Project activities for which the Council awarded the grant funds; (b) the reallocation does not significantly change the Project deliverables; and (c) the Subrecipient receives written permission from Council staff prior to reallocating any grant funds. Council staff may administratively approve budget reallocation requests that exceed twenty percent (20%) of the Grant Amount only if the reallocation does not significantly change the Project deliverables. Notwithstanding the aggregate or net effect of any variances, the Council’s obligation to provide grant funds under this Agreement shall not exceed the Grant Amount identified at Page 1 of this Agreement. V. NOTICES 5.01 Notices. Any notice in connection with this Agreement will be in writing and delivered by (a) personal delivery, (b) an overnight express courier, (c) confirmed e-mail, or (d) certified or registered mail, postage prepaid and return receipt requested. Notices will be deemed to be effective upon personal delivery, one (1) day after deposit with an overnight express courier, five (5) days after deposit in the mail, or upon receipt of the notice e-mail. Notices will be sent to a party at its address set forth below. 5.02 Authorized Agents. Payment requests, written progress reports, notices, and correspondence between the Council and the Subrecipient pursuant to this Agreement shall be directed to the Authorized Agents named below or their successors through the Council’s online grants administration portal or to the below contact information or other such address as the Party may specify in writing pursuant to this section: COUNCIL AUTHORIZED AGENT Erin Brueggemann Metropolitan Council CD & MTS Finance and Administration 390 Robert Street North Saint Paul, Minnesota 55101-1805 erin.brueggemann@metc.state.mn.us U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 6 of 21 SUBRECIPIENT AUTHORIZED AGENT Subrecipient: Click or tap here to enter text. Name: Click or tap here to enter text. Mailing Address: Click or tap here to enter text. E-mail: Click or tap here to enter text. VI. SPECIAL CONDITIONS 6.01 Restrictions on Loans. The Subrecipient shall not use the grant funds to make loans to any subgrantee, subrecipient, or contractor and the Subrecipient shall not permit any subgrantee, Subrecipient, or contractor to use the grant funds for loans to any Subrecipient at any tier. The requirements of this Section 6.01 shall be included in all subgrant and Subrecipient agreements, and contracts. 6.02 Loss of Grant Funds. The Subrecipient agrees to remit to the Council in a prompt manner: any unspent grant funds, including any grant funds that are not expended prior to the Expiration Date identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes; and any interest earnings described in Section 3.02 that are not used for the purposes of implementing the grant-funded Project activities described or identified in Attachment A. For the purposes of this Agreement, grant funds are “expended” prior to the Expiration Date if the Subrecipient pays or is obligated to pay for expenses of eligible grant-funded Project activities that occurred prior to the Expiration Date and the eligible expenses were incurred prior to the Expiration Date. VII. GENERAL CONDITIONS 7.01 General Compliance. The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpart K of these regulations, except that (1) the Subrecipient does not assume the Council’s environmental responsibilities described in 24 C.F.R. 570.604 and (2) the Subrecipient does not assume the Council’s responsibility for initiating the review process under the provisions of 24 C.F.R. Part 52. The Subrecipient also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this contract. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. 7.02 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an “independent contractor” with respect to the services to be performed under this Agreement. The Council shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance, as the Subrecipient is an independent contractor. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 7 of 21 7.03 Indemnification. The Subrecipient assumes liability for and agrees to defend, indemnify, and hold harmless the Council, its members, officers, employees, and agents, from and against all losses, damages, expenses, liability, claims, suits, or demands including, without limitation, attorney’s fees arising out of, resulting from, or relating to, the performance of the Project activities by the Subrecipient or the Subrecipient’s employees, agents, or contractors. Neither the Council nor the Subrecipient waives any immunities or limits on liability provided by Minnesota Statutes chapter 466 or other applicable state or federal law. 7.04 Workers' Compensation. The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement. 7.05 Insurance & Bonding. The Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud, and/or undue physical damage, and as a minimum shall purchase blanket fidelity bond covering all employees in an amount equal to cash advances from the Council. The Subrecipient shall comply with the bonding and insurance requirements of 2 C.F.R 200, Bonding and Insurance. 7.06 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete any Project activities described or identified in Attachment A. 7.07 Subgrantees, Contractors and Subcontractors. The Subrecipient shall include in any subgrant, contract or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor, and subcontractor compliance with all applicable state and federal laws and this Agreement. Along with such provisions, the Subrecipient shall require that contractors and subcontractors performing work covered by this grant comply with all applicable state and federal Occupational Safety and Health Act regulations. 7.08 Acknowledgments and Signage. The Subrecipient will acknowledge the financial assistance provided by the Council in promotional materials, press releases, reports and publications relating to the Project. The acknowledgment will contain the following or similar language: Funding support for this project was provided by the U.S. Department of Housing and Urban Development and the Metropolitan Council. The acknowledgment should refer to the “Metropolitan Council” (not “Met Council” or “Metro Council”). 7.09 Suspension or Termination. In accordance with 2 C.F.R. 200, the Council may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following: U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 8 of 21 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; 3. Ineffective or improper use of funds provided under this Agreement; or 4. Submission by the Subrecipient to the Council reports that are incorrect or incomplete in any material respect. In accordance with 2 C.F.R. 200, this Agreement may be terminated for convenience, in whole or in part, by the Council with the consent of the Subrecipient, or by the Subrecipient upon written notification to the Council by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Council determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Council may terminate the award in its entirety. 7.10 Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the Subrecipient and on behalf of the Council represent and warrant on the Subrecipient’s and the Council’s behalf respectively that the individuals are duly authorized to execute this Agreement on the Subrecipient’s and the Council’s behalf respectively and that this Agreement constitutes the Subrecipient’s and the Council’s valid, binding, and enforceable agreements. 7.11 Counterparts and Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which when executed will be deemed to be an original and the counterparts will together constitute one Agreement. A copy of this Agreement, including its signature pages, will be binding and deemed to be an original. Electronic signatures using Adobe Sign or a similar program will be deemed an original signature. 7.12 Fair Housing Policy. If the Project will include a housing component, the governing body of the Subrecipient (or the Participating Municipality within which the Project is located) must have adopted a Fair Housing Policy. For the purposes of this section, the term “Fair Housing Policy” means a written statement regarding the Subrecipient’s commitment to fair housing that substantively includes at least the following elements: a purpose statement; procedures for responding to fair housing concerns and complaints; and a designated individual or staff position responsible for fair housing issues. A best practices guide, as well as a copy of a model local fair housing policy is available at: https://metrocouncil.org/Handbook/Files/Resources/Best- Practices/Fair-Housing-Policy-Guide.aspx. VIII. ADMINISTRATIVE REQUIREMENTS U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 9 of 21 8.01 Accounting Standards. The Subrecipient agrees to comply with 2 C.F.R. 200 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 8.02 Accounting and Records. The Subrecipient agrees to establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of Sections 7.09 and 8.03, such accounts and records shall be kept and maintained by the Subrecipient for a period of six (6) years following the Council’s acceptance and approval of Project closeout activities described or identified in Attachment A. The Subrecipient shall maintain all records required by the Federal regulations specified in 24 C.F.R. 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: 1. Records providing a full description of each activity undertaken; 2. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; 3. Records required to determine the eligibility of activities; 4. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with the grant funds; 5. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; 6. Financial records as required by 24 C.F.R. 570.502, and 2 C.F.R.200; and 7. Other records necessary to document compliance with Subpart K of 24 C.F.R. Part 570. 8.03 Term and Closeout. The Subrecipient’s obligation to the Council shall not end until all close-out requirements are completed. Unless terminated pursuant to Section 7.09, this Agreement expires on the “Expiration Date” identified at Page 1 of this Agreement. Failure of the Subrecipient to timely execute this Agreement does not extend the Expiration Date. The Subrecipient has one hundred twenty (120) calendar days after the Expiration Date to provide documentation and information necessary to closeout this Agreement and receive disbursements for eligible grant-funded activities as prescribed in Section 2.03. If the Subrecipient fails to provide necessary documentation and information during this 120-day closeout period, the Subrecipient shall not be eligible to receive any unpaid grant funds, and the Council will not disburse any unpaid grant funds to the Subrecipient. This 120-day closeout period does not extend any Subrecipient reporting deadlines established in this Agreement or authorize the Subrecipient to expend or commit any grant funds after the Expiration Date. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over grant funds, including program income. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 10 of 21 8.04 Audits & Inspections. All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Council, grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within thirty (30) days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current Council policy concerning Subrecipient audits and 2 C.F.R. 200. Pursuant to Minnesota Statutes section 16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the Subrecipient that are relevant to this Agreement are subject to examination by the Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. 8.05 Access to Records. The Subrecipient shall furnish and cause each of its own Subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Council, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations, and provisions stated herein. 8.06 Use and Reversion of Assets. The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 2 C.F.R 200 and 24 C.F.R. 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: 1. The Subrecipient shall transfer to the Council any grant funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. 2. Real property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 C.F.R. 570.208 until five (5) years after expiration of this Agreement. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the Council an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the Council. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period. 3. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be retained after compensating the Council an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 11 of 21 IX. REPORTING 9.01 Report Requirements. The Subrecipient will report to the Council on a semi-annual basis by January 31 (for the period July 1 through December 31) and July 31 (for the period January 1 through June 30) of each calendar year during the term of this Agreement. The Subrecipient reports shall describe the status of the activities described or identified in Attachment A. The reports shall also describe the project spending for the current reporting period and projected spending for future reporting periods. The Subrecipient must complete and submit to the Council a Final Report before the final disbursement of grant funds will be approved. The form and content of the semi-annual and Final Reports will be determined by the Council. These reporting requirements shall survive the expiration or termination of this Agreement. X. PROCUREMENT 10.01 Compliance. The Subrecipient shall comply with current Council policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Council upon termination of this Agreement. 10.02 OMB Standards. Unless specified otherwise within this Agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 2 C.F.R. 200. XI. RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING REPLACEMENT 11.01 Relocation, Real Property Acquisition and One-for-One Housing Replacement. The Subrecipient agrees to comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 C.F.R. Part 24 and 24 C.F.R. 570.606(b); (b) the requirements of 24 C.F.R. 570.606(c) governing the Residential Anti-displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and (c) the requirements in 24 C.F.R. 570.606(d) governing optional relocation policies. The Subrecipient shall provide relocation assistance to displaced persons as defined by 24 C.F.R. 570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted project. The Subrecipient also agrees to comply with applicable Council resolutions and policies concerning the displacement of persons from their residences. XII. PERSONNEL & PARTICIPANT CONDITIONS 12.01 Compliance. The Subrecipient agrees to comply with the Minnesota Human Rights Act, and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 12 of 21 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. 12.02 Nondiscrimination. The Subrecipient agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 C.F.R. 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the Housing and Community Development Act are still applicable. The Subrecipient agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, gender identity, marital status, status with regard to public assistance, familial status, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 12.03 Land Covenants. This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 C.F.R. 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared, or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Council and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 12.04 Section 504. The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against individuals with disabilities or handicaps in any Federally assisted program. The Council shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. XIII. AFFIRMATIVE ACTION 13.01 Approved Plan. The Subrecipient agrees that it shall be committed to carry out an Affirmative Action Program pursuant to 41 C.F.R. Part 60-2.1-2.36 13.02 Women and Minority Owned Businesses (W/MBE). If the Subrecipient is subject to 2 C.F.R. part 200, subpart D, and more specifically 2 C.F.R. 200.321, the Subrecipient shall take the affirmative steps listed in 2 C.F.R. 200.321(b)(1) through (6) 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. 13.03 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, U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 13 of 21 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. 13.04 Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement. The Subrecipient will, 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. 13.05 Subcontract Provisions. The Subrecipient will include the applicable provisions of Section XII Personnel and Participant Conditions, and Section XIII Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own Subrecipients or subcontractors. XIV. EMPLOYMENT RESTRICTIONS 14.01 Prohibited Activity. The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; inherently religious activities; lobbying; political patronage; and nepotism activities. 14.02 Labor Standards. The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. Ch. 37 et seq.) and all other applicable Federal, state, and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. § 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 C.F.R. 5. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Council for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation, or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the Council pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 C.F.R. 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations and provisions meeting the requirements of this paragraph. 14.03 “Section 3” Clause. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 14 of 21 (a) Compliance. Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 C.F.R. Part 75, and all applicable rules and orders issued hereunder prior to the execution of this contract shall be a condition of the Federal financial assistance provided under this contract and binding upon the Council, the Subrecipient and any of the Subrecipient’s Subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Council, the Subrecipient, and any of the Subrecipients’ Subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The Subrecipient further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement: “The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located.” The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. (b) Notifications. The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 15 of 21 understanding, if any, a notice advising said labor organization or worker’s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. (c) Subcontracts. The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. 75 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. XV. CONDUCT 15.01 Assignability. The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Council. 15.02 Subcontracts. (a) Approvals. The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Council prior to the execution of such agreement, except as already authorized in the Action Plan. (b) Monitoring. The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. (c) Content. The Subrecipient shall cause all of the relevant provisions of this contract to be included in and made a part of any subcontract executed in the performance of this Agreement. (d) Selection Process. The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Council along with documentation concerning the selection process. 15.03 Hatch Act. The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 15.04 Conflict of Interest. The Subrecipient agrees to abide by the provisions of 2 C.F.R. 200 and 570.611, which include (but are not limited to) the following: U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 16 of 21 (a) The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees, or agents engaged in the award and administration of contracts supported by Federal funds. (b) No employee, officer, or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. (c) No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Council, the Subrecipient, or any designated public agency. 15.05 Lobbying. The Subrecipient certifies that: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and (c) It will require that the language of paragraph (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: (d) Lobbying Certification. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 17 of 21 15.06 Authorization to Reproduce Images. The Subrecipient certifies that the Subrecipient: (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs or other copyrightable materials (collectively, “copyrightable materials”) that are submitted to the Council after grant award, or that the Subrecipient is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Subrecipient agrees the Council has a nonexclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports, and on the internet. The Subrecipient also agrees the Subrecipient will not hold the Council responsible for the unauthorized use of the copyrightable materials by third parties. 15.07 Religious Activities. The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 C.F.R. 570.200(j), such as worship, religious instruction, or proselytization. XVI. ENVIRONMENTAL CONDITIONS 16.01 Air and Water. The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: - Clean Air Act, 42 U.S.C., 7401, et seq.; - Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; - Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. 50, as amended. 16.02 Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). 16.03 Historic Preservation. The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 C.F.R. 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 18 of 21 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. XVII. SEVERABILITY 17.01 Severability. If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect. XVIII. SECTION HEADINGS AND SUBHEADINGS 18.01 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. XIX. WAIVER 19.01 Waiver. The Council’s failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Council to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. XX. ENTIRE AGREEMENT 20.01 Entire Agreement. This Agreement constitutes the entire agreement between the Council and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Council and the Subrecipient with respect to this Agreement. This space intentionally left blank. Signature page follows. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 19 of 21 IN WITNESS WHEREOF, the Subrecipient and the Council have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Council. CITY OF HOPKINS METROPOLITAN COUNCIL By: _______________________________ By: ______________________________ LisaBeth Barajas, Executive Director Title: _____________________________ Community Development Division Date: _____________________________ Date: ____________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ Approved as to form: ________________________________________ U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 20 of 21 ATTACHMENT A This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the Project described in the application for Livable Communities Policy and Program Development Grant Program grant funds submitted in response to the Council’s notice of availability of funds for the Funding Cycle identified at Page 1 of this Agreement. The summary reflects the Project activities for which the Subrecipient was awarded grant funds by the Council Action, and may reflect changes in Project funding sources, changes in funding amounts, or minor changes in the proposed Project that occurred subsequent to application submission. The application is incorporated into this Agreement by reference and is made a part of this Agreement as follows. If the application or any provision of the application conflicts with or is inconsistent with the Council Action, other provisions of this Agreement, or the Project Summary contained in this Attachment A, the terms, descriptions, and dollar amounts reflected in the Council Action or contained in this Agreement and the Project Summary shall prevail. For the purposes of resolving conflicts or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the Project Summary and Location(s); and (4) the grant application. U.S. Department of Housing and Urban Development Pathways to Reducing Obstacles to Housing (PRO Housing) Grant Program Livable Communities Policy & Program Development Grant Metropolitan Council Grant Agreement Page 21 of 21 ATTACHMENT A Policy & Affordable Housing Program Development PRO Housing Project Summary Grant # SG-23HP-04 Type: Policy and Program Development (HUD PRO) Subrecipient: City of Hopkins Project Name: Housing Assessment & LAHA Planning Project Location: N/A Council District: 8 – Anjuli Cameron Project Detail Project Overview The City intends to complete a local housing needs assessment, including review of existing and emerging affordable housing funding sources (namely, LAHA and MN Housing’s AHTF Matching grant) to determine and prioritize local use of funding available. The project includes a review of local zoning and land use regulations, to identify barriers to affordable housing development or preservation, providing recommendations for future ordinance updates or program changes. Funding Grant Amount $50,000 Use of funds Amount Uses $50,000 Consultant Time Deliverable Strategic funding plan (LAHA and AHTF spending priorities) *No funds are to be used for general administration