HomeMy WebLinkAbout2025, Federal CDBG Grant Funding Agreement, HUDQPoMENT0 ,y
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September 18, 2025
The Honorable Mayor Backus
City of Auburn
25 West Main Street
Auburn, WA 98001
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
Seattle Field Office
909 First Avenue, Suite 310
Seattle, WA 98104
SUBJECT: Fiscal Year 2025 Grant Agreement Transmittal
Dear The Honorable Mayor Backus:
The Seattle Field Office would like to thank you for your continued partnership in
providing quality affordable housing, a suitable living environment, and expanding economic
opportunities through the Department of Housing and Urban Development (HUD) programs.
One Grant Agreement is attached for each program awarded as follows:
Community Development Block Grant Program CDBG
$584,178.00
Total FY 2025 Award
$584,178.00
Federal Award Agreement
Transmittal of a grant agreement does not constitute approval of the activities described
in your Consolidated Plan or Annual Action Plan. You are reminded that you, as grantee, are
responsible for ensuring that all grant funds are used in accordance with all program
requirements. By executing the Federal Award Agreement, you are entering into a legally
binding agreement with HUD to use the awarded funds and carry out the funded activities in
accordance with all Federal statutes, regulations, Federal Register notices, and award terms and
conditions that apply to those funds and activities.
Please carefully note the addenda that are part of each agreement.
HUD recognizes that some U.S. District Courts have issued injunction orders which
impact certain FY 2025 CPD formula funding grant agreement(s). To preserve all legal rights
and defenses, the enclosed grant agreement contains the same conditions at issue in those court
actions. For grantees who are plaintiffs in those court actions, HUD intends to comply with all
applicable injunction orders and will not implement or enforce the challenged conditions
consistent with those court orders, including disregarding any "certifications" or "compliance"
statements. Please return an executed copy of the grant agreement, as discussed below, and
HUD will make grant funds at issue in your agreement available consistent with all applicable
orders. Please be advised that should the injunction orders that currently prohibit HUD from
enforcing the challenged conditions as to your grant be stayed, dissolved, or reversed, the grant
agreement, with conditions, will automatically become effective.
Executing the Agreement
The authorized official must complete Addendum 3. Indirect Cost Rate Schedule for
each agreement, even if no indirect costs will be charged under the grant. Please mark one (and
only one) checkbox to reflect how indirect costs will be calculated and charged under the
grant. Please note that the Office of Management and Budget (OMB) issued revised Guidance and
the de minimis indirect cost rate increased from 10 percent to up to 15 percent of Modified Total
Direct Costs.
After inputting their name and title, the authorized official must execute each agreement,
with a signature, and date. No other additions other than those described here should be made to
the grant agreement without prior written approval. Please ensure the Chief Elected Official or
authorized official signs the agreement.
You must return the entire Federal Award Agreement, including all addenda, to this
office via the Field Office General Email Inbox: SeattleCPD@hud.gov. HUD will be signing the
grant agreement second and will return to your office a copy of each signed agreement for you to
maintain in your local program files.
HUD congratulates the City of Auburn on your grant award, and we look forward to
assisting you in accomplishing your program goals. If you have any questions or need further
information or assistance, please contact your assigned Field Office representative, Charlotte
Clifton, charlotte.k.cliftonnhud.gov or email our Office at.SeattleCPD@hud.gov.
Sincerely,
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Brian Sturdivant
Acting Director
Office of Community Planning
and Development
Enclosure(s)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
FEDERAL AWARD AGREEMENT
A. General Federal Award Information
1. Recipient name (must match Unique Entity Identifier
12. Assistance listing number and title:
name) and address:
• 14.218, Community Development Block Grant
City of Auburn
Program for Entitlement Communities
25 WEST MAIN STREET
• 14.225, Community Development Block Grant
Auburn, WA 98001
Program for Insular Areas
• 14.228, Community Development Block Grant
Program for States and Non -Entitlement
Grants in Hawaii
2. Recipient's Unique Entity Identifier:
13.Amount of federal funds obligated by this action:
$584,178.00
3. Tax identification number:
14. Total amount of federal funds obligated:
$584,178.00
4. Federal Award Identification Number (FAIN):
15. Total approved cost sharing (if applicable):
N/A
5. Instrument type:
16. Total federal award amount, including approved
Grant ® Cooperative agreement ❑
cost sharing:
Loan Guarantee ❑
$584,178.00
6. Period of performance start and end date:
17. Budget approved by HUD:
10/1/2024 - See Addendum 2
7. Budget period start and end date:
18. Fiscal year:
10/1/2024 - See Addendum 2
2025
8. Initial Agreement ® Amendment ❑ #
19. Statutory authority:
42 U.S.C. 5301 et seq.
9. Indirect cost rate (per § 200.414):
20. Applicable appropriations act(s):
Recipients must complete Addendum 3: Indirect Cost
Public Law 119-4
Rate Schedule
10. Is this award for research and development (per2
21. Notice/notice of funding opportunity this award is
C.F.R. § 200.1)? Yes ❑ No ®
made under (if applicable):
N/A
11. Awarding official name and contact information:
22. Program regulations (if applicable):
24 C.F.R. Part 570
23. Federal award description:
The CDBG program provides funding to eligible grantees for the development of viable urban
communities, by providing decent housing and a suitable living environment and expanding economic
opportunities, principally for persons of low and moderate income.
• Addendum 1. Policy Requirements
• Addendum 2. Program -Specific Requirements
• Addendum 3. Indirect Cost Rate Schedule
Authority and Agreement This agreement between the U.S. Department of Housing and Urban Development (HUD)
and the Recipient is made pursuant to the statutory authority above (box 19) and is subject to the applicable
appropriations act(s) (box 20). This agreement incorporates by reference the Community Development Block Grant
program statute 42 U.S.C. 5301 et seq., the program regulations at 24 C.F.R. § 570 (as now in effect and as may be
Page 1 of 8
U.S. Department of Housing and Urban Development— Federal Award Agreement
amended from time to time), Recipient's consolidated plan/action plan, the relevant funding notice (box 21), any
attached Specific Terms and Conditions, and the attached addenda (box 23).
B. Terms and Conditions
1. General terms and requirements. The Recipient must comply with all applicable federal laws, regulations, and
requirements, unless otherwise provided through HUD's formal waiver authorities. This agreement, including
any attachments and addenda, may only be amended in writing executed by parties to this agreement and any
addenda.
2. Administrative requirements. The Recipient must comply with the following requirement(s) if checked below:
❑ The administrative requirements in the HUD General Administrative, National, and Departmental Policy
Requirements and Terms for HUD's Financial Assistance Programs 2025, as indicated in the relevant
NOFO, apply to this agreement.
® The grantee shall comply with requirements established by the Office of Management and Budget (OMB)
concerning the Unique Entity Identifier (UEI); the System for Award Management (SAM.gov.); the Federal
Funding Accountability and Transparency Act as provided in 2 C.F.R. part 25, Universal Identifier and
General Contractor Registration; and 2 C.F.R. part 170, Reporting Subaward and Executive Compensation
Information.
3. Applicability of2 C.F.R. part200.
® The Recipient must comply with the applicable requirements at 2 C.F.R. part 200, as maybe amended
from time to time. If any previous or future amendments to 2 C.F.R. part 200 replace or renumber any part
200 section cited in HUD's regulations in Title 24 of the Code of Federal Regulations, the amended part
200 requirements will govern award activities carried out afterthe amendments' effective date.
❑ The Recipient must comply with the applicable requirements at 2 C.F.R. part 200. If any previous
amendments to 2 C.F.R. part 200 replace or renumber any part 200 section cited in HUD's regulations in
Title 24 of the Code of Federal Regulations, the amended part 200 requirements will govern award
activities carried out afterthe amendments' effective date.
4. Future budgetperiods. If the period of performance spans multiple budget periods, subsequent budget
periods are subject to the availability of funds, program authority, satisfactory performance, and compliance
with the terms and conditions of the Federal award.
5. Indirect Cost Rate. If the Recipient intends to use a negotiated or de minimis rate for indirect costs, the
Recipient must submit an Indirect Cost Rate form to HUD, either with its application using HUD-426
(competitive grants) or with this agreement using "Addendum #3 "Indirect Cost Rate Schedule" (formula and
congressional grants). The submitted form/addendum will be incorporated into and made part of this
agreement, provided that the rate information is consistent with the applicable requirements under C.F.R. §
200.414. If there is any change in the Recipient's indirect cost rate, it must immediately notify HUD and
execute an amendment to this agreement to reflect the change if necessary.
6. Recipient integrity and performance matters. If the Federal share of this award is more than $500,000 overthe
period of performance (box 6), the terms and conditions in 2 C.F.R. part 200 AppendixXll apply to this
agreement.
7. Recordkeeping and Access to Records. The Recipient hereby agrees to maintain complete and accurate
books of account for this award and award activities in such a manner as to permit the preparation of
statements and reports in accordance with HUD requirements, and to permit timely and effective audit. The
Recipient agrees to furnish HUD such financial and project reports, records, statements, subrecipient data,
and documents at such times, in such form, and accompanied by such reporting data as required by HUD.
HUD and its duly authorized representative shall have full and free access to all Recipient offices and
facilities, and to all books, documents, and records of the Recipient relevant to the administration, receipt,
and use of this award and award activities, including the right to audit and make copies. The Recipient agrees
to maintain records that identifythe source and application of funds, including relevant subrecipient data, in
[14.218,14.225,14.228, CDBG, FY 2025] Page 2 of 8
U.S. Department of Housing and Urban Development— Federal Award Agreement
such a manner as to allow HUD to determine that all funds are and have been expended in accordance with
program requirements and in a manner consistent with applicable law.
Further, the Recipient hereby acknowledges that HUD is in the process of implementing new grants
management and reporting tools, which will be made available forthe Recipient's use in the future. The
Recipient agrees to report on grant performance and financial activities (including vendor and cash
disbursement supporting details forthe Recipient and its subrecipients) usingthese new tools when they are
released. HUD will work with the Recipient to support the Recipient's transition to this new reporting
environment. Once implemented, timely reporting in this new environmentwill be mandatory. HUD reserves
the right to exercise all of its available rights and remedies for any noncompliance with these grants
management and financial reporting requirements, to include, without limitation, requiring 100% review,
suspension of disbursements, and all other legally available remedies, to the furthest extent permitted by law,
as amended.
8. Noncompliance. If the Recipientfails to complywith the provisions of this agreement, HUD maytake one or
more of the actions provided in program statutes, regulations or 2 C.F.R. § 200.339, as applicable. Nothing in
this agreement shall limit any remedies otherwise available to HUD in the case of noncompliance by the
Recipient. No delay or omissions by HUD in exercising any right or remedy available to it underthis agreement
shall impair any such right or remedy or constitute a waiver of or acquiescence in any Recipient
noncompliance.
9. Termination provisions. Unless superseded by program statutes, regulations or NOFOs, thetermination
provisions in 2 C.F.R. § 200.340 apply.
10. BuildAmerica, BuyAmerica. The Recipient must comply with the requirements of the Build America, Buy
America (BABA) Act, 41 U.S.C. § 8301 note, and all applicable rules and notices, as may be amended, if
applicable. Pursuant to HUD's Notice, "Public Interest Phased Implementation Waiver for FY 2022 and 2023
of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance" (88
Fed. Reg.17001), BABA requirements apply to any infrastructure projects HUD has obligated funds for after
the effective dates, unless excepted by a waiver.
11. Waste, Fraud, Abuse, and Whistleblower Protections. Any person who becomes aware of the existence or
apparent existence of fraud, waste, or abuse of any HUD award must report such incidents to both the HUD
official responsible forthe award and to HUD's Office of Inspector General (OIG). Allegations of fraud, waste,
and abuse related to HUD programs can be reported to the HUD OIG hotline via phone at 1-800-347-3735 or
online hotline form. The Recipient must comply with 41 U.S.C. § 4712, which includes informing employees in
writing of their rights and remedies, in the predominant native language of the workforce. Under 41 U.S.C. §
4712, employees of a government contractor, subcontractor, recipient, and subrecipient—as well as a
personal services contractor —who make a protected disclosure about a Federal award or contract cannot be
discharged, demoted, or otherwise discriminated against if they reasonably believe the information they
disclose is evidence of (1) gross mismanagement of a Federal contract or award; (2) waste of Federal funds;
(3) abuse of authority relating to a Federal contract or award; (4) substantial and specific dangerto public
health and safety; or (5) violations of law, rule, or regulation related to a Federal contract or award.
12. Third -Party Claims. Nothing in this agreement shall be construed as creating or justifying any claim against
the federal government or the Recipient by any third party.
13. Rule of Construction and No Construction Against Drafter. Notwithstanding anything contained in this
agreement, the terms and conditions hereof are to be construed to have full and expansive effect in both
interpretation and application, and the parties agree that the principle of interpretation that holds that
ambiguities in terms or conditions are construed against the drafter shall not apply in interpreting this
agreement.
C. Federal Award Performance Goals
The Recipient must meet any applicable performance goals, indicators, targets, and baseline data as required by
applicable program requirements.
[14.218, 14.225, 14.228, CDBG, FY 2025] Page 3 of 8
U.S. Department of Housing and Urban Development —Federal Award Agreement
D. Specific Terms and Conditions Not applicable ® Attached ❑
For the U.S. Department of HUD
Signature
Date
(name and title of authorized official)
For the Recipient
Signature
Date
(name and title of authorized official)
q,2�.2C
[14.218,14.225,14.228, CDBG, FY 20251 Page 4 of 8
U.S. Department of Housing and Urban Development — Federal Award Agreement
ADDENDUM 1. POLICY REQUIREMENTS
If applicable:
1. The Recipient shall not use grant funds to promote "gender ideology," as defined in Executive Order
(E.O.)14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government;
2. The Recipient agrees that its compliance in all respects with all applicable Federal anti-
discrimination laws is material to the U.S. Government's payment decisions for purposes of section
3729(b)(4) of title 31, United States Code;
3. The Recipient certifies that it does not operate any programs that violate any applicable Federal
anti -discrimination laws, including Title VI of the Civil Rights Act of 1964;
4. The Recipient shall not use any grant funds to fund or promote elective abortions, as required by
E.O.14182, Enforcing the Hyde Amendment; and that,
5. Notwithstanding anything in the NOFO or Application, this Grant shall not be governed by Executive
Orders revoked by E.O.14154, including E.O. 14008, or NOFO requirements implementing
Executive Orders that have been revoked.
6. The Recipient must administer its grant in accordance with all applicable immigration restrictions
and requirements, including the eligibility and verification requirements that apply under title IV of
the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended (8 U.S.C.
1601-1646) (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U.S.
Citizenship and Immigration Services may establish from time to time to comply with PRWORA,
Executive Order 14218, or other Executive Orders or immigration laws.
7. No state or unit of general local government that receives funding under this grant may use that
funding in a manner that by design or effect facilitates the subsidization or promotion of illegal
immigration or shields illegal aliens from deportation, including by maintaining policies or practices
that materially impede enforcement of federal immigration statutes and regulations.
8. The Recipient must use SAVE, or an equivalent verification system approved by the Federal
government, to prevent any Federal public benefit from being provided to an ineligible alien who
entered the United States illegally or is otherwise unlawfully present in the United States.
9. Faith -based organizations maybe subrecipients for funds on the same basis as any other
organization. Recipients may not, in the selection of subrecipients, discriminate against an
organization based on the organization's religious character, affiliation, or exercise.
[14.218,14.225,14.228, CDBG, FY 2025] Page 5 of 8
U.S. Department of Housing and Urban Development — Federal Award Agreement
ADDENDUM 2. PROGRAM -SPECIFIC REQUIREMENTS
Assistance Listing 14.218, Community Development Block Grant Program for Entitlement Communities
Assistance Listing 14.225, Community Development Block Grant Program for Insular Areas
Assistance Listing 14.228, Community Development Block Grant Program for States and Non -
Entitlement Grants in Hawaii
1. Environmental Review. The Recipient agrees to assume all the responsibilities for environmental
review, decision making, and actions, as specified and required in regulations issued by the
Secretary pursuant to section 104(g) of title I of the Housing and Community Development Act of
1974 and published in 24 C.F.R. part 58; except that if the Recipient is a state, the Recipient must
require the unit of general local government to assume that responsibility and must comply with the
state's responsibilities under 24 C.F.R. 58.4.
2. Public Use. The Recipient shall ensure that no CDBG funds are used to support any Federal, State,
or local projects that seek to use the power of eminent domain, unless eminent domain is
employed only for public use. For the purposes of this requirement, public use shall not be
construed to include economic development that primarily benefits private entities. Any use of
funds for mass transit, railroad, airport, seaport, or highway projects as well as utility projects that
benefit or serve the general public (including energy-, communication-, water-, and wastewater -
related infrastructure), other structures designated for use by the general public or which have other
common -carrier or public -utility functions that serve the general public and are subject to
regulation and oversight by the government, and projects for the removal of an immediate threat to
public health and safety or brownfield as defined in the Small Business Liability Relief and
Brownfields Revitalization Act (Pub. Law No.107-118) shall be considered a public use for purposes
of eminent domain.
3. Prohibition on Selling, Trading, and Transferring Funds. The Recipient or unit of general local
government that directly or indirectly receives CDBG funds may not sell, trade, or otherwise transfer
all or any such portion of such funds to another such entity in exchange for any other funds, credits
or non -Federal considerations, but must use such funds for activities eligible under title I of the
Housing and Community Development Act of 1974.
4. Construction ofWaterand Sewer Facilities. Notwithstanding any other provision of this agreement,
the Recipient may not obligate or expend award funds to plan or construct water or sewer facilities,
including any new or revised activities, until after 1) it completes the review procedures required
under Executive Order 12372, Intergovernmental Review of Federal Programs, and 24 C.F.R. part 52
and 2) HUD provides written notice of the release of funds.
5. Funds for For -Profit Entities. Under 42 U.S.C. § 5305(a)(17), CDBG funds may not be provided to a
for -profit entity unless such activity or project has been evaluated and selected in accordance with
Appendix A to 24 C.F.R. § 570, Guidelines and Objectives for Evaluating Project Costs and Financial
Requirements.
6. Violence Against Women Act. The Recipient will comply with the right to report crime and
emergencies protections at 34 U.S.C. § 12495 of the Violence Against Women Act.
[14.218,14.225,14.228, CDBG, FY 202511 Page 6 of 8
U.S. Department of Housing and Urban Development — Federal Award Agreement
7. Funding Information and Period of Performance and Budget Period End Dates
Source of Funds Amount Period of Performance End Date Budget Period End Date
2025 $584,178.00 9/30/2033 9/30/2033
114.218,14.225,14.228, CDBG, FY 20251 Page 7 of 8
U.S. Department of Housing and Urban Development — Federal Award Agreement
ADDENDUM 3. INDIRECT COST RATE SCHEDULE
As the duly authorized representative of the Recipient, I certify that the Recipient:
X Will not use an indirect cost rate to calculate and charge indirect costs under the grant.
❑ Will calculate and charge indirect costs under the grant by applying a de minimis rate as provided
by 2 C.F.R. § 200.414(f), as may be amended from time to time.
❑ Will calculate and charge indirect costs under the grant using the indirect cost rate(s) listed below,
and each rate listed is included in an indirect cost rate proposal developed in accordance with the
applicable appendix to 2 C.F.R. part 200 and, if required, was approved bythe cognizant agency for
indirect costs.
Agency/department/major function Indirect cost rate Type of Direct Cost Base
Instructions for the Recipient:
The Recipient must mark the one (and only one) checkbox above that best reflects how the
Recipient's indirect costs will be calculated and charged under the grant. Do not include indirect
cost rate information for subrecipients.
The table following the third box must be completed only if that box is checked. When listing a rate
in the table, enter both the percentage amount (e.g.,10%) and the type of direct cost base to be
used. For example, if the direct cost base used for calculating indirect costs is Modified Total Direct
Costs, then enter "MTDC" in the "Type of Direct Cost Base" column.
If using the Simplified Allocation Method for indirect costs, enter the applicable indirect cost rate
and type of direct cost base in the first row of the table.
If using the Multiple Allocation Base Method, enter each major function of the organization for
which a rate was developed and will be used under the grant, the indirect cost rate applicable to
that major function, and the type of direct cost base to which the rate will be applied.
If the Recipient is a government and more than one agency or department will carry out activities
under the grant, enter each agency or department that will carry out activities under the grant, the
indirect cost rate(s) for that agency or department, and the type of direct cost base to which each
rate will be applied.
To learn more about the indirect cost requirements, see 2 C.F.R. part 200, subpart E and Appendix VII to Part
200 (for state and local governments).
114.218,14.225,14.228, C.DBG, FY 20251
Page 8 of 8