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C.F.R. part 85. Notwithstanding anything contained herein to the contrary, the Developer and <br /> DHA shall work to assure that neither DHA nor any instrumentality thereof shall cause the <br /> Developer or any Owner Entity to become subject to 24 C.F.R. part 85 by exercising significant <br /> functions within such entities within the meaning of 24 C.F.R. part 941.602(d)(2). However, the <br /> Developer shall avoid organizational conflicts of interest as well as noncompetitive practices that <br /> may restrict or eliminate competition or otherwise restrain trade. The Developer shall employ <br /> due diligence to ensure that all consultants, design professionals, construction professionals, and <br /> other professionals or contractors engaged to provide services or supplies for the Revitalization <br /> shall supply the skill and judgment necessary to perform the required services in compliance with <br /> the Revitalization Schedule and the Revitalization Budget and in accord with all requirements of <br /> their respective contracts. Awards shall be made to the bidder or offeror whose bid or offer is in <br /> the Developer's sole determination, most advantageous to the applicable phase of the <br /> Revitalization, taking into consideration price, quality and other factors deemed by the Developer <br /> to be relevant. The other factors shall include (but not be limited to) the bidder's or offeror's <br /> compliance with minority contracting requirements and Section 3 of the Housing and Urban <br /> Development Act of 1968 and the implementing regulations at 24 C.F.R. part 135. <br /> 1.12.1 Selection of Affiliates. Subject to the Public Housing Requirements, <br /> Developer may utilize an"Affiliate"other than a general contractor as a Contractor so long as the <br /> Affiliate other than a general contractor is selected in a public bidding process in which a minimum <br /> of three (3) bids are received and so long as the utilization of said Affiliate complies with the <br /> requirements of Section 1.12 and with all applicable Public Housing Requirements. The Developer <br /> and the DHA acknowledge that HCTD's mixed-finance development regulations only permit a <br /> general contractor that is an Affiliate of the Developer to be the general contractor if it can be <br /> demonstrated that the identity of interest contractor submitted the lowest bid in a public bidding <br /> process. The Developer hereby agrees to comply with these and any other applicable Public <br /> Housing Requirements or to assist the DHA with seeking a waiver from H[TD of said regulation <br /> before entering into a General Contractor Contract,including paying for the cost of an independent <br /> cost estimate in support of said waiver request. Nothing stated in this Section 1.12.1 shall be <br /> interpreted as to preclude Developer from entering into negotiations with potential consultants or <br /> from encouraging the development of'Fhird Party Contractors through negotiations. Moreover, <br /> nothing in this Agreement shall be construed as to require Developer to select Third Party <br /> Contractors solely or primarily based on price. <br /> 1.12.2 Third Party Contractor Agreements. All contracts entered into after the <br /> Effective Date with Contractors and subcontractors pursuant to this Section 1.12 for the <br /> Revitalization shall (1) provide unlimited rights to use all deliverables of the DHA for public <br /> purposes; (2)permit assignment of the agreement to the DHA on terms and conditions reasonably <br /> satisfactory to the DHA,the Developer,the applicable Owner Entity,the contractor and any lenders <br /> for the particular Phase of the Revitalization, which terms and conditions include payment for <br /> reasonable costs agreed upon by the Parties and associated with work product and deliverables prior <br /> to assigrunent of said work product or deliverables; (3) include an executed HOPE VI <br /> Subgrantee/Contractor/Subcontractor Certifications&Assurances,attached hereto as E�ibit E;(4) <br /> permit termination according to the terms of Section 1.12.4 hereof; (5) require appropriate <br /> certifications that it will not cause any Party hereto to have a conflict of interest within the meaning <br /> Decatur Housing Authority Near North Impact Area Development Agreement <br /> Page 7 <br />