Rule 110-19-1-.07 - Statement of ConditionsIn addition to the specific certifications made by the applicant in accepting the commitment letter and in executing the loan agreement and/or intergovernmental contract, the recipient further certifies or acknowledges that:
(1) No applicable state laws, rules, regulations, or applicable local ordinances shall be violated in carrying out the project and expending DD RLF loan proceeds.(2) The recipient, any development authorities or sub-recipients are authorized under the laws of the state to carry out the project and activities that are the subject of this financing and the proposed expenditure of funds are in accordance with all applicable legal requirements.(3) No real or apparent conflict of interest shall be engaged in by any official, employee or agent of the recipient and sub-recipient(s) and any member of their immediate family, their partners and any organization which employs, or is about to employ any of the above. This prohibition prohibits both the solicitation and acceptance of gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub-agreements. In addition, none of the persons listed above who exercise or have exercised any functions or responsibilities with respect to the activities supported by the DD RLF or are in a position to participate in a decision making process or gain inside information may have a financial interest or benefit from the DD RLF supported activities, either for themselves or for those with whom they have family or business ties, during their tenure or for one year thereafter.
It is the responsibility of the recipient to disclose to the Department any relationship that might create a real or apparent conflict of interest as soon as the recipient becomes aware of it and to request guidance and mitigation procedures from the Department. If a conflict of interest exists, the Department may make an exception to this requirement provided state law has not been violated and provided that the recipient or sub-recipient follows the Department's mitigation procedures. Some conflicts of interest may not be able to be mitigated depending on project status, state law, and the Department's judgment concerning the seriousness of the conflict. Because conflicts can occur at any phase of a project, including the application phase, recipients and sub-recipients are encouraged to discuss possible conflicts with the Department as early as possible in the application process.
(4) The recipient's accounting records of the DD RLF loan funds shall be maintained in a manner consistent with generally accepted government accounting standards.(5) The recipient's independent financial audit must be conducted in accordance with generally accepted government auditing standards and must include the DDRLF funds. A Source and Application of Funds Schedule and a Project Cost Schedule for all DD RLF funds must be included in the audit report. (6) Because the State of Georgia's Environmental Policy Act (O.C.G.A 12-16) is not generally applicable to land disturbing or to land acquisition activities of local governments and authorities unless state government assistance totals more than fifty (50%) percent of the total project cost or amounts to more than $250,000, the Act is not expected to apply to many DD RLF projects. However, it is the recipient's responsibility to determine the law's applicability to the specific project and to meet all of its requirements.(7) Loan funds shall be disbursed by the Department in accordance with the provisions of the loan agreement and/or intergovernmental contract. Those provisions may vary depending on each project's particular circumstances. In general, the Department will seek to match disbursements with actual need for funds and to minimize the existence of idle DD RLF funds at the local level.(8) The Department may make reviews and audits of the project including on-site reviews as may be necessary or appropriate to implement the program and insure the requirements contained in regulation, loan agreement and/or intergovernmental contract are met. In the case of noncompliance and at its sole discretion, the Department shall take such actions as it deems appropriate to prevent a continuance of the deficiency, mitigate any adverse effects or consequences and prevent a recurrence. The Department shall establish specific sanctions and remedies for borrower's and/or contractor's noncompliance on a case-by-case basis.(9) The recipient may be required to submit annual progress reports to the Department in a format prescribed by the Department. Failure to submit timely and acceptable reports may result in a request for immediate repayment of all DD RLF funds from the recipient by the Department or in other sanctions. The format and information required in any annual progress reports will be specified in the Department's award documents.(10) Loan payments shall be due to the Department in accordance with the terms and provisions of the loan agreement and/or intergovernmental contract and must be sent to: DD RLF Loan Servicing
Georgia Department of Community Affairs
Post Office Box 15481
Atlanta, Georgia 30333
Ga. Comp. R. & Regs. R. 110-19-1-.07
O.C.G.A. § 50-8-8.
Original grant description entitled "Statement of Conditions" submitted July 7, 1999.Submitted: Jan. 19, 2000.Submitted: Aug. 15, 2007.Amended: F. Dec. 14, 2018; eff. Jan. 3, 2019.