HomeMy WebLinkAboutCDC/2000-36
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RESOLUTION NO: CDCj2000-36
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE
THE COMMUNITY HOUSING DEVELOPMENT ORGANIZATION
(CHDO) HOME AGREEMENT WITH NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE, INC. (NHS) AND
APPROPRIATING UP TO $60,000 FROM THE HOME CHDO
ADMINISTRATION FUND - NHS HOMEOWNERSHIP CENTER AT 1400
NORTH "D" STREET.
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THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF
OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES
HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
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SECTION 1.
The Executive Director of the Redevelopment Agency ("Agency")
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is hereby authorized and directed to execute on behalf of said Agency the CHDO HOME
Agreement between the Agency and Neighborhood Housing Services of the Inland Empire Inc.,
(NHS) wherein the Agency will provide a $60,000 HOME/CHDO grant, and as more fully
described in the HOME CHDO Agreement, a copy of which is on file with the City Clerk and
incorporated herein by reference as though fully set forth at length.
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SECTION 2.
The Executive Director of the Agency is hereby authorized to
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make minor corrections, additions, and clarifications to the Agreement, provided said changes
are not substantive in nature, and do not increase the monetary impact to the Agency.
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SECTION 3.
The authorization to execute the above referenced Agreement is
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rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage 0
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this resolution.
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CDC/2000-36
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE
AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE COMMUNITY HOUSING DEVELOPMENT
2 ORGANIZATION (CHDO) HOME AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC. (NHS) AND APPROPRIATING UP TO $60,000 FROM THE HOME
3 CHDO ADMINISTRATION FUND - NHS HOME OWNERSHIP CENTER AT 1400 NORTH "D"
STREET.
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25 By:.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a Joint Regular
meeting
, 2000, by the following vote, to wit:
NAYS
ABST AIN
ABSENT
The foregoing Resolution is hereby approved this I qlL
October
,2000.
L~
S, Chairperson
Development Commission
of San Bernardino
to form and legal content:
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CDC/2000-36
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HOME AGREEMENT
COMMUNITY HOUSING DEVELOPMENT ORGANIZA nON (CHDO)
HOMEOWNERSHIP CENTER
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(Neighborhood Housing Services of the Inland Empire, Inc.)
(NHS)
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5 THIS AGREEMENT is made and entered into this 16th day of October 2000, by and
6 between the Redevelopment Agency of the City San Bernardino, a body corporate and politic
7 (hereinafter referred to as "Agency"), located in the City of San Bernardino and in San
8 Bernardino County, and the Neighborhood Housing Services of the Inland Empire, Inc. (NHS),
9 1390 North "D" Street, San Bernardino, California 92405, a community housing development
10 organization (CHDO) organized pursuant to Title 24 CFR Subpart "G", Section 92.300, et seq.,
11 acting herein duly authorized by its Board of Directors.
12 RECITALS
13 WHEREAS, the City has received formula HOME Investment Partnership allocation for
14 Fiscal Years 1999 and 2000 from the federal Department of Housing and Urban Development
15 (HUD) to carry out eligible activities in accordance with federal program requirements at 24
16 CFR 92 (the "Program"), and the Agency is designated to administer such Program on behalf of
17 the City; and
18 WHEREAS, five percent (5%) of the above-mentioned grant amount may be set aside
19 and made available to designated CHDOs for operating, administration expenses and capacity
20 building in accordance with HUD guidelines, and those allowable expenses may include
21 organizational support, administrative expenses, and operating expenses, per 24 CFR 92.208(a);
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23 WHEREAS, NHS is desirous of participating in activities eligible under HOME, and
24 further agrees that the beneficiaries of its activities under the program and this Agreement, are or
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will be low income individuals or families who do not exceed the income eligibility guidelines at
2 Title 24 CFR part 92.217; and
3 WHEREAS, the Agency deems the activities to be provided by NHS as consistent with
4 and supportive of the HOME Program and is consistent with the City of San Bernardino 2000-
5 2005 Consolidated Plan and Housing Element, and that NHS requires the financial assistance of
6 the Agency to implement its activities; and
7 WHEREAS, the Agency, acting in the capacity of Administrator, will monitor and
8 administer NHS to ensure compliance with all HOME Program requirements, and that NHS, in
9 its capacity as a CHDO, will comply with all program requirements under 24 CFR 92.
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11 1.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
CERTIFYING THE NONPROFIT AS A CHDO:
12 NHS has satisfied the definition of a CHDO as stated in 24 CFR Subpart A, Section 92.2
13 of the HOME Final Rule. To qualify for receipt and use of federal HOME funds as a CHDO
14 NHS has met the following requirements:
15 A. Legal Status. The nonprofit organization is organized under state or local laws, as
16 evidenced by a charter or articles of incorporation. No part of its net earnings inure to the benefi
17 of any member, founder, contributor, or individual, as evidenced by the same. The nonprofit
18 organization must have a tax exemption ruling from the Internal Revenue Service (IRS) under
19 Section SOl(c) of the Internal Revenue Code of 1986, as evidenced by a SOl(c) certificate from
20 the IRS. Also, as a nonprofit organization NHS has among its purposes the provision of decent
21 housing that is affordable to low and moderate income people, as evidenced by a statement in the
22 organization's charter, articles of incorporation, by-laws or resolutions.
23 B. Capacity. The nonprofit organization conforms to the financial accountability
24 standards of24 CFR 84.21, "Standards for Financial Management Systems". Since 1982, NHS
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housing programs through the stated experience of key staff members or contract(s) with
2 consultants who have experience with related projects to train key staff. Also NHS has shown a
3 history of serving the community where housing to be assisted with HOME funds has been used
4 and has over 10 years of experience in serving the community.
5 C. Organizational Structure. The governing board ofNHS consists of at least 33 percent
6 (33%) residents oflow-income neighborhoods, other low-income community residents, or
7 elected representatives of low-income neighborhood organizations as evidenced by charter, by-
8 laws or articles of incorporation. NHS provides a formal process for low-income, program
9 beneficiaries to advise the organization in all of its decisions regarding the design, development,
10 and management of all affordable housing projects, through its by-laws, resolutions or a written
11 statement of operating procedures approved by the governing body. While NHS may be
12 chartered by the state or a local government, the public body may not appoint more than one-
13 third of the membership of the organization's governing board and no more than one-third of the
14 governing board members are public officials as evidenced by charter, by-laws, or articles of
15 incorporation. Also, ifNHS is sponsored or created by a for-profit entity, the for-profit entity
16 may not appoint more than one-third of the membership ofNHS' governing body, and the board
17 members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of
18 the board members, as evidenced by the same.
19 D. Relationship with For-Profit Entities. NHS is not controlled, nor receives directions
20 from individuals or entities seeking profit from the organization, as evidenced by the
21 organization's by-laws or a memorandum of understanding. NHS may be sponsored or created
22 by a for-profit entity, however:
23 1. The for-profit entity's primary purpose does not include the development or
24 management of housing, as evidenced in its by-laws; and
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2. NHS is free to contract for goods and services from vendor(s) of its own choosing, as
evidenced in its by-laws, charter or articles of incorporation.
II. SCOPE OF SERVICES AND COMPENSATION
A. Amount of Grant: Pursuant to the conditions being met in Section I. Above, Agency
agrees to Grant up to Sixty Thousand dollars ($60,000) (the "Grant") of the HOME Investment
Partnership funds for the purposes set forth in "B" below.
B. Use of Grant Funds: The Grant funds will be used to pay the CHDO operating,
administration and building capacity expenses ofNHS including but not limited to the costs of;
rent; utilities; taxes; insurance; equipment; materials, signs, furnishings, supplies, architectural
design and permit fees related to the development of the NHS Homeownership Center located at
1400 North "D" Street and as more fully described in Exhibit "A" herein after referred to as the
"Project". The requirements and limitations on the receipts of these funds by CHDO's are set
forth in CFR 92.300(e) and (t).
1. Proiected Budget:
The NHS budget shall be substantially as projected in the budget letter dated October 3,
2000 which has been submitted for the Project and which is attached hereto as Exhibit "A" and
by this reference is incorporated herein.
2. Schedule for completion of tasks:
Upon execution of this Agreement, NHS agrees to complete the Project outlined in the
body of this Agreement by no later than October 30, 2001.
e. Other Program Requirements
1. NHS must carry out each activity in compliance with all federal laws and regulations
described in Subpart H of 24 CFR 92 and outlined hereinafter, except that NHS does not assume
the Agency's/City's responsibility for environmental review in Section 92.352 or the
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intergovernmental review process in Section 92.357. These federal laws and regulations must be
2 complied with as follows:
3 a. Equal Opportunity. No person shall be excluded from participation in, be denied the
4 benefits of or be subjected to discrimination under any program or activity funded in whole or in
5 part with HOME funds. In addition, HOME funds must be made available in accordance with al
6 laws and regulations listed in Section 92.350(a).
7 b. Fair Housing. In accordance with the certification made with its housing strategy,
8 each participating jurisdiction must affirmatively further fair housing. Actions described in
9 Section 570.904(c) of Title II of the Cranston-Gonzales National Affordable Housing Act will
10 satisfy this requirement.
11 c. Affirmative Marketing. NHS must adopt affirmative marketing procedures and
12 requirements for HOME-assisted housing projects of five (5) units or more. These must include:
13 (l) Methods for informing the public; (2) Requirements and practices that NHS must adher
14 to in order to carry out the City/Agency affirmative marketing procedures and requirements; (3)
15 Procedures used by NHS to inform and solicit applications from persons in the housing
16 market area who are not likely to apply without special outreach; (4) Records that will be kept
17 describing actions taken by NHS to affirmatively market units and records to assess the results 0
18 these actions; and (5) A description of how NHSIE will assess the success of affirmative
19 marketing actions and what corrective actions will be taken where affirmative marketing
20 requirements are not met.
21 d. Displacement. Relocation and Acquisition. Consistent with the other goals and
22 objectives of this Subpart H of24 CFR 92, NHSIE must ensure that it has taken all reasonable
23 steps to minimize the displacement of persons (families, individuals, businesses, nonprofit
24 organizations, and farms) as a result of any project assisted with HOME funds, if applicable.
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e. Conflict of Interest. NHS will hereby comply with all requirements set forth
2 regarding conflict of interest provisions as they apply in Section 92.356.
3 f. Debarment and Suspension As required in Section 92.357, NHS will comply wit
4 all debarment and suspension certifications.
5 g. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds
6 may not be used with respect to the acquisition or rehabilitation of a project located in an area
7 identified by the Federal Emergency Management Agency (FEMA) as having special flood
8 hazards, unless:
9 (1) The community in which the area is situated is participating in the National Flood
10 Insurance Program, or less than a year has passed since FEMA notification regarding such
11 hazards; and
12 (2) Flood insurance is obtained as a condition of approval of the commitment. If the
13 Agency is located in an area identified by FEMA as having special flood hazards, upon
14 notification by the Agency or FEMA, NHS is responsible for assuring that flood insurance under
15 the National Flood Insurance Program is obtained and maintained.
16 2. Hold Harmless. NHS agrees to indemnify, defend, and save harmless the City
17 and Agency, its officers, agents, and employees from any and all claims and losses accruing or
18 resulting to NHS or any and all contractors, subcontractors, materialmen, laborers and any other
19 person, firm, or corporation furnishing or supplying work, services or supplies in connection
20 with the performance of this Agreement, and from any and all claims and losses accruing or
21 resulting to any person, firm, or corporation who may be injured or damaged by NHS in the
22 performance of this Agreement. Without limiting NHS' indemnification of Agency and City,
23 NHS shall provide and maintain at its own expense during the term of this Agreement the
24 following program(s) of insurance covering its operation hereunder. Such insurance shall be
25 provided by insurer(s) satisfactory to Agency and evidence of such programs satisfactory to
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Agency shall be delivered to the Executive Director of the Agency or his designee within ten
(10) days of the effective date of this Agreement.
General Liability: A program including, but not limited to, comprehensive
general liability with a combined single limit of not less than one million
dollars ($1,000,000) per occurrence. Such insurance shall be primary to and
not contributing with any other insurance maintained by the City and Agency,
and shall name the City and Agency as an additional insured. Such insurance
shall require the Agency be notified at least ten (10) days in advance of any
change or cancellation of said insurance.
D. Request for Disbursement of Funds
1. NHS may request grant funds monthly, on a reimbursement basis, for eligible costs, on
a prorata basis, up to maximum of $60,000. The amount of each request will be limited to the
amount substantiated in the invoices submitted for costs incurred pursuant to the terms of this
Agreement.
E. Records and Reports
1. The Agency will require that NHS maintain the following records and reports in order
to assist the Agency in meeting its record keeping and reporting requirements:
(a) Records, including individual project and construction records and a running log
demonstrating compliance with the applicable provisions of Section 92.508(2) of the HOME
Investment Partnership Program; and
(b) Continuing compliance with the HOME Program shall be certified and reported to
the Agency on a quarterly basis to comply with HOME reporting requirements.
(c) Any other legal reports and/or records requested by the Agency to document the
provisions of all affordable housing projects and programs.
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2. NHS shall retain and provide access to all records for the period of three (3) years
2 from the date of this Agreement in accordance with the requirements of Section 92.508(6)( c) and
3 (d).
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GENERAL PROVISIONS:
5 A. Enforcement of the Agreement
6 1. The Agency shall have the right, by prior written notice to NHS, to enforce by deed
7 restriction, the affordability requirements in Section 92.254, or any other such violation, as is
8 brought to the attention of the Agency regarding the property(ies) being developed with the use
9 of HOME funds pursuant to this Agreement, if any. In the event of a breach of any condition or
10 provision hereof, the Agency shall have the right, by prior written notice to NHSIE, to suspend
11 or terminate this Agreement ifNHSIE materially fails to comply with any of its terms.
12 2. The Agency, at its discretion, may terminate this Agreement, in whole or in part, by
13 giving NHS thirty (30) days written notice in accordance with 24 CFR 85.44, which provides in
14 part that suspension or termination may occur ifNHS materially fails to comply with any term 0
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16 B. Monitoring
17 1. The Agency, is responsible for managing the day-to-day operations of the HOME
18 program; for monitoring the performance of all entities receiving HOME funds from the Agency
19 to ensure compliance with the requirements of Subpart K, 24 CFR 92, and for taking appropriate
20 action when performance problems arise.
21 2. Not less than annually, the Agency will review the activities ofNHS, to assess
22 compliance with the requirement of Subpart K, 24 CFR 92, as set forth in this Agreement.
23 C. Notices. Any notice requirement set forth herein shall be deemed satisfied three (3)
24 days after mailing of the notice first-class United States certified mail, postage prepaid,
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CHDO:
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4 Agency:
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Neighborhood Housing Services of the
Inland Empire, Inc.
C/O Executive Director
1390 North "D" Street
San Bernardino, CA 92405
City of San Bernardino
Redevelopment Agency
C/O Executive Director
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Such addresses may be changed by notice to the other party given in the same manner as
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provided above.
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D. Attorney's Fees. In addition to any other remedies provided hereunder or available
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pursuant to law, if either party brings an action or proceeding to enforce, protect or establish any
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right or remedy hereunder, the prevailing party shall be entitled to recover from the other party
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its costs of suit and reasonable attorney's fees. The costs, salary and expenses of the City
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Attorney, its members of his office and Agency Special Counsel, in enforcing the Agreement on
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behalf of the City or Agency shall be considered as "attorney's fees" for the purposes of this
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paragraph.
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E. No Third Parties Benefited. This Agreement is made and entered into for the sole
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protection and benefit of the Agency, its successors and assigns, and NHS, its permitted
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successors and assigns, and no other person or persons shall have any right of action hereon.
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F. Agency to File Notices. NHS irrevocably appoints, designates, and authorizes the
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Agency as its agent (said agency being coupled with an interest) to file at its option for record
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any notices of completion, cessation of labor, or any other notice that the Agency deems
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necessary or desirable to protect its interest hereunder.
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G. Actions. The City or Agency shall have the right to commence, appear in, or defend
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any action or proceeding purporting to affect the rights, duties, or liabilities of the parties
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hereunder, or the disbursement of any proceeds of the Agency allocation of HOME funds.
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H. Successors and Assigns. The terms hereof shall be binding upon and inure to the
2 benefit of the successors and assigns of the parties hereto; provided, however, that no assignment
3 of NHSIE' s rights hereunder shall be made, voluntarily or by operation of law, without the prior
4 written consent of the Agency, and that any such assignment without said consent shall be void.
5 1. Construction of Words. Except where the context otherwise requires, words imparting
6 the singular number shall include the plural number and vice versa, words imparting persons
7 shall include firms, associations, partnerships and corporations, and words of either gender shall
8 include the other gender.
9 J. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal,
10 or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof
11 shall not in any way be affected or impaired.
12 K. Governing Law. This Agreement and any other instruments given pursuant hereto
13 shall be construed in accordance with and be governed by the laws of the State of California and
14 the pertinent HOME regulations.
15 L. Amendment. This Agreement may not be changed orally, but only by agreement in
16 writing signed by NHS and the Agency.
17 M. Approvals. Where an approval or submission is required under this Agreement, such
18 approval or submission shall be valid for purposes of this Agreement only if made in writing.
19 N. Captions and Headings. Captions and headings in this Agreement are for
20 convenience ofreference only, and are not to be considered in construing the Agreement.
21 O. Entire Agreement. This Agreement shall be executed in triplicate, each of which is
22 deemed to be an original. This Agreement includes 13 pages and Exhibits A which constitute
23 the entire understanding and agreement of the parties.
24 This Agreement integrates all of the terms and conditions mentioned herein or incidental
25 hereto, and supersedes all negotiations or previous agreements between the parties.
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P. Authoritv. The individuals executing this Agreement and the instruments referenced
2 herein on behalf ofNHS each represent and warrant that they have the legal power, right and
3 actual authority to bind NHS to the terms and conditions hereof and thereof.
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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
2 the day and year first above written.
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CITY OF SAN BERNARDINO
RE~LOPM NTAGENCY
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// /, !t" /U
n Osdel, Exec
CHDO
NEIGHBORHOOD HOUSING SERVICES
OF THE INLAND EMPIRE, INC.,
A California Nonprofit Corporation
8 ins K. Hodges, Executive Director
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9 Approved as to Form and
Legal Content:
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J. ~ L\) -l~-~
Agency Special Counsel
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