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• 14. LABOR STANDARDS, EMPLOYMENT, AND CONTRACTING <br /> The Recipient shall be responsible for the preparation of all requests for HUD for wage <br /> rate determinations on CDBG activities undertaken by the Subrecipient. The <br /> Subrecipient shall notify the Recipient prior to initiating any activity, including advertising <br /> for contractual services which will include costs likely to be subject to the provisions on <br /> Federal Labor Standards and Equal Employment Opportunity and related implementing <br /> regulations. The Recipient will provide technical assistance to the Subrecipient to ensure <br /> compliance with these requirements. <br /> 15. PROGRAM INCOME <br /> If the Subrecipient generated any program income as a result of the expenditure of <br /> CDBG funds, the provisions of 24 CFR 570.504 shall apply, as well as the following <br /> specific stipulations: <br /> A. The Subrecipient will notify the Recipient of any program income within ten (10) <br /> days of the date such program income is generated. When program income is <br /> generated by an activity only partially assisted with CDBG funds, the income shall <br /> be prorated to reflect the percentage of CDBG funds used. <br /> B. That any such program income must be paid to the Recipient by the Subrecipient <br /> as soon as practicable after such program income is generated unless the <br /> Subrecipient is permitted to retain program income. <br /> C. Recipient will retain ten percent (10%) of all program income paid to Recipient to <br /> defray administration expenses. The remaining ninety percent (90%) of the <br /> program income paid to the Recipient shall be credited to the grant authority of <br /> Subrecipient whose project generated the program income and shall be used for <br /> fundable and eligible CDBG activities consistent with this Agreement. <br /> D. The Subrecipient further recognizes that the Recipient has the responsibility for <br /> monitoring and reporting to HUD on the use of any such program income. The <br /> responsibility for appropriate record-keeping by the Subrecipient and reporting to <br /> the Recipient by the Subrecipient on the use of such program income is hereby <br /> recognized by the Subrecipient. The Recipient agrees to provide technical <br /> assistance to the Subrecipient in establishing an appropriate and proper record- <br /> keeping and reporting system, as required by HUD. <br /> E. That in the event of close-out or change in status of the Subrecipient, any <br /> program income that is on hand or received subsequent to the close-out or change <br /> in status shall be paid to Recipient as soon as practicable after the income is <br /> received. The Recipient agrees to notify the Subrecipient, should close-out or <br /> change in status of the Subrecipient occur. <br /> 6 <br />