R2012-129 AUTHORIZING SUBRECIPIENT AGREEMENT

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5. Use and Reversion of assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: a. The Subrecipient shall transfer to the Grantee an CDBG funds on hand p Y and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. b. Real property under the Sub recipient's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of$25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement [for such longer period of time as the Grantee deems appropriate]. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets CDBG National Objective for the prescribed period of time,the Subrecipient shall pay the Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the Grantee. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period [or such longer period of time as the Grantee deems appropriate]. c. In all cases in which equipment acquired, in whole or in part,with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to the funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (a)transferred to the Grantee for the CDBG program or(b)retained after compensating the Grantee [an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment]. 6. National Obiectives The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this contract meet one or more of the CDBG program's national objectives - 1) benefit low/moderate income persons; 2) aid in the prevention or elimination of slum or blight; 3) meet community development needs having a particular urgency - as defined in 24 CFR Part 570.208. 7. Close-outs Subrecipient obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not Subrecipient Agreement(Rev. June 2012) Page 8 of 19