R2007-221 AUTHORIZING FUNDING AGREEMENT

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not be processed without documentation that the applicable pennits have been received and required inspections conducted. G. Tennination of Project Funding The City reserves the right to suspend or tenninate payment of reimburseinent requests for a project in whole or in part for cause. Cause shall include the following: (1) Improper use of funds; (2) Failure to comply with the tenns and conditions of this Ageement, including those specified in this Section; (3) Failure to coinply with HUD program guidelines. (4) Failure to comply with the affordability requirements stated in item E. above. The City shall notify NWRAPS before any such termination takes place and allow opportunity for review and correction of problems. If termination of the project is then determined to be necessary, repayment of the total amount of HOME funds expended on the project shall be made to the City prior to the end of that current fiscal year. H. Resale/Recapture Provisions To ensure affordability, NWRAPS must impose either resale or recapture requirements on each housing unit, as outlined in 24 CFR 92.254 (a)(5). Said requirements shall be imposed prior to the transfer of the property to the homebuyer. NWRAPS shall infonn the City at that time as to which requirement (resale or recapture)has been imposed, and shall provide the City with a copy of the lien/deed restrictions attached to the transaction, which shall be in effect for the duration of the predetennined affordability period. V. PROJECT PROCEEDS '� Upon completion of each project, NWRAPS shall report the amount of all project I proceeds generated by activities carried out with HOME funds made available under this contract, and the use to which the HOME proceeds will be allocated. As set forth in 24 CFR 92.300(a)(2), the use of HOME proceeds by NWRAPS shall be only for HOME- eligible or other housing activities to assist low-income persons. Up to ten percent (10%) of the HOME proceeds inay be used for CHDO operating and administrative expenses: HOME proceeds must be committed or expended within one year of the date they are generated (e.g., date of sale of a HOME-assisted rehabilitation or construction project), or the City of Decatur may, at its discretion, require that they be returned to the City for use in its HOME-funded activities. VI. TECHNICAL ASSISTANCE The City shall provide technical assistance to NWRAPS upon request, at no additional cost, to guide the organization in the proper administration of the HOME funds. VTI. AFFIRMATNE ACTION A. Affirmative Marketing 5