R2006-63 AUTHORIZING FUNDING AGREEMENT

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standards. The initial rents for HOME-assisted units shall be at a level not to exceed those established by the U.S. Department of Housing and Urban Development for the Decatur, IL MSA for the year 2005 and shall not increase more than annually and not to a level greater than established by HUD for that year. HOME-assisted housing units must remain affordable to low- and moderate-income persons for not less than the applicable period for the amount of assistance provided, which is twent�vears. If any of the housing units do not remain affordable for the entire 20-year affordability period, NHDC shall reimburse the City of Decatur for the entire amount of the HOME funding provided for those units. A lien shall be place on the HOME-assisted units for the duration of the affordability period to enforce this provision. In addition, housing units assisted through this Agreement must be designated solely for use by chronically homeless individuals. To the best of its ability, NHDC shall ensure that all tenants of units assisted through this Agreement throughout the 20-year affordability period are chronically homeless individuals. NHDC shall submit a letter of explanation to the City if for any reason it is unable to comply with the above requirement. B. Completion The project proposal shall include a schedule for completion in a timely manner. The schedule shall include dates of major construction milestones and target completion date. The City will monitor progress on the project to ensure that the schedule is being maintained. Any extensions to the project schedule must be explained to the City in writing. C. Property Standards NHDC shall ensure that all housing it constructs with HOME funds meets all applicable local codes, the 1997 Illinois Accessibility Code, HUD Housing Quality Standards (HQS), ordinances, and zoning ordinances at the time of project completion. Payout requests far work requiring mechanical, electrical, or plumbing inspections shall not be processed without documentation that the applicable permits have been received and required inspections conducted. D. Project Closeout/Final Payment The City reserves the right to withhold up to the final ten percent (10%) of total reimbursement on a project until all closeout documentation is received. Closeout documentation shall consist of: final payout requests, proof of property ownership, title insurance, final property inspection sheets and certificate of occupancy, and a completed HOME Rental Project Compliance Report. E. Termination of Project Funding The City reserves the right to suspend or terminate payment of reimbursement requests for a project, or require reimbursement of funds already paid, in whole or in part for cause. Cause shall include the following: 1. Improper use of funds; 2. Failure to comply with the terms and conditions of this Agreement, including those specified in items A. through D. above; 4