R2005-153 AUTHORIZING AGREEMENTS

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.. � . � � � HOME PROGRAM FY2005 COMMUNITY HOUSING DEVELOPMENT ORGANI ION (CHDO) AGREEMENT THIS AGREEMENT, entered into on the ( !�� day of 5 by and between the City of Decatur, Illinois, hereinafter called the "City", an e Neighborhood Housing Development Corporation, organized under the laws of the State of Illinois, hereinafter called ��NHDC�� WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and Urban Development,hereinafter called "HUD", for the purpose of conducting a HOME Program, and whereas the City, as a condition of receiving HOME funds must reserve fifteen percent (15%) of the funds for housing to be developed or owned by a Community Housing Development Organization, hereinafter called "CHDO", and; whereas the City may commit additional HOME funds for CHDO operational expenses; and whereas NHDC has been identified as a CHDO, subject to the terms and conditions stated below; and whereas NHDC submitted a proposal dated August 5, 2005 to conduct activities eligible under the HOME program guidelines and requested a grant of HOME funds to carry out the activities under the stated proposal. NOW, THEREFORE, the parties in consideration thereto mutually agree and covenant as follows: I. SCOPE OF SERVICE A.NHDC may receive up to $150,000 from the City under the HOME Program to implement the proposed activities. Funding will be dispersed based upon actual project expenditures, for a total not to exceed the grant amount of$150,000. B. NHDC shall use the funds as outlined in the proposal dated August 5, 2005 and the letter sent to NHDC by the City dated September 8, 2005; specifically, for eligible costs of pre-development, construction, soft costs and other eligible items associated with the construction of six 3-bedroom, single family homes located at a site named Sheridan Circle near the corner of Cantrell Street and South Martin Luther King Jr. Drive, legally described as Lot One of Southside Manor Addition. All additional sources of funds for the proj ect must be confirmed prior to the start of the proj ect. C. NHDC may receive up to $9,800 in CHDO operating expenses in support of the above-referenced project. Funding will be dispersed based upon actual HOME-eligible expenditures, for a total not to exceed the grant amount of$9,800. D.NHDC shall not obligate or expend any funds under the terms of this agreement until a written Notice to Proceed is issued by the Economic and Urban Development Department of the City. E. Duration of Agreement. This Agreement shall be in effect until such time as the housing units specified above are completed and sold to income-eligible households, and appropriate liens are in place to ensure that these housing units will remain affordable 1