Item 18 - Approve a Pre-Commitment for HOME Program Funds

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-7 - The Regulatory Agreement and, if applicable, the Performance Deed of Trust, shall be recorded against the Property prior to any disbursements of the Cond itional HOME Grant. Developer shall establish site control of the Property to the reasonable satisfaction of the City, and City shall have the right to review and approve any conditions of title, as reflected on a preliminary title report, provided at Developer's sole cost and expense. City shall also have the right to require a policy of title insurance securing the Performance Deed of Trust or other security interest in favor of the City for the principal amount of the Conditional HOME Grant and a condition of title guarantee regarding the priority of the Regulatory Agreement. City shall have received and approved an agreement between Developer and the current owner of the Property regarding transfer and development of the Project. Developer must comply with all conditions specified in the Grant Agreement for disbursements of the Conditional HOME Grant. Subject to compliance with all other requirements of the Conditional HOME Grant, 90% of the City assistance will be disbursed upon issuance of a grading permit, and 10% (i.e., $980,757.00) of the City’s financial assistance will be retained by the City until construction of the Project is complete. Developer shall have provided adequate construction security (such as performance, labor, and material bonds), as determined by the City; lien releases ensuring that the Property is lien-free, as required by the City; and evidence of insurance that City requires as part of the Grant Agreement. Compliance with applicable federal laws and regulations relating to the HOME Program, as set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. § 12701-12839), implementing regulations at 24 C.F.R. Part 92, and all other federal, state, and local laws and regulations relating to the Project. The City Council's review and approval of the Grant Agreement, the Performance Deed of Trust, and the Regulatory Agreement. Developer must indemnify, defend, and hold harmless City against loss or damage suffered by City as a result of any claim by any person or entity arising out of or relating to this pre-commitment or the transactions contemplated by this pre- commitment, excluding claims resulting from the City’s gross negligence and/or willful misconduct. Any other terms and conditions the City determines are reasonably necessary for the Grant Agreement to protect the City's interest and comply with applicable law. EXHIBIT 2