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404. Cost Overruns. In the event that, at any time and for any reason, (a) the actual cost <br /> <br /> reasonably estimated by City or Developer to be required to complete all matters included in any <br /> line item in the Rehabilitation Budget exceeds the amount allocated to that line item in the <br /> Rehabilitation Budget, (b) Rehabilitation Costs for any matters not covered by a specific line <br /> item have been or will be incurred, or (c) the undisbursed portion of the Rehabilitation Portion is <br /> or may be insufficient to pay all Rehabilitation Costs that may be payable under this Agreement <br /> or otherwise in connection with the Rehabilitation, Developer shall, within ten (10) days after it <br /> receives written notice thereof from City of any of the foregoing matters, do one or more of the <br /> following: <br /> (a) provide satisfactory evidence to City that Developer has previously paid <br /> such excess or otherwise provided for such insufficiency (collectively, the "Excess Cost") with <br /> funds from a source other than the NSP Funds; <br /> (b) reallocate sufficient funds to pay the Excess Cost from funds <br /> allocated to "Contingency" in the Rehabilitation Budget; provided, however, that the <br /> Executive Director's consent to any such reallocation shall be required; or <br /> (c) deposit an amount equal to the Excess Cost in anon-interest bearing <br /> account (the "Overrun Account") with City from which withdrawals may be made only with the <br /> consent of the Executive Director but which will be exhausted prior to any further disbursement <br /> for any line item, so that any resulting surplus in any line item of the Rehabilitation Budget will <br /> then be reallocated to the line item(s) in which the Excess Costs are expected to be incurred. <br /> City shall have no obligation to make further disbursements until Developer has paid or <br /> otherwise provided for the overrun as required above. Amounts deposited by Developer in the <br /> Overrun Account for any Excess Costs shall be disbursed by City prior to the disbursement of <br /> any remaining Rehabilitation Portion proceeds. <br /> 405. Cost Savings. Upon completion of and disbursement for all matters covered by any <br /> line items in the Rehabilitation Budget, any remaining undisbursed amounts allocated to that line <br /> item shall be reallocated to "Contingency" and thereafter be available for disbursement in <br /> accordance with the terms of this Agreement. <br /> 406. Retainage. City will withhold a Retainage of 10% from each Disbursement for <br /> each of the Hard Cost line items of the Project Cost Breakdown (and other line items thereof <br /> designated for withholding of retainage) until all conditions to the final Disbursement of Hard <br /> Costs have been satisfied. In lieu of City's withholding Retainage, Developer can by written <br /> notice to City elect not to draw any overhead or profit as would otherwise be permitted under the <br /> Construction Contract until such time as Retainage would otherwise have been released. <br /> City shall not retain funds for building materials purchased by Developer for which Developer <br /> supplies documentation to City proving payment in full or for soft costs. <br /> 407. Holdback. The retainage otherwise available for disbursement shall be subject to a <br /> holdback of one hundred twenty-five percent (125%) of the estimated cost (as determined by the <br /> 8 <br /> 25K-24 <br /> <br />