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K. Reversion of Assets. <br />1. Upon the expiration of this Agreement, District shall transfer to City <br />any CDBG funds on hand at the time of the expiration of this Agreement <br />as well as any accounts receivable attributable to the use of CDBG <br />funds as required b 24 CFR § 570.503(b)(7). <br />2. Per 24 CFR § 570.503(b)(7), any real property under the District's <br />control that was acquired or improved in whole or in part with CDBG <br />funds in excess of $25,000.00 must either be: <br />a. Used, where City has given written approval, to meet one of the <br />national objectives stated in 24 CFR § 570.208 until five (5) years <br />after expiration of this Agreement, or for such longer period of <br />time as determined to be appropriate by City; or <br />b. If not used in accordance with subparagraph (a) above, District <br />shall pay to City an amount equal to the current market value of the <br />acquired property or improvement, as the case may be, less any <br />portion of the value attributable to the expenditure of non-CDBG <br />funds for acquisition of, or improvement to, the property. <br />3. Subject to the obligations set forth herein, title to equipment <br />acquired under the terms of this Agreement will vest upon acquisition <br />in District. When said equipment which has been acquired in accordance <br />with this Agreement and all applicable regulations are no longer needed <br />for said program, disposition of said equipment will be made as <br />follows: <br />a. Items of equipment with a current per unit fair market value of less <br />than $5,000.00 may be retained, sold or otherwise disposed of with <br />no further obligation to City. <br />b. Items of equipment with a current per unit fair market per unit <br />value of $5,000.00 or more may be retained or sold and City shall <br />have the right to an amount calculated by multiplying the current <br />market value or proceeds from the sale by City's share of CDBG funds <br />expended to acquire the equipment, in accordance with 24 CFR § <br />85.32 (e) (2) . <br />4. If any real property acquired or improved by CDBG funds is not used in <br />accordance with one of the national objectives in 24 CFR § 570.208 <br />after five years of expiration of this Agreement, the District shall <br />pay to City an amount equal to the current market value of the property <br />less any portion of the value attributable to expenditures of non-CDBG <br />funds. <br />5. District's obligations and responsibilities set forth in this paragraph <br />28 and other requirements pertaining to CDBG funding shall not be <br />affected by the termination of this Agreement and shall survive the <br />date of termination of this Agreement for such period of time as City <br />and/or HUD deems necessary for the responsibilities, duties and <br />obligations to be performed and completed to the satisfaction of City <br />and HUD. <br />6. The District shall retain all records pertaining to this Agreement for <br />at least four years after final payment by the City and closure of all <br />other pending matters as required by 24 CFR §§ 85.36(i)(11) and 85.42. <br />