25H - AGMT - PERMANENT HOUSING FOR PERSONS WITH HIV AIDS

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disbursements shall be made subsequent to Project Sponsor taking title to the Property. These approved expenses are identified in the Budget, Exhibit B, as amended from time to time. b. Schedule. Project Sponsor shall commence rehabilitation of the Property not later than thirty (30) days after execution of this Agreement, and shall complete the Work not later than 180 days after commencement. This schedule may be modified with the consent of the City Manager, or his/her designee. C. Scope of Rehabilitation. The development of the Property shall be performed in a manner consistent with the Scope of Rehabilitation attached to this Agreement as Exhibit C. d. Inspections During Rehab. The City shall inspect any Rehab work performed hereunder to ensure that the Work is being and has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement. Project Sponsor agrees to require that all Work found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to the construction contractor or subcontractor until the Rehab work has been corrected. The City reserves the right to inspect the Property at any time during the period of time set forth in Section 3 of this Agreement. 2. Disbursement of Funds [24 CFR 92.504(c)(10)] Project Sponsor shall not request disbursement of any portion of the Grant until the funds are needed to pay eligible costs. The amount of each disbursement request shall be limited to the amount needed. The City shall have the right to disapprove any request if the City determines the request is for an ineligible item or is otherwise not in compliance with or is inconsistent with this Agreement. Grant proceeds used for actual costs shall be placed in an non-interest bearing escrow account with United States Escrow or at such other institution as City requires in compliance with federal regulations found at 24 CFR 511 (the "Escrow Account"). Upon written request of Project Sponsor, City will request disbursement of funds for fully completed work items. Such requests by City for payments for individual work items shall be made after inspection and acceptance of the work by City and City approval of Project Sponsor's requisitions (to be in the form of Exhibit D attached hereto) and invoices and satisfactory proof that the Property, Project Sponsor and City are properly protected from liens or claims of liens for labor and materials. All funds disbursed to Project Sponsor shall be received by Project Sponsor in trust and Project Sponsor agrees that the same shall be used only for the payment of the items approved for by the disbursement. City shall not be required to request disbursement of any amount which, in City's opinion, will reduce that portion of the undisbursed funds designated for the cost of completion of the project below that needed to pay for the labor and materials necessary to complete the work. 3. Minimum Use Period [24 CFR 574.310(c)] Project Sponsor agrees that the two (2) bedrooms in the Property will be used to provide housing for individuals with AIDS or related diseases for a period of not less than ten (10) years from the date of issuance of Certificate of Occupancy or Notice of Completion of rehabilitation. EXHIBIT 1 25H-4