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disbursements shall be made subsequent to Project Sponsor taking title to the Property. These <br />approved expenses are identified in the Budget, Exhibit B, as amended from time to time. <br />b. Schedule. Project Sponsor shall commence rehabilitation of the Property not later <br />than thirty (30) days after execution of this Agreement, and shall complete the Work not later than <br />180 days after commencement. This schedule may be modified with the consent of the City <br />Manager, or his/her designee. <br />C. Scope of Rehabilitation. The development of the Property shall be performed in a <br />manner consistent with the Scope of Rehabilitation attached to this Agreement as Exhibit C. <br />d. Inspections During Rehab. The City shall inspect any Rehab work performed <br />hereunder to ensure that the Work is being and has been performed in accordance with the <br />applicable federal, state and/or local requirements and this Agreement. Project Sponsor agrees to <br />require that all Work found by such inspections not to conform to the applicable requirements be <br />corrected, and to withhold payment to the construction contractor or subcontractor until the Rehab <br />work has been corrected. The City reserves the right to inspect the Property at any time during the <br />period of time set forth in Section 3 of this Agreement. <br />2. Disbursement of Funds [24 CFR 92.504(c)(10)] Project Sponsor shall not request <br />disbursement of any portion of the Grant until the funds are needed to pay eligible costs. The <br />amount of each disbursement request shall be limited to the amount needed. The City shall have <br />the right to disapprove any request if the City determines the request is for an ineligible item or is <br />otherwise not in compliance with or is inconsistent with this Agreement. <br />Grant proceeds used for actual costs shall be placed in an non -interest bearing escrow account with <br />United States Escrow or at such other institution as City requires in compliance with federal <br />regulations found at 24 CFR 511 (the "Escrow Account"). Upon written request of Project <br />Sponsor, City will request disbursement of funds for fully completed work items. Such requests by <br />City for payments for individual work items shall be made after inspection and acceptance of the <br />work by City and City approval of Project Sponsor's requisitions (to be in the form of Exhibit D <br />attached hereto) and invoices and satisfactory proof that the Property, Project Sponsor and City are <br />properly protected from liens or claims of liens for labor and materials. All funds disbursed to <br />Project Sponsor shall be received by Project Sponsor in trust and Project Sponsor agrees that the <br />same shall be used only for the payment of the items approved for by the disbursement. <br />City shall not be required to request disbursement of any amount which, in City's opinion, will <br />reduce that portion of the undisbursed funds designated for the cost of completion of the project <br />below that needed to pay for the labor and materials necessary to complete the work. <br />3. Minimum Use Period [24 CFR 574.310(c)] Project Sponsor agrees that the two (2) <br />bedrooms in the Property will be used to provide housing for individuals with AIDS or related <br />diseases for a period of not less than ten (10) years from the date of issuance of Certificate of <br />Occupancy or Notice of Completion of rehabilitation. <br />Page 2 of 31 <br />