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B. Lead Entity Responsibilities. Consistent with 24 C.F.R. 570.308, the Lead Entity hereby <br />accepts responsibility for administering the Local NSP Funds on behalf of the Parties in <br />compliance with the applicable program requirements. The Lead Entity shall execute the State <br />of California's NSP grant agreement, by way of a joint agreement or such other form as may <br />be prepared or negotiated with the State of California for the Parties to participate in the NSP <br />program. The Lead Entity shall be the direct grant recipient of the Local NSP Funds to be <br />allocated to the Participating Public Jurisdictions. Based upon eligibility, the Lead Entity shall <br />allocate the Local NSP Funds to the Subrecipients by written agreement as described in 24 <br />CFR 570.501(b) and 24 CFR 570.503. The Lead Entity shall be responsible for ensuring the <br />NSP requirements (such as program income and rent affordability) are complied with after <br />grant closing. The Lead Entity shall take all actions necessary to assure compliance with the <br />certification required by section 104(b) of Title I of the Housing and Community Development <br />Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing <br />Act, section 109 of Title I of the Housing and Community Development Act of 1974, and other <br />applicable laws. As required by California NSP program, the Lead Entity shall develop and <br />implement an NSP program utilizing its CDBG program procedures and guidelines, as <br />modified by California's NSP program, for the granting of Local NSP Funds to the <br />Subrecipients. Under the NSP program, the Lead Entity is entitled to five percent (5%) of the <br />Local NSP funds for program administration. In recognition of the Lead Entity's role and <br />administration of this Agreement and its NSP program, the Parties recognize and acknowledge <br />the Lead Entity is entitled to the administrative fund portion of the Local NSP funds. <br />Nevertheless, Subrecipients may apply to the Lead Entity for up to one percent (1 %) of <br />program funds for eligible staff costs associated with project administration. <br />C. Subrecipient Responsibilities. The Subrecipients agree to participate in the Lead <br />Entity's NSP program. Said participation consists of, but is not limited to, identifying eligible <br />projects within their respective jurisdictions and applying to the Lead Entity for a grant of Local <br />NSP funds from the Lead Entity for that project. Subrecipients may also work jointly to identify <br />and use the Local NSP funds for regional projects. The Subrecipients agree to execute the <br />Lead Entity's standard CDBG grant agreements, which shall be modified consistent with the <br />State of California's NSP grant agreement and the requirements of California's NSP program. <br />For regional projects, the subrecipient of where the project is to be located shall be the <br />subrecipient that executes the standard CDBG grant agreement with the Lead Entity. The <br />Subrecipients shall be responsible for using and administering any and all Local NSP Funds <br />from the Lead Entity in a manner consistent with State of California's NSP grant agreement <br />and the requirements of California's NSP program. <br />D. No Termination or Withdrawal. As required by State and Federal NSP requirements, <br />once this Agreement is executed, the Participating Public Jurisdictions may not withdraw from <br />or terminate this Agreement until its terms and conditions are fully completed. <br />E. Program Income. Program income will belong to the Lead Entity's NSP even if it is <br />generated from activities undertaken within or by a Subrecipient. <br />F. Prohibited Use of NSP Funds. The State NSP funds shall not be used in, or in support <br />of, any Activities by a Party that does not affirmatively further fair housing within its jurisdiction <br />or that impedes the Lead Entity's actions to comply with its fair housing certification. <br />NSP Joint Agreement Page 4 <br />