Agmt 2002 Citizens Housing Corporation

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Loan Agreement San Leandro and Citizens' Housing Corporation Page 3 of 3 (a) Nonexpendable property with an acquisition cost of $1 FOOD or less. Except for that property which meets the criteria of (2)(a) above, Developer shall sell the property and reimburse the City an amount which is computed in accordance with (iii) below. (b) Nonexpendable prope_yt with an acquisition costs of over $1,000. Developer shall request disposition instructions from the City. The City shall determine whether the property can be used to meet the City's or HUD's requirement. If no requirement exists, the availability of the property shall be reported to the General Services Administration (GSA) by HUD to determine whether a requirement for the property exists in other Federal agencies. The City shall issue instructions to Developer within 120 days the following procedures shall govern: (i) If Developer is instructed to ship the property elsewhere, Developer shall be reimbursed by the benefiting Federal agency with an amount which is computed by applying the percentage of Developer's participation in the grant program to the current fair market value of the property, plus any shipping or interim storage costs incurred. (ii) If Developer is instructed to otherwise dispose of the property, Developer shall be reimbursed by the .City for such costs incurred in its disposition. (iii) If disposition instructions are not issued within 120 days after reporting Developer shall sell the property and reimburse the City an amount which is computed by applying the percentage of Federal participation in the grant program to the sales proceeds. Further, the grantee shall be permitted to retain $1000 or 10 percent of the proceeds, whichever is greater, for the grantee's selling and handling expenses. (4} Where the City determines that property with an acquisition costs of $1,000 or more and financed solely with Federal funds is unique, difficult, or costly to replace, it may reserve title to such property, subject to the following provisions: (a) The property shall be appropriately identified in the grant agreement or otherwise made know to Developer. (b} City shall issue disposition instructions within 120 days after the completion of the need for the property under the Federal grant for which it was acquired. If City fails to issue disposition instructions within 120 days, Developer shall apply the standards of 4(a)(1), 4(a)(2)(b) and 4(a)(3)(b).