Laserfiche WebLink
this Agreement without fault by providing notice to the City of such termination prior to Developer's <br />commencement of construction in the event the Developer determines that the Project is infeasible. <br />1.5 Compliance with Program Requirements. Borrower agrees that at all times its acts <br />regarding the Project and the use of the HOME Funds shall be in conformity with all provisions of <br />the HOME Program including the statues, rules and regulations and such policies and procedures of <br />HUD and the State of California pertaining to the HOME Program, including without limitation, <br />those described in Article IV of this Agreement. Borrower acknowledges that it is familiar with such <br />applicable provisions and has been professionally advised to the extent necessary for the purpose of <br />enabling Borrower to fully comply with such provisions. <br />1.6 Use of Funds. Borrower shall use the HOME Funds only for costs eligible under the <br />HOME Program Regulations incurred for the construction of the Project. Such costs shall only be <br />for work approved by the City at the time of project set-up under the HOME Program or later <br />approved in writing by the City if a modification of the scope of work is necessary. Any expenditure <br />that is not authorized by this Agreement or that is found to be ineligible under the HOME Program <br />Regulations, as determined by the City, shall be disallowed. Borrower agrees that it will not use the <br />HOME Funds in violation of Section 4.3 below. <br />1.7 Performance and Payment Bonds. In accordance with the HOME Program <br />Regulations and the Standard Agreement, the Borrower and/or the construction firm undertaking the <br />actual general contracting duties shall provide security to assure completion of the Project by <br />furnishing the City and any construction lenders with Performance and Payment Bonds issued by a <br />reputable insurance company licensed to do business in California, each in a penal sum of not less <br />than one hundred percent (100%) of the scheduled cost of construction of the Project. The bonds <br />shall name the City as an obligee. In lieu of such performance and payment bonds, subj ect to City's <br />approval of the form and substance thereof, Borrower may submit evidence satisfactory to the City <br />of the contractor's ability to commence and complete construction of the Project in the form of an <br />irrevocable letter of credit, pledge of cash deposit, certificate of deposit, or other marketable <br />securities held by a broker or other financial institution, with signature authority of the City required <br />for any withdrawal, or a completion guaranty in a form and from a guarantor acceptable to City. <br />Such evidence must be submitted to City in approvable form in sufficient time to allow for City's <br />review and approval prior to the scheduled construction start date. <br />1.8 Scope of Project. Borrower agrees to complete the development of the Project in <br />accordance with the scope of work approved by the City and described in Exhibit E attached hereto. <br />The scope of work shall be completed in accordance with the time frame established in the notice to <br />proceed that will be issued for the Project. <br />1.9 Re ug latory Agreement. The Borrower shall execute, and pledges to operate the <br />development in compliance with, a Regulatory Agreement substantially in the form attached as <br />Exhibit A which shall restrict the Project for occupancy by Very Low- Income Households at <br />affordable rents (as more particularly described in the Regulatory Agreement) for twenty (20) years. <br />The Regulatory Agreement shall be recorded in the Official Records of Alameda County. <br />1.10 Disbursement of Funds. The City shall disburse HOME Funds to reimburse the <br />Borrower for Project construction costs as provided in Section 1.6 subject to satisfaction of the <br />2220130.1 Page 5 <br />