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<br /> 2. Use of Funds. Contractor shall use the funds provided pursuant to <br /> paragraph 1 solely for the Program purposes described in Exhibits "A" (Budget) <br /> and "B" (Contract objectives) attached hereto and by this reference incorporated <br /> herein. <br /> 3. Chanaes to Proaram. No changes in the Program described in this <br /> Agreement which are funded hereunder shall be made without the prior written <br /> consent of City. <br /> 4. Payments. Contractor shall keep detailed and accurate records of all <br /> expenditures made and expenses incurred which are funded under this <br /> agreement. Payments of funds allocated pursuant to paragraph 1 shall be made <br /> to Contractor on a reimbursement basis as follows: (i) Contractor shall submit <br /> requests for payment to City monthly on forms provided by City's Housing <br /> Coordinator; (ii) all requests for payment shall be accompanied by receipts or <br /> other proof of expenditure, and shall disclose amounts of Program income, if <br /> any, generated by user fees; (iii) such income amounts shall be subtracted from <br /> corresponding requests for payment; and (iv) Program income shall be <br /> expended by Contractor prior to requesting additional reimbursements from City. <br /> 5. Standard of Service. Contractor warrants to City that it will use and <br /> account for all funds provided hereunder strictly in accordance with standards <br /> governing the use of, and accountability for, funds held and disbursed in trust. <br /> Contractor's program funded hereunder shall conform to the highest standards <br /> providing for programs of similar or like nature in the San Francisco Bay Area. <br /> Contractor shall be responsible for, and hold City harmless from, any failure to <br /> Agmt-032 2 <br /> G :\shared\Redwood\Council <br /> FXS:rg <br /> 09/06/96 <br />