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10/24/2003 11:52 5502519102 RWC CITY CLERK PAGE 21 Contractor shall have Thirty (30) Days to cure the default after receipt of a Notice of default is provided in writing by City and Agency. The restrictions imposed upon the Property (as set forth in Section AS, above) shall remain in full force and effect for the term of Thirty (30) years. Contractor warrants to City that it will use and account for all funds provided hereunder strictly in accordance with standards governing the use of, and accountability for, funds held and disbursed in trust. Contractor's program funded hereunder shall conform to the highest standards providing for programs of similar or like nature in the San Francisco Bay Area, and in conformance with Building Codes and Regulations. Contractor shall be responsible for, and hold City and Agency harmless from, any failure to adhere to such standards. Contractor shall verify that all activities funded hereunder benefit only residents within City's corporate limits. E. NONPROFIT STATUS OF CONTRACTOR Contractor agrees to maintain its status as a nonprofit corporation and eligible Community Development Housing Organization (CHDO) and that its failure to do so shall be grounds for termination of this Agreement and acceleration of the Note. F. FORM OF SUBSIDY Financial assistance provided hereunder shall be in the form of a grant. The term of the grant shall be $90,798.00 with services hereunder provided to low income households for a period no less than Thirty (30) years. Funds shall be placed into a construction escrow account and disbursed to Contractor as work progresses and such work is acceptable to Hip Housing Development Corporation and City. The City is providing matching funds credit on behalf of contractor from Redevelopment Housing Funds for this activity. City shall report matching funds to HUD as required under Section 92.221. Applicable federal statutes and regulations, as referred to elsewhere herein govern this Agreement. Any material deviation by Contractor for any reason from the requirements thereof, or from any other provision of this Agreement, shall constitute a breach of this Agreement and may be cause for termination at the election of City and/or Agency or upon the direction of HUD. City and/or Agency may terminate this Agreement for cause after giving Contractor notice of any breach or default and thirty (30) days to cure said breach or default, provided however, that in the event such breach or default cannot be cured within thirty (30) days, ContraCtor shall have such additional time to cure said default as is reasonably required provided that Contractor has 9/JJ 120n) 20 - -","-"""""^"" --^T'"