AgdaPkt 2002-01-14 - Laserfiche WebLink

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D. STANDARD OF SERVICE 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 ih confoimance with Building Codes and Regulations.. Contractor shall be responsible for, and hold City 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 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 loan evidenced by a Promissory Note, and secured by Deed of Trust. The amount of the loan shall be $241,400.22 with annual interest on the outstanding balance of 3% on the unpaid balance, over the 30 year affordability term. This loan, principal and interest, shall be due and payable when the eligible use is no longer provided, upon sale, transfer or further encumbrance of the Property or 30 years after the effective date of this Agreement, whichever comes first. G. MATCHING FUNDS City shall provide matching funds credit on behalf of contractor for another HOME eligible project independent of this activity. City shall report matching funds to HUD as required under Section 92.221. H. BREACH OF CONTRACT 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 or upon the direction of HUD. City may terminate this A~eement for cause after giving Contractor notice of any breach or default and 30 days to cure said breach or default, provided however, that in the event such breach or default cannot be cured within 30 days, Contractor shall have such additional time to cure said default as is reasonably required provided that Contractor has commenced to cure within the initial 30 day period and is diligently prosecuting the cure. In the event of termination by whatever means, all finished and unfinished work shall become the property of City, and the City shall have the right to direct Contractor's actions with respect to access to materials.