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<br />2. Use of Funds. Contractor shall use the funds provided pursuant to <br /> <br />paragraph 1 solely for the Program purposes described in Exhibits "A" (Budget), <br /> <br />"B" (Contract Objectives), and "C" (Compliance with California Labor Laws and <br /> <br />Federal Requirements), attached hereto and by this reference incorporated <br /> <br />herein. <br /> <br />3. ChanQes to ProQram. No changes in the Program described in this <br /> <br />Agreement which are funded hereunder shall be made without the prior written <br /> <br />consent of City. <br /> <br />4. Payments. Contractor shall keep detailed and accurate records of all <br /> <br />expenditures made and expenses incurred which are funded under this <br /> <br />agreement. Payments of funds allocated pursuant to paragraph 1 shall be made <br /> <br />to Contractor on a reimbursement basis as follows: (i) Contractor shall submit <br /> <br />requests for payment to City monthly on forms provided by City's Housing <br /> <br />Coordinator; (ii) all requests for payment shall be accompanied by receipts or <br /> <br />other proof of expenditure, and shall disclose amounts of Program income, if <br /> <br />any, generated by user fees; (iii) such income amounts shall be subtracted from <br /> <br />corresponding requests for payment; and (iv) Program income shall be <br /> <br />expended by Contractor prior to requesting additional reimbursements from City. <br /> <br />5. Standard of Service. Contractor warrants to City that it will use and <br /> <br />account for all funds provided hereunder strictly in accordance with standards <br /> <br />governing the use of, and accountability for, funds held and disbursed in trust. <br /> <br />Contractor's program funded hereunder shall conform to the highest standards <br /> <br />providing for programs of similar or like nature in the San Francisco Bay Area. <br /> <br />Agreement-2 <br />4/27/98 <br /> <br />2 <br />