RecDoc 2020-115102 Addendum to Loan Agmt

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8.5 Maintenance of Records. Owner shall keep and maintain complete and accurate books, records, and accounts relating to the Project, including all such books, records, and accounts necessary to evidence and substantiate Owner's compliance with the requirements of this Agreement. Books shall be kept and maintained in accordance with generally accepted accounting principles consistently applied. Copies of all tax returns and other reports that Owner may be required to furnish any governmental agency shall at all reasonable times be open for inspection by the City at the place that the books, records and accounts of Owner are kept. Owner shall maintain all records regarding the Project for five (5) years after final payment and all other pending matters are closed. Owner shall also maintain tenant leases, income certifications and other matters related to the leasing of the Project for a period of five (5) years after the final date of occupancy by each tenant. 8.6 Information and Records. All Project books, records, and accounts shall be open to and available for audit, inspection and copying by the City or HUD, their auditors or other authorized representatives at reasonable intervals during normal business hours. Owner shall preserve such records for a period of not less than five (5) years after the creation of such records in compliance with all HUD records and accounting requirements. If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Loan is pending at the end of the record retention period stated herein, then Owner shall retain such records until such action and all related issues are resolved. Such records shall include all invoices, receipts, and other documents related to expenditures from the Loan funds. Owner shall cause records to be accurate and current and in such a form as to allow the City to comply with the record keeping requirements contained in 24 C.F.R. 570.506. Such records are to include but are not limited to: (i) Records providing a full description of the activities undertaken with the use of the Loan funds; (ii) Records demonstrating the eligibility of activities under CDBG Regulations set forth in 24 C.F.R. 570 et seq. and that use of the CDBG Funds meets one of the national objectives of the CDBG program set forth in 24 C.F.R. 570.208; (iii) Records demonstrating that the HOME Funds have been used in compliance with HOME Program requirements; (iv) Records demonstrating compliance with the HUD property standards and lead-based paint requirements; (v) Records documenting compliance with affirmative marketing, fair housing, and equal opportunity requirements; (vi) Financial records as required by 24 C.F.R. 570.502, and OMB Circular A-110 (24 C.F.R. Part 84); (vii) Records demonstrating compliance with the CDBG and HOME Program REV: 08-26-2020 PR ATTY/AGR.2020.168/HIP Housing Development Corporation (Page 9 of 31)