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B. REVERSION OF ASSETS If CHDO elects to sell the property or discontinue the affordable housing program and not perform the conditions of their agreement. Contractor shall pay to the City the sum of Two Hundred, Thirty Nine Thousand, Seven Hundred Forty Four and 68 /100 Dollars plus any additional sums due to the City or Redevelopment Agency pursuant to the Owner Participation Agreement and Declaration of Affordable Housing Covenants recorded for this development. C. USE CHDO shall use 7 HOME-assisted units in the Property exclusively for supportive housing for individuals with mental health disabilities for a period of not less than 15 years. If CHDO discontinues the above-stated use at the subject Property, or uses the Property or any portion thereof, for purposes other than what has been described in this Paragraph without first obtaining the prior written consent of the City, CHDO shall be in default of this Agreement and agrees to pay the City, upon demand, the full amount of HOME funds provided to assist in the rehabilitation of this property, provided however, that CHDO 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 A5, above) shall remain in full force and effect for the term of fifty-five (55) years. CHDO 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. CHDO'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. CHDO shall be responsible for, and hold City harmless from, any failure to adhere to such standards. CHDO shall verify that all activities funded hereunder benefit only residents within City's corporate limits. E. NONPROFIT STATUS OF CONTRACTOR CHDO 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 grant. The term of the grant shall be $239,744.68 with services hereunder provided to low income mental health disabled individuals for a period no less than fifty-five (55) years. Funds ATTY/AGR/2009.001 020409 13