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2. USE OF FUNDS. Contractor will use the funds provided pursuant to <br />Paragraph 1 solely for the Program purposes described in Exhibits A (Budget) & B <br />(Contract Objectives). <br /> <br /> 3. CHANGES TO PROGRAM. No changes in the Program described in this <br />Agreement which are funded by the financial assistance provided under Paragraph 1 <br />will be made without the prior written consent of City. <br /> <br /> 4. PAYMENTS. Contractor will keep detailed and accurate records of all <br />expenditures made and expenses incurred which ara funded under this Agreement. <br />Payments of funds allocated pursuant to Paragraph 1 will be made to Contractor on a <br />reimbursement basis as follows: (i) Contractor will submit requests for payment to City <br />quarterly on forms provided by City's Housing Coordinator; (ii) all requests for payment <br />will be accompanied by receipts or other proof of expenditures, and will disclose <br />amounts of Program income, if any, generated by user fees, (iii) Contractor will submit <br />billings over a ten month period. Request for final payment must be submitted and <br />received by the City no later than May 20, 2003 pursuant to Exhibit B; (iv) such income <br />amounts will be subtracted from corresponding requests for payment; and (v) Program <br />income will be expended by Contractor prior requesting additional reimbursements from <br />City. <br /> <br /> 5. STANDARD OF SERVICE. Contractor warrants to City that it will perform <br />all Program activities funded hereunder in accordance with the highest standards <br />providing for similar programs in The San Francisco Bay Area. Contractor further <br />warrants to City that it will use and account for all funds provided hereunder strictly in <br />accordance with standards governing the use of, and accountability for, funds held and <br />disbursed in trust. The program will conform to the highest standards providing for <br />programs of similar or like nature in the San Francisco Bay Area. Contractor will be <br />responsible for, and hold City harmless from, any failure to adhere to such standards. <br />Contractor will verify that all activities funded hereunder benefit only residents within <br />City's corporate limits. <br /> <br />10/8/02 2 <br /> <br /> <br />