Agmt10 Kainos Home & Training Center

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9. ADMINISTRATION REQUIREMENTS Kainos shall comply with all HOME and CDBG uniform administrative requirements and standards including, without limitation, OMB Circular A -122 - Cost Principles for Non - Profit Organizations, OMB Circular A -133 - Audits of Non - Profit Organizations, 2 CFR, Part 215 - Grants and Agreements with Non- Profit Organizations, and all other federal, state, and local laws, regulations and requirements, as applicable. Kainos shall also comply with all administrative provisions specifically set forth in this Agreement and the Declaration of Affordability Covenants. 10. HOME AND CDBG PROGRAM AFFORDABLE HOUSING REQUIREMENTS Kainos shall comply with the requirements and standards of the CDBG and HOME regulations for providing affordable low- and moderate - income housing including, but not limited to: (i) renting the bedrooms to persons whose annual gross income does not exceed 30% of Area Median Income, as defined below; (ii) maintaining the affordability of the bedrooms for a minimum term of 55 years for CDBG sustainability goals; and (iii) recording affordability restrictions at the time of Close of Escrow for purchase of the Property, which provides City with an option to purchase the Property or the right to cause a sale of the Property in order to recapture the CDBG and HOME funds provided to Kainos upon occurrence of an Event of Default by Kainos under this Agreement prior to expiration of the affordability restrictions. "Area Median Income," as used in this paragraph, means the median income for households in San Mateo County, California, as published from time to time by HUD in a manner consistent with the determination of median gross income under Section 8 of the United States Housing Act of 1937, as amended. In the event that such income determinations are no longer published by HUD, or are not updated for a period of at least 18 months, City shall provide Kainos with other income determinations that are reasonably similar with respect to methods of calculation to those previously published by HUD. In accordance with HOME regulations, the HOME funds provided to Kainos to purchase the Property shall not exceed the maximum per unit subsidy amount, as described in Paragraph A.5. of Exhibit B. Due to the Dwelling being used to provide permanent housing and supportive services to six extremely low income individuals with developmental disabilities who will be receiving residential and supportive services, it is classified as a "Group Home" under HOME regulations. The maximum allowable monthly rent that can be charged by Kainos can be no more than the lesser of (i) one - twelfth (1/12) of thirty percent (30 %) of the individual client's annual gross income, (ii) one -sixth ATTY /AGR/2010.083 7 091610