Common use of National Objective Compliance Clause in Contracts

National Objective Compliance. All activities funded with CDBG funds must meet one of the HUD CDBG Program National Objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208. The Subrecipient certifies that the activity(ies) carried out under this Subrecipient Contract will meet the following HUD National Objective: Benefit low- and moderate-income persons; Aid in the prevention or elimination of slums or blight; Meet community development needs of particular urgency, as defined in 24 CFR 570.208 Failure by the Subrecipient to fulfill the national objective may result in grant funds being disallowed and required to be returned to the City/Grantee. Subrecipient must fulfill the national objective for the “Compliance Period,” which is as follows: Real and personal property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Subrecipient Contract shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until twenty (20) years from the end of the CDBG program fiscal year in which funded activities were completed. Subrecipient hereby agrees to enter into a Promissory Note attached hereto as Exhibit D and incorporated herein. Subrecipient hereby agrees to enter into a Mortgage attached hereto as Exhibit E and incorporated herein. Subrecipient also hereby agrees to enter into an Indenture of Restrictive Covenants (“Indenture”) with the City/Grantee at the time of the entering into this Subrecipient Contract. In this Indenture, Subrecipient agrees to represent, warrant and covenant throughout the term of the Indenture that the land and/or facility purchased or improved with CDBG funds will be used in accordance with Section 42 of the United States Code during the Compliance Period. Further, Subrecipient agrees that the use of such property may not change from that for which the acquisition was made unless the Subrecipient receives written approval from the CDBG Program Division Manager for the City of Rapid City and provides affected citizens with reasonable notice of, and opportunity to comment on, any proposed change, and either (1) the new use of such property qualifies as meeting one of the national objectives in Volume 24 of the Code of Federal Regulations, Section 570.208 (24 CFR 570.208), or (2) if the Owner determines, after consultation with affected citizens, that it is appropriate to change the use of the property to a use that does not qualify under 24 CFR, Section 570.208. After such determination is made, Subrecipient may retain or dispose of the property for the changed use if the CDBG program is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, and improvements to, the property.

National Objective Compliance. All activities funded with CDBG funds must meet one of the HUD CDBG H.U.D. Community Development Block Grant Program National Objectives: benefit low- and moderate-moderate- income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208. The Subrecipient certifies that the activity(iesactivity (ies) carried out under this Subrecipient Contract Agreement will meet the following HUD H.U.D. National Objective: Benefit low- and moderate-income persons; Aid in the prevention or elimination of slums or blight; Meet a community development needs need of particular urgency, as defined in 24 CFR 570.208 Failure by the Subrecipient to fulfill the national objective may shall result in grant funds being disallowed and required to be returned to the City/Grantee. 1. Subrecipient must fulfill the national objective for the “Compliance Period,” which is as follows: Real and personal property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Subrecipient Contract shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until twenty (20) years from the end of the CDBG program fiscal year in which funded activities were completed. Subrecipient hereby agrees to enter into a Promissory Note attached hereto as Exhibit D and incorporated herein. Subrecipient hereby agrees to enter into a Mortgage attached hereto as Exhibit E and incorporated herein. Subrecipient also hereby agrees to enter into an Indenture of Restrictive Covenants (“Indenture”) with provide the City/Grantee an Irrevocable Letter of Credit (“ILOC”) in an amount equal to the Community Development Block Grant fund expenditures contemplated under this Agreement, which is One Hundred Twenty Thousand Seven Hundred Twenty-one & 56/100 dollars ($120,721.56), payable to the City to secure Subrecipient’s full and faithful compliance with the Community Development Block Grant Program National Objectives, including but not limited to the compliance requirement that the above-stated H.U.D. National Objective be met via completion of a dwelling or dwellings contemplated under Section C. below, such dwelling(s) to be available for occupation by low- and/or moderate-income person(s) within three years of the date of execution of this Agreement (the “Completion Requirement”). a. In the event the Subrecipient defaults under this paragraph B. by failure of the Completion Requirement, subject to any timeframe adjustments agreed upon in writing by the City/Grantee and the Subrecipient, the City/Grantee may use the ILOC to recover the funds granted to Subrecipient under this Agreement. b. The City/Grantee will provide written notice of such default on the Completion Requirement and intent to recover at Subrecipient’s last known address by first class mail. The Subrecipient may be provided an opportunity to cure such default at the time sole discretion of the entering into City/Grantee. c. The ILOC shall be maintained in full force and effect for the duration of this Subrecipient Contract. In this IndentureAgreement, Subrecipient agrees to representor until the Completion Requirement has been met, warrant whichever comes first. d. The form and covenant throughout the term provisions of the Indenture that ILOC shall be acceptable to the land and/or facility purchased or improved with CDBG funds will be used City/Grantee, in accordance with Section 42 of the United States Code during the Compliance Period. Further, Subrecipient agrees that the use of such property may not change from that for which the acquisition was made unless the Subrecipient receives written approval from the CDBG Program Division Manager for the City of Rapid City and provides affected citizens with reasonable notice of, and opportunity to comment on, any proposed change, and either (1) the new use of such property qualifies as meeting one of the national objectives in Volume 24 of the Code of Federal Regulations, Section 570.208 (24 CFR 570.208), or (2) if the Owner determines, after consultation with affected citizens, that it is appropriate to change the use of the property to a use that does not qualify under 24 CFR, Section 570.208. After such determination is made, Subrecipient may retain or dispose of the property for the changed use if the CDBG program is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, and improvements to, the propertyits sole discretion.