Housing Hope HCS-15-42-1213-198(1) 7/25/2016

Disbursements by the City pursuant to this Loan Agreement shall be on a reimbursement basis, covering Project obligations incurred and paid by the Agency. These funds shall be managed through the County's HOME Investment Trust Fund account (the "HOME Investment Fund") utilizing the Integrated Disbursement and Information System ("IDIS") described in 24 CFR § 92.502, in the following manner: 1. The Agency's Project staff will prepare the Request for Reimbursement/Actual Expenditure Report (attached hereto as Exhibit G and incorporated herein by this reference) together with a Report of Actual Expenditures (attached hereto as Exhibit H, as may be modified by the City, and incorporated herein by this reference) and submit them to the City with adequate notice to allow processing by the City. Each Request for Reimbursement shall be submitted by the Agency only for funds needed for reimbursement of eligible Project costs and reimbursement will be limited to the amount so needed. 2. When reimbursement requests include draw requests from a contractor for construction work completed, the Agency shall submit the following items as may be required by the City: a fully executed AIA form, copies of inspection reports indicating the status of construction, copies of Conditional and Final Lien Releases evidencing the contractor's receipt of payment and releasing any claims to lien the property, Change Order requests and back-up if applicable, and any other appropriate documentation necessary to confirm the funds were expended on the budget items as itemized. 3. Within 90 days of the final Request for Payment for each HOME-assisted activity, the Project staff will prepare and submit to the City the Project Completion Report (Form HUD-40096), and other such project close out documentation as required in this Loan Agreement and in Section V. RECORDS AND REPORTS, B. Reports, herein. 4. Disbursements shall be limited to the amounts needed for allowable Project costs. Disbursements will not occur, and payments may be withheld, unless the Agency provides proper documentation. 5. The City shall keep five percent (5%) of the loan amount as a retainage fee until final close-out and receipt of Project completion documents listed in the HOME Rental Completion Report (attached hereto as Exhibit I and incorporated herein by this reference) and any other loan requirements or close out reports identified in Section V. RECORDS AND REPORTS, B.1. Reports, herein. 6. Prior to the initial disbursement of funds, the Agency will submit to the City copies of: • Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 30 of 53