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4. The Project or any part thereof is terminated before completion, voluntarily or <br /> otherwise, which termination constitutes an ineligible activity requiring <br /> repayment to the City's HOME Investment Trust Fund, pursuant to 24 CFR <br /> §§ 92.205(e) and 92.503(b)(2); the Project shall be deemed terminated if the <br /> Project is not completed within 2 years from the date of this Loan Agreement; <br /> 5. The Project or any part thereof ceases to qualify as affordable housing before <br /> the period of affordability expires, pursuant to 24 CFR §§ 92.501 and <br /> 92.503(b)(1); or <br /> 6. HOME-Assisted Units remain unoccupied eighteen (18) months after Project <br /> completion (defined as construction completed and the units ready for <br /> occupancy). <br /> F. Budget Surplus <br /> All funds and authorization of funds remaining in the Project Budget upon <br /> closeout of the Project shall revert to the Snohomish County HOME Program. <br /> The Agency shall, upon closeout of the Project, transfer to the City, and the City <br /> shall transfer to the County: <br /> 1. Any HOME funds on hand; and <br /> 2. Its rights in any accounts receivable attributable to the use of HOME funds. <br /> G. Required Reserves <br /> 1. The Agency shall propose to the City amounts of funding for a "Replacement <br /> Reserve Account" and an "Operating Reserve Account" and provide all <br /> information necessary to indicate the consistency of those accounts with the <br /> feasibility of the Project and the requirements of the City under the HOME <br /> Program. Such final amounts will be approved by the City prior to project <br /> completion. <br /> 2. To the extent that capitalization of the accounts is required or deemed <br /> necessary by the City, initial deposits shall commence no later than the end of <br /> the first month following the completion of construction, or such other date as <br /> the City may designate in writing, and deposits shall be segregated by <br /> general ledger in an interest-bearing account in the name of the Agency <br /> insured by an agency of the federal government or other comparable federal <br /> insurance program. <br /> 3. Any contingency funds or excess funding of any kind that are remaining after <br /> completion of rehabilitation are required to be deposited into the Replacement <br /> Reserve Account. <br /> Amended HOME Loan Agreement <br /> Housing Hope's Kennedy Court Improvement Project <br /> Page 33 of 53 <br />