Snohomish County Human Services 7/25/2017 Amendment 1

performance of the Project. The subgrant may be amended from time to time in the manner described elsewhere in this Agreement, so long as the same remains consistent with the object of Exhibit B, as now or hereafter amended. The sum of said subgrant and any amendments thereto may only be expended in accordance with the budget contained in Exhibit C attached hereto, which is incorporated herein by this reference, as may hereafter be amended (the "Project Budget"). 2. The funds will be used by the Agency to provide housing rehabilitation loans to homeowners of low-income families in accordance with the provisions of this HOME Agreement and Exhibit B. 3. All Program Income (as that term is defined in Section IV-F-1 of Exhibit A hereof) from the interest on or repayment of loans shall be deposited by the Agency into a separate HOME Program Income fund, as required by Section IV-F-2 of Exhibit A hereof, and shall be used by the Agency solely to make additional rehabilitation loans to HOME-eligible homeowners. 4. The Agency shall manage the Project so that Project costs do not exceed the Project Budget. Further, the Agency shall absorb all costs in excess of the authorized subgrant amount. C. Notice to Proceed The County shall furnish the Agency with written Notice to Proceed upon release of funds from HUD related to the Project pursuant to 24 CFR Part 58. No work on the Project prior to the Notice to Proceed shall occur without prior written approval from the County. D. Term of Agreement The term of this Agreement begins August 22, 2016 and expires on the date the Agency ceases to conduct its Community Housing Improvement Program, including the origination of new housing rehabilitation loans and the servicing of existing housing rehabilitation loans as provided for in this Agreement, PROVIDED, HOWEVER, that no funds will be provided by the County to the Agency pursuant to this Agreement until the Agreement has been fully executed by both parties hereto. Notwithstanding the preceding sentence, this Agreement may be terminated by either party as provided in the Basic Terms and Conditions Agreement. E. Term for Commitment of HOME Funds 1. The Agency shall fully commit the pre-2015 HOME funds provided under this agreement to homeowners for housing rehabilitation loans for the Exhibit A-1 HCS-16-42-1601-198(1) City of Everett Page 2 of 24