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title to the property in the event of a breach of the covenant. If a transferee of real <br /> property proposes to mortgage or otherwise encumber the real property as security <br /> for financing construction of new, or improvement of existing, facilities on the <br /> property for the purposes for which the property was transferred, the City may, <br /> upon request of the transferee, if necessary to accomplish such financing, and <br /> upon such conditions as the City deems appropriate, agree to forbear the exercise <br /> of such right to revert title for so long as the lien of such mortgage or other <br /> encumbrance remains effective. <br /> P. Project Restructuring, Transfer, Sale, Change of Use <br /> 1. City Review. In the event of a proposed a restructuring of the project, which may <br /> include sale, refinancing, change of use, transfer of ownership interests and/or the <br /> Ownership, the Agency shall submit to the City for review and approval, such <br /> information as the City deems necessary to review and approve the proposed terms <br /> of the transaction, including the proposed ownership entity, and information sufficient <br /> to ensure the continued viability of the project for which the HOME funding was <br /> provided, or such alternate plan acceptable to the City that provides on-going viability <br /> of the project for low income housing. <br /> Except as otherwise provided herein, City review and approval is required for such <br /> events, which may include, but are not limited to: <br /> a. Refinancing, or restructuring of existing financing, with or without a change of <br /> ownership; <br /> b. Sale or transfer of ownership or ownership interests; and <br /> c. Proposed change of use, including populations served. <br /> IV. FISCAL MANAGEMENT <br /> A. Eligible Costs <br /> Disbursements shall be made to the Agency under this Loan Agreement only for certain <br /> "eligible project costs," as that term is defined in 24 CFR § 92.206, and, if approved by <br /> HUD, for certain "pre-award costs" pursuant to 24 CFR § 92.212. In no event, however, <br /> shall disbursement be made to the Agency for costs not included in the Project Budget <br /> attached as Exhibit B to this Agreement. <br /> No expenditure of HOME funds shall be made for "prohibited activities," as that term is <br /> defined in 24 CFR § 92.214. <br /> No payment shall be made by the City for any expenditure made or service rendered by <br /> the Agency except for expenditures made and services rendered within the scope of a <br /> category set forth in the Project Budget in Exhibit B of this Agreement, and all funds <br /> received must be used for expenditures and services as identified in this Agreement. <br /> B. Payment and Disbursements <br /> Loan Agreement <br /> Cocoon House <br /> Page 25 of 51 <br />