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3. An organization that participates in the HOME Program shall not, in providing program <br /> assistance, discriminate against a program beneficiary or prospective program <br /> beneficiary on the basis of religion or religious belief. <br /> 4. HOME funds may not be used for the acquisition, construction or rehabilitation of <br /> structures to the extent that those structures are used for inherently religious activities. <br /> HOME funds may be used for the acquisition, construction or rehabilitation of <br /> structures only to the extent that those structures are used for conducting eligible <br /> activities under 24 CFR Part 92. Where a structure is used for both eligible and <br /> inherently religious activities, HOME funds may not exceed the cost of those portions <br /> of the acquisition, construction or rehabilitation that are attributable to eligible activities <br /> in accordance with the cost accounting requirements applicable to HOME funds in 24 <br /> CFR Part 92. Sanctuaries, chapels or other rooms that a HOME-funded religious <br /> congregation uses as its principal place of worship, however, are ineligible for HOME- <br /> funded improvements. <br /> 5. Pursuant to 24 CFR § 5.109(e), a religious organization's exemption from the federal <br /> prohibition on employment discrimination on the basis of religion, set forth in section <br /> 702(a) of the Civil Rights Act of 1964 (codified at 42 U.S.C. § 2000e-1), is not forfeited <br /> when the organization participates in the HUD program. Notwithstanding the <br /> foregoing, non-discrimination requirements imposed by statute on all HOME grantees <br /> shall apply to religious and faith-based organizations. <br /> Y. RESERVED [for Violence Against Women Act(VAWA) Requirements] <br /> III. USE OF PROPERTY <br /> The provisions in this Section III apply to the real property constructed through, and as set <br /> forth in, this Loan Agreement and Exhibit A, PROVIDED, HOWEVER, the references to <br /> HOME Program requirements shall apply to the HOME-Assisted Units. The City-Assisted <br /> Units shall be operated consistent with the terms of this Section, or such other similar program <br /> requirements as may be required by the City. <br /> A. Beneficiaries <br /> 1. The project shall include "HOME-Assisted Units" and "City-Assisted Units" more fully <br /> described herein and in Exhibit A of this Loan Agreement. <br /> a. HOME-Assisted Units: Four (4) units, including two (2) studios and two (2) one- <br /> bedroom units shall be "HOME-Assisted Units" for the length of the HOME <br /> Compliance Period as defined in Section I.G.1, in this Section IIIA, and in Exhibit <br /> A. The HOME Compliance Period shall commence on the date of project <br /> completion as noted herein, and shall run for a period of twenty (20) years, and <br /> shall end on the latter of December 31, 2039, or twenty (20) years from the date <br /> of the Project Completion in IDIS. <br /> b City-Assisted Units: A total of sixty-one (61) units, including, twenty-six (26) <br /> studios, twenty-five (25) one-bedroom units, and ten (10) two-bedroom units shall <br /> be the initial "City-Assisted Units". Upon completion of the HOME Compliance <br /> Loan Agreement <br /> Housing Hope Properties <br /> Page 17 of 51 <br />