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6. The HOME-Assisted Units must meet the affordability requirements of 24CFR <br /> §92.252. In the event the HOME-Assisted Units do not meet the HOME affordability <br /> requirements for the specified term of the loan per Section I, Subsection G, the HOME <br /> funds shall be repaid. <br /> F. Repayment of HOME Funds <br /> During and until completion of the HOME Compliance Period, the Agency shall return to <br /> the City funds disbursed to it under this Loan Agreement upon the occurrence of any of <br /> the following events: <br /> 1. HOME-assisted activities are cancelled; <br /> 2. Overpayments are made, to the extent of those overpayments; <br /> 3. The Project or any part thereof is terminated before completion, voluntarily or <br /> otherwise, which termination constitutes an ineligible activity requiring repayment by <br /> the City to the City's portion of the County's HOME Investment Trust Fund, pursuant <br /> to 24 CFR §§ 92.205(e) and 92.503(b)(2); the Project shall be deemed terminated if <br /> the project is not completed within 4 years from the date of this Agreement; <br /> 4. The Project or any part thereof ceases to qualify as affordable housing before the <br /> HOME Compliance Period expires, pursuant to 24 CFR §§ 92.501 and 92.503(b)(1); <br /> or <br /> 5. HOME-Assisted Units remain unoccupied eighteen (18) months after Project <br /> completion (defined as construction completed and the units ready for occupancy). <br /> G. Budget Surplus <br /> All City funds and authorization of funds remaining in the Project Budget upon closeout of <br /> the Project shall, unless otherwise agreed to by the City, any other public funders and the <br /> Washington State Housing Finance Commission, revert to the City's portion of Snohomish <br /> County HOME Program. The Agency shall, upon closeout of the Project, expiration or <br /> termination of this Loan Agreement, transfer to the City: <br /> 1. Any HOME funds on hand; and <br /> 2. Its rights in any accounts receivable attributable to the use of HOME funds. <br /> H. Required Reserves <br /> The Agency shall establish a "Replacement Reserve Account" and an "Operating Reserve <br /> Account", and other reserve accounts, as proposed in the Project budgets, or as may be <br /> required by this Agreement. <br /> Unless otherwise approved by the City, the Agency shall make every reasonable effort <br /> following Project completion to fund all replacement and operating reserves in accordance <br /> with the amounts capitalized in the Project development budget (Exhibit B). Ongoing <br /> Loan Agreement <br /> Housing Hope Properties <br /> Page 31 of 51 <br />