564 The City may not apply for grants from appropriations under the Small Cities or State
CDBG Programs for fiscal years during the period in which it partictpates in the Los Angeles Urban
County Program.
5 The City may participate in a HOME Program only through the Los Angeles Urban
County. Thus, even if the Los Angeles Urban County does not receive a HOME formula allocation,
the City cannot form a HOME consortium with other local governments
6. The City and County agree that CDBG and HOME funding is prolubued for any activities
in or in support of any cooperating City that does not affirmatively further fair housing within its
own jurisdiction or that impedes the Countys action to comply with its fair housing certification
7 Pursuant to 24 CFR 570.501 (b), the City is subject to all requirements applicable to
subrecipients, including the requirement of a written Agreement set forth in 24 CFR 570.503
8 The City shall inform the County of any income generated by the expenditure of CDBG
funds received by the City Any such program income maybe retained by the City subject to the
requirements of this Agreement Such program income may only be used for eligible activities in
accordance with all CDBG requirements as may then apply.
9 The County shall be responsible for monitoring and reporting to the U S. Department of
Housing and Urban Development (HUD) on the use of any program income; therefore, the City shall
be required to maintain appropriate recordkeeping and reporting for this purpose
10 In the event of closeout or changes in status of the City, any program income that is on
hand or received subsequent in the close -out or change in status shall be paid to the County
11. All program mcoihe generated from the disposition or transfer of real property acquired
or improved by the City, using CDBG and/or HOME funds or program income, during the term of
this Agreement, shall be treated as described in Sections 6 through I I of this Agreement.
12 Any real property which is acquired or improved by the City during the term of this
Agreement, in whole or in part, using CDBG and/or HOME funds or program income, shall be
subject to the following standards:
L The County shall be notified by the City in writing of any modification or change
in the use or disposition of such real property from that planned at the time of acquisition or
improvement. Such notification shall be made prior to the modification or change in use or
disposition.
b. If such real property is ever sold or transferred for a use which does not qualify
as an eligible use under CDBG and/or HOME regulations, the City shall rounburse to the County
an amount equal to the current fair market value of the property less any portion thereof attributable
to expenditures of non -CDBG and/or HOME funds.
13 The City shall make available for inspection and audit to County's representatives, upon
request, at any time during the duration of this Agreement and during a period of three (3) years,
thereafter, all of its books and records relating to CDBG and HOME program income
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