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Such requests by City for payments for individual work items shall <br />be made after inspection and acceptance of the work by City and <br />City approval of Project Sponsor's requisitions and invoices and <br />satisfactory proof that the Property, Project Sponsor and City are <br />properly protected from liens or claims of liens for labor and <br />materials. All funds disbursed to Project Sponsor shall be <br />received by Project Sponsor in trust and Project Sponsor agrees <br />that the same shall be used only for the payment of these items <br />contemplated by the particular disbursement. <br />City shall not be required to request disbursement of any amount <br />which, in city's opinion, will reduce that portion of the <br />undisbursed funds designated for the cost of completion of the <br />project below that needed to pay for the labor and materials <br />necessary to complete the work. <br />3. Minimum Use Period. 24 CFR 574.310(c). Project Sponsor <br />agrees that the Property will be used as a facility to provide <br />housing or assistance for individuals with AIDS or related <br />diseases for a period of not less than 10 years. <br />4. Eligible Occupants. 24 CFR 574.3, 24 CFR 573.310(e). <br />Occupancy of the Property shall be limited to Eligible Persons and <br />their Families. �'or the purpose of this Agreement: <br />a. "Eligible Person" shall mean a person with AIDS or a <br />related disease who is a low-income individual, and the person's <br />Family. <br />b. "Family" shall mean a household composed of two or more <br />related persons. The term "Family" also includes one or more <br />Eligible Persons who are determined to be important to their care <br />or well-being, and the surviving member or members of any family <br />described in this paragraph who were living in a dwelling unit on <br />the Property with the person with AIDS at the time of his or her <br />death. <br />G. "Low --Income Individual" mean any individual or family <br />whose income does not exceed 800 of the median income for the <br />area, as determined by HUD, with adjustments for smaller and <br />larger families, except that HUD may establish income ceilings <br />higher or lower than 800 of the median for the area on the basis <br />of HUD findings that such variations are necessary because of <br />prevailing levels of construction costs or fair market rents, or <br />unusually high or low family incomes. <br />Notwithstanding the foregoing, the surviving member or members of <br />a Family who were living in a dwelling unit on the Property at the <br />time of the death of the person with AIDS may continue to occupy <br />the Property for a period of up to one year following the death of <br />the person with AIDS. <br />Nip\staff\sk\agreement\ Page 3 of 31 <br />Garfield HOPWA Agreement <br />11-07--01 <br />