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<br />substantial part by persons residing in the same metropolitan area or nonmetropolitan <br />county as the project. <br /> <br />12.2. Funds provided under this Contract may not be provided to primarily religious organizations, <br />such as churches, for any activity including secular activities. In addition, funds provided under <br />this Contract may not be used by primarily religious organizations, or to assist primarily <br />religious organizations, in acquiring housing. The completed housing project must be used <br />exclusively by the owner entity for secular purposes and must be available to all persons, <br />regardless of religion. There must be no religious or membership criteria for tenants of the <br />property as specified under 24 CFR 92.257. <br /> <br />ARTICLE 13 <br />Legal Authoritv <br /> <br />13.1 Administrator assures and guarantees Department that Administrator possesses the legal <br />authority to enter into this Contract, to receive funds authorized by this Contract, and to perform <br />the services Administrator has obligated itself to perform under this Contract. <br /> <br />13.2 The person(s) signing and executing this Contract on behalf of Administrator, does hereby <br />warrant and guarantee that he is duly authorized by Administrator to execute this Contract on <br />behalf of Administrator and to validly and legally bind Administrator to all the terms, <br />performances, and provisions of this Contract. <br /> <br />13.3. Administrator shall not employ, award contracts to, or fund any person that has been debarred, <br />suspended, proposed for debarment, or placed on ineligibility status by U. S. Department of <br />Housing and Urban Development. In addition, Department shall have the right to suspend or <br />terminate t.l1is Contract if Administrator is debarred, suspended, proposed for debarment, or is <br />otherwise ineligible from participating in the HOME Program. Administrator acknowledges and <br />agrees that this Section 13.3 specifically includes, but is not limited to, consultants hired by <br />Administrator to assist Administrator in any aspect relative to the activities ofthis Contract. <br /> <br />ARTICLE 14 <br />Litigation And Claims <br /> <br />Administrator shall give Department immediate notice, in writing, of the occurrence of any of the <br />following events: <br /> <br />I) any action, including any proceeding before an administrative agency, filed against <br />Administrator in connection with this Contract; and <br /> <br />2) any claim against Administrator, the cost and expense of which Administrator may be entitled to <br />be reimbursed by Department. <br /> <br />Except as otherwise directed by Department, Administrator shall furnish immediately to Department <br />copies of all pertinent papers received by Administrator with respect to such action or claim. <br /> <br />ARTICLE 15 <br />Changes And Amendments <br /> <br />15.1. Except as specifically provided otherwise in this Contract, any changes, additions, or deletions to <br />the terms of this Contract shall be in writing and executed by both Parties to this Contract. An <br /> <br />Page 6 of 17 <br />HOME Contract No. 535035 <br />Owner Occupied Assistance <br />