1996-118-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 10TH DAY OF JUNE 1996

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executed facsimile copy will be sufficient to evidence the Parties agreement to any amendment, revision or change to this Contract. 15.2 It is understood and agreed by the Parties hereto that performance of all activities under this Contract must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Department by Administrator, and the assurances and certifications made to the United States Department of Housing and Urban Development by the State of Texas with regard to the operation of the HOME Program. Based on these considerations, and in order to ensure the legal and effective performance of this Contract by both Parties, the Parties herein agree that the activities under this Contract are amended by the provisions of the HOME Program Guidelines and Application ("Manual") and any amendments thereto, and may be further amended in the following manner: A. Department may, from time to time, during the Contract Period issue policy directives which serve to establish, interpret, or clarify the performance requirements under this Contract; 1. such policy directives shall be promulgated by the Manager of the HOME program in the form of HOME issuances; and 2. shall have the effect of qualifying the terms of this Contract; and 3. shall be binding upon Administrator, as if written herein. B. Provided, however, that said policy directives and any amendments to said Manual shall not alter the terms of this Contract so as to release Department of any obligation specified in Article 3 of this Contract to reimburse costs incurred by Administrator prior to the effeqtive date of said amendment or policy directive. 15.3 Any changes, additions, or deletions to the terms of this Contract which are required by changes in Federal or state law, or regulations, are automatically incorporated into this Contract without the requirement of a written amendment hereto, and shall become effective on the date designated by such law or regulation. ARTICLE 16 Suspension In the event Administrator fails to comply with any term of this Contract, Department may, upon written notification to Administrator, suspend this Contract in whole or in part, withhold further payments to Administrator, and prohibit Administrator from incurring additional obligations for funds under this Contract. ARTICLE 17 Termination The Department may terminate this Contract in whole or in part, in accordance with 24 CFR 85.43 and this Article 17. In the event Administrator fails to materially comply, in Department's sole discretion and judgment, with any term of this Contract, or any term stated in a Federal statute or regulation, or with any assurance given to Department by Administrator, or with any term in a State plan, or with Administrator's application, the notice of award, Administrator's Performance Timetable or elsewhere, Department may take any of the following actions: Page 7 of 17 HOME Contract No. 535035 Owner Occupied Assistance