14-Reservation system participant to the Texas Dept of Housing

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Household Commitment Contract (a template of which is attached hereto as Exhibit A for any of the following events and any other event agreed to by the parties in the Loan/Grant Documents. When applicable, the Department shall used the federal recapture requirements in 24 CFR §92.254 to determine the amount of funds subject to recapture. (i) Department determines that RSP will be unable to expend all funds awarded within the term of a Household Commitment Contract and/or construction period as defined in the Loan/Grant Documents (as applicable) and funds disbursed did not result in the completion of the units for construction activities and occupancy by Households for all activities in accordance with this Contract; (ii) HOME Funds have been determined by the Department or HUD to have been expended for costs other than Eligible Costs and have not been repaid to the Department within thirty (30) Business Days of such notice being provided to RSP; (iii) The completion of construction on any Activity assisted with HOME Funds does not occur prior to the end of the term of the Household Commitment Contract and the end of the term is not extended by the Department. Any home demolished that cannot be reconstructed within term of the Household Commitment Contract becomes the responsibility of the RSP for completion; (iv) A housing unit assisted with HOME Funds fails to comply, or ceases to comply, with the affordability requirements in 24 C.F.R. §§92.254(a) and (c) and 92.612(c) and as otherwise specified herein. (v) A violation of any law, regulation or order applicable to the RSP that has or might reasonably be expected to have a material adverse impact on the RSP's ability to fulfill the terms of this Contract and is not cured within the applicable cure period, if any, provided in such law, regulation, or order; (vi) Gross negligence, fraud, willful misconduct, misappropriation of funds, or criminal activity by RSP or any affiliate of the RSP providing services to or in connection with the Contract or RSP; (vii) The RSP is debarred, suspended, proposed for debarment, or placed on ineligibility status by HUD; (viii) Repeated or prolonged failure to provide any Required Report; B. RSP acknowledges that in the event RSP is unable to perform in accordance with this Contract, as required of RSP in the Loan/Grant Documents, RSP shall terminate this Contract and surrender RSP's rights to any committed funds. Section 3.2 Sale of the Propertv, Refinancing, or Release of non-Department Lien A Household assisted with a loan shall be subject to the provisions of this section in the case of a sale of, refinancing of any other loans with liens on, or release of a non-Department lien on the assisted housing unit and property. 6 of 25 2010-0015 - ~ 71