Directive Number: DEV.GRA ------------------------------------------------------------------------ Development Project Grant U.S. Department of Housing Amendment to Consolidated and Urban Development Annual Contributions Contract Office of Public and Indian Housing 1. Development Project Grant Number: . 2. Amendment to Annual Contributions Contract (ACC) Number: , dated: . 3. The ACC is amended to provide grant assistance for the Development Grant Project. This amendment is part of the ACC. 4. The following provisions shall be applicable to the Development Grant Project: (a) Date of Development Grant Reservation: . (b) Development Method and Housing Type: (c) Number of Units: (d) Maximum Total Development Cost (Development Grant Authority): $ . 5(a) The development of this Grant Project shall be carried out in accordance with all HUD regulations and other requirements applicable to the public housing development program, as such authorities now exist or as they may be amended from time to time. The HA agrees to comply with these regulations and requirements. (b) Special Provision for Turnkey Projects only: The HA will acquire Project No. pursuant to a contract of sale to be entered into between the seller and the HA. Prior to execution of the contract of sale, the HA may enter into a preliminary contract of sale with the seller to enter into such contract. Such preliminary contract and such contract shall bear the written approval of HUD. Failure of the HA expeditiously to continue the undertaking of the project or to comply with the preliminary contract or contract, or if the preliminary contract or contract is held to be void, voidable, or ultra vires, or if the power or right of the HA to enter into the preliminary contract or contract is drawn into question in any legal proceeding, or if the HA asserts or claims that the preliminary contract or contract is not binding upon the HA for any such reason, the occurrence of any such event, if the seller is not in default, shall constitute a substantial default under Part A, Section 17, of the ACC and, in such case, HUD will continue the undertaking of the project and will take delivery of such right, title or interest in the project as the HA may have and perform such preliminary contract or contract, as the case may be. The provisions of this paragraph are made with, and for the benefit of, the seller and his or her assignees who will have been specifically approved by HUD prior to such assignment. To enforce the performance of this provision, the seller and such assignee(s), as well as the HA, shall have the right to proceed against HUD by action at law or suit in equity. 6. The development work to be carried out is described in an HA proposal, a statement of the basic elements of the Development Grant Project. The HA proposal must be adopted by the HA and approved by HUD, and may be revised from time to time by agreement between HUD and the HA. The HA agrees to carry out the development activities in accordance with its approved proposal. 7. The Maximum Total Development Cost of the Development Grant Project is stated in Section 4(d) of this amendment. The HA shall complete the development of the Grant Project within the approved Development Cost Budget and in no event in excess of the stated Maximum Total Development Cost for the Grant Project. 8. Subject to the provisions of this ACC, and in order to assist the development of the Grant Project, HUD agrees to disburse to the HA, from time to time as needed, up to the amount of the Maximum Grant Commitment. The Maximum Grant Commitment shall be equal to the Maximum Total Development Cost for the Grant Project, as stated in Section 4(d), or the approved Actual Development Cost of the Grant Project. 9. After inclusion in an audit and HUD approval of the Actual Development Cost Certificate, a copy of the Actual Development Cost Certificate shall be attached to this amendment and shall be deemed to further amend the ACC, where necessary, to reduce the amount of grant authority for the Development Grant Project to an amount equal to the approved Actual Development Cost. In no case shall the approved Actual Development Cost Certificate amount exceed the Maximum Total Development Cost stated in Section 4(d) of this amendment. 10. The HA shall continue to operate the Development Grant Project as low income housing in compliance with this ACC, the Act, and all HUD regulations and requirements, as such authorities now exist, or as they may be amended from time to time, for a period of forty years (or such other period of time required by law) beginning on the Date of Full Availability (i.e., the last day of the month in which substantially all dwelling units in the project are available for occupancy following completion of the work and authorized acceptance by the PHA) of the Development Grant Project. 11. If the HA does not comply with its obligation(s) under this amendment, HUD may direct the HA to terminate all further development activities. In such case, the HA shall only incur additional costs with HUD approval. 12. The HA shall execute and file for record a Declaration of Trust, as provided under Part A, Section 8, of the ACC to protect the rights and interests of HUD throughout the forty-year period (or such other period of time required by law) during which the HA is obligated to operate the Development Grant Project in accordance with the ACC, the Act and HUD regulations and requirements. The parties have caused this amendment to be effective as of the date of execution on behalf of the United States, as stated below. Public Housing Agency: (Seal) Attest: By (Chairperson): Date: United States of America Secretary of Housing and Urban Development By: (Official Title) Date: HUD-53010-D (5/96)