A written agreement must be executed between the PJ and the recipient of HOME funds before any HOME funds are committed or disbursed. It should be a concise statement of the relationship between the PJ and the funding recipient, and state the conditions under which the HOME funds are being provided. A properly written and executed agreement is an extremely valuable management tool for verifying compliance and monitoring performance. It also enables a PJ to protect its HOME investment.
HOME monitoring staff will need to verify that all entities receiving HOME funds from the PJ - either subrecipients, for-profit and non-profit developers, contractors, homeowners or rental property owners-had adequate written agreements in place before any HOME funds were disbursed to them. The monitor must also verify that written agreements will remain in effect for the relevant affordability periods.
At a minimum, written agreements must address the following required points, as well as any other terms specific to the activity being carried out.
- Use of funds
- Reversion of assets/program income requirements
- Uniform administrative requirements
- Other program requirements
- Affirmative marketing
- Requests for disbursements of funds
- Records and reports
- Enforcement of the agreement
- Project requirements
- Conditions for religious organizations
- CHDO provisions