Endorsing the thrust and concept of the Department of Housing and Urban Development's experimental program entitled "The Housing Allowance Program"

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The City of South Bend (hereinafter called the "City") , in the interest of seeing that housing allowance payments are provided to a number of its residents in need of such assistance and of assisting in an experiment of national importance, fully supports HUDts experimental effort and wishes to cooperate with HUD in undertaking the Experiment within the St. Joseph County metropolitan area. THEREFORE, HUD and the CITY have prepared this Memorandum of Understand- ing to evidence their understanding, as hereinafter set forth: ARTICLE 1 - HUD 1. HUD agrees to undertake an experiment within the St. Joseph County metropolitan area. HUD will carry out the Experiment (hereinafter called "Experiment") through a contract with the Rand Corporation (hereinafter called "Rand") , and its sub-contractors and such other organization(s) as Rand may establish as provided below. In so carrying out the Experiment, HUD, through Rand and such other organization(s) will: A. Provide housing allowances to approximately 9,000 to 10,000 households satisfying the income, family size and other pro- gram criteria for eligibility; and B. Analyze the results of the Experiment through a sizeable number of survey interviews and other data collection activities. As a part of this work, Rand will survey a sample of residential structures within the metropolitan area and interview the owners and tenants of such structures, at the beginning of the Experiment and annually thereafter. 2. The Experiment is planned to be administered as follows: A. Rental and Homeownership Payments: These payments are planned to be administered through a Housing Allowance Office which Rand shall establish as a separate non-profit corporation (hereinafter called the "Housing Allowance Office"). It is planned that the Housing Allowance Office will enroll eligible households, ad- minister payments, provide recipients with housing information, carry on administrative, fiscal and other activities associated with the Experiment, and shall direct and be responsible for the effectiveness of these activities. The Housing Allowance Office 2 -