No. 0430 authorizing execution of an "agreement for public body approval of Section 312 rehabilitation loans," and designating officials authorized to approve such loans on behalf of the public body

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_"t, s a _ep.. , r v,= m-:,;p .a as•s.� 4 , y.;..:. •. AGRANT FOR PUBLIC BODY APPROVAL Ole • SECTION 312 REHABILITATION LOANS THIS AGREEMENT, made and entered into on the date hereinbelow specified, by and between the City of South Bend, Department of Redevelopment (the Public Body), and the United States of America (the Government), acting by and through the Secretary .of Housing and Urban Development (the Secretary), WITNESSETH: In consideration of the.mutual covenants, promises, and representations 10contained herein, the parties do'agree as follows: Sec. 1. PURPOSE OF AGREEMENT The Public Body has responsibility and jurisdiction to carry out one or more Urban Renewal Projects, Neighborhood Development Programs, Concentrated Code Enforcement Programs, or Certified Area Programs in areas delineated in the applicable Urban Renewal Plan, Grant Contract Program. The processing by the Public Body, and submission to the Department of Housing and Urban Development for approval, of rehabilitation loans under Section 312 of the Housing Act of 1964, as amended (Section 312 loans) is presently authorized with respect to one or more of the areas covered by such project (s) or program (s). The purpose of this Agreement is to extend to the Public Body authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called regulations) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of fund availability for an approved loan. Sec. 2. APPLICABILITY OF APPROVAL AUTHORITY During the term of this Agreement, the Public Body shall have final authority to approve applications for Section 312 loans with respect to residential and mixed -use property, 4;hich will contain one to four dwelling units after rehabilitation, and which is located in an area with respect to which the Public Body has authority to process such loans, as described in Section 1 hereof. The Public Body shall exercise such loan approval authority with respect to property in all such areas which come under its jurisdiction during the term of this Agreement. However; no loan approval under authority of this Agreement shall be valid until the Secretary has determined that funds are available therefor, and has notified the Public Body thereof. Sec. 3. NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Secretary's regulations to be submitted with respect to Section 312 loans approved by a Public Body, the Secretary shall promptly notify the Public Body in writing whether sufficient funds are available for the "approved loan. Sec. 4. COMPLIANCE WITH GOVERNMENT REGULATIONS The loan approval authority granted by this Agreement shall be exercised in accordance with the procedures and requirements established by the applicable regulations of the Secretary in effect from time to time. In particular, the Public Body shall not otify an applicant of loan approval until receipt of notice of availability of funds or the loan from the Secretary. Sec. 5. EFFECT OF FAILURE TO COMPLY a. Grounds for Termination. Failure of the Public Body to comply with the procedures and requirements of the Secretary with respect to loan approval, or with respect to other aspects of the Section 312 loan program, are grounds for termination of this Agreement at the option of the Secretary. However, such failure shall not create or justify any claim against the Government on the part of any third person, and shall not constitute grounds for any third person to contest the validity of any Section 312 loan approved by the "Public Body under authority of this Agreement and during its term. b. Defend and Hold Harmless. The Public Body will warrant, defend, and hold harmless the Government with respect to all claims and losses caused by its failure to comply with the regulations of the Secretary and the requirements of applicable State and local law in its approval of Section 312 loans under authority of this Agreement, and in the subsequent settlement and administration of loans so approved. In the event the Secretary's regulations and the requirements of State and local law are inconsis- tent, the Public Body shall request advice from the Secretary prior to approval of the Section 312 loan. Page 1