Additional Spending Limitations. The CITY agrees that no more than two-and-one-half percent (2.5%) of the total funds it receives hereunder shall be used for eligible planning, urban environmental design, and policy-planning-management-capacity building activities, upon formal application and , as defined in under the CDBG Regulations, 24 C.F.R. Subtitle B, Volume 3, Chapter V, Part 570.205. The CITY understands that if more than two-and-one-half percent (2.5%) of the funds are otherwise used, the COUNTY may be penalized and the CITY shall be required by HUD to reimburse any amounts wrongfully expended in excess of the two-and-one- half percent (2.5%) limit. The CITY further agrees that no more that fifteen percent (15%) of its annual allocation hereunder may be spent on community service activities, pursuant to the CDBG Regulations, 24 C.F.R. Chapter 3, Subtitle B, Chapter V, Part 570.201(e). If the CITY wishes to conduct a project or activity that would be in excess of either the two and one-half percent (2.5%) limit or the fifteen (15%) limit, it shall first submit to the COUNTY a written request for a waiver prior to the submission of its project or activity application. The CITY understands and agrees that the COUNTY may or may not grant a waiver request regarding these activity limits and that the COUNTY shall have final responsibility for the selection of all projects and activities. The CITY understands that,by executing the CDBG cooperation agreement, the included unit of general local government understands that it: (1) May not apply for grants from appropriations under the State CDBG Program for fiscal years during the period in which it participates in the urban County’s CDBG program; and (2) May receive a formula allocation under the HOME Program only through the urban county. Thus, even if the urban county does not receive a HOME formula allocation, the participating unit of local government cannot form a HOME consortium with other local governments; and (3) May receive a formula allocation under the ESG Program only through the urban county. .
Additional Spending Limitations. Municipality understands that, while this Agreement is in effect, it may not apply for grants under the “Small Cities” or State CDBG Programs and HOME consortium with other local governments, except through the County regardless whether the County receives a HOME allocation for the Federal fiscal years during which it is participating in the Urban County’s CDBG Program.
