PROCEEDS AND REPAYMENTS Sample Clauses

PROCEEDS AND REPAYMENTS a) The CHDO will be allowed to retain any loan repayments, interest, and other return on the investment of HOME funds as CHDO Proceeds. CHDO Proceeds may be used for non-HOME housing activities which benefit low to moderate income families. No more than 20% of retained CHDO Proceeds may be used for CHDO operating expenses during the first cycle. Subsequent cycles have no usage limitations. The CHDO will be responsible for maintaining this documentation and reporting annually to the PJ concerning the collection and use of CHDO Proceeds. b) In accordance with Section 6(c) above and 24 CFR 92.501, HOME funds invested by the CHDO in affordable housing are subject to recapture if the assisted unit ceases to qualify as affordable housing before the period of affordability expires and must be repaid to the City. Recaptured funds are not CHDO Proceeds. Repayment of HOME funds to the City on any project determined ineligible for HOME assistance due to non-compliance with the requirements of 24 CFR Part 92 shall be the responsibility of the CHDO.