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assistance activities pursuant to the CDBG entitlement Program and the HOME Investment Partnership <br />Program. <br />111. TERM OF AGREEMENT <br />This Agreement shall be in effect upon execution and terminate no sooner than the end of the third <br />program year covered by the application for the basic grant amount and approved after the effective date. <br />This Agreement shall be effective for the Federal Fiscal Years 2001 through 2003. This Agreement shall <br />renew automatically for subsequent three -year program - periods unless written notice of termination to be <br />effective at the end of the current three year program - period is given by the Cooperating Community to the <br />County following the same schedule as the "opt -out" notification requirements as established by HUD. <br />Since this Agreement has an automatic renewal provision, the County shall, prior to the "opt -out" date, <br />provide written notification to the Cooperating Community of the Community's rights under this "opt -out" <br />provision. The County shall have the right to '`opt out" of future renewal of the Agreement. <br />The parties agree that this Agreement will remain in effect until CDBG and HOME Investment <br />Partnership Program funds and program income received for activities carried out during the three year <br />qualification period (and any successive periods under the automatic renewal provision) are expended and <br />the funded activities completed, and that the county and Cooperating Community cannot terminate or <br />withdraw from this Agreement during this period. Notwithstanding any other provision of this Agreement, <br />this Agreement shall be terminated at the end of any program year during which HUD withdraws its <br />designation of Washington County as an urban county under the Act. <br />1V. METHOD <br />The Cooperating Community expressly agrees that it wi I l undertake or assist in undertaking community <br />renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted <br />housing. The County shall prepare and submit to HUD and appropriate reviewing agencies, all necessary <br />applications for a basic grant amount under the CDBG requirements. In making the application, the County <br />shall address the goals and needs of County as developed in meetings between; the Community, its citizens <br />and the County, and also addressing the Act and other relevant Minnesota and /or federal statutes and <br />regulations. The parties agree to cooperate fully in establishing prioritises and in preparation of the <br />application for a basic grant amount. The Cooperating Community and the County agree that the County <br />shall establish a reasonable time schedule for the development of the grant application. <br />It is anticipated by the parties that the party ultimately implementing a project funded by monies <br />received from the grant may be either the Cooperating Community, or the County. The determination of <br />which party will implement the project will be made by the parties after consideration of the nature and <br />scope of the project, and the ability of each party to undertake the project, though it is understood by the <br />Cooperating Community that the County shall have final responsibility for selecting projects and filing <br />annual grant requests. The County is hereby authorized to distribute to the Cooperating Community such <br />funds as are determined appropriate for the Community to use in implementing a project and the County is <br />hereby authorized to undertake projects within the Cooperating Community as are determined appropriate <br />for the County to undertake. Contracts awarded and purchases made pursuant to a project under this <br />Agreement shall conform to Minnesota statute and to the requirements of the entity undertaking the project. <br />V. SPECIAL PROVISIONS <br />A. Nothing in this Agreement is intended to prevent or otherwise modify or abrogate the right of <br />the Cooperating Community or the County to submit individual applications for discretionary funds in the <br />event County does not receive designation as an urban county entity under the Act. <br />B. The Cooperating Community and the County mutually agree to indemnify and hold harmless <br />each other from any claims, losses, costs, expenses ordamages resulting from the acts or omissions of their <br />2 <br />