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. 26 IV. ACTIVITIES COOPERATING UNIT agrees that awarded grant funds will be used to undertake and carry out,within the terms of this Agreement,certain projects involving one or more of the essential activities eligible for funding under the Act. COUNTY agrees and will assist COOPERATING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all applicable requirements of the Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate COUNTY's responsibility to assume all obligations of an applicant under the Act,including the development of the Consolidated Plan,pursuant to 24 CFR Part 91. COOPERATING UNIT further specifically agrees as follows: A. COOPERATING UNIT will,in accord with a COUNTY-established schedule,prepare and provide to COUNTY,in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement,program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that,pursuant to 24 CFR§570.501 (b),it is subject to the same requirements applicable to subrecipients, including the requirement for a written Subrecipient Agreement set forth in 24 CFR§570.503. The Subrecipient Agreement will cover the implementation requirements for each activity funded pursuant to this Agreement and shall be duly executed with and in a form prescribed by COUNTY. C. COOPERATING UNIT.acknowledges that it is subject to the.same subrecipient requirements stated in paragraph B above in instances where an agency other than itself is undertaking an activity pursuant to this Agreement on behalf of COOPERATING UNIT. In such instances, a written Third Party Agreement shall be duly executed between the agency and COOPERATING UNIT in a form prescribed by COUNTY. D. COOPERATING UNIT shall implement all activities funded for each annual program pursuant to this Agreement within eighteen (18) months of the authorization by HUD to expend the basic grant amount. 1. Funds for all activities not implemented within eighteen (18) months shall be transferred to a separate account for reallocation on a competitive request for proposal basis. 2. Limited extensions to the implementation period may be granted upon request only in cases where the authorized activity has-been initiated and/or subject of a binding contract to proceed. 3. If COUNTY is notified by HUD that it has not met the performance standard for the timely expenditure of funds at 24 CFR 570.902(a) and the COUNTY.entitlement grant is reduced by HUD, according to its policy on corrective actions, then the basic grant amount to any COOPERATING UNIT that has not met its expenditure goal shall be reduced in a manner proportionate to the reduction in the COUNTY grant. E. COOPERATING UNIT will take actions necessary to assist in accomplishing the community development program and housing goals,as contained in the Urban Hennepin County Consolidated Plan. 3