NEIGHBORHOOD STABILIZATION PROGRAM 2

Section 2.5 Program Income. If any Program Income is generated by the expenditure of Consortium Funds received by the County, (i) the County shall cause such funds to be used for eligible NSP2 Activities, (ii) the County shall keep appropriate records of such Program Income, and (iii) the County shall report such Program Income to the Steering Committee as part of the reports required by Section 3.5. In accordance with NSP2 Requirements, substantially all Program Income must be disbursed for eligible NSP2 Activities before the County may expend additional NSP2 funds. ARTICLE 3. PERFORMANCE OF NSP2 ACTIVITIES Section 3.1 Performance of NSP2 Activities. The County shall perform and cooperatively carry out all NSP2 Activities described in the Grant Application in a timely manner and in compliance with the NSP2 Requirements. The County shall carry out the NSP2 Activities described in the Grant Application within the Consortium jurisdiction. Section 3.2 Lead Member Administrative Responsibilities. The County, as Lead Member, has the duties set forth in the Consortium Agreement. In addition, the Lead Member is responsible for (i) entering into the Grant Agreement, (ii) using best efforts to ensure that the NSP2 Program is effected in compliance with all NSP2 requirements, (iii) providing support and guidance to all Members in carrying out NSP2 Activities, and (iv) submitting documents to HUD as required for participation in the NSP2 Program, including but not limited to all DRGR System reporting. The City, as a Member of the Consortium, will participate in the Steering Committee, and provide one city staff person to participate in these quarterly meetings. Section 3.3 Selection of Developers. The County shall participate in a cooperative effort with other Members to prepare and distribute a Local Request for Proposals (RFP) to request proposals from potential Developers. As previously decided by the Steering Committee during its first meeting in June 2009, those Members whom have conducted previous competitive processes for NSP may submit their selected Developer as an approved developer under the NSP2 program To date, Alameda County has conducted a competitive process on behalf of the Urban County; the City of Livermore has conducted a competitive process on behalf of a group of cities funded by the State under the State NSP 1 program; and the City of Hayward has conducted a competitive process under the State NSP1 program. The Steering Committee shall make a final decision regarding the number of Developers to use in this program. Once Developers have been selected, the County will separately contract with one or more such Developers to implement NSP2 Activities through -out the Alameda County and City of Pleasanton