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promptly upon receipt of them. A "Certificate of Insurance" showing the additional named <br />insured's and other aforementioned provisions shall not be adequate. <br />Section 6. Compliance with Federal Laws. Subrecipient shall comply with the <br />requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and <br />Urban Development regulations concerning CDBG grants including subpart K of these <br />regulations, except that (1) Subrecipient does not assume City's environmental responsibilities <br />described in 24 CFR 570.604. and (2) Subrecipient does not assume City's responsibility for <br />initiating the review process under the provision of 24 CFR Part 52. Subrecipient also shall <br />comply with all other applicable Federal, state, and local laws, regulations, and policies <br />governing the funds provided under this Agreement. Subrecipient further shall utilize funds <br />available under this Agreement to supplement rather than supplant funds otherwise available. <br />Section 7. Procurement. <br />A. Compliance. Subrecipient shall comply with current City policy concerning the <br />purchase of equipment and shall maintain inventory records of all non -expendable personal <br />property as by such policy as may be procured with funds provided herein. All Program assets <br />(unexpended program income, property, equipment, etc.) shall revert to City upon termination of <br />this Agreement. <br />B. Office of Management and Budget (OMB) Standards. Unless specified otherwise <br />in this Agreement, Subrecipient shall procure all materials, property, or services in accordance <br />with the requirements of 24 CFR 84.40-48. <br />C. Use of Funds for Entertainment Meals or Gifts. Subrecipient shall not use funds <br />provided pursuant to this Agreement to pay for entertainment, meals or gifts. <br />D. Travel. Subrecipient shall obtain written approval from City for any travel <br />outside of the City of Redlands with funds provided under this Agreement. <br />Section 8. Use and Reversion of Assets. The use and disposition of real property and <br />equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 <br />and 24 CFR 570.502. 570.503, and 570.504, as applicable, which include but are not limited to <br />the following: <br />A. Subrecipient shall transfer to City any Program funds on hand and any accounts <br />receivable attributable to the use of funds under this Agreement at the time of expiration, <br />cancellation, or termination. <br />B. Real property under Subrecipient's control that was acquired or improved, in <br />whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one <br />of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after <br />expiration of this Agreement (or such longer period of time as the City deems appropriate). If <br />Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National <br />Objective for the prescribed period of time, Subrecipient shall pay City an amount equal to the <br />current fair market value of the property less any portion of the value attributable to expenditures <br />of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall <br />constitute program income to City. Subrecipient may retain real property acquired or improved <br />Page 6 of 12 <br />_ _ irl. rnn.-11snnr_ - rn,n-rn n _._tnnn <br />