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ATTACHMENT G (X)I(1'RAC1UAl AGREEMEJIT BETMEEII GRAIITEE All) PRIMlllY RElIGlOOS ORGMtIZATIOIS 24 CFR 576.22(b)(2) states that grant amounts may be used to renovate, rehabilitate, or convert buildings owned by primarily religious organizations or entities ,~ the following conditions are met: 1. The structure (or portion thereof) that i s to be improved with HUD assistance has been leased to an existing or newly establ1shed wholly secular entity (lessee) which may be an entity established by the re11g1ous organization (lessor); 2. The HUe assistance is provided to the lessee (and not. the lessor) to make 'mprovements; 3. The leased structure w11l be used exclus1vely for secular purposes available to all persons regardless of religion; 4. The 1 ease payments do not exceed the fair market rent for the structure before 1mprovements are made; 5. The portion of the cost of any improvements that benefi t any non-l eased port10n of the structure will be allocated to and paid for by the lessor; 6. The lessor enters into a binding agreement that, unless the lessee, or a qua11fied successor lessee, retains the use of the leased prem1ses for a wholly secular purpose for at least the useful life of the 1mprovements, the lessor will pay to the lessee an amount equal to the res1dual value of the improvements; 7. The 1 essee must remi t the amount referred to , n paragraph 6 above to the orig1nal grantee from which the amounts used to renovate, rehabilitate, or convert the building were derived; 8. The wholly secular organ1zat10n may enter into a management contract with the re 11 gious organization to provide essential services or undertake homeless prevention acti vit1es for the project. In such a case, the rel1gious organ1zat1on must agree 1n the management contract to catty out 1ts contractual respons1bilities in a manner free from religious influences pursuant to conditions prescribed by Hue as follows: a. that 1 t w111 not d1scriminate against any employee or appl1cant for emp loyment on the bas 15 of re 11 gion and w111 not 11mit employment or give preference in employment to persons on the basis of religion; b. that i t wi 11 not discr1minate aga 1 nst any persons seek1ng emergency shelter and related services on the bas1s of rel'g10n and w111 not limit employment or give preference in employment to persons on the basis of re11g10n; and, c. that it w111 provide no relig10us instruction or counseling, conduct no religious worship or services. engage in no religious proselytizing, and exert no other re11g10us influence in the provision of services. PRlMARI l Y RELIGIOOS ORGAN I lA TI OMS APPLYING FOR ESGP FUNDS TO RENOVATE, REHABIUTATE, OR CONVERT STRUCTURES tlJST SUBMIT HITH ITS PROPOSAL A SIGNED copy Of A CONTRACTUAL AGREEMENT BETNEEN THE RELIGIOOS ~NIZATIOI AfI> THE HIfOlLY SEaJlAR ORGANllATIOI CONTAINING THESE PROVISIONS. 1 434C5