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Housing that is assisted with HOME funds must, at a minimum, meet the housing quality standards of 24 C.F.R. §882.109. In addition, housing that is newly constructed or substantially rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances. The AGENCY must have written standards for rehabilitation. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 C.F.R. part 39. Housing for homeowners hip that is to be rehabilitated after transfer of the the ownership interest must be free from any defects that pose a danger to health or safety before transfer of the ownership interest, and must meet the applicable property standards not later than two years after the transfer. 7. AFFIRMATIVE MARKETING The AGENCY must adopt affirmative marketing procedures and requirements for HOME assisted housing containing five or more housing units. Such steps consist of actions to provide information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market area to the available housing. Minimum program requirements and procedures are set forth at 24 C.F.R. §92.351(b). The AGENCY must assess annually the affirmative marketing program to determine its effectiveness and take any necessary corrective actions. t 8. PROJECT A. For purposes of this agreement "Project" means a site or an entire building, or two or more buildings, together with the site or sites upon which the the building or buildings are located, that are under common ownership, management, and financing, and are to be assisted with HOME funds, under a commitment by the owner. It includes all the activities associated with the site and building. If there is more than one site associated with a project, the sites must be within a four block area. B. Housing that accounts for less than one hundred percent of the dwelling units in a project qualifies as affordable housing if it meets the affordability criteria set established at 24 C.F.R. §92.252 or § 92.254. Each building in the project must contain housing that meets these standards. C. Housing in a project that is designed in part for uses other than residential use qualifies as affordable housing if it meets the criteria of 24 C.F.R. §92.252 or §92.254. A project that contains, in addition to dwelling units, laundry and community facilities for the exclusive use of the project residents and their guests does not constitute a project that is designed in part for uses other than residential. Page -12-