Exhibit 7.

13

THIS FORM IS A SAMPLE AGREEMENT AND MAY NOT BE APPLICABLE TO YOUR SPECIFIC SITUATION. IT IS DESIGNED AS A STARTING POINT FOR HOMEOWNER REHABILITATION AND NEW HOME CONSTRUCTION PROJECTS. YOU ARE ENCOURAGED TO SEEK ADVICE FROM YOUR LEGAL COUNSEL TO DETERMINE THE SUFFICIENCY OF THIS FORM FOR YOUR PURPOSE. CONSTRUCTION AGREEMENT THIS CONSTRUCTION AGREEMENT (Agreement) is entered into this _____ day of ________, 20__, by and between: _________________________________________________________________ (Owner) and ___________________________________________________________________ (Builder). WITNESSETH WHEREAS, Owner has received a commitment of funding from _______________________________ (Recipient) under the federal HOME Investment Partnerships Program (HOME Program) administered by Kentucky Housing Corporation (KHC) for the purpose of new construction/rehabilitation (choose one) of property located at ________________________________________________, Kentucky in keeping with the drawings and specifications or work write-up cumulatively called the Plans prepared by _________________ and provided by the Owner attached to and made a part of this Agreement; and WHEREAS, Builder desires to construct/rehabilitate (choose one) the improvements as described in the Plans. NOW, THEREFORE in consideration of the sum of money described below and for other good and valuable consideration, the parties agree as follows: 1. CONSIDERATION. Owner hereby agrees to pay the Builder the sum of

_______________________________________ Dollars ($___________) for the performance of this Agreement, subject to any additions and deductions and the provisions of this Agreement, in the following manner: A. New Construction: payment will be made in three draws: (i) when the project is under roof, (ii) upon completion of the installation of insulation and the taping of drywall and (iii) upon completion of construction.

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Exhibit 7.13

B. Rehabilitation: payment will be made in three equal draws during the term of construction with the final payment upon project completion. All payments from Recipient to Builder under this agreement shall be made after inspection of the work completed and approved by Owner and Recipient. 2. FAMILIARITY WITH SITE. The Builder has visited the property and is

familiar with the local conditions under which the work is to be performed. 3. LABOR, MATERIALS AND PERMITS. The Builder agrees to provide all of

the material and labor required for the timely performance of duties detailed in the Plans including equipment, tools, water, heat, utilities and services necessary for the proper completion of the work. Builder also agrees to obtain and pay for all building permits and other permits, licenses and inspections necessary for completion of the Plans. Unless otherwise specified, all materials shall be new and of good quality. In prosecution of the Plans, Builder agrees to employ a sufficient number of workers skilled in their trades to suitably perform the work. 4. WARRANTY OF WORKMANSHIP. All work will be of good quality, free All work not

from defects and faults, in accordance with the Plans which have been approved by Owner and Builder and free from all materialmens liens, mechanics liens and claims. conforming to this requirement will be considered defective. Builder agrees to re-execute any work which does not conform to the Plans, warrants the work performed, and agrees to remedy any defects resulting from faulty materials or workmanship which shall become evident during a period of one (1) year after completion of the work and final payment under this Agreement. The provisions of this section apply to work performed by subcontractors as well as work performed by direct employees of the Builder. Builder agrees to provide a one-year written warranty to Owner. Builder agrees to provide original manufacturers warranties to Owner for all applicable materials, fixtures and appliances. 5. activities. BUILDING SITE. The Builder will, at all times and at his/her expense, keep the

building site free from accumulation of waste, rubbish and debris associated with construction

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Exhibit 7.13

6.

COMMENCEMENT AND COMPLETION OF WORK. The Builder shall

commence construction within 14 days of issuance of a Notice to Proceed from the Owner. The Builder agrees that the various portions of the work shall be completed on or before the issuance of the Certificate of Occupancy/Substantial Completion (not to exceed 180 days). 7. CONSTRUCTION DELAYS. In the event the Builder is delayed in the

construction work by acts of God, fire, flood or any other unavoidable casualties; or by labor strikes, or by neglect of the Owner; the time for completion of the work shall be extended for the same period as the delay caused by any of the foregoing reasons. In the event the construction work is delayed due to the neglect of the Builder, the Builder agrees to pay the Owner the sum of $_______ per __________ (day/week) as liquidated damages until the time as the work is completed. 8. INSPECTION OF WORK. The Builder will permit and facilitate inspection of

the work by Owner and Recipient and its agents and public authorities at all times. 9. CHANGES IN THE WORK. All changes and deviations in the construction

work ordered by the Owner must be in writing and approved by Recipient, the contract sum being increased or decreased accordingly by the Builder. Any claims for increases in the cost of the work must be presented by the Builder to the Owner and Recipient in writing, and written approval of the Owner and Recipient must be obtained by the Builder before proceeding with the ordered change or revision. No change order will be approved until sufficient funds are made available to Owner by Recipient or by Owner directly to cover the costs of the change order. No change order will be approved unless its sole purpose is to necessitate conformance of the project with applicable codes. 10. INSURANCE. The Builder will purchase and maintain adequate workers

compensation insurance, builders risk insurance and liability insurance and will provide copies of the insurance policies to the Owner and the Recipient. To the fullest extent permitted by law, Builder will indemnify and hold Owner harmless against any claims, damages, loss and expenses, arising out of or resulting from the construction work or Builders acts or neglect.

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Exhibit 7.13

11.

OWNERS RIGHT TO TERMINATE AGREEMENT. Should the Builder

neglect to perform its duties under this Agreement properly, or fail to perform any provision of this Agreement, Owner, after seven (7) days written notice to the Builder and with the approval of the Recipient, may, without prejudice to any other remedy he/she may have, correct any deficiencies and may deduct the associated cost from the payment due to the Builder, or at Owners option, may terminate this Agreement and take possession of all materials and appliances and finish the work for code compliance as the Owner sees fit. If the unpaid balance payable under this Agreement exceeds the expense of finishing the work, the excess will be paid to the Builder, but if the expense exceeds the unpaid balance, the Builder will refund the difference to the Owner. 12. PAYMENT. Payments will be made as provided in this Agreement. The making

and acceptance of the final payment will constitute a waiver of all claims by Owner, other than those arising from (a) unsettled liens or from faulty work appearing within 12 months of the completion of construction as provided for under Section 4 of this Agreement; (b) claims by the Builder except any previously made and unsettled. Payments otherwise due may be withheld due to defective work which has not been remedied, liens filed, damage by the Builder to others which have not been settled, or failure to make payments properly to subcontractors or for material or labor. 13. RECORD RETENTION. For a period of not less than five (5) years after Due to use of federal funding, Kentucky Housing

delivery of the final payment to Builder, Builder will maintain all files and records pertaining to its performance under this Agreement. Corporation (KHC) or the Comptroller General of the United States or an authorized representative of either of one or both of them may inspect, audit and copy, at their expense, any of Builders records pertaining to Builders performance under this Agreement. 14. COMPLIANCE. Builder will comply with any and all applicable state, federal

and local laws, ordinances, regulations and codes.

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Exhibit 7.13

15.

SEPARATE CONTRACTS. Owner waives the right to perform work either

with his/her own work forces or to award contracts to perform other work in connection with the project described in this Agreement without consent of Builder and Recipient. 16. MISCELLANEOUS. (a) (b) There will be no assignment of the rights and obligations of the Builder No variance or modification of this Agreement will be valid and

under this Agreement without the prior written approval of Owner and Recipient. enforceable, except by supplemental agreement in writing, executed and approved in the same manner as this Agreement. (c) (d) This Agreement is made under and is governed by the laws of the The invalidity or unenforceability of a particular provision of this Commonwealth of Kentucky, unless otherwise superceded by federal law. Agreement will not affect the other provisions of this Agreement, and this Agreement will be construed in all respects as if any invalid or unenforceable provisions were omitted. (e) All claims and disputes between Owner and Builder will be decided by arbitration held at the offices of Recipient, or at another place as the arbitrators may mutually determine, in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then in effect. (f) Owner has authorized Recipient to hold funding and to make the payments provided for in this Agreement directly to the Builder on behalf of the Owner upon receipt of written approval of the Owner. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. ____________________________________ ______________________________ Owner ____________________________________ Owner

Builder Company Name By: __________________________ Title: _________________________

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