Written agreements (interlocal, sub recipient, owner, contractor, sponsor, developer, etc.) serve as the legally binding contract between two parties. The terms, conditions, affordability period, roles, responsibilities and enforcement mechanism and conditions for repayment must be included in the agreement for it to be enforceable. In the event of non-compliance, the agreement serves to protect the local government’s investment of funds. Failure to include these conditions could make the local government responsible to pay back funds in the event of non-compliance. Learn what clauses should be included in agreements to protect the local governments financial interest.