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EXHIBIT 2 <br />HOMELESS EMERGENCY AID PROGRAM <br />SUBCONTRACTOR AGREEMENT BETWEEN <br />THE CITY OF SANTA ANA AND <br />MERCY HOUSE LIVING CENTERS, INC. <br />THIS GRANT AGREEMENT ("HEAP Agreement'), is hereby made and entered into <br />this February 18, 2020, by and between the City of Santa Ana, a charter city and municipal <br />corporation of the State of California ("Contractor"), and Mercy House Living Centers, Inc., a <br />California nonprofit organization ("Subcontractor"). <br />RECITALS: <br />A. Pursuant to Chapter 5 (commencing with Section 50210) of Part 1 of Division 31 <br />of the Health and Safety Code, and all other relevant provisions established. under <br />SB850 (Chapter 48, Statutes of 2018), the State of California has established the <br />Homeless Emergency Aid Program ("HEAP"), HEAP is administered by the <br />California Homeless Coordinating and Financing Council in the Business, <br />Consumer Services and Housing Agency. HEAP provides one-time flexible <br />block grant funds to Administrative Entities to address their immediate <br />homelessness challenges. <br />B, Contractor is the recipient of HEAP funds from the State of California, In 2018, <br />Contractor entered into Agreement Number 18-HEAP-00007 with the State of <br />California receiving and recognizing $3,690,885.84 in HEAP grant funds to be <br />used by Contractor to address immediate homeless challenges ("State HEAP <br />Agreement'). A true and correct copy of the State HEAP Agreement is attached <br />hereto as Exhibit A and incorporated herein by this reference. <br />C. Subcontractor has been made aware of the State HEAP Agreement and agrees to <br />comply with all the conditions of the State HEAP Agreement and the applicable <br />State requirements governing the use of HEAP grant funds. <br />D. Contractor previously entered into an Agreement with Subcontractor to Operate <br />an Interim Erncrgency Homeless Shelter, Agreement No. A-2018-221, dated <br />September 18, 2018, by which Contractor committed a set amount of funds to <br />Subcontractor for the operation of The Link Interim. Emergency Homeless Shelter <br />("Program"), <br />E. Contractor now approves the provision of HEAP grant funds to Subcontractor in <br />an amount not to exceed $2,300,000,00, to be used in the operation of the <br />Program. This $2,300,000.00 in HEAP grant funds shall count toward the amount <br />of funds due from the Contractor to Subcontractor under Agreement No. A-2018- <br />221, as amended. <br />25C-6 <br />