25H - AGMT - PERMANENT HOUSING FOR PERSONS WITH HIV AIDS

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GRANT AGREEMENT FOR ACQUISITION AND REHABILITATION OF A SINGLE FAMILY HOUSE (HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS) (24 CFR Part 574) THE CITY OF SANTA ANA, a charter city and municipal corporation ("City"), and MERCY HOUSE LIVING CENTERS ("Project Sponsor"), a California non-profit public benefit corporation, in furtherance of the regulations issued by the U.S. Department of Housing and Urban Development set forth in 24 CFR Part 574 (the "HOPWA Regulations"), hereby agree as follows: A. City is responsible for administering the use of certain funds ("HOPWA Funds") made available by the United States Department of Housing and Urban Development ("HUD") under the Housing Opportunities for Persons With AIDS Program (the "HOPWA Program"). B. Project Sponsor intends to enter into this Agreement with the City of Santa Ana, for the rehabilitation of real property located at 9511 S. Mills End Road, Anaheim, California, and more particularly described in Exhibit A to this Agreement (the "Property"). C. Project Sponsor intends to acquire and improve the Property which is a single family house with four bedrooms (the "Project") as defined in 24 CFR 574.340. The Project will serve homeless individuals with a qualified disability of which two (2) bedrooms will be used to provide permanent housing with supportive services for persons with acquired immunodeficiency syndrome ("AIDS") and related diseases. D. City has determined that Project Sponsor and the Property are eligible to receive funds made available by HUD pursuant to the HOPWA Program for the purpose of the rehabilitating the single family home. E. The parties mutually desire to comply with all applicable HOPWA Regulations. NOW, THEREFORE, City agrees to make a grant of HOPWA Funds to Project Sponsor in the amount of NINETY THOUSAND DOLLARS ($90,000) (the "Grant"), subject to the following terms and conditions: 1. Use of Grant 124 CFR 574.300(b)(3)] The Grant shall be used exclusively for the payment of rehabilitation construction costs associated with the development of the Project (sometimes referred to herein as the "Rehab"). Grant funds shall be used as follows: a. Rehabilitation of Four Bedroom Single Family House. The HOPWA grant shall be used for the Rehab of a single family four bedroom house and for materials, supplies, labor and services that are an integral part of the Project including but not limited to architecture and engineering, consulting, building permit, planning and other governmental fees, title and escrow fees and construction costs. Funds shall be disbursed in the amounts approved by City. All EXHIBIT 1 25H-3