ORANGE COUNTY, MENTAL HEALTH ASSOCIATION OF

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I. SUBRECIPIENTS'S OBLIGATIONS A. SUBRECIPIENT agrees to use all federal funds provided by CITY to SUBRECIPIENT pursuant to this Agreement, and in accordance with "Exhibit A," attached hereto and by this reference incorporated herein, to operate said program. SUBRECIPIENT's failure to perform as required may, in addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is otherwise obligated to pay to SUBRECIPIENT under Section II hereof. B. SUBRECIPIENT agrees to match all federal funds provided by CITY to SUBRECIPIENT with an equal amount of funds from sources other than these or other ESG funds. C. SUBRECIPIENT agrees to use said funds within twenty-four (24) months of the date of the grant award by HUD to pay for necessary and reasonable costs allowable under the federal law and regulations to operate said program only. Said amounts shall include and will be limited to, essential services, homeless preven- tion, and/or operations costs. Allowable program costs are detailed in the Budget, as set forth in "Exhibit A," attached hereto and by this reference incorporated herein. D. SUBRECIPIENT agrees that the homeless shelter and services under said program shall be made available for the entire period during which said funds are provided. E. SUBRECIPIENT agrees to obtain and maintain all licenses, registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing SUBRECIPIENT's operations hereunder. F. SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activ- ity(ies). Should SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compli- ance with local, state or federal rules and regulations following written notification of said violation(s) from the CITY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending violation(s). Failure to notify the CITY of pending violation(s), or to remedy such known violation(s), shall result in termi- nation of grant funding hereunder. SUBRECIPIENT must make all corrections re- quired to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s), failure to gain compliance within such time shall result in termination of grant funding hereunder. 2