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INSUItANCE ON HU. <br />WORK l�AY F*0GL.LJ <br />&JKII. INSQK`wf <br />4� <br />.. ..... . . ... . <br />GRANT AGREEMENT FOR CONSTRUCTION OF CONGREGATE LIVING FACILITY AND <br />THE REFURBISHING OF ONE UNIT IN A FIVE UNIT APARTMENT COMPLEX <br />(HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS) <br />(24 CFR Part 574) <br />THE CITY OF SANTA ANA, CALIFORNIA ("City") and MERCY HOUSE <br />TRANSITIONAL LIVING CENTERS, INC. ("Project Sponsor"), a <br />California rion-profit public benefit corporation, in furtherance <br />of the regulations issued by the U.S. Department of Housing and <br />Urban Development set forth in 24 CFR Part 574 (the "HOPWA <br />Regulations"), hereby agree as follows: <br />WHEREAS, <br />City is responsible for administering the use of certain <br />funds ("HOPWA Funds") made available by the United States <br />Department of Housing and Urban Development ("HUD") under the <br />Housing Opportunities for Persons With AIDS Program (the "HOPWA <br />Program"); and <br />WHEREAS, Project Sponsor intends to enter into a Disposition and <br />Development Agreement with the Community Redevelopment Agency of <br />the City of Santa Ana, for the real property located at 814-818 N. <br />Garfield Street, Santa Ana, California, and more particularly <br />described in Attachment No. 1 to this Agreement (the "Property") <br />and <br />WHEREAS, <br />Project Sponsor <br />intends <br />to improve the properties through <br />a four -person <br />congregate <br />living <br />facility and the refurbishment of <br />the five <br />unit apartment <br />complex <br />as defined in 24 CFR 574.340 and <br />use the <br />Property to provide housing for persons with acquired <br />immunodeficiency syndrome <br />("AIDS") and related diseases; and <br />WHEREAS, City has determined that Project Sponsor and the Property <br />are eligible to receive funds made available by HUD pursuant to <br />the HOPWA Program for the purpose of constructing a four -person <br />congregate living facility and the refurbishment of the five unit <br />apartment complex; and <br />WHEREAS, the par -Lies mutually desire to comply with all applicable <br />HOPWA Regulations. <br />NOW, THEREFORE, City agrees to make a grant of HOPWA Funds to <br />Project Sponsor in the amount of $ 500,000 (the "Grant"), subject <br />to the following terms and conditions: <br />1. Use of Grant. 24 CFR 574.300(b)(3)-. <br />The Grant shall be <br />used exclusively for <br />the payment <br />of a <br />portion <br />of the construction <br />cost associated with <br />the development <br />of the <br />Community ResJdence <br />(sometimes referred <br />to herein as <br />the <br />"Work") <br />and for the payment <br />of costs incurred in <br />connection <br />with approved <br />relocation and predevelopment expenses. <br />Grant funds <br />shall <br />be used <br />as follows: <br />Nip\staff\sk\agreement\ Page 1 of 31 <br />Garfield HOPWA Agreement <br />11-07-01 <br />