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ATTACHMENT NO. 7 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: The City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 FREE RECORDING REQUESTED (Gov't Code Section 6103) AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY THIS AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (the "Agreement Containing Covenants") is entered into this _ day of , 2003, by and between MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC. ("Project Sponsor"), a California non-profit public benefit corporation, and THE CITY OF SANTA ANA, a municipal corporation ("City"). WHEREAS, 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"); and WHEREAS, for the purpose of effectuating the HOPWA Program, the City and Project Sponsor have entered into that certain AIDS Community Residence Grant Agreement, dated —, (the "Grant Agreement"), pursuant to which City made a grant to Project Sponsor for the new construction of an AIDS Community Residence located in the City of Santa Ana, California, and more particularly described in Exhibit A attached hereto and incorporation hereby by this reference (the "Property"); and WHEREAS, with the funds made available to Project Sponsor by City pursuant to the Grant Agreement, Project Sponsor will develop the Property; and WHEREAS, the Grant Agreement contains certain provisions relating to the use of the Property with respect to which the parties have agreed to execute and record this Agreement Containing Covenants. NOW, THEREFORE, CITY AND PROJECT SPONSOR COVENANT AND AGREE AS FOLLOWS: Nip\staff\sk\agreemant\ Page 20 of 31 Garfield HOPWA Agreement 11-07-01