SANTA ANA CITY ATTORNEY'S OFFICE - CDBG CODE ENFORCEMENT - 2007

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B. Schedule for Completion of the Work. Recipient Agency shall provide its service under the MOU fora 12-month period commencing July 1, 2007, and ending June 30, 2008. C. Standard of Care. As a material inducement to City to enter into this MOU, Recipient Agency hereby represents and warrants that it has the experience necessary to undertake the services to be provided as set forth in Exhibit A. D. Compliance with Laws. All services rendered hereunder by Recipient Agency shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, state or local governmental agency having jurisdiction at the time service is rendered. This MOU is subject to and incorporates the terms of the Housing and Community Development Act of 1974, as amended; 24 Code of Federal Regulations ("CFR") Chapter V, Part 570; City's CDBG Program Guidelines; and all amendments or successor regulations or guidelines thereto ("CDBG Regulations"). 2. Term of MOU. Recipient Agency shall provide its services under this MOU fora 12 month period commencing July 1, 2007, and ending June 30, 2008. 3. Budget. Recipient Agency agrees to complete said services on or before June 30, 2008and to use said funds to pay for necessary and reasonable costs allowable under the federal law and regulations to operate said program. Other allowable program costs are detailed in the Budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. Recipient Agency shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this Agreement. No budgetary changes shall occur without City's prior approval. Recipient Agency hereby certifies and agrees that it will not use funds provided through this Agreement to pay for entertainment, meals or gifts. 4. Compensation. Upon compliance with specified performance requirements, City shall reimburse Recipient Agency an amount not to exceed $100,000, which shall constitute full and complete reimbursement for the implementation of this MOU. The parties understand and agree that such reimbursement, if any, shall be conditioned upon receipt of such funds by City from HUD and shall not be a charge on any other funds of City. The CDBG Funds shall be disbursed by City to Recipient Agency on a quarterly basis (October, January, April and July) subject to and upon receipt and approval of a complete quarterly activity report from Recipient Agency, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. Recipient Agency shall be obligated to perform such duties as would normally extend beyond the term, including but not limited to obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. 2