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Agreement with Habitat for Humanity for Residential Rehabilitation Program <br />July 6, 2021 <br />Page 2 <br />services for Fiscal Year 2021, staff is recommending approval of an agreement with <br />Habitat for Humanity of Orange County (Habitat for Humanity) to administer the <br />Residential Rehabilitation Program from July 6, 2021 through June 30, 2022 (Exhibit <br />1). Habitat for Humanity is the only known nonprofit organization currently administering <br />a nearly identical program in other cities in Orange County; their team is currently <br />administering similar residential rehabilitation programs in the Cities of Anaheim and <br />Garden Grove. Habitat for Humanity has extensive experience implementing federally <br />funded residential rehabilitation programs. Their experience is essential to ensure the city <br />complies with the Department of Housing and Urban Development's (HUD) program <br />requirements for the Community Development Block Grant Program (CDBG) funds used <br />for the program. <br />The purpose of the Residential Rehabilitation Program to be administered by Habitat for <br />Humanity is to rehabilitate, repair, and improve housing in the City. The Program will <br />provide grants of up to $25,000 for eligible home repairs for low- and moderate -income <br />homeowners whose income fall at or below 80% of the Area Median Income (AMI) as <br />defined by HUD. Eligible activities include addressing any municipal code violations, the <br />repair, replacement, and/or installation of major systems including plumbing, heating, <br />electrical, windows, roof, paint, and handicap accessibility. <br />On May 4, 2021, the City Council approved the Fiscal Year 2021- 2022 Annual Action <br />Plan that included an allocation of 5480,000 in CDBG funds for the Residential <br />Rehabilitation Program. On July 6, 2021, City Council staff recommended City Council to <br />approve an appropriation adjustment to recognise an additional $65,532 for the <br />Residential Rehabilitation Program. Combined, City Council will have already allocated <br />$545,532 for the Residential Rehabilitation Program. Approval of this agreement will allow <br />the Cily to resume the Residential RehabililaLion Program, while assigned staff continue <br />to respond to the impacts of the COVID-19 pandemic on renters throughout the City. <br />FISCAL IMPACT <br />Upon City Council's approval of the appropriation adjustment (separate staff report), <br />funds will be available in the grant account below for expenditure in FY 21-22: <br />Fiscal <br />Accounting <br />Accounting Unit, <br />Year <br />Unit Account <br />Fund Description <br />Account <br />Amount <br />Description <br />Community <br />CDBG Housing, <br />FY 21-22 <br />13518782- <br />Development Block <br />Payment to <br />$545,532 <br />69135 <br />Grant <br />Subagent <br />EXHIBIT(S) <br />1. CDBG Subrecipient Agreement with Habitat for Humanity <br />City Council 14 — 2 7/6/2021 <br />