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INSURANCE ON FILE .WORK MAY PROCEED %ITIL INSURANCE EXPIRES RK OF COUNCIL—� A-2021-107-09 `DATE: AGREEMENT BETWEEN THE CITY OF SANTA ANA AND r—� THE SALVATION ARMY FOR USE OF THE SECOND ALLOCATION OF EMERGENCY RENTAL ASSISTANCE PROGRAM (ERA2) FUNDS This Agreement is hereby made and entered into this 1" day of August, 2021, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("CITY"), and The Salvation Army, a California nonprofit corporation ("SUBRECIPIENT" or "CONTRACTOR"). RECITALS: A. On March 11, 2021, the federal American Rescue Plan Act of 2021, Pub. L. No. 117-2 was signed into law and, pursuant to Title III, Subtitle B, Section 3201, included $21.55 billion allocated to the United States Treasury for the Emergency Rental Assistance Program ("ERA2") to assist households that are unable to pay rent or utilities due to the COVID-19 pandemic. The funds were provided directly to States, U.S. Territories, local governments, and Indian tribes ("Grantees"). Grantees must use the ERA2 funds to provide assistance to eligible households through existing or newly created rental assistance programs. Grantees may use the ERA2 funds to make subawards to other entities, including non-profit organizations, to administer an ERA2 on behalf of the Grantees. Grantees may also enter into contracts using ERA2 payments for goods or services to implement an ERA2. Not less than 85 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Remaining funds are available for administrative costs. B. As an eligible grantee with a population greater than 200,000 and an existing rental assistance program, the CITY applied for a direct allocation of ERA2 funds from the Department of Treasury and on May 10, 2021, the CITY's application was approved for a direct allocation of $7,817,891.20 and a High -Need allocation of $6,208,702.70 for a total of $14,026,593.90 ("CITY Allocation"). As part of the CITY Allocation, the CITY executed a U.S. Department of the Treasury Emergency Rental Assistance Agreement attached hereto as Exhibit H and incorporated herein by reference. C. On July 6, 2021, the second direct allocation of ERA2 funds ("ERA2 Funds") in the amount of $14,026,593.90 was approved by the Santa Ana City Council. $11,922,604.82 of these ERA2 Funds are to be allocated to the CITY's CARES for Tenants Program. The remaining $2,103,989.09 (15% of the total grant) of the CITY Allocation of ERA2 Funds will be used for administration of the Program by the CITY and shared proportionally with the SUBRECIPIENT and other contractors. D. SUBRECIPIENT has been selected by the CITY to receive ERA2 Funds in order to administer the CITY's CARES for Tenants Program, in accordance with the Scope of Work attached hereto as Exhibit A and incorporated herein by reference ("said program"). SUBRECIPIENT represents that it is qualified and willing to operate said program and certifies that the administration of said program carried out with funds provided under this Agreement will meet the ERA2 objectives to respond to this historic COVID-19 public health