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HomeMy WebLinkAboutAGENDA PACKET_2021-11-02 Community Development Agency santa-ana.org/cd Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Quarterly Report for Housing Division Projects and Activities AGENDA TITLE: Quarterly Report for Housing Division Projects and Activities for the period of July 2021 – September 2021 RECOMMENDED ACTION Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of July 2021 – September 2021. DISCUSSION This report for the quarter ending on September 30, 2021 provides statistics for all of the affordable housing projects and activities for the Housing Division. The report is divided into four sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable Housing Funds and Commitments, and Development Projects. Loan Activity Applications The Housing Division offers several different programs including down payment assistance for first-time homebuyers and rehabilitation grants for mobile homes and single-family homes. Inquiries are received from the public and applications are mailed out, received and approved for these programs on a continual basis. Table 1 shows the number of inquiries, applications sent out, received and approved by type for the quarter and for the total fiscal year: Table 1: Applications Sent Out, Received & Approved Applications Applications Applications Inquiries Sent OutReceivedApproved Program Total Total Total Total Q1Q1Q1Q1 FYFYFYFY Home Repair Grant 262620 26262000 Program Homeownership / DPAP161616162222 Loan Subordinations11111111 Quarterly Report for Housing Division Projects and Activities November 2, 2021 Page 2 The number of applications received is typically lower than the number of applications sent out in any given period due to the stringent program guidelines for eligibility regulated by the federal government, which makes it difficult for most applicants to qualify. The City of Santa Ana’s Home Repair Program is designed to increase, improve, and preserve affordable housing through the use of federal Community Development Block Grant (CDBG) funds. The program is administered by Habitat for Humanity of Orange County on behalf of the City. The program provides grants of up to $25,000 for eligible home repairs to include eligible roof replacement to low- and moderate-income homeowners at or below 80% of the Area Median Income (AMI) as defined by the Department of Housing and Urban Development (HUD). Eligible activities include the repair, replacement, and/or installation of major systems including plumbing, heating, electrical, windows, roof, paint, and handicap accessibility. Down Payment Assistance Loan Program (DPAP) Progress For the Down Payment Assistance Loan Program, staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by the U.S. Department of Housing and Urban Development (HUD). During this quarter, staff conducted one down payment assistance virtual workshop via Zoom with 12 attendees. One down payment assistance loan closed escrow. One Inclusionary Housing Buyer was approved and closed escrow. Loan Portfolio Management & Monitoring The Housing Division is responsible for managing the residential loan portfolio, which includes all of the loans entered into by the City and Housing Authority acting as the Housing Successor Agency. As of the end of the first quarter, the principal balance was $138,539,857.67. This is composed of 368 loans, of which 344 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $408,498.02 in payments of principal and interest during the first quarter. The amount of residual receipts payments changes every quarter. Table 2: Portfolio Revenue Funding Source HOMECDBGRedevelopmentNSPCalHOME Loan Payoffs$0$0$125,200$13,785.58$5,000 Residual Receipts $59,275.31$0$96,633.70$68,830.02$0 Payments Amortized Loan $2,905.55$6,478.93$19,388.93$0$11,000 Payments Total for Q1$62,180.86$6,478.93$241,222.63$82,615.60$16,000 Monitoring As part of the requirements for these funds, staff must monitor the owner-occupancy of single-family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 36 owner- Quarterly Report for Housing Division Projects and Activities November 2, 2021 Page 3 occupancy recertification letters were mailed and 32 were returned and processed. This number includes letters sent from previous months. On-site compliance monitoring of the tenant files was not conducted this quarter due to COVID-19. HUD has temporarily waived the requirement for ongoing periodic inspections of HOME-assisted rental housing through September 30, 2021. Staff is in the process of hiring for a Residential Construction Specialist to conduct these ongoing periodic inspections. Available Funds and Land Assets for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state and federal funds to promote and facilitate the development of affordable housing as well as land assets held by the Housing Authority. Exhibit 1 provides a summary of the funds available as of September 30, 2021. Exhibit 2 provides a summary of available land assets. Housing Opportunity Ordinance On-Site Development: Since 2011, a total of 33 units have been developed on-site as a result of the Ordinance, including 23 ownership units for-sale and 10 rental units: Units Built On-Site OwnershipRentalTotal 231033 In-Lieu Fees Generated: All in-lieu fees, penalties and other monies collected pursuant to the Housing Opportunity Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since inception, the Inclusionary Housing Fund has generated $21,510,127 to be used for the development of housing affordable to low- and moderate-income households, with a reasonable amount spent on administrative or related expenses associated with the administration of the Housing Opportunity Ordinance. In-lieu fees generated have been used to develop new affordable housing opportunities, provide emergency shelter, and create homeownership opportunities. Below is a summary of how in-lieu fees have been used by the City: Inclusionary Housing Project# of UnitsAddress Funds SPENT Santa Ana Arts Collective$4,775,000571666 N Main Street Tiny Tim Plaza$1,300,000502239 W 5th Street The Link Interim Emergency $4,140,295N/A2320 S Red Hill Avenue Shelter TOTAL$10,215,295 107 Quarterly Report for Housing Division Projects and Activities November 2, 2021 Page 4 Inclusionary Housing Project# of UnitsAddress Funds COMMITTED Habitat for Humanity “Lacy & 416 Vance Street & 826 $565,2712 Vance”N. Lacy Street 2530 and 2534 Westview House$1,514,11384 Westminster Avenue WISE Place Steps to Independence Public Service $90,000N/AN/A Program Down Payment Assistance$210,000N/AN/A TOTAL$2,379,384 86 Affordable Housing Development Projects There are two affordable housing projects under construction, and four affordable housing projects in pre-development. Below is a brief summary and status-update for each project. Exhibit 3 provides a development timeline for each project. Projects under Construction Legacy Square (609 N Spurgeon Street) DeveloperNational Community Renaissance with Mercy House as the service provider New construction of a 100% affordable multifamily apartment complex consisting of 92 units of rental housing and one (1) manager’s unit. All units Description will be affordable to households earning less than 60% AMI of which 33 units will be set-aside for permanent supportive housing. Authority FundsEight Project-Based Vouchers (PBVs) Construction is fully underway, including the completion of sewer and water Updatein the street. The Groundbreaking Ceremony was celebrated on July 8, 2021. The estimated completion date is February 2023. North Harbor Village (1108 N Harbor Boulevard) DeveloperJamboree Housing Corporation Acquisition and rehabilitation of a former motel yielding 89 units of Description permanent supportive housing. City / Authority CDBG ($1,687,047); Eight-nine PBVs consisting of 34 HUD-VASH PBVs Fundsand 55 non HUD-VASH PBVs. Construction is currently underway including the completion of the demolition Update of the units. The estimated completion date is October 2022. Projects in Pre-Development Crossroads at Washington (1126 and 1146 E Washington Avenue) Related Companies of California with A Community of Friends (ACOF) as Developer co-developer and lead service provider Quarterly Report for Housing Division Projects and Activities November 2, 2021 Page 5 New construction of a 100% affordable multifamily apartment complex consisting of 85 units of rental housing and one manager’s unit. All units will Description be affordable to households earning less than 30% AMI of which 43 units will be set aside for permanent supportive housing. HOME Investment Partnerships Program ($3,007,489), Neighborhood City / Authority Stabilization Program ($1,297,693), sixty-five-year ground lease agreement Fundsfor 1126 and 1146 E Washington Avenue (Appraised Value as of September 22, 2019: $4,108,136) Seven (7) Project-Based Vouchers (PBV’s). The Developer was successfully awarded Orange County Housing Finance Trust funds in May 2021. The Developer continues to work with the City, County, and the California Department of Toxic Substances Control (DTSC) on supplemental environmental investigations. The City, County, Update and DTSC entered into a Standard Voluntary Agreement for further agency oversight. DTSC is preparing the Cleanup Plan for the project. Once the Cleanup Plan is made available, environmental cleanup can begin. FX Residences (801, 809, 809 ½ East Santa Ana Boulevard) DeveloperHomeAid Orange County, Inc. with Mercy House as the service provider New construction of an affordable multifamily apartment complex consisting Description of 16 units of permanent supportive housing, and one (1) manager’s unit. Housing Successor Agency ($1,069,947), three (3) PBVs, 99-year ground City / Authority lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25, Funds 2018: $788,000) HomeAid Orange County applied for $300,000 from Federal Home Loan Bank of San Francisco through their Affordable Housing Program (AHP) Loan Program at the beginning of March but the project was not awarded Updatethe AHP funds. Following this project setback, HomeAid Orange County is requesting additional financial support from the City of Santa Ana to close the financial gap of the project. HomeAid will be submitting the first set of Building permit drawings in early/mid October. Habitat for Humanity (416 Vance Street & 826 N Lacy Street) DeveloperHabitat for Humanity of Orange County New construction of two single-family detached homes for homeownership Description serving households up to 120% AMI. Inclusionary Housing ($565,271) and a 99-year ground lease agreement for City / Authority 416 Vance Street and 826 N. Lacy Street (Appraised Value as of Oct 25, Funds 2018: $578,000) On April 6, 2021, City Council approved a First Amendment to the Conditional Grant Agreement with Habitat for Humanity of Orange County Updatefor an additional $333,777 in Inclusionary Housing Funds for a total Inclusionary Grant amount of $565,271 for the development of the project. The Developer’s Site Plan Review application was submitted in April 2021. Quarterly Report for Housing Division Projects and Activities November 2, 2021 Page 6 The Developer is working through Site Plan Review prior to issuance of their building permit to start construction. Westview House (2530 Westminster Avenue) DeveloperCommunity Development Partners New construction of an affordable multifamily apartment development consisting of 85 units of both large family and PSH with one manager’s unit. Description Twenty-six of the units will be funded by PBV and MHSA funds through the NPLH program. Inclusionary Housing ($1,514,113), HOME Investment Partnerships City / Authority Program ($2,003,705), Rental Rehabilitation Program ($386,523), and Funds twenty-six (26) Mainstream Program PBVs The developer will applies for 4% tax credits and bonds on September 9, Update2021. The formal CTCAC hearing is on December 8th. The developer is expecting to close on their financing before June 2022. Regional Housing Needs Assessment Housing projects that have been approved, permitted, or received a certificate of occupancy after June 30, 2021 may be counted towards the 6th Regional Housing Needs Assessment (RHNA) Cycle (October 2021 to October 2029). Below is a summary of our progress to meet our sixth RHNA Cycle requirements for affordable housing: Very Low IncomeLow IncomeModerate Income RHNA Allocation 606362545 Pipeline Projects 414*5292 Remaining RHNA 192-167543 * 281 units are for extremely low income households (0 – 30% AMI) FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Available Funds for Affordable Housing Development Projects 2. Available Land Assets for Affordable Housing Development 3. Project Timelines Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 EXHIBIT 2 AVAILABLE LAND ASSETS FOR AFFORDABLE HOUSING DEVELOPMENT (1) 302 E. Twenty-Second Street a. APN: 003-122-25 b. Lot Size: 27,817sf c. Current Zoning: R1 Single-Family Residence, which allows one house per lot. d. Parcel was acquired 10/30/2002 using Low and Moderate Income Housing Asset Fund - 20% Set Aside. e. Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway widening project. The site was vacant and undeveloped at the time it was acquired. f. General Plan: Low Density Residential, which allows single-family residences and ancillary uses. g. Maximum du/ac: Seven units per acre. h. Site Condition / Environmental Conditions: Property is irregular in shape, is below the minimum lot size for a residential lot, and will most likely require the approval of several variances from the zoning code in order to facilitate a residential unit. EXHIBIT 3 Current Affordable Housing Development Project Timelines Projects Under Construction Legacy Square – 609 North Spurgeon Street Aug 18 Santa Ana CDA Funding Application Dec 18Applied for NPLH and SNHP Funds Jan 19Santa Ana funding award Feb 19 Planning entitlements approved Feb 19 Applied for Round 4 AHSC Funding May 19 Award of SNHP funds Jul 19 Applied for Round 1 MHP Nov 19 Applied for State 4% tax credits Jan 20 Construction drawings (8-12 weeks) Feb 20 Apply for Round 5 AHSC funding May 20 Apply for 4% tax credits May 20 Plan check (12-16 weeks) Jun 20 Award of AHSC funds July 20 Award of 4% Tax Credits July 20 Award of Tax-Exempt Bonds May 20 Plan Check (12-16 weeks) Jan 21 Building permit issuance Feb 21 Construction closing/syndication Feb 21 Begin construction (24 months) Jul 21 Groundbreaking Ceremony Feb 23 Construction complete June 23 100% fully leased (4 months) North Harbor Village –1108 N. Harbor Mar 19 Start of design development Mar 19 Applied to FHLBSF for AHP Financing ($890,000) Mar 19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and $1,687,047) Mar 19 Start environmental approval process with City of Santa Ana (CEQA/NEPA) Mar 19 Applied for Home Depot Grant ($500,000) Jun 19 CEQA / NEPA Approval – City of Santa Ana Jun 19 AHP Award Date ($890,000) st Aug 20 Applied to HCD for MHP 1 Round Funding ($13,316,412) st Dec 19Notified project did not receive 1Round MHP funding Feb 20 Applied to HCD for VHHP Funding ($10,000,000) Mar 20 Applied to HCD for MHP 2nd round funding Mar 20Applied to OCHFT Financing ($2,292,920) Page 1 of 4 EXHIBIT 3 st May 20Notified project did not receive 2Round MHP funding May 20 Received OCHFT funding award ($2,292,920) Jun 20 Received VHHP funding award ($10,000,000) Jun 20Submitted Plans for Ministerial Design Approval Jun 20 Applied for CDLAC tax exempt bond allocation ($24,000,000) Jul 20 Applied for TCAC 4% competitive state and federal tax credits ($9,896,911) Sept 20 CDLAC Allocation Nov 20 Ministerial Design Approval (upon completion of community meeting on 11/4/2020) Oct 20 TCAC Allocation Oct 20 Start construction documents for rehab Nov 20 Submit first plan check Dec 20 Awarded Home Depot Grant Jan 21 Receipt of first plan check comments Jan 21 Submit second plan check Feb 21 Receipt of second plan check comments Feb 21 Submit third plan check Mar 21 Received permit ready Apr 21 Construction loan closing Apr 21 Pull Permits and start construction Oct 22 Construction complete Oct 22 Start of lease up Apr 23 Full occupancy Projects in Pre-Development Crossroads at Washington –1126 and 1146 E. Washington Avenue Aug 19 Submitted PSH application to County Oct 19 Submitted for Planning entitlements Oct 19Community meeting Nov 19 Approval of Joint Powers Agreement, Option to Ground Lease, Voucher Resolution and Cooperation Agreement, and Regional Housing Needs Assessment (RHNA) Agreement and Density Bonus Dec 19 NEPA EA City Approval – City of Santa Ana submits NEPA EA to HUD Feb 20 PSH Funds and Voucher approval from County Board of Supervisors Feb 20 Planning entitlements approved st Mar 20 TCAC 9% Application – 1 Round 2020 nd Jul 20 TCAC FCAA/9% Application – 2 Round 2020 nd Oct 20TCAC FCAA/9% Award –2Round 2020 Mar 21 Submitted OCHFT PSH NOFA Application May 21 OCHFT PSH NOFAAward Jan22Submit for 1st plan check Jun 22 City issues permit ready letter Jun 22 Start construction Aug 23 Construction complete Page 2 of 4 EXHIBIT 3 Dec 23 Full occupancy FX Residences – 801, 809, 809 ½ E. Santa Ana Boulevard Jan 19 Council approval for land lease and project funding Jan 19 Submittal of application for NPLH funding Feb 19 Confirm with City staff that project site can yield additional units under existing zoning Mar 19 Revise conceptual drawings for additional 5 units (17 total units, up from the original 12 units) Mar 19 SNHP funding application submitted to County Apr 19 City staff to review revised conceptual design Apr 19 Begin development agreement May 19 Board of Supervisors meeting for SNHP funding Jul 19 Execute Development Agreement Jul 19 Formal awards letters for NPLH funding to be issued Aug 19 Initial planning submittal Sept 19 Sunshine Ordinance Meeting Mar 21 Planning Commission Meeting (ministerial approval of density bonus) Oct 21 Submit for first plan check Nov 21 City Council Meeting (ministerial approval of density bonus) Mar 22 Building Permit Apr 22 Begin construction (grading, weather permitting) Apr 23 Completion of construction Habitat for Humanity –416 Vance Street & 826 N. Lacy Street May 20 DDA signed June 20 Prepare grading plans Oct20 Prepare architectural plans Oct 20 Submit Neighborhood Review Application Feb 21 Final Approval from Historic French Park Committee Apr 21 Submit Site Review Application Nov 21 Submit grading/improvements Nov 21 Submit architectural plans Jan 22 Grading permit issued Jan 22 Commence Grading Feb 22 Building Permits issued Mar 22Begin construction Feb 23 Anticipated construction completion Feb 23 Certificate of Occupancy / Closings Westview House – 2530 Westminster Avenue Oct 19 City of Santa Ana RFP submittal May 20 OC 2020 Supportive Housing NOFA Submittal Dec 20 OC 2020 Supportive Housing NOFA award Page 3 of 4 EXHIBIT 3 Jan 21 City of Santa Ana PBV Award Jan 21 Construction/permanent debt commitments Jan 21 Receive Entitlements Jan 21 No Place Like Home application Mar 21 OCHFT application May 21 OCHFT Award Jun 21 No Place Like Home commitment Sep 21 CDLAC/TCAC 4% application Dec 21 CDLAC/TCAC 4% award Jun 22 Close on construction financing Jun 22 Construction permits issued Jun 22 Construction start Dec 23 Construction complete Mar 24 All units Leased Aug 24 Perm Debt Conversion Page 4 of 4 Community Development Agency santa-ana.org/cd Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Nonprofit CDBG Application for Fiscal Years 2022-2024 AGENDA TITLE: Nonprofit Community Development Block Grant Application Process for Fiscal Years 2022-2024 RECOMMENDED ACTION Approve the nonprofit Community Development Block Grant application and scoring criteria for Fiscal Years 2022-2024. COMMUNITY DEVELOPMENT COMMISSION ACTION At its regular meeting on October 27, 2021, the Community Development Commission recommended that the City Council approve the nonprofit Community Development Block Grant application and scoring criteria for Fiscal Years 2022 – 2024. DISCUSSION As an entitlement jurisdiction, the City receives an annual allocation of Community Development Block Grant (CDBG) funds from the United States Department of Housing and Urban Development (HUD) to improve low- to moderate-income neighborhoods, eliminate blight, and encourage economic development. These funds are used for a diverse range of programs as outlined in the City’s Consolidated Plan, including affordable housing, street improvements, park and public facilities improvements, small business start-up grants, code enforcement, and public services. The City may use a maximum of 15 percent of each annual allocation to fund public service programs, such as those concerned with employment, crime prevention, childcare, health, drug abuse, education, fair housing counseling, energy conservation, welfare, homebuyer down payment assistance, and recreational needs. The City of Santa Ana’s Community Development Agency allocates these CDBG grant funds to nonprofit organizations through a transparent, competitive process for projects and programs that most effectively serve our residents. The City’s CDBG allocation for Fiscal Year (FY) 2022-2023 and 2023-2024 is estimated to be $5,640,635 each year, assuming the City receives the same allocation as FY 2021- Nonprofit CDBG Application for Fiscal Years 2022 – 2024 November 2, 2021 Page 2 2023. The City may use a maximum of fifteen percent of this allocation (or $846,095) each year for public service programs provided by nonprofit organizations. On November 3, 2021, staff will seek to release the application for nonprofits to apply for the estimated $1,692,190 in nonprofit CDBG funding for a two-year period for Fiscal Years 2022-2024. This amount includes $846,095 in CDBG funding for FY 2022-2023 and $846,095 for FY 2023-2024. This amount is subject to adjustment based upon the actual CDBG allocation from HUD following approval of the federal budget. Funding will be available to experienced nonprofit organizations for the provision of public services that include a priority on crime prevention, crisis-intervention, and/or suppression efforts for children, youth and/or families. Priority funding will be awarded to programs that encompass any of the following: Develop crime prevention and suppression programs that assist in the development of suitable living environments by targeting specific Santa Ana neighborhoods that have a long-standing history of crime involving children, youth and families. For example, crime prevention education programs or community- oriented policing programs such as establishing a neighborhood watch program. Develop programs that target victims of domestic violence, dating violence, sexual assault or stalking. Services that will benefit children (generally under age 13), including parenting skills classes. Health services – services addressing the physical health needs of residents. Mental health services – services addressing the mental health needs of residents. Youth services – services during and after school programs that target teens (ages 13 to 19) that include recreational programs with a counseling/mentorship program that addresses healthy lifestyles, substance abuse prevention, crime prevention, dating violence and anti-bullying. Programs with current Memorandum of Understandings with Santa Ana Unified School District will have priority over other youth service programs. Legal services that provide legal aid to low- and moderate-income residents. Senior services for the elderly 62+ years. Proposed programs are required to meet the National Objective of an activity that provides a benefit to low- and moderate-income persons. Nonprofit organizations will have the option of submitting a joint application with other nonprofit organizations to encourage collaboration and nonduplication of public services in our community. Organizations will be able to apply individually for a minimum of $60,000 or a maximum of $150,000 per program for the two-year period. Organizations that submit a joint application may request a maximum of $300,000. Applications will be made available online through the City’s Community Development Agency webpage and the PlanetBids grant management system. Staff will be available to assist nonprofits with technical support throughout the application process. Nonprofit CDBG Application for Fiscal Years 2022 – 2024 November 2, 2021 Page 3 The review of applications and recommendations for funding will be performed by an Ad Hoc Committee composed of three Community Development Commissioners and a staff representative from the Community Development Agency. The recommendations from the Ad Hoc Committee will first go to the Community Development Commission for review and approval. The Commission will then recommend the nonprofit funding to the full City Council for final review and approval. The following is the timeline for this year’s nonprofit CDBG application process: Nonprofit CDBG Application for Fiscal Years 2022 – 2024 November 2, 2021 Page 4 Fiscal Years 2022 - 2024 CDBG Public Service Application Dates Actions Community Development Commission - Application Wednesday, October 27, 2021 Review and Formation of Ad Hoc Committee Tuesday, November 2, 2021 City Council - Application Review and Approval Application released for 45 days *All potential subrecipients from contact lists will be Wednesday, November 3, 2021 notified via email and Constant Contact. A press release will be issued. Thursday, November 18, 2021 Mandatory CDBG Application Training Monday, December 20, 2021Applications due at 5:00 PM Tuesday, December 21, 2021 to Staff review of applications for CDBG eligibility/National Thursday, December 23, 2021 Objective compliance 1st review of applications by the Community Wednesday, January 5, 2022 Development Commission Ad Hoc Committee Community Development Commission Special Tuesday, January 25, 2022 and Meetings/Nonprofit Presentations of Public Service Thursday, January 27, 2022 Programs 2nd review of applications by the Community Thursday, February 3, 2022 Development Commission Ad Hoc Committee Community Development Commission funding Wednesday February 23, 2022 recommendations CDBG Public Hearing at City Council with Tuesday, March 15, 2022 recommendation for approval of CDBG nonprofit funding. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT(S) 1. 2022 – 2024 CDBG Public Service Application Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 City of Santa Ana Community Development Block Grant Biennial Public Service Nonprofit Application DESCRIPTION OF COMMUNITY DEVELOPMENT BLOCK GRANT The Community Development Block Grant (CDBG) is a U.S. Department of Housing and Urban Development (HUD) entitlement grant that the City receives on an annual basis to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate- income persons. No more than CDBG grant funds may be used for the provision of public services (including labor, supplies, and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, welfare (but excluding the provision of income payments), homebuyer down payment assistance, or recreational needs. To be eligible for CDBG assistance, a public service must be either a new service or a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the City in the previous 12 calendar months. The City of Santa Ana Community Development Agency allocates these CDBG grant funds to nonprofit organizations through a transparent, competitive process for projects and programs that most effectively serve the residents of the City. Interested and eligible organizations can apply on a biennial basis for this funding via the CDBG Biennial Public Service Nonprofit Application. CDBG Biennial NOFA Funding will be available to experienced nonprofit organizations for the provision of public services that include a priority on crime prevention, crisis-intervention, and/or suppression efforts for children, youth and/or families. Priority funding will be awarded to programs that: Develop crime prevention and suppression programs that assist in the development of suitable living environments by targeting specific Santa Ana neighborhoods that have a long-standing history of crime involving children, youth and families. For example, crime prevention education programs or community-oriented policing programs such as establishing a neighborhood watch program. Develop programs that target victims of domestic violence, dating violence, sexual assault or stalking; Services that will benefit children (generally under age 13), including parenting skills classes; Health services services addressing the physical health needs of residents; Mental health services services addressing the mental health needs of residents; Youth services services during and after school programs that target teens (ages 13 to 19)that include recreational programs with a counseling/mentorship program that Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 1 EXHIBIT 1 addresses healthy lifestyles, substance abuse prevention, crime prevention, dating violence and anti-bullying. Programs with current Memorandum of Understandings with Santa Ana Unified School District will have priority over other youth service programs; Legal services that provide legal aid to low and moderate income residents; Senior services for the elderly 62+ years. Programs will be funded for a two-year period from July 1, 2022 through June 30, 2024. The minimum funding amount is $60,000 per program to ensure that CDBG programs make the greatest impact in our community. The maximum funding amount is $150,000 per program. However, organizations that submit a joint application may request a maximum of $200,000 per program. Set-Aside Funding One percent (1%) CDBG public service allocation may be set-aside to fund qualified non-profits who apply for funding to screen and test for lead poisoning in our community. Organization Requirement The purpose of this NOFA is to review, compare and evaluate organizations that want to partner with the City to implement CDBG-funded projects, activities, and programs. The City will review your application together with a panel of appointed officials on the Community Development Commission to determine if your organization: Has the programmatic capacity to successfully design, implement, and report on a CDBG-funded project per the requirements of the United States Department of Housing and Urban Development (HUD) and the City; Has the fiscal capacity to accept, manage, and report on CDBG funds on a reimbursement basis in accordance with HUD and City requirements; Demonstrates a solid track record and past experience in implementing similar activities and projects that are indicative of potential future success; Implements proper controls and best management practices to ensure fair and ethical dealings in the areas of finance and accounting, procurement, and client and vendor grievances; Implements eligible activities and projects that may be funded by CDBG; Has adopted a mission statement, goals, and objectives that closely align with those of the City (as expressed in its Consolidated Plan) and of HUD; Nonprofit organizations must be in good standing and have no outstanding monitoring findings prior to a FY 2022-2024 CDBG award. All nonprofit applicants must be able to document 501(c)(3) status. Applicants whose status is pending at the time of application will not be considered for funding. Nonprofit Organization Collaboration Nonprofit organizations may submit a joint application with other nonprofit organizations. Collaborating nonprofit organizations must meet all the application requirements. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 2 EXHIBIT 1 Faith-Based Organizations Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the CDBG program. Organizations may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as a part of the programs or services funded with CDBG funds. If the organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded with CDBG funds, and participation must be voluntary for the beneficiaries of the CDBG-funded programs or services. Faith-based organizations may use space in their facilities to provide CDBG-funded services without removing religious art, icons, scriptures or other religious symbols. An organization that participates in the CDBG program shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. A religious organizations exemption from the federal prohibition on employment discrimination based on religion, set forth in section 702(a) of the Civil Rights Act of 1964 is not forfeited when the organization participates in the CDBG program. Notwithstanding the foregoing, nondiscrimination requirements imposed by statute on all CDBG grantees shall apply to religious and faith-based organizations Cost Reimbursement Agreement Grants are provided through a Cost Reimbursement Subrecipient Agreement. Reimbursement requests are allowed on a quarterly basis. Therefore, organizations must have enough working capital to continue services until a reimbursement request can be processed by the City. Only allowable and allocable CDBG expenses will be reimbursed. The term of the agreement will be July 1, 2022 through June 30, 2024. Insurance Requirement Organizations approved for CDBG funding will be required to obtain a minimum of $1,000,000 general liability insurance, automobile Insurance not less than $1,000,000 per occurrence, and worke compensation insurance not less than $1,000,000 per occurrence, for the term of the agreement. In addition, the City must be listed as additionally insured via an endorsement with the endorsement stating that the insurance is primary and noncontributory. Eligible Activities Requirement Public service activities which are directed toward the improvement of the quantity and quality of community services principally benefiting persons of low- and moderate-income are eligible for funding. These activities include, but are not limited to, services concerned with employment, crime prevention, childcare, health, substance abuse counseling and treatment, education, fair housing counseling, energy conservation, welfare (excluding income payments) and recreational needs. Emergency grant payments for food, clothing, and shelter (rent, mortgage, utilities) needs are eligible activities as long as the payments do not exceed three months and the payments are made directly to the provider of such services on behalf of an individual or family. The services funded must be either a new service or a quantifiable increase in the level of service above that which has been provided by or on behalf of the City in the previous 12 Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 3 EXHIBIT 1 calendar months. Services that were originally funded as a new or increased level of service are eligible for continued funding. Eligible costs include labor, materials, supplies, some operating and maintenance costs for the portion of the facility in which the public service is located, and equipment necessary for the provision of the public service. Ineligible costs include income payments, assistance for buildings used for the general conduct of government, general local government expenses, political and religious activities, and the purchase of equipment except equipment that constitutes all or part of a public service. Income payments are payments made to an individual or family to provide basic levels of food, shelter, or clothing but do not include emergency grant payments referenced above under eligible activities. National Objective Requirement The proposed program must meet the National Objective of activities that provide a benefit to low- and moderate-income persons. At a minimum, the program must serve 51% low- and moderate- income persons. Low- and moderate-income is defined as having an income equal to or less than 80 percent of the area median income, adjusted for household size. The specific household income limits are based on U.S. Census Bureau estimates, updated and issued by HUD annually http://www.huduser.org/portal/datasets/il.html. In general, to document compliance with the national objective requirement, funded programs will require the collection, calculation, and documentation of the participant family size and income. Limited Clientele activity: This is the category most often used for public service activities. Limited clientele activities are activities limited to a specific group of persons. At least 51 percent of those served must be low- and moderate-income persons. Services qualifying under this category serve a specific clientele, rather than providing service to all persons in a geographic area. Limited clientele activities may qualify as either a presumed benefit activity or a direct benefit activity. A presumed benefit activity is one that exclusively serves a specific group of people that HUD categorically considers low and moderate-income persons. These categories include: abused children, battered spouses, elderly persons, homeless persons, illiterate adults, persons living with AIDS, migrant farm workers, and severely disabled adults as defined by the Bureau of Census. The project sponsor must document that the activity is designed to be used exclusively by a category of persons presumed by HUD to be low- and moderate-income. If the clientele served does not fall under one of the presumed benefit category of persons, it may qualify as a direct benefit activity which serves low- and moderate-income persons. The project sponsor must verify and maintain documentation regarding the family size and income of each person served. At least 51 percent of the clientele served must be low- and moderate- income persons or the activity funded must be limited exclusively to low- and moderate-income persons. The nature and location of the activity may also support a conclusion that primarily low- and moderate-income persons are served. To qualify under this definition, the service provided must be both of such nature and in such location that it may reasonably be concluded Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 4 EXHIBIT 1 that the activitys clientele will primarily be low- and moderate-income persons. City of Santa Ana Consolidated Plan Priority Need Requirement Applications for fiscal year 2022-2024 must meet a FY 2020-2024 Consolidated Plan priority need. The Consolidated plan is available for review HERE. Federal Requirements Resource Links If funded, organizations will also need to comply with several federal requirements. For more information on these requirements, organizations may view the following websites. Playing by the Rules - A Handbook for CDBG Subrecipients on Administrative Systems: HERE Guide to National Objectives and Eligible Activities for CDBG Entitlement Communities: HERE To view Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR 200, visit: HERE Additional Requirements This application will be available for public display. Therefore, do not include any information that is subject to state or federal confidentiality regulations (i.e. an address to a domestic violence shelter). The attached application contains several questions regarding city residents. Residency of participants is determined by the last permanent address. The City will hold organizations accountable for the information included, such as expected service level. Review of Applications City staff will conduct a minimum threshold review of all applications received for completeness and to determine the eligibility of the proposed program. The Community Development Commission (CDC) will review and recommend public service funding levels to City Council. City Council will review the recommendations provided by the CDC for funding to determine which activities will be in the best interest of the community. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 5 EXHIBIT 1 CDBG CRITERIA FOR ALLOCATING POINTS 2022 - 2024 CDBG Application Guidelines COMMUNITY NEEDS 1. Did organization identify Applicant identifies the nature of the program and nature of the program and demonstrates need for the target population. = 10 Pts. Applicant does not identify the nature of the program and did demonstrate community not demonstrate need for the target population. = 5 Pts. need for the target Applicant only identifies State or National data = 0 Pts. population group (i.e. youth, seniors, disabled) 10 Points 2. Did applicant meet a specific Applicant met a specific Consolidated Plan goal and priority City Consolidated Plan goal and and correlation to proposed program was clear= 10 Pts priority and stated correlation Applicant met a specific Consolidated Plan goal and priority to proposed program? but did not clearly state the correlation to proposed 10 Points program= 5 Pts Applicant did not meet any plan goal or priority= 0 Pts. CAPACITY TO PROVIDE PUBLIC SERVICES 3. Did the organization provide Organization provided summary and staff listing of all admin a summary and listing of the and program to fully execute proposed program=20 Pts admin and program staff? Organization did not provide both summary and staff listing of 20 Points all admin and program staff =10 Pts Organization provided summary and staff listing of all admin and program staff but does not have the capacity to fully execute proposed program=5 Pts Organization did not provide summary and staff listing of all Admin and program=0 Pts EXPERIENCE 4. Years of experience providing 5 or more years of experience providing proposed program=10 the proposed program? Pts 2-4 years of experience providing proposed program=5 Pts 10 Points 1 year of experience providing proposed program=3 Pts 0 years of experience providing proposed program=0 Pts 5. Does the applicant have Applicant has experience administering CDBG and other Federal experience administering Grant programs=10 Pts. Applicant only has experience administering CDBG CDBG and/or any other programs=5Pts. Federal Grants? Applicant has no experience administering CDBG and/or Federal 10 Points Grant programs=0 Pts. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 6 EXHIBIT 1 6.Did organization meet Applicant met 90% annual goals and/or expended all grant funds =10 Pts. prior year's performance Applicant met 75% annual goals and/or expended all grant and/or expenditure funds =5Pts. goals. Applicant met 50% annual goals and/or expended all grant 10 Points funds for 1 of 3 years = 3 Pts. Applicant did not meet annual goal and/or expended all grant funds = 0 Pts. EFFECTIVE & EFFICIENT USE OF FUNDS 7.Are the majority of 100% to 80% of program participants are City residents = 10 Pts. unduplicated participants from 79.9% to 60% of program participants are City residents = 5 Pts. Santa Ana? (Q1a/Q1=___%)59.9% to 30% of program participants are City residents = 0 Pts. 10 Points Measurable performance outcomes with qualitatively and 8.Did the organization describe quantitatively tracking = 10 Pts. the measurable performance Measurable performance outcomes but no qualitatively and outcomes and how outcomes quantitatively tracking = 5 Pts. will be qualitatively and No measurable performance outcomes and qualitatively and quantitatively tracked? 10 Points quantitatively tracking = 0 Pts 9.Does the organization have Organization partners and/or collaborates with 3 or more active partnerships and/or community organizations = 10 Pts. collaborations in order to Organization partners and/or collaborates with 2 community effectively and efficiently carry organizations = 5 Pts. out proposed program?Organization partners and/or collaborates with 1 community organization = 1 Pts. 10 Points Organization partners and/or collaborates with 0 community organization = 0 Pts. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 7 EXHIBIT 1 Anticipated Timeline 2022- 2024 CDBG Public Service Application DatesActions Community Development Commission - Wednesday, October 27, 2021 Application Review/ AdHoc Committee Tuesday, November 2, 2021City Council -Application Review and Approval Application Released for 45 days Wednesday,November 3, 2021*Notify all potential subrecipients from contact lists via email/Nixle/Constant Contact. ,November 1,2021Mandatory CDBG Application Training Monday, December 20, 2021Applications due at 5:00 PM Tuesday, December 21, 2021 to Staff review of applications for CDBG Thursday, December 23, 2021eligibility/National Objective compliance 1streview of applications by the CDC AdHoc Wednesday, January 5, 2022 Committee Tuesday, January 25, 2022 and CDC Special Meeting/Non-Profit Presentations Thursday, January 27, 2022of Public Service Programs 2ndreview of applications by the CDC AdHoc Thursday, February 3, 2022 Committee Wednesday February 23, 2022CDC funding recommendations CDBG Public Hearingat City Council, Tuesday, March 15, 2022approval of HUD funded programs and services. If there is a question about any part of the application, please contact us at dflores@santa-ana.org or 714-647-6561. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 8 EXHIBIT 1 APPLICATION FOR SUBRECIPIENT PROPOSALS DUE DATE: Monday, December 20, 2021 at 5:00PM Hard Copy Applications must be submitted by mail or hand delivered to: City of Santa Ana Attention: David Flores, Sr. Community Development Analyst th 20 Civic Center Plaza 6 Floor Santa Ana, CA 92701 NO LATER THAN 5 P.M., Monday, December 20, 2021. ABSOLUTELY NO LATE APPLICATIONS WILL BE ACCEPTED. Submit one complete application for each proposed program. A complete application will include the following: 1.Organizational Cover Letter 2.Application Form 3.2022-2023 Proposed Program Budget (Attachment 1) 4.2023-2024 Proposed Program Budget (Attachment 2) 5.Certifications (Attachment 3) 6.Staff Listing (Attachment 4) 7.Organization Chart 8.Board of Directors, By-laws and Articles of Incorporation 9.Financial Statements & Single Audit, Form 990 (Single Audit required if organization expended more than $750,000 of federal funds within a program year) 10.IRS Nonprofit Designation Letter 11.Logic Model NOTES: Failure to provide all required information will cause this application to become invalid and will not be considered for funding. The City reserves the right to withdraw consideration of this application if evidence of compliance is not provided or if compliance status changes during the application process. The City reserves the right to waive a requirement if it is determined to be in the best interest of the City. Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 9 EXHIBIT 1 PUBLIC SERVICE APPLICATION DUE DATE: 5:00 p.m., Monday, December 20, 2021. Legal Name of Organization* DUNS umber* A DUNS number is a unique nine-character number used to identify your organization. The City uses the DUNS number to report how federal grant money is allocated. DUNS number lookup or registration. Name of second organization if doing a collaboration DUNS number of second organization if doing a collaboration A DUNS number is a unique nine-character number used to identify your organization. The City uses the DUNS number to report how federal grant money is allocations. DUNS number lookup or registration. Date Organization Founded* Date of Nonprofit Incorporation* SERVICE AND FUNDING Q1. Total number of unduplicated individuals to be served during FY2022- 2023 and FY 2023-2024 by program* 2022-2023 _______________ 2023-2024 _______________ a.Percentage that are estimated to be low-income* 2022-2023 _______________ 2023-2024 _______________ Q2. Estimated yearly units of service* (number of unduplicated individuals multiplied by service visits i.e. 200 youth X 25 tutoring sessions = 5,000 units of service) 2022-2023 _______________ 2023-2024 _______________ Q3. Total CDBG funds requested for FY 2022-2023 and FY 2023-2024* ($30,000 minimum) 2022-2023 _______________ 2023-2024 _______________ Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 10 EXHIBIT 1 a. Minimum Willing to Accept to Administer Your Program* ($30,000 minimum) 2022-2023 _______________ 2023-2024 _______________ Q4. Cost per participant* (Total CDBG funds requested divided by Total to be served) Q5. Program History a.Total number of Santa Ana residents actually served in 2020-2021 and 2021-2022 * 2020-2021 _______________ 2021-2022 _______________ b.Total years the program has been in existence Q6. Name of Program* Q7. Provide a concise description of the proposed program* (300 character maximum) Q8. Provide a detailed description of the proposed program. Include the following in order* a.Detailed description of services provided b.Frequency of service delivery (i.e. daily, weekly, monthly); c.How the service is provided (i.e. one-on-one, classroom settings, home visits, phone referrals); and d.Target population groups (i.e. youth in specific neighborhoods) (5,000 character maximum) Q9. Describe your experience in providing the proposed program or similar programs* Highlight accomplishments (5,000 character maximum) Q10. Will this program result in new service or increase the level on an existing service* Yes No Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 11 EXHIBIT 1 If yes, describe how the direct service proposed: a.Is not a duplication of existing services available; or b.Demonstrates a quantifiable increase in access and/or the level of an existing service provided to the target population. (5,000 character maximum) Q11. Similar Services* List similar services that are currently provided in the community and describe how the proposed program complements or fills an existing gap in services (2,000 character maximum) Q12. Neighborhood Initiative Area* An area that that has been adversely affected by disinvestment and decline is considered a Neighborhood Initiative area. arget areas for this period are the Townsend/Myrtle Neighborhoods at Jerome Center and Cedar-Evergreen Neighborhood at Madison Elementary School. Does the program serve residents of a Neighborhood Initiative area? Choices Yes No If yes, please describe below If yes, please describe the area boundaries and reasons the area fits Neighborhood Initiative criteria. (5,000 character maximum) Q13. Describe the unmet need that the proposed program will address* (5,000 character maximum) Q14. Will the program be conducted within the City of Santa Ana boundaries* Choices Yes No If no, explain how Santa Ana residents will be served (5,000 character maximum) Q15. Organization Participation* List Santa Ana neighborhood associations, local community organizations and/or civic groups the organization participates in and to what extent. (5,000 character maximum) Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 12 EXHIBIT 1 Q16. List the benchmarks the organization will use to determine success of the program* Provide intended outcomes. (5,000 character maximum) Q17. Track and Measure Performance* Describe how the organization will track and measure performance outcomes qualitatively and quantitatively. (5,000 character maximum) Q18. List federal grants that the organization has received within the last 5 years* Include grant amounts, services provided, and outcomes. (5,000 character maximum) Q19. Summarize the qualifications of the organiza staff* (Program & Administrative) that would allow the organization to provide the services stated and comply with regulatory requirements. (5,000 character maximum) ATTACHMENTS Please download all forms to your desktop and then fill out. If you try to fill out the form from the download screen, the information will not be saved when you try to upload it. 2022-2023 Proposed Program Budget (Attachment 1) 2023-2024 Proposed Program Budget (Attachment 2) Staff Listing (Attachment 3) Certifications (Attachment 4) Logic Model Using the template provided below by the University of Wisconsin, please attach a logic model that will summarize your proposed program on one page including the situation (community need) that you are going to address, the inputs you will use to address that need, your outputs of activities that you will undertake in your program, and the outcomes (short - 3 months, medium - 6 months and long - 12 months), that you will achieve. Please ensure you are as detailed as possible to provide your logic of how you will achieve your stated outcomes. Logic Model from University of Wisconsin: Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 13 EXHIBIT 1 https://fyi.extension.wisc.edu/programdevelopment/logic-models/bibliography/ Copy of City of Santa Ana Community Development Block Grant FY 2022- 2024 (Nonprofit Application) 14 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 Staff Listing (Include Admin and Program Staff working on the proposed program) CDBG Name and TitleDuties/Activities PerformedQualification for Duties/Activities Funded Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 Library www.santa-ana.org/library Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Purchase of Robots, STEM Labs and Virtual Reality Units for the Library AGENDA TITLE: Approve a Sole Source Purchase Order to RobotLAB for the Purchase of Two Robots and Software Licenses, Three STEM Labs and 10 Virtual Reality Units (Revive Santa Ana Program) RECOMMENDED ACTION Approve a sole source purchase order to RobotLAB for the purchase of two robots and software licenses for $48,089.97, three STEM labs for $49,470 and 10 virtual reality units for $9,015 for a total amount of $106,574.97, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION A Revive Santa Ana funded program in alignment with American Rescue Plan Act (ARPA) guidelines supporting Educational Assistance, the K-12 Robots in Residence and the AStounD Program for youth on the Autism Spectrum will address the critical need to improve digital literacy, support positive educational outcomes, build social-emotional skills and prepare underserved youth for a future AI (artificial intelligence)-driven workforce. The K-12 Robots in Residence program will provide access to future edge technologies and AI assisted learning in both active and passive program settings. The Santa Ana Public Library proposes to purchase a variety of equipment that will allow youth participants to interact with, build, and program robots. Through the Robo-Digi Buddies Initiative, volunteers known as "Big Buddies" (4th-12th grade) help “Little Buddies” (Pre- K-3rd grade) discover and explore robots. Robot kits will be available for checkout and accompanied by hands-on, interactive programs delivered at the Library and in underserved communities via the Library’s upcoming bookmobile, known as the “Knowledge Mobile.” The AStounD program provides access via services, support and socialization for youth with Autism Spectrum Disorder (ASD). The Santa Ana Public Library proposes to Purchase of Robots, STEM Labs and Virtual Reality Units for the Library November 2, 2021 Page 2 purchase a range of specialized Robot-Mediated Behavior Intervention (RMBI) robots and other AI devices that will provide youth and their families with increased access to future edge technology for assistive learning and behavioral support. The AStounD program includes in-house robot checkout, workshops with ASD experts, and hands-on, interactive programs delivered at the Library and throughout underserved communities via the Knowledge Mobile. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and made available in the following account for the specified year. Fiscal Accounting Fund Accounting Unit, Amount YearUnit-Account #DescriptionAccount Description FY 21-2218111013-63001American ARPA-Library, $106,574.97 Rescue Plan Miscellaneous Act (ARPA)Operating Expenses EXHIBIT(S) 1. Quote Submitted By: Brian Sternberg, Executive Director of Library Services Approved By: Kristine Ridge, City Manager Exhibit 1 http://www.RobotLAB.com Dear Customer, We are happy to send you the following price quote. If you have any question, feel free to email us: For sales related questions - Sales@RobotLAB.com For Purchase Orders - PO@RobotLAB.com We will be happy to work with you and serve your needs. RobotLAB Inc., 75 Broadway St., Suite 202 San Francisco, California, USA, 94111 Phone: +1 (415) 702-3033 Fax: +1 (415) 276-9057 EIN: 99-0369415 Exhibit 1 http://www.RobotLAB.com RobotLAB Inc., 75 Broadway St., Suite 202 San Francisco, California, USA, 94111 Phone: +1 (415) 702-3033 Fax: +1 (415) 276-9057 EIN: 99-0369415 Exhibit 1 http://www.RobotLAB.com Prices do not include any state or government issued taxes. All amounts are in US Dollars. Our General Terms and Conditions are available at the following link: http://www.robotlab.com/terms-and-conditions Our General Terms and Conditions will govern and prevail on any clients documents and general and/or specific terms and conditions. Thank you for this opportunity to serve you. RobotsLAB Team RobotLAB Inc., 75 Broadway St., Suite 202 San Francisco, California, USA, 94111 Phone: +1 (415) 702-3033 Fax: +1 (415) 276-9057 EIN: 99-0369415 Community Development Agency santa-ana.org/cd Item # 10 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Workforce Innovation and Opportunity Act Funds AGENDA TITLE: Approve Appropriation adjustment to Program Year 2021-22 Budget for the Workforce Innovation and Opportunity Act Programs (Non-General Fund) RECOMMENDED ACTION Approve an appropriation adjustment to the Title I Workforce Innovation and Opportunity Act for Program Year 2021-22 to reduce the budget in revenue account (12318002- 52001) by $10,083 and increase the budget in expenditure accounts (12318756-various) by $9,307 to match the grant award total amount allocated by the State Employment and Development Department. (Requires five affirmative votes) DISCUSSION The State Employment and Development Department (EDD) issued Workforce Services Information WSIN21-06 on July 26, 2021, announcing the Rapid Response fund allocations for each Local Workforce Development Area for the period of July 1, 2021 through June 30, 2022 (Exhibit 1). Santa Ana will receive $114,076 more than what was approved in the FY 2021-22 City-adopted budget. At the time the FY 2021-22 City budget was adopted, final award amounts were still unknown and staff used best estimates based on prior-year award amounts. As a result, the Workforce Innovation and Opportunity Act (WIOA) revenue and expenditure budgets adopted do not reflect the actual award amounts. Therefore, an appropriation adjustment is needed to align the budget to match the actual award, reducing the revenue and increasing the expenditure budgets as follows: Workforce Innovation and Opportunity Act Funds November 2, 2021 Page 2 Revenues Projected Grant Actual Grant Award WIOA ProgramsDifference Award AllocationAllocation Adult$ 773,000$ 726,100($ 46,900) Dislocated Worker 424,090 481,757 57,667 Youth 886,720 751,794 (134,926) Rapid Response 261,070 375,146 114,076 Totals$2,344,880$2,334,797($ 10,083) Expenditures WIOA Program AdoptedActualDifference Totals$2,325,490$2,334,797 $9,307 Use of the Rapid Response and Layoff Aversion funds are to be used to defray the cost of required and allowable Rapid Response activities in response to layoffs, business closures, and natural disasters. Rapid Response funds will be released to the City through a unilateral modification to the Program Year 2021-22 subgrant agreement with EDD. FISCAL IMPACT Approval of the appropriation adjustment will reduce the revenue budget in the WIOA revenue account (no. 12318002-52001) by $10,083 and increase the Rapid Response budget by $9,307 in account (no. 12318756-various) for expenditure during FY 21-22. Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director – Finance and Management Services Agency EXHIBIT(S) 1. Information Notice WSIN21-06 Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager Community Development Agency santa-ana.org/cd Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: HUD-VASH and FYI Special Fees Agreement with the Orange County United Way AGENDA TITLE: Approve Appropriation Adjustments to Recognize Special Fees from the U.S. Department of Housing and Urban Development for the Veterans Affairs Support Housing (HUD- VASH) and Foster Youth to Independence (FYI) Programs (Contingent upon approval of Housing Authority Item #3) RECOMMENDED ACTION 1. Approve an appropriation adjustment recognizing the HUD-VASH Special Fees award in the amount of $84,017 in revenue account and appropriating the same amount to expenditure account. (Requires five affirmative votes) 2. Approve an appropriation adjustment recognizing the FYI Special Fees award in the amount of $84,017 in revenue account and appropriating the same amount to expenditure account. (Requires five affirmative votes) DISCUSSION On March 24, 2021, HUD issued PIH Notice 2021-10 announcing Federal Fiscal Year (FFY) 2021 Funding Provision for the Housing Choice Voucher. This notice also included an application opportunity for the HUD’s Special Fee Applications for the HUD-Veterans Affairs Support Housing Program (HUD-VASH) and Foster Youth to Independence (FYI) Program. The Housing Authority administers 280 HUD-VASH vouchers for homeless veterans and 46 FYI vouchers for foster youth. On May 7, 2021, the Housing Authority submitted an application for the HUD-VASH and FYI Special Fees, and on September 9 the Housing Authority received an award of $84,017 in HUD-VASH Special Fees and $84,017 in FYI Special Fees to provide housing stabilization services and supportive services (Exhibit 1). The purpose of the HUD-VASH Special Fees is to support additional or extraordinary related administrative expenses incurred to increase lease-up success rates or decrease the time it takes for a homeless veteran to locate and move-in to a unit, such as landlord incentives, housing search assistance, unit holding fee, security deposit fee and application fee. This $84,017 in administrative fee funding may be used by the Housing Appropriation Adjustments for HUD-VASH and FYI Special Fees November 2, 2021 Page 2 Authority for administrative expenses and other eligible activities/expenses related to housing stabilization. The purpose of the FYI Special Fees is to support necessary additional or extraordinary related administrative expenses incurred to achieve either of the following activities: 1) Full (100%) FYI voucher utilization; and 2) Increase access to the program for eligible youth. With these one-time funds, staff is recommending approval of two agreements with the Orange County United Way’s WelcomeHomeOC program to administer these funds on behalf of the Housing Authority (Exhibit 2 and 3). The WelcomeHomeOC program conducts extensive landlord outreach in the private market and provides landlord incentives to increase the availability of rental units and decrease the time involved in the search for an eligible and affordable unit for voucher holders. Their housing navigators connect landlords to clients through housing navigation services, and facilitates the lease- up process while ensuring wrap-around service case management services are in place afterwards for the tenants. The WelcomeHome OC program works with many homeless and nonprofit service providers to ensure clients have the case management and supportive services they need to keep them in their home. In 2019, the Housing Authority entered into a similar partnership with the Orange County United Way to assist 25 foster youth find and lease-up affordable permanent housing with their FYI vouchers. The WelcomeHomeOC team leased up all 25 FYI individuals and families within a very short period of time. This success made our Housing Authority one of the first in the nation to reach 100% utilization with HUD’s first allocation of FYI vouchers. The results were recognized by HUD’s Los Angeles Field Office and staff were invited to share our results with other housing authorities across the State of California. FISCAL IMPACT Approval of the appropriation adjustments will recognize $168,034 in the Housing Authority Vouchers Admin revenue account (nos. 14018002-52006 and 14018002-52007) for estimated expenditure as follows: Fiscal Accounting Fund Accounting Unit, Account Amount YearUnit-AccountDescriptionDescription Housing Authority Voucher Admin, FY 21-22 14018760-62300Housing Authority$ 97,268 (Nov.-June) Contract Services-Professional Housing Authority Voucher Admin, FY 22-23 14018760-62300Housing Authority$ 70,766 (July-June) Contract Services-Professional Total Expenditure$168,034 EXHIBIT(S) 1.HUD Award Letter dated September 20, 2021 Appropriation Adjustments for HUD-VASH and FYI Special Fees November 2, 2021 Page 3 Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Financial Management Center 2380 McGee, Suite 400 Kansas City, MO 64108-2605 OFFICE OF PUBLIC AND INDIAN HOUSING September 20, 2021 CA093 CITY OF SANTA ANA HSG AUTH 20 CIVIC CENTER PLAZA P.O. BOX 22030 SANTA ANA, CA 92701 Dear Executive Director: SUBJECT: Calendar Year (CY) 2021 Housing Choice Voucher (HCV) Program Special Fees This letter is to notify you that funds have been obligated for CY 21 HCV Program Special Fees per the award letter dated September 15, 2021. This is a one-time award and has been automatically disbursed in a lump sum. No action is required by your PHA to receive the disbursement. The specific information concerning the obligation(s) for your public housing agency (PHA) is identified below. Funding Increment Budget Effective Date Term Category NumberAuthority(months) CA093AF0144$84,0179/1/20211Special Fees-FUP CA093AF0145 $84,017 9/1/2021 1 Special Fees-HUD-VASH Attached is your Notice to Amend the Consolidated Annual Contributions Contract (CACC) with revised funding exhibits reflecting the change(s) described above. The amendment notice and revised funding exhibits should be filed with your most recent CACC. No execution by HUD or your PHA is required. Public housing agencies receiving an increment in excess of $100,000 in Budget Authority (BA) are required to submit Form HUD-50071, Certification of Payments to Influence Federal Transactions, and if applicable, Form SF-LLL, Disclosure of Lobbying Activities. If this letter notifies you of a renewal in excess of $100,000, and your PHA has not submitted the Form(s) HUD-50071 (and SF-LLL where applicable) for your current fiscal year; the documents must be submitted to your Financial Analyst at the Financial Management Center (FMC) within 30 days of the date of this letter. These forms are located on the Internet at the following addresses: Form HUD-50071 https://www.hud.gov/sites/documents/50071.pdf www.hud.gov espanol.hud.gov EXHIBIT 1 Form SF-LLL https://files.hudexchange.info/resources/documents/HUD-Form-Sflll.pdf If you have any questions about the matters discussed in this letter, please contact your Financial Analyst (FA) at the Financial Management Center (FMC). Sincerely, Jennifer Marshall Division Director Attachment EXHIBIT 1 Consolidated U.S. Department of Housing and Urban Development Annual Contributions Contract Office of Public and Indian Housing Housing Choice Voucher Program Section 8 HUD NOTICE TO HOUSING AGENCY AMENDING CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT Housing Agency: City of Santa Ana Housing Authority, CA093 (Type or print name of housing agency.) In accordance with Paragraph 2.c. of the Consolidated Annual Contributions Contract between HUD and the HA, you are notified that the funding exhibit of the Consolidated Annual Contributions Contract is hereby revised to add a new funding increment as provided in the attached revised funding exhibit. (This notice adds one or more funding increments listed on the attached funding exhibit.) The revised funding exhibit is attached to this HUD notice. This revised funding exhibit replaces and revises the prior funding exhibit. In accordance with Paragraph 2.d. of the Consolidated Annual Contributions Contract, this HUD notice and the attached funding exhibit constitutes an amendment to the Consolidated Annual Contributions Contract. United States of America: Secretary of Housing and Urban Development Date of Document: Authorized Representative Robert H. Boepple, Director /2021 Financial Management Center Form HUD-52520A (12/97) EXHIBIT 1 V/T/!Efqbsunfou!pg!Ipvtjoh!boe!Vscbo!Efwfmpqnfou QJI!Tfdujpo!9!.!Gvoejoh!Fyijcju Qsphsbn.Cbtfe BDD!OVNCFS;!!!DB1:4BG GJFME!PGGJDF;!!:EQI MPTGP-!QJI IB!OVNCFS;!!!!!DB1:4 DJUZ!PG!TBOUB!BOB!ITH!BVUI 31!DJWJD!DFOUFS!QMB\[B Q/P/!CPY!33141 TBOUB!BOB-!DB:3812 IB!GJTDBM!ZFBS!FOE;!!!17041 QSPHSBN!UZQF;!!!BENJO!GFF GJ!OvncfsGjstu!Ebuf!pg!UfsnMbtu!Ebuf!pg!UfsnDpousbdu!UfsnCvehfu!BvuipsjuzVojut!Dpvou DB1:4BG124417.12.31311:.41.31315%:9:-759/11O0B DB1:4BG124521.12.313121.42.31312%358-523/11O0B DB1:4BG124822.12.313123.42.31313%5:9-9:5/11O0B DB1:4BG124912.12.313213.39.31323%5:9-9:5/11O0B DB1:4BG124:23.12.313123.42.31312%39-554/11O0B DB1:4BG125114.12.313214.42.31322%487-98:/11O0B DB1:4BG125215.12.313216.42.31323%626-179/11O0B DB1:4BG125317.12.31321:.41.31325%2-147-1:3/11O0B DB1:4BG125421.12.313221.42.31322%36:-134/11O0B DB1:4BG12551:.12.31321:.41.31322%95-128/11O0B DB1:4BG12561:.12.31321:.41.31322%95-128/11O0B DB1:4BGS3311:.12.31311:.41.31312%47-4:2/11O0B DB1:4BGS3321:.12.31321:.41.31322%58-462/11O0B DB1:4BGS43123.12.313123.42.31312%2-95:/11O0B DB1:4BGS53115.12.313215.41.31322%75-681/11O0B Qsjou!Ebuf;!Npoebz-!Tfqufncfs!31-!3132-!!21;65;66!BNGjobodjbm!Ebub!Nbsu!)B86S*Qbhf!2!pg!2 Sfqpsu!Qbui;!0dpoufou0gpmefs\\Aobnf>(B86S.TVC!Tvctjejbsz!Efubjm! B86S.TVC.133b!Qsphsbn!Cbtfe!Gvoejoh!.!QB12Sfqpsut(^0gpmefs\\Aobnf>(B86S.TVC!IVEDBQT!Tfdujpo!9!Sfqpsut(^0sfqpsu\\Aobnf>(B86S. TVC.133b!Qsphsbn!Cbtfe!Gvoejoh!.!QB12(^ )Tubuvt!Dpef!jo!)(d(-(v(-(q(-(e(-(f(**!boe!)Mjof!Ovncfs!>!(112(*!boe!)Ipvtjoh!Bvuipsjuz!Ovncfs!tubsut!xjui!DB1:4*!boe!)Qsphsbn!Uzqf!jo!)!BG**!boe! Gjmufs;! )Dpousbdu!Fyqjsbujpo!Ebuf!?!)Dvssfou!Ebuf!.!476!ebzt** Sfoefsfe!cz!Dphopt Public Works and Parks Recreation & Community Services Agencies www.santa-ana.org/pw Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Santa Ana Zoo Giant River Otter and Primate Trails AGENDA TITLE Approve Appropriation Adjustment and Award a Construction Contract to HYM Engineering in the Amount of $5,289,238 for the Santa Ana Zoo Giant River Otter and Primate Trails FY 2021-22 Project with an Estimated Project Delivery Cost of $6,600,000 (Project No. 16-2658) (Non-General Fund) RECOMMENDED ACTION 1.Award a contract and authorize the City Manager to execute a construction contract with HYM Engineering, the lowest responsible bidder, in accordance with the base bid in the amount of $5,289,238, for the term beginning upon execution of the contract and ending upon project completion, for construction of the Santa Ana Zoo Giant River Otter and Primate Trails project, subject to non-substantive changes approved by the City Manager and the City Attorney. 2.Approve an appropriation adjustment to recognize $600,000 in donations from Friends of the Santa Ana Zoo into the PRCSA Fee & Donation, Gifts & Donations revenue account and appropriate the same amount into the PRCSA Fee & Donation, Improvements Other than Building expenditure account for the Santa Ana Zoo Giant River Otter and Primate Trails project. (Requires five affirmative votes) 3.Approve an appropriation adjustment to recognize $3,108,060.79 from prior-year fund balance in the Residential Development District 3, Acquisition & Development, Prior-Year Carry Forward revenue account and appropriate the same amount into the Residential Development District 3, Acquisition & Development expenditure account for the Santa Ana Zoo Giant River Otter and Primate Trails project. (Requires five affirmative votes) 4.Approve an amendment to the Fiscal Year 2021-22 Capital Improvement Program to include in construction funds, $600,000 from the PRCSA Fees & Donation Fund, and $3,108,060.79 from the Residential Development District 3, Acquisition & Development Fund, for the Santa Ana Zoo Giant River Otter and Primate Trails project (No. 16-2658), for and total project budget increase of $3,708,060.79. Award Construction Contract to HYM Engineering November 2, 2021 Page 2 DISCUSSION The existing “Amazon’s Edge” exhibit, built in 1990, needs a complete renovation of its water filtration system, moat, and visitor observation area. In addition, the Association of Zoos and Aquariums (AZA) indicated the Santa Ana Zoo needs to modernize primate habitats to regain accreditations. The Santa Ana Zoo Giant River Otter and Primate Trails project will respond to all of these needs by encompassing an extensive transformation that will include redesign and reconstruction of existing facilities, installation of an underwater viewing area, and incorporation of an elevated primate trail system that opens up to large mesh habitats. Once completed, the exhibit will be a multi-species habitat that is home to Giant River Otters and large primates. The location of this project can be found on the attached location map (Exhibit 1). Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, the City notified a total of three regional vendors via PlanetBids, none of which are Santa Ana-based. Three vendors requested bidding documents, and a total of three bids were received. Bids were not received from any Santa Ana contractors. As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on May 11 and May 18, 2021. The project was also advertised in PlanetBids from July 19, 2021, through August 17, 2021. All Bids were received electronically via PlanetBids on August 17, 2021. Bid Results Summary RANK BIDDER’S NAMELOCATIONBASE BID 1HYM Engineering Inc.Fullerton$5,289,238.00 2Kazoni ConstructionCosta Mesa$5,828,567.00 Metro Builders & Engineers 3Newport Beach$6,756,206.00 Group A total of three bids were received, and all were deemed responsive. HYM Engineering submitted the lowest responsive base bid, in the amount of $5,289,238 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to HYM Engineering in the amount of the base bid totaling $5,289,238 (Exhibit 3). Project Delivery To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Award Construction Contract to HYM Engineering November 2, 2021 Page 3 Construction administration and inspection includes construction management; implementation of the City’s Community Workforce Agreement requirements; inspection of the Contractor’s work to ensure contract compliance, workmanship, and quality; and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $6,600,000. Project ItemTotal Construction Contract$5,289,238.00 Construction Administration, Inspection, Testing$781,838.20 Contingencies$528,923.80 TOTAL CONSTRUCTION DELIVERY COST$6,600,000.00 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from future review. Categorical Exemption Environmental Review No. 2018-18 was for the project. In addition, a Certification of Categorical Exclusion and Statutory Worksheet have been prepared in accordance with the National Environmental Policy Act. FISCAL IMPACT As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $6,600,000, which includes construction, contract administration, inspection, testing, and an authorized contingency. Approval of the requested Appropriation Adjustments will provide the following funding: 1.Recognize $600,000 in donations from FOSAZ into the PRCSA Fee & Donation, Gifts & Donations revenue account (No. 02213002-57081) and appropriate the same amount into the PRCSA Fee & Donation, Improvements Other than Building expenditure account (No. 02213200-66220). 2.Recognize $3,108,060.79 from prior year fund balance in the Residential Development District 3, Acquisition & Development, Prior Year Carry Forward revenue account (No. 31313002-50001) and appropriate the same amount into the Residential Development District 3, Acquisition & Development expenditure account (No. 31313260-66220). With the approval of the $3,708,060.79 amendment to the Fiscal Year 2021-22 Capital Improvement Program (Exhibit 5) and corresponding appropriation adjustments, the additional funding for this project will be available for expenditure in Fiscal Year 2021-22. The following table summarizes the funds budgeted and available for expenditure to deliver construction of this project. Any remaining balances not expended at the end of the fiscal year will be carried forward into FY 2022-23 for expenditure. Award Construction Contract to HYM Engineering November 2, 2021 Page 4 Accounting Unit, Fiscal Accounting Fund Account Amount YearUnit-Account #Description Description APROPRIATION ADJUSTMENTS PRCSA Fee & PRCSA Fees Donation, 2021-2202213200-66220$600,000.00 & DonationImprovements Other Than Building PRCSA-Acquisition & Residential Development, 2021-2231313260-66220Development $3,108,060.79 Improvements Other District 3 Than Building EXISTING PROJECT BUDGET PRCSA-Acquisition & Residential 31313261-66220Development In Lieu, 2021-22Development $1,044,223.00 (Proj. 16-2658)Improvements Other District 3 Than Building PRCSA-Acquisition & Residential 31313260-66220Development, 2021-22Development $1,847,716.21 (Proj. 16-2658)Improvements Other District 3 Than Building Total$6,600,000.00 EXHIBIT(S) 1.Location Map 2.Bid Results 3.Construction Contract 4.Cost Analysis 5.CIP worksheet Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency and Lisa Rudloff, Executive Director, Parks, Recreation & Community Services Agency Approved By: Kristine Ridge, City Manager TBOUB!BOB Qspkfdu!Op/!27.3769; TB!\[pp!Hjbou!Sjwfs!Puufs! Ibcjubu! EXHIBIT 2 EXHIBIT 3 ----- DATE:24.Pdu.3132 FY 27/28FY 27/28 ----- FY 26/27FY 26/27 ----- FY 25/26FY 25/26 ----- FY 24/25FY 24/25 PROJECT NEED:Uif!fyjtujoh!Bnb{po!Fehf!Fyijcju!offet!dpnqmfuf!sfopwbujpo!up!jut!xbufs!djsdvmbujpo!boe!qvnqjoh!tztufn/!Jo!beejujpo-!B\[B!joejdbufe!uif!TB!\[pp!offet!vqebufe!fyijcjut!up!sfhbjo!bddsfejub ujpot/!Uif!pme!Bnb{po!Fehf!Fyijcju!xjmm!cf!dpnqmfufmz!sfeftjhofe!joup!b!ofx!Hjbou!Sjwfs!Puufs!Ibcjubu!xjui!bo!voefsxbufs!wjfxjoh!bsfb/!Uif!jnqspwfnfout!xjmm!bmtp!jodmvef!b!npolfz!ijhixbz!uispvhi!uif! usfft!boe!mboetdbqf!up!csjoh!uif!bojnbmt!dmptfs!up!uif!wjfxfs/ ----- FY 23/24FY 23/24 CIP CONTACT:Spo!Pop-!Benjojtusbujwf!Tfswjdft!Nbobhfs ----- 21/22 FY 22/23FY 22/23 600,000 FY 21/22FY 21/22 3,708,0613,708,0613,108,0613,708,061 TOTALTOTAL CITY OF SANTA ANA FY CAPITAL IMPROVEMENT PROJECT WORKSHEET DIVISION:Benjojtusbujpo PROJECT DESCRIPTION:Sfopwbuf!uif!fyjtujoh!Bnb{po!Fehf!Fyijcju!joup!b!ofx!Hjbou!Sjwfs!Puufs!Fyijcju/ ConstructionA & D District 3PRCSA F&D PROJECT COSTSSOURCE OF FUNDS PROJECT TITLE:Tboub!Bob!\[pp!Hjbou!Sjwfs!Puufs!Ibcjubu PROJECT CATEGORY:Qbsl!Gbdjmjuz!JnqspwfnfoutQbsl!Gbdjmjuz LOCATION MAP AGENCY:Qbslt-!Sfd/!'!Dpnnvojuz!Tfswjdft Public Works Agency https://www.santa-ana.org/pw Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: SR-55/Ritchey Street Water Improvements AGENDA TITLE Approve Appropriation Adjustment to Provide Construction Engineering Services funding for the SR-55/Ritchey Street Water Improvement Projects in the Amount of $1,000,000 and Approve an Agreement with Berg & Associates, Inc. to Provide Construction Engineering Services for the SR-55/Ritchey Street Water Improvements Projects in an Amount Not to Exceed $1,000,000 for a Three-Year Term (Project Nos. 19-6438, 19- 6439, 19-6440) (Non-General Fund) RECOMMENDED ACTION 1.Approve an appropriation adjustment to recognize $1,000,000 in reimbursement obligation funds from OCTA, as stipulated in the three Utility Reimbursement Agreements for the State Route 55 Improvement Project, into the Acquisition & Construction, Water Utility Capital Projects, Expense Reimbursement-OCTA revenue account and appropriate the same amount into the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project expenditure account. (Requires five affirmative votes) 2.Authorize the City Manager to execute an agreement with Berg & Associates, Inc. to provide Construction Engineering Services for the SR-55/Ritchey Street Water Improvements Project, for a three-year term beginning November 2, 2021, and expiring on November 1, 2024, with provisions for two, one-year extensions exercisable by the City Manager and City Attorney, in the amount of $885,279.92, with an approximate 13-percent contingency of $114,720.08, for a total amount not to exceed $1,000,000.00, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On July 27, 2021, the Public Works Agency released Request for Proposal (RFP) No. 21- 066, by which it sought a qualified firm to provide construction engineering services for the SR-55/Ritchey Street Water Improvements Project (Exhibit 1). The scope of work includes engineering staff support and assistance with the overall delivery of the project, SR-55/Ritchey Street Water Improvements November 2, 2021 Page 2 including pre-construction tasks, construction management, contract compliance, and project closeout. The RFP was advertised on the City’s online procurement management and publication system, with proposals due on August 17, 2021. Four proposals were received and evaluated by a selection committee. Based on criteria outlined in the RFP, the following summarizes the responding firms and their ranking: FirmCityRank Berg & Associates, Inc.San Pedro1 Cannon CorporationIrvine2 Willdan EngineeringAnaheim3 Fountainhead Consulting CorporationAnaheim4 Staff recommends awarding an agreement (Exhibit 2) to Berg & Associates, Inc. to provide construction engineering services based upon the scope of work and selection criteria outlined in RFP 21-066. Their proposal demonstrated the firm has the necessary capacity and expertise to complete the required services. On May 5, 2020, the City Council authorized execution of three utility reimbursement agreements (Exhibits 3, 4 and 5) with Orange County Transportation Authority (OCTA) for water relocation costs related to the State Route 55 widening project. Estimated reimbursement for the agreements total $6,600,000. Staff recommends appropriating $1,000,000 of these reimbursement obligation funds from OCTA to complete the funding for the agreement with Berg & Associates Inc. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. FISCAL IMPACT Approval of the requested Appropriation Adjustments will recognize $1,000,000 in reimbursement obligation funds from OCTA, as outlined in the Cooperative Agreement No. C-0-2201 and three Utility Reimbursement Agreements for the State Route 55 Improvement Project, into the Acquisition & Construction, Water Utility Capital Projects, Expense Reimbursement-OCTA revenue account (No. 06617647-57004) and appropriate the same amount into the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project expenditure account (No. 06617647-66301). All funds expended for the water relocation project costs are anticipated to be reimbursed by the Orange County Transportation Authority (OCTA). Funds will be budgeted and available for expenditure in Account No. 06617647-66301 in the following water relocation SR-55/Ritchey Street Water Improvements November 2, 2021 Page 3 projects: $230,000 for Project No. 19-6438, $470,000 for Project No. 19-6439, and $300,000 for Project No. 19-6440. The table below indicates the estimated expenditures by fiscal year. Any remaining balances not expended at the end of the agreement term will be carried forward for expenditure in the event the optional extension periods are exercised. Accounting Unit – Fiscal Accounting Unit – Fund Account No. Amount YearAccount No.Description Description Water Utility Capital 2021-22 Acquisition & 06617647-66301Projects, Water $300,000 (Nov-June)Construction Capital Project Water Utility Capital 2022-23Acquisition & 06617647-66301Projects, Water $400,000 (July-June)Construction Capital Project Water Utility Capital 2023-24Acquisition & 06617647-66301Projects, Water $250,000 (July-June)Construction Capital Project Water Utility Capital 2024-25Acquisition & 06617647-66301Projects, Water 50,000 (July-Nov)Construction Capital Project TOTAL:$1,000,000 EXHIBIT(S) 1.Location Map 2.Agreement with Berg and Associates, Inc. 3.Utility Reimbursement Agreement No. COSA-1101/1103 4.Utility Reimbursement Agreement No. COSA-1115 5.Utility Reimbursement Agreement No. COSA-1117 Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager PWA PUBLIC WORKS AGENCY 2nd day of November, 2021 by and between November 1st, 2024 for at leastfive(5) years after completion of thecontract of work. with another claims-madepolicy form with a Retroactive Date prior to five (5) City of Santa Ana RFP 21-066 PageA1-1 City of Santa Ana RFP 21-066 PageA1-2 City of Santa Ana RFP 21-066 PageA1-3 City of Santa Ana RFP 21-066 PageA1-4 City of Santa Ana RFP 21-066 PageA1-5 City of Santa Ana RFP 21-066 PageA1-6 City of Santa Ana RFP 21-066 PageA1-7 City of Santa Ana RFP 21-066 PageA1-8 City of Santa Ana RFP 21-066 PageA1-9 City of Santa Ana RFP 21-066 PageA1-10 City of Santa Ana RFP 21-066 PageA1-11 WesternExterminatorCompany: City of Santa Ana RFP 21-066 PageA1-12 RICOHCompany: OCTAand theFreewayWidening Construction Contractor City of Santa Ana RFP 21-066 PageA1-13 o o o o o o o o o City of Santa Ana RFP 21-066 PageA1-14 Please reference Caltrans Local Assistance Procedure Manual, Consultant Selection, Chapter 10, for further instructions and guidelines pertaining to the completion of these forms: To independently download any of the Caltrans Exhibits required per this RFP, visit: City of Santa Ana RFP 21-066 PageA1-15 TS.660Sjudifz!Xbufs! Jnqspwfnfou!Qspkfdu Dpotusvdujpo!Nbobhfnfou '!Jotqfdujpo!Tfswjdft SGQ!Op/!32.177 Bvhvtu!28-!3132 Ubcmf!pg!Dpoufout !!2! A. Cover Letter01 B. Contract Agreement Statement02 C. Firm & Team Experience02 D. Understanding of Need03 E. Relevant Project Experience04 F. References05 A. Schedule of Activities and Resources19 B. Scope Tasks with Deliverables20 Seperately Submitted Caltrans Forms Resumes Tubufnfou!pg! 2 B/!Dpwfs!Mfuufs August 17, 2021 City of Santa Ana Public Works Agency 20 Civic Center Plaza, M-36 Santa Ana, CA 92701 Attn: Kenny Nguyen, Project Manager Reference: Dear Mr. Nguyen: Berg & Associates, Inc. (Berg) is pleased to submit our proposal to provide Professional Construction Management and Inspection Services for the SR-55/Ritchey Water Improvement Project. We have decades of experience managing water infrastructure, street improvement, and highway projects for local cities and agencies and understand the challenge of completing projects on time and on budget while ensuring that the public is safe, and inconveniences are minimized. Since 1980, Berg has successfully completed projects similar to the City of Santa Ana’s that involve water mains, pipelines, pressure reducing completed major water pipeline projects for the cities of El Segundo, Santa Monica, and Torrance. Visit for more about our company. To assist the City with its planned water improvement project, we have proposed Project Manager, Dave Smith, PE, QSD, who brings 30 years of public works management experience. Supporting him as Main project for the City of Santa Monica. Brenda Ramirez will serve as Contract Administrator, a role she is exceling at on several projects. Bvuipsj{fe!SfqsftfoubujwfQspkfdu!NbobhfsQspqptbm!Dpoubdu Alicia M. BergDave Smith, PE, QSDJenelle Saunders VP/Director of Research and Resident EngineerDirector of Communications Development(310) 548-9292and Marketing (310) 548-9292dave@bergcm.com(310) 548-9292 alicia@bergcm.comjenelle@bergcm.com I, Alicia Berg, am authorized to bind Berg & Associates, Inc. (Berg) to the contractual terms and conditions stated in the RFP. By submitting this proposal, Berg acknowledges that we have read and understand the contents of this RFP and agree to comply with the requirements and conditions contained in the RFP and all of the applicable Exhibits/Attachments. We acknowledge reciept questions and answers. hard and are dedicated to serving you, to complete your project within budget and on schedule, and to represent your City to the public in the best possible light. Sincerely, Alicia M. Berg, VP/Director of Research and Development P: (310) 548-9292 | E: Alicia@bergcm.com 302 W. 5th Street| Suite 210 |San Pedro, CA 90731 |P: (310) 548-9292 | F: (310) 548-9195 TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft C/!Dpousbdu!Bhsffnfou!Tubufnfou Berg & Associates, Inc. takes no exception to any and all provisions contained in the Agreement, Attachment 2, found in the RFP Appendix. D/!Gjsn!'!Ufbn!Fyqfsjfodf D/2/!Gjsn!Fyqfsjfodf Berg & Associates, Inc. (Berg), is a Woman-Owned (WBE), Disadvantaged (DBE), Small Business Enterprise (SBE), providing management and inspection of underground and overhead utilities, water pipelines, storm drains, and pump stations since 1980. From grade separations to park projects, nearly all of our projects involve utility relocations. We managed storm drain projects for the Alameda Corridor Transportation Authority including the Anaheim Street Storm Drain which consisted of large diameter, 84-inch, 72-inch, and 48-inch storm drainpipe. The drain was constructed within the City of Los Angeles using micro-tunneling methods and access to adjacent properties and ground water management and removal of contaminated soil and water was required. We’ve also constructed numerous pump stations including the New Dock and Henry Ford Pump Station for the Port of Los Angeles. The four-pump facility, with two operational and two standby Flyght pumps, serves as a wet of electrical components and the below-grade concrete structure required substantial excavation and shoring. Recently, Berg has installed thousands of feet of waterlines for cities Project Management like Santa Monica, Torrance, and El Segundo. These project locations Resident Engineering Quality Assurance Inspection restaurants, requiring minimized noise interference, continued public Project Controls Compliance Documentation We have an impressive track record of successful coordination and Constructability & Bidability experience working with permitting and regulatory agencies such as the Site & Permit Review Schedule Review US Army Corps of Engineers, the California Regional Water Quality Control PS&E Review Board (RWQCB), State Water Resources Control Board, the Orange Federal, State, Labor and County Flood Control District, and the US Environmental Protection Environmental Compliance Utility Coordination Railroad Coordination Federally-funded Projects Caltrans Oversight Projects Local Assistance Projects Zfbs!Gpvoefe Hsfbu Mpdbm 1980 Gjobodjbm Ufbn Dpoejujpo Nfncfst of Industry, Long Beach, La Quinta, San Pedro, CA Xf!ibwf!mpdbm-!dsptt.usbjofe! Op!cbolsvqudz-!mjujhbujpot-!! Fnqmpzfft tubgg!sfbez!up!qspwjef!b!sbohf!pg! 41 tfswjdft!gps!uif!Djuz/ Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft !!Fyqfsjfodf!xjui!Gfefsbm!Gvoejoh CFSH!GFEFSBMMZ!GVOEFE!'! Berg routinely manages public works projects that utilize MPDBM!BTTJTUBODF!QSPKFDUT! Federal Aid, and we understand the requirements and regulations that apply in order to govern construction. We are very familiar with the Caltrans Local Assistance Hsffo!Qpsu!Hbufxbz!Qspkfdu!)Usbdl!Sfbmjhonfou! bu!Pdfbo!Cmwe/!boe!Qjfs!G!Tvqqpsu!Zbse*-!QPMC process and the Construction (RE) Manual, which we utilize on the majority of our projects. Ibssz!Csjehft!Tusffu!Jnqspwfnfout-!QPMB! Berg has an outstanding track record and long history of Bwfojeb!Cboefsbt!Pwfsdspttjoh-!Djuz!pg!Sbodip! working with cities and regional transportation agencies Tboub!Nbshbsjub to administer and manage federally funded Caltrans Fm!Upsp!Dsffl!Dspttjoh-!Dpvouz!pg!Psbohf Local Assistance projects. Caltrans has recognized us as Mjodpmo!Bwf!Pwfsdspttjoh-!Djuz!pg!Dpspob for bridges and roadway construction and reconstruction for federally funded projects. We have provided these Mblftipsf!Esjwf-!Mblf!Fmtjopsf services for cities throughout Southern California from La Tfbtjef!Bwfovf0Pdfbo!Cmwe/-!QPMC Quinta to Simi Valley. Nbefsb!Se/!Pwfsdspttjoh-!Djuz!pg!Tjnj!Wbmmfz In our ten years as a Prime Consultant on the Alameda Corridor, we facilitated the completion of nine different construction projects, all federally funded. The bridges J021!Sjwfstjef!Bwfovf!Joufsdibohf-!TCDUB and grade separations were administered under the Caltrans Local Assistance Procedures, and these same procedures were applied to each project. On each of these Xjefojoht!pg!6!joufsdibohft-!SDUD projects Berg was the Prime Construction Management Qpsupmb!Csjehf-!Djuz!pg!Qbmn!Eftfsu Consultant and we provided Resident Engineering, Xbtijohupo!Tusffu!Csjehf!Xjefojoh!pwfs! Administration, Compliance and Documentation, Project Xijufxbufs!Xbti-!Djuz!pg!Mb!Rvjoub Controls, and Quality Assurance. Hjmcfsu!Bwfovf!Voefsdspttjoh-!Djuz!pg!Gvmmfsupo Recently, Berg managed two grade separations that were federally funded; one for the City of Fullerton in )BDUB*!qspkfdut; conjunction with the Orange County Transportation –Epnjohvf{!Diboofm!Pwfsdspttjoh Authority (OCTA), and one for the San Gabriel Valley –Dpnqupo!Dsffl!Csjehf Council of Governments (SGVCG), formerly Alameda –Bmbnfeb!Dpssjeps!Pwfsdspttjoh Corridor East (ACE) Construction Authority in the City of –Epnjohvf{!Diboofm!Gjmmfs!Csjehf Industry. For each of these, we provided all staff to oversee MBOJ!Qbslt!boe!Qpdlfu!Qbslt-!Mpt!Bohfmft compile project documentation and monitor compliance Boufmpqf!Se/!Tbgfuz!Nfejbo-!Djuz!pg!Nfojgff with funding sources. For each of these projects, Berg was responsible for compliance with federal regulations as prescribed in the Caltrans Local Assistance Manual. For our entire existence as a company, we have adhered to Caltrans procedures and standards, even when not required to do so. Some of our standard operating procedures for administration of federally funded projects include: • Authorization to proceed. •Review approvals from CTC and permit agencies are in place. • •Compliance with Prevailing Wage requirements as determined by the DIR. •Utilization of Caltrans payment forms for the construction contractor and compilation of back up Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft •Working to meet milestones for phasing as approved and to achieve project completion within the approved performance end date. •Working to make sure the contractor complies with federal submittal requirements. •Scoping, estimating, negotiating and implementing written changes, when necessary, •within program eligibility. •Full compliance with Chapter 16 of the Caltrans Local Assistance Procedure Manual to include Weekly Statement of Working Days, Daily Reports by the Resident Engineer and Inspection staff, EEO Reports, tracking all submittals, changes and potential claims. •Filing of the Monthly Program Payments and Progress Reports. •Making sure all documentation is accurate, complete and current for maximum funding reimbursement All of our inspectors are able to conduct labor compliance interviews on site and some are bilingual in English and Spanish. Our Assistant Project Manager is also a resource for on-site interviews, she is also bilingual and well versed in all labor compliance standards, as needed. The contractor will need to be registered with Department of Industrial Relations (DIR) and to submit to monitor the changing labor compliance regulations. We will review and ensure compliance with CWA requirements. !!Fyqfsjfodf!xjui!Dbmusbot Berg has been involved with Caltrans projects since the company was founded. We have held On-Call contracts with Caltrans District 7, managed projects in the Caltrans ROW, and coordinated with Caltrans for numerous projects that use LAPM and require Caltrans oversight. Our proposed Project Manager, Dave Smith, PE, QSD, started his career in the Caltrans Bridge department and, more recently, he completed the Raymond Avenue Grade Separation which required coordination with Caltrans District 12. Our proposed Contract Administrator, Brenda Ramirez, MPA, is currently working on projects with Caltrans oversight, utilizing LAPM and providing quality assurance for the team’s project documentation for Caltrans auditing in the City of Menifee (D8) and the City of Torrance (D7). Both of these team members have extensive knowledge of Caltrans requirements and procedures. Our whole team is familiar with the !!Fyqfsjfodf!xjui!PDUB We have a successful history of project experience with OCTA including providing services for the Metrolink Service Expansion Program, the Raymond Avenue Grade Separation Project, and two recent Metrolink Stations with OCTA as the lead agency. Our team members are very familiar with their procedures and methodologies. Currently, we are providing CM and Inspection services to OCTA for the Anaheim Canyon Metrolink Station project. Our proposed Contract Administrator, Brenda Ramirez, MPA, currently provides quality assurance for project documentation, monthly reports, and contract compliance. Our proposed Project Manager, Dave Smith, PE, QSD, served as Resident Engineer on the Raymond Avenue Grade Separation for the City of Fullerton with OCTA oversight. He worked closely with OCTA representatives quality assurance for apy applications. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft D/3/!Pshboj{bujpo!Dibsu We have provided a devoted team that will ensure a timely delivery of construction management and inspection services for the SR-55/Ritchey Water Improvement Project. Below is the organizational chart of our proposed team. Core Staff Support Staff Project Manager CFSH Contracts Administrator Main Inspector/CM CFSH CFSH Bt.Offefe Peak/Alt. Inspector Utility Coordinator CFSH CFSH Inspector/OE Special Inspections PO.TJUF!Ufdiojdbm CFSH Uijt!ufbn!gfbuvsft; •Project Manager with extensive experience managing large highway and water infrastructure projects that involve coordination with OCTA, Caltrans, and various regulatory agencies. •Main Inspector/CM who has 30 years of experience inspecting and managing water main replacement projects with extensive knowledge of best practices for various pipe removals and installations. • documentation and management communication with the City and third-parties. • Caltrans experience. •Peak/Alternate Inspector who brings over 40 years of water expertise. •Utilities Coordinator with a background as an electrical contractor and inspector making him invaluable as a utility coordinator. He has experience managing projects and is available to the project for submittal reviews and an alternate Main Inspector/CM, as determined by the schedule. •As-needed only, special inspection can be provided by ON-SITE Technical for commissioning of the pump station and welding inspection. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft Ebwf!Tnjui-!QF-!RTE!}!Qspkfdu!Nbobhfs Dave has more than 30 years of experience as Project Manager, Resident Engineer, and Structures Representative on large, multi-staged, multi- phased public works projects. Dave has a strong background in Public Works standards and procedures and delivers superior service in a complex management role. His career began at the Caltrans District 8 Bridge Department. With Berg since 1997, he has successfully managed highway interchanges, roadway improvements, pump stations, bridges, grade separations, and rail projects. Dave brings previous experience with OCTA, Caltrans, and third-parties, andh is attention to detail and thorough knowledge of construction practices means that the City will have a well- Zfbst!pg!Fyqfsjfodf run job with a quality end product. 30 Years Zfbst!xjui!Cfsh 23 Years •RE, Fullerton Road Grade Separation, SGVCOG/ACE Tpguxbsf •RE, Raymond Avenue Grade Separation, City of Fullerton/OCTA Procore, Bluebeam, •RE, I-10/Riverside Avenue Interchange, SBCTA Airtable, P6, Microsoft •Project Mngr., SR-101, SR - 118, & SR-23 Widenings, Caltrans Registered Professional Engineer, Civil, Fevdbujpo BS Civil Engineering, Roadway Worker Protection Training | Metrolink Third-Party Contractors CalState Polytechnic Safety Training | BNSF Roadway Worker Protection Training|Caltrans: University Pomona Foundations and Shoring | AC Pavement and Quality Control Professional Csfoeb!Sbnjsf{-!NQB!}!Dpousbdut!Benjojtusbups Brenda has 16 years of experience in program management, program evaluation, and administrative services at a corporate, federal, state, local, University of Southern California with a concentration in city and county management. Brenda has extensive experience in report preparation and excels at data compilation and cost forecasting. She is responsible for critical project administration functions, including contract management, document control, project communications, deliverables, and payment applications. Brenda takes a proactive approach to making sure her projects meet contract requirements and owner objectives. Zfbst!pg!Fyqfsjfodf 16 Years Zfbst!xjui!Cfsh • 8 Years Intersection Improvement, City of Torrance Tpguxbsf •Contract Admin., Antelope Road Raised Safety Median Procore, Bluebeam, Improvements, City of Menifee •Contract Admin./Labor Compliance, Frisbie Park Sewer Lift Station, Fevdbujpo City of Rialto Master of Public • Administration, University Separation, SGVCOG/ACE of Southern California BS Anthropology/Law & | Roadway Worker – PHL | Lone Worker – PHL | Superuser in Procore, Society, UC Riverside Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft Njlf!Nbtfohbmf!}!Nbjo!Jotqfdups0Dpotusvdujpo!Nbobhfs Mike Masengale has 36 years of water systems experience in which he has served 4 years with Berg as a Construction Manager, 10 years as Superintendent, 18 years as Foreman, and 6 years as a laborer, making involving water, sewer, storm drains, emergency repairs, grading, paving, and concrete work ranging from $1,500 to $20M in value. He regularly and excellent project leader. He also communicates effectively and cooperates well with owner representatives for the successful completion of projects. His understanding of the process, the materials, costs, and how contractors Zfbst!pg!Fyqfsjfodf approach the work, brings the City an outstanding advocate for achieving a 36 Years high quality project with minimal disruption to its community. Zfbst!xjui!Cfsh 5 Years •CM/Insp., On-Call CM Services, City of Santa Monica Tpguxbsf –GZ2:031!Boovbm!Xbufs!Nbjo!Sfqmbdfnfou Procore, Bluebeam, –GZ2902:!Boovbm!Xbufs!Nbjo!Sfqmbdfnfou –GZ26027!Boovbm!Xbufs!Nbjo!Sfqmbdfnfou Fevdbujpo •Lead Insp., Water Main Improvements on Cedar, City of El Segundo Business Administration •Lead Insp., N. Santa Monica Blvd. Reconstruction, City of Beverly Coursework, Golden West Hills College OSHA Compliance & Workplace Safety | Primary Non-Commission Szbo!Nppsf!}!Jotqfdups0PF Ryan has over 10 years of experience in construction inspection, construction requests, supports with contract change orders, tracks weekly statements of working days, prepares service contract documents, keeps logs for submittals, RFIs, RFCs, and RFQs, reviews extra work bills submitted by contractors. He routinely inspects street improvement projects and has a proven track record of maintaining meticulous project documents. •Inspector/OE, Antelope Roade Safety Median, City of Menifee Zfbst!pg!Fyqfsjfodf •Lead Inspector, Street Enhancement Project CIP, City of Huntington 14 Years Park Zfbst!xjui!Cfsh •OE/Lead Inspector, Alder Avenue & Randall Ave. Street 3 Years Improvements, City of Rialto Tpguxbsf •OE/Inspector, Fullerton Road Grade Separation, SGVCOG/ACE Procore, Airtable, Caltrans Water Pollution Control on Bluebeam, Microsoft Fevdbujpo BA Chaffey College Inspector General Principles Review Course (CESSWI) - 6 Professional Development Hours | 30-Hour OSHA Construction Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft E/!Voefstuboejoh!pg!Offe the proposed SA-7 Pressure Reducing Station. E/2/!Qspkfdu!Voefstuboejoh The jack and bore operation under SR-55 will commence at a later date in coordination with It is our understanding City of Santa Ana requires OCTA ROW agreements. Once the City contractor a consultant to provide construction management has completed jack and bore, the SA-7 PRS and inspection services to oversee three construction can begin; however, cannot be fully interconnected projects within the SR-55/Ritchey completed until the Caltrans contractor completes Water Improvement Project with the goal to relocate a water main, a pressure reducing station, and the months. water pipes crossing under the SR-55 in advance Although it is important to get the contractor of the highly anticipated SR-55 widening between mobilized to complete the Ritchey St work, critical the I-405 and I-5. The Berg team values working on projects that enhance connectivity, safety, and the bore and jack operation and the SA-7 PRS infrastructure upgrades within communities. construction dependent upon the initial right of way waiting period for RICOH. This affects the easterly and knowledge that Berg has specialized in for pit and the waiting period for the Caltrans RCB, 40 years in the Southern California region. The which affects completion of some minor aspects main construction elements include excavation/ of the PRS. A suggestion would be to have 2 interim milestones: one for the completion and installation (PVC, DIP, welded steel), water activation of the Ritchey St main and a second for monitoring/control systems, water systems the activation of the SA-7 PRS. This would ensure the primary objectives of the Project are met as quickly as possible. Final completion of the wall block wall, landscaping, paving, striping, utility and energy dissipator drain are not critical and can coordination and agency coordination. await Caltrans completion of the RCB. We understand a major element of the project The Ritchey St. Water Main Relocation has 4 TCE work; on the west side of the SR-55, Western Exterminator, and on the east side of main (PVC and DIP), 2) Installation of new FH’s, the SR-55, RICOH. OCTA is currently in the services, FDC’s or connect to existing, 3) Test/ process of obtaining right of way access through cutover and, 4) AC overlay/stripe. The new main is construction easements and property acquisitions. Of importance is the assumption that the City contractor cannot gain access to these properties PVC. The Southwest 300-ft to 400-ft cross over until July 2022. This schedule hold becomes the critical path for the project, of special concern, if work as shown on Sht C106 (Sht 10 of 39) SA-7 the project construction commences with Ritchey YARD PIPING PLAN. St main replacement and there are subsequent The southerly end of Ritchey St. requires detailed delays with the easements from either Western Exterminating or RICOH, impacting the duration of pipe crosses over the street median. At each angle the project. The CM team will work with the City to ensure OCTA is aware of potential negative a short section of concrete encased DIP which impacts if the ROW is not available, and possible requires crews to slightly switch operations to plan positive impacts if the ROW were to become for construction and curing of the concrete. All parts available sooner. Of the three interrelated projects, the Ritchey Street main, a stand-alone project, will commence at angle points, extensive, complete, and detailed Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft points do not change or that additional angle points installation of transmission mains. Both casings tunnel per Cal-OSHA and, therefore, shall meet the requirements of Cal-OSHA. The casings/ On the south end of Ritchey St., there is an existing tunnels are constructed within the Caltrans ROW valve just beyond the limits of construction. This and must meet Caltrans requirements. The project schedule must include time for Caltrans review of all it can be closed to allow for the cutover process; layouts, calculations, and work plans. The Caltrans otherwise, repair or replacement of the valve is Encroachment Permits Manual, Guidelines and necessary, to avoid a 2nd line stop valve. On the north end of Ritchey St., the City is adding is to be adhered to, including fulltime inspection a valve to the existing mainline via the line stop by the project owner’s designated representative method, that is, installing a valve while maintaining during tunnelling (bore and jack) operations. In addition to the bore and jack Work Plan, the the limits of the waterline shutdown required. contractor will be required to monitor the SR-55 The contractor will pothole this location prior to surface to ensure no heaving or settlement occurs. submitting shop drawings of the pipe. This is to Installation and testing the pipe will occur during ensure the condition and outside diameter of the sized line stop/valve is procured. Sheet 26 of 39 of The SR-55 widening will relocate an 8’ x 4’ RCB the plans has a line stop plan identifying k-rail to currently on the east side of the SA-7 Facility. Due to its proximity to the SR-55, the City and Caltrans water barrier be added on the south side work area are requiring the majority of the SA-7 Facility be to protect from blunt end exposure as currently built (excluding a portion of the east block wall and shown on the plans. discharge structure), commissioned and activated, including partial demolition, prior to construction of the RCB. Of note, the existing block wall contains water main is activated, and the SA-7 Facility lead paint with elevated levels that will require the is activated. Although this sounds like an easy material to be handled as Non-RCRA Hazardous process, due to the length of the pipe runs, there Waste which will require a lead workplan and will be many setups and pumping operations. disposal plan prior to demolition of the existing wall. The City contractor is required to overlay the entire width of Ritchey St. for the length of the project. PRS construction will commence after the bore & Once the main is relocated in Ritchey St., MCI jack operation is complete and the pipe placement /testing is completed. Our inspectors are highly the City contractor is to wait until MCI is complete experienced with pipe and valve installations, and before beginning the overlay work. Coordination our lead inspector has extensive electrical and pump with MCI will be important to avoid delays to the station experience Our specialty subconsultant City contractor’s schedule. (ON-SITE) will verify Special Provisions Section 17100 Field Testing requirements are completed and ensure a smooth commissioning/ activation of Construction of the jack and bore casings for the water crossing cannot commence until OCTA has the SA-7 PRS. completed ROW agreements with the RICOH Once the new PRS is operational and accepted, property owners. The RFP has indicated a four- the existing PRS can be removed. Coordination month timeline. Both of our proposed inspectors with Caltrans will be required to verify length of Asbestos Cement (AC) pipe to be abandoned. An operations, as does our Project Manager, Dave AC Pipe Handling plan to ensure the AC pipe is not Smith. friable will be required prior to removal. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft !!Dppsejobujpo!xjui!PDUB OCTA is procuring easements on both sides of the SR-55 with Western Exterminator and RICOH. The affects the start of the two casing crossings. Coordinating with OCTA to determine the earliest start date OCTA is coordinating with Caltrans for the SR-55 Widening Project; with OCTA procuring the CM and Caltrans procuring the construction contractor. The SR-55 project is to be completed between the two phases of work on the City’s SA-7 Pressure Reducing Facility. Per the RFP, we are to assume a 12-month construction period. It is important to closely coordinate with OCTA and their CM team to ensure the Caltrans contractor is aware when the area will be ready for them to begin relocation of the 8’ x 4’ RCB and for us to be aware, well in advance, of when the Caltrans contractor will have completed their work before turning over the area and when receiving it back. Photos and videos will be taken in both instances to document the condition. Both events would be required to be included on the City contractor’s CPM schedule. !!Bewbodf!Opujdf!pg!Tivuepxot! Sjudifz!Tusffu!Xbufs!Nbjo;!The line in Ritchey St. is a large water main which provides water service and to the City (SA-7 Facility) and local businesses are critical to good relationships with 3rd parties and contractor’s CPM schedule. Personal contact with each business by the CM team is imperative. City TB.8!Gbdjmjuz;!Critical to the City of Santa Ana’s water operations and per City requirements, this facility can only be shut down for 7 consecutive calendar days. The CPM schedule would include pipe/electrical installation, testing/commissioning, and would be monitored closely to ensure no time slippage. To ensure the shutdown is completed within the required 7-day period, the contractor would be required to submit a Testing/Commissioning Procedures submittal and a 7-Day Shutdown Activity submittal. !!Vujmjuz!Dppsejobujpo! As noted in the discussion regarding concrete encasement for pipe angle points, potholing of the known potholing the known utilities, the CM team will ensure the contractor contacts DigAlert to mark utilities in the entire footprint of the Project to ensure the designer did not miss any or that none were added after design. The contractor will pothole the various tie-in points to ensure the horizontal/vertical alignment is !!!UDF!Nbobhfnfou TCE usage activities. Once the Project has commenced and schedules are known, the CM team will ensure that both OCTA and the TCE owners (Western Exterminating and RICOH) were aware of the dates and the work activities that will be occurring. These dates will be checked each month for discussions Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft E/3/!Pvs!Ufbn“t!Bqqspbdi! As your CM team, we are your front line on the project, coordinating contractor activities and representing you to the public. We strive to make a good impression and make certain that the public sees this project as a good use of public funds and excellent City management. Establishing a professional working relationship with the contractor so that we work as a team to identify potential problems and solutions as the work is planned is as powerful a quality assurance tool as continually inspecting all work. 234 dpnnvojdbujpoepdvnfoubujpofwbmvbujpo DpotjtufouEfubjmfe!Ebjmz!SfqpsutRvbmjuz!Bttvsbodf Nfujdvmpvt!Gjmf!NbobhfnfouNpouimz!Qsphsftt!Sfqpsut Vujmj{f!Dibjo!pg!DpnnboeUsbdljoh!MphtJoufsobm!Bvejut Our QA/QC program is rooted in three fundamentals that we practice in every aspect of the project: communication, documentation, and evaluation. As illustrated in the graphic above, we use these basic Our Contract Adminstrator will provide quality control by evaluating progress through schedule and budget assessment. We will also confer frequently with the City of Santa Ana to dialogue regarding quality delivery of services. Berg’s approach to project management promotes teamwork and cooperation, understanding that a project’s success depends on the success of each party. We have seen proof that continuous and effective communication is vital to the success of all projects, and we promote this by: •Establishing clear lines of communication. •Timely responses to RFIs and submittals. •Being positive and cooperative. •Managing schedule and quality through communication and coordination. •Ensuring impeccable accountability utilizing the latest management tools. •Building stakeholder and community support through open communications. We will provide exceptional construction management and technical inspection services complete with pre-construction and post-construction, to deliver a successful project. Our goal as CM is to make certain that the project moves forward consistent with all applicable administrative requirements while focusing on the nuts and bolts of safety, quality, schedule, and cost. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft Qsf.Dpotusvdujpo!Qibtf During the pre-construction meeting, we will review preliminary schedules, discuss procedures, and begin to build a collaborative stakeholder team between the contractor, the City, the designer, Berg, and opportunity to work with the contractor to establish a mutual understanding of the project goals: •The schedule is a team effort •Communications with team members is important • A key item of discussion during the Pre-Construction Meeting will be the communications process for the CM staff that clearly lays out communications protocols. This is a communications tool that can help the contractor understand who he will be dealing with for any particular issue. Other agenda items include Together with the City, Berg will assist the City to implement an approved strategy to mitigate construction impacts, respond to public inquiries, and keep the local residences and businesses informed. Regularly scheduled dissemination of construction activity information. The key to keeping commuters and residents tolerant of project construction is frequent and community. We will make sure that there is plenty of advance notice to all schools, residents, and businesses that may be affected. Establishing an agreed-upon schedule of values to break down lump sum bid items will facilitate an accurate assessment of work progress and streamline subsequent payment to the contractor. Our management team is diligent to make sure that the amount paid to the contractor never Contractor schedules are important tools in the schedule management effort. These submittals demonstrate whether the contractor has an understanding of what needs to be done to complete the work and material and equipment procurement including the time for shop drawing approval. Our team will review the contractor’s baseline schedule, analyze the critical path, and establish a clear understanding of project milestones. The contractor is responsible to submit a CPM schedule for the project, which is the base tool used to monitor Project progress, plan the work and keep 3rd Party entities aware of work activities that affect them or work windows they will be using. We will ensure the following are included in the contractor’s CPM schedule: 1.All work activities 2. 3. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft compliance with City regulations. We monitor all Dpotusvdujpo!Qibtf permits that the contractor is required to obtain for the project, which will include the following: Berg staff are thoroughly familiar with Greenbook •OSHA excavation and shoring permits and Caltrans procedures and standards and will •SWPPP (NPDES) perform construction inspection services, as well as •Building, electrical, and sewer permits the construction of the project in conformance with •Grading permits these standards. •Caltrans permits We bring experienced staff that can identify • potential issue areas before a problem arises. However, if corrective work is required, we are •Disposal Permit sure to have a thorough understanding of what •Construction Water Permit needs to be done and can quickly inform you of the options available. Corrections or adjustments •State Division of Industrial Safety Permit will be executed before work is completed, saving •Right-of-Ways and TCEs time and cost of redoing work. The contractor would stake the TCE limits to ensure We identify any non-conforming items prior to their that work activities, equipment and workers do not incorporation into the work and immediately notify extend beyond the allowable TCE limits. This may the contractor to start corrective action to prevent sound trivial but even minor extensions on the etc.) outside the limits can escalate to negative communication with the property owner and even recommendations for appropriate curative actions. claims for additional usage. And at all times during the project both properties will be secured with It is the Construction Manager’s responsibility fencing by the contractor. to quickly turn around routine submittals that do Once the work is complete, the CM team completes a TCE site review with pictures and video to certain that submittals that need to be reviewed by the designer are complete and to be cost owner is invited and encouraged to attend this so effectively reviewed. To ensure that submittals that all parties are on the same page. are complete prior to processing, we review each Lfz!Tvcnjuubmt before forwarding them for review. The Testing/Commissioning Procedures submittal An approach we have successfully used requires would be reviewed by the Berg’s Lead Inspector the contractor to assemble a list of submittals and water specialist, Mike Masengale, would also be forwarded to the City for comment. This would provide a schedule of when the submittals will be available for review. This completed list is then SA-7 Facility cutover is accomplished the system distributed to all interested parties for managing will be up and running with no issues. their efforts and identifying the submittals that are The 7-Day Shutdown Activity submittal will also of particular interest to them. be reviewed by Mike Masengale and Project Manager, Dave Smith. It would also be forwarded We check that the contractor has applied for all of to the City for comment. This will be a very high the appropriate permits and will work closely with detailed activity plan to include required work the City and contractor to coordinate submittals, activities, testing requirements, contingency plans, approvals. We ensure that the contractor is in day) to allow for minor issues. Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft workers, staff, and the public from the transmission Our team will prepare the agenda, chair all of COVID-19 and variants. meetings, and issue subsequent meeting notes. In addition to weekly progress meetings where A crucial task for our Inspector is to verify quantities safety, anticipated work, schedule, and submittals for recommended payment of the contractor’s are discussed, there may be internal meetings monthly pay application. Spreadsheets are used with the City or issue resolution meetings. to track bid items such as the amount of concrete Tailgate, weekly and monthly safety meetings used for each concrete mix design, the amount and third-party coordination meetings will also be of asphalt placed per mix and day, the amount of held. For time-critical materials, we encourage aggregate base placed, etc. This is also used to and conduct readiness meetings between the ensure quality assurance testing frequencies are designer, contractor, and supplier, as-needed, to met in a timely manner. expedite the approval process and avoid multiple Our Contracts Administrator will receive and review re-submittals and the associated loss of time. While we do not want to interfere with the payroll submissions to our inspector’s daily reports contractor’s means and methods of performing to verify consistency. They will generate a list of their work, there are several things that we can all contractors that worked each week and will do to promote a positive attitude towards best practices: or a ‘no work performed’ statement provided. •Remind the contractor of the requirement Our Project Manager will receive, review, and to implement an approved safety program recommend to the City for payment the construction •Participate with the contractor in safety reward lunches quantities and pertinent supporting documentation. •Report unsafe acts or conditions All pay items are documented on Quantity Sheets •Promote the tracking and posting of project (Q Sheets) per Caltrans procedures. Timely safety statistics processing of progress payments represents a We conduct a review of the site to verify all safety measures are in place, and we look beyond the immediate limits of the project to see if an we calculate and forecast to asses if a bid item unintended consequence is a result of the project will exceed 5% of the original bid quantity. If we trained and promote safe practices by pointing City with enough advance notice to take corrective out equipment or situations that are not safe and action or facilitate a change order. It is important praising a safe work approach. Berg will ensure to encourage the contractor to submit timely billing that the contractor is made aware of and follows the most current City, cunty, and CDC Health to avoid delay claims. mandates, such as those designed to protect Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft Typically, we encourage the contractor to meet are very important for monitoring the contractor’s with us prior to formal submission of the progress schedule and having a detailed look into each payment request to make certain that there are no week of the project including: miscommunications that might delay review and •Total work days, weather and manpower statistics ensure that the contractor is not being overpaid, •Status of potential changes and change the review includes: orders •Review of as-built documentation to make •Representative progress photos certain that it is up to date. –! •Review of on-site materials advance –!vduj !!Qspkfdu!Dmptfpvu payments (if allowed under contract) to make certain that materials previously paid for remain properly stored and, if Once substantial completion occurs, a punch list incorporated into the work, are deducted is developed of items requiring the contractor’s from the advance installed price. attention to be completed. Our team will schedule •Review of amounts withheld to correct so that discrepancy lists are completed in a timely manner. Qptu. Consistent and complete recording of project progress is important to keep City staff informed of what is happening, to provide a comprehensive Our team will maintain redline as-built plans record of work performed and the quality of that throughout construction. As RFIs and design work, and to have accurate documentation in the event that there is a change or claim. Daily reports changes into the redline as-built plans. Any are one tool to make certain that all pertinent additional contractor as-built deviations from the information is gathered, including: design documents are included in the redline as- •Climate conditions and their effect, if any, built plans. At the conclusion of the construction on work activities phase, we forward the redline as-built plan to •Number of workers by trades, including shift work plans. •Material and equipment •Construction activities by trade and location All claims and payment items must be negotiated •Special inspections • retention will not be released until acceptance of •Observations of work completed the project by appropriate authorities. •Interesting or unusual occurrences As construction work approaches completion, we •Any work-related, off-site activity work with the contractor to coordinate the collection •Work-related discussions, correspondence, or visitors to the siteof warranties, guarantees, lien releases, spare parts, operation and maintenance manuals, and Our monthly reports will contain a construction record documentation. We review documentation progress status update to provide you with a management level overview of construction to make certain that it is in the proper format and contains the information required by contract. progress and issues. In each case, we address We compile this information to verify that all how we are proceeding to resolve issues. Weekly documentation is complete prior to issuing a meetings, a summary of work activities, and schedule updates from the week. These reports Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft F/!Sfmfwbou!Qspkfdu!Fyqfsjfodf | City of Santa Monica Berg currently holds an on-call contract for various CIP projects that began in January of 2016. This $1.4 million project constructed along Ocean Avenue included upgrades to the City’s waterline distribution system, and restored asphalt roadway paving and striping. After approximately 2,000 ft. of existing water main was replaced, 110,000 square feet of Ocean Avenue roadway On-Call Capital Improvement was ground and capped with rubberized hot mix asphalt. Program The work began next to the highly congested entrance to Santa Monica, CA the Santa Monica Pier and included consistent outreach 2023 to the business and residential communities. City of Santa Monica This $4.9 million project had similar elements to the FY 15/16 project but on Carlos Rosales, PE a larger, more complex scale. The replacement of 7,000 CIP Project Manager, City of Santa Monica ft. of water mains were scattered throughout the city at P: (310) 458-8721 x 2620 10 different locations. Some locations were residential, E: carlos.rosales@smgov.net and some were commercial, and some were both. The projects biggest challenge of keeping all stakeholders informed was successfully met by the CM team. City of Rialto Berg provided construction management, inspection, and gravity lines within a park in Rialto. Work that contained roadway improvements required cold-milling, construction of ADA ramps, double adjusted Frisbie Park Sewer Lift Station Rialto, CA of new 4-inch diameter PVC pipe and 8-inch diameter 2020 clay pipe. Much emphasis was placed on coordination City of Rialto with the utility companies for the project. The Berg Team encountered several utility companies delays but was able Thomas Crowley, PE to coordinate with utility executives to resolve the issues Utilities Manager, City of Rialto and to move the project faster towards completion. P: (909) 820-8056 E: TJCrowley@rialto.ca.gov Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft | City of El Segundo Berg served as primary construction manager for this Bid- Build project. Approximately 950 feet of existing old water mains, located primarily on two residential streets, were hydrants, meters, air relief valves and associated laterals Water Pipeline Replacement as well as connections to existing systems, chlorination, Improvement El Segundo, CA 2019 were removed and replaced at the request of the water City of El Segundo department. This extra work was tracked and paid on a Lifan Xu, PE T&M basis. City Engineer, City of El Segundo Mike served as lead inspector, overseeing the contractor’s P: (310) 524-2368 daily activities, monitoring contractor schedule and E: lxu@elsegundo.org City of Torrance water main at the intersection of Hawthorne Boulevard construction would not impede on access to businesses. Other project services included trench excavation, pipe laying, sidewalk reconstruction, cold milling, HMA paving operations, pavement striping, and curb making. The The second phase of this project has just kicked off and Coast Highway Water Main Replacement will widen the intersection at Hawthorne Boulevard and Torrance, CA 2022 turn lanes and right-turn pockets at all four approaches. City of Torrance New PCC pavement sections will generally consist of Jointed Plain Concrete Pavement (JPCP) over Lean Steven Finton, PE Engineering Manager, City of Torrance Concrete Base (LCB) over Class 3 Aggregate Base. P: (310) 618-6260 E: SFinton@torranceCA.gov installation, relocation of catch basins, a small retaining wall, new landscape, and irrigation. discovered that the contractor had a defunct message board that would stop working, so he documented Cfsh!'!Bttpdjbuft-!Jod/! TS.660Sjudifz!Xbufs!Jnqspwfnfou!Qspkfdu! Dpotusvdujpo!Nbobhfnfou!'!Jotqfdujpo!Tfswjdft City of Fullerton Berg served as Prime construction manager providing a full service 9 person CM team for the City of Fullerton’s Raymond Avenue Grade Separation. The project which is one of seven grade separations within the OC Bridges Program, included the construction of a vehicle undercrossing rail bridge, a pump station, and the relocation of multiple wet and dry utilities including the owned by the Metropolitan Water District. Raymond Avenue Grade Separation Berg provided resident engineering, complete construction Fullerton, CA management and quality assurance services for the 2019 project. Pump station work included fabrication and City of Fullerton installing piping, catwalks, and handrails with features Ross Lew, PE such as electrical systems, control systems, gas detection Program Manager - Highway Programs, OCTA systems, fall protection systems, and an intrusion detection P: (714) 560-5775 system. E: rlew@octa.net The Berg Team worked closely with third-party utilities – the Metropolitan Water District (MWD), Southern California Edison (SCE), AT&T, Time Warner Cable and SoCal Gas – to coordinate utility relocation sequencing. One in order to perform bacteriological tests. It also required coordination with other projects occurring along Staging of utility work so that existing utilities remained in service while installing new utilities became an issue. To solve this, the Berg Team carefully modeled a work sequence that would ensure minimal impact to businesses and residents during construction while maintaining the construction schedule. The hour- by-hour schedule for connections was approved two weeks in advance and readiness reviews were held the week prior to shut down. G/!Sfgfsfodft Station Carlos Rosales, PEThomas Crowley, PELifan Xu, PE CIP Project ManagerUtilities ManagerCity Engineer City of Santa MonicaCity of RialtoCity of El Segundo P: (310) 458-8721 x 2620P: (909) 820-8056P: (310) 524-2368 E: carlos.rosales@smgov.nettE: TJCrowley@rialto.ca.govE: lxu@elsegundo.org Darrin Lambrigger, PE Ross Lew, PE Director, Construction Program Manager, Highway Management Programs Port of Long Beach OCTA P: (563) 283-7200 x 7205 P: (714) 560-5775 E: darrin.labrigger@polb.comt E: rlew@octa.nett Cfsh!'!Bttpdjbuft-!Jod/! Tdpqf!pg!Tfswjdft 3 '!Tdifevmf Gff!Qspqptbm 4 5 Bqqfoejy 6 Will Bosboom, CWI, ACI, ICC Senior Inspector Professional Summary EDUCATION Graduate Gary Larsen Special Experienced with IBC, ICC, & ACI Codes for Steel construction and Concrete Construction. Inspector Courses; This inspector is highly qualified in all aspects of structural steel and concrete fabrication and Welding/Structural Steel erection, including high strength bolting, concrete to building plans, drawings, reviews welding A.W.S. / C.W.I. Course procedures and welder certifications. AWS CWI and ICC Certified welding inspector, and ICC certified for structural bolting and lot testing. Witnesses NDE and reviews test records. Valley Community College, San Bernardino. Construction Qualified and experienced in the inspection all phases of shop and field fabrication, and Blueprint Reading Course, construction of ASME pressure vessels, heat exchangers, petroleum chemical Orange Coast College, Costa piping/pipelines, and storage tanks with extensive experience with all the AWS Welding Mesa Codes, including D1.1 Structural Steel Welding Code, and the ASME Pressure Vessel Code. CERTIFICATIONS Hands on experience with all aspects of Large Diameter Pipe Fabrication ranging from 24” to AWS Certified Welding 120” diameter and Construction Site inspection, NDE witnessing, weld repair, dimensional Inspector 05040491 inspection, and cement mortar lining operations, tape wrapping/coating operations inspecting all aspects construction during installation verifying quality/quantity of materials HDPE Fusion and PVC for compliance with specifications requirements. Has extensive experience providing Training fabrication inspection and installation of HDPE-PVC pipe and fittings ranging in size from 18” NACE Training to 54” in diameter Performs inspections for all aspects of structural steel and concrete fabrication and ICC Structural Steel & Bolting Inspector, Cert # 5104561 construction, including high strength bolting, concrete placement, drawing review and interpretation. Inspects subbase preparation, rebar placement, form placement, and casting ICC Structural Welding on concrete construction. ICC Certified concrete inspector and ACI Technician. Experienced Inspector, Cert # 5104561 with all aspects of Reinforced Concrete Pipe (RCP); including witness of manufacturing, D- Load Testing and Visual Inspection of sizes ranging from 12” through 72” diameter. ICC Reinforced Concrete Inspector ACI Technician Experienced in other aspects Heavy Civil construction projects including storm water and Grade 1 sewer installation as well as water line installation. Proficient in verifying quantities during construction and compliance with specifications requirements. L.A. Certified Welder, Manual and Semi Automatic Has a Strong oral and interpersonal skill for communicating with the contractor’s representatives Coordinating inspections with other trades, and project team member’s. YEARS EXPERIENCE Proficient reading and comprehending contract specifications, detailed drawings, 20 Years construction blueprints and problem solving related to construction inspection practices. YEARS WITH FIRM 16 Years Project Experience Los Angles World Airport As fabrication inspector performed Quality Assurance inspection during fabrication of large diameter steel pipe 8”-64” diameter, mechanical equipment, structural steel, stairs, railings, ductile iron pipe, concrete reinforced pipe, valves, roof joists, transformers, switchgear, HVAC, VFD, PLC, electric circuits, mechanical systems, hydraulics and cast iron floor hatches, glass supported railing, modular air handling units, fixed walk ways. Witnessed Factory Acceptance testing of Air Handling Units for LAX Delta T-5 to ASHRAE, ARI, and AMCA standards for (2) 23,500 CFM units. Monitored and verified air flow, pressure drop, sound levels and various electrical parameters of the VFD’s. • Tom Bradley International Terminal (TBIT) • Bradley West Project • The Southside Runway Improvements Project • Runway 6L-24R Rehabilitation Project • West Aircraft Maintenance Area Project Calleguas Municipal Water District steel pipe ranging in size from 8” to 49” diameter. Performed construction welding inspection/NACE during the installation of steel pipe and fittings ranging in size from 8” Will Bosboom, CWI, ACI, ICC Senior Inspector to 49” diameter. Duties include the verification of fit up and laying pipe in trench, a visual weld inspection, witness NDE, coating inspections and is called upon to offer technical assistance with difficult welding problems. • Wellfield Emergency Generators-shop and construction site specialty pipe fittings OTAY MWD-As Needed Inspection Services— As Senior Inspector provides in plant fabrication welding inspection of Large Diameter pipe, specialty fittings and related NACE coating inspection for the following Projects; duties included welding inspection, hydro testing, and welder qualification testing: • Otay Crossings Commerce Park Tract 5405-1 Independent Contractor -As Needed Inspection Services— Certified Structural Steel & Welding Inspector.Performed CWI, ICC and ACI inspections on the following projects: Augustine Ramirez Intermediate School, Eastvale, CA, DSA app. 04-106717, Shop and field welding inspection, $350 million dollar project Riverside Community College Nursing and Science buildings, Riverside, CA, DSA app. 04-109948, Shop and field welding inspection, $52 million dollar project Moreno Valley College Student Resources building, Moreno Valley, CA, DSA app. 04- 111892, Shop and field welding inspection, $30 million dollar project Orange Coast College Learning Resource Center, Shop and field welding inspection, $30 million project Valley College Chem. Science Bldg., San Bernardino, CA, DSA app. 04-109148, Shop and field welding inspection, $25 million project Orange Coast College Arts Pavillion, Costa Mesa, CA, Field welding inspection, $10 million project Distribution Center for Pro Logis Corp. in Rialto, CA, 1.2 million square foot Welding, bolting, and concrete inspection Steel Framed Three Story office building at Fashion Island, Newport Beach, CA, Field welding and high strength bolting inspection Steel Framed Five Story Office Building in Murrietta, CA. Field welding and high strength bolting inspection !Sbmqi!Dpjm-!DXJ-!OBDF-!BDJ! Tfojps!Jotqfdups!! Qspgfttjpobm!Tvnnbsz! FEVDBUJPO! Pwfs!31!zfbst!fyqfsjfodf!jo!uif!dpotusvdujpo!joevtusz!jo!uif!gjfme!pg!xfmejoh!fohjoffsjoh-! Qipfojy!Tdippm!pg!Xfmejoh! !opo.eftusvdujwf!uftujoh-!OBDF!boe!xfmejoh!jotqfdujpo!fyqfsjfodf!xjui!mbshf!ejbnfufs! 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Planning and Building Agency www.santa-ana.org/pb Item # 14 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 Topic: Amendment to Agreement for Planning Informational Videos AGENDA TITLE Approve Amendment to the Agreement with Enlightened Pictures, Inc. for the Development of Planning Informational Videos for a Total not to Exceed $96,865 (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with Enlightened Pictures, Inc. for one year ending November 16, 2022, increase compensation by $14,615 for a total not to exceed amount of $96,865 for planning informational videos, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On November 17, 2020, the City of Santa Ana approved an agreement with Enlightened Pictures, Inc. for the production of planning informational videos with a budget of $82,250. Due to the pandemic, adjustments were made during script writing and production to accommodate social distancing measures, shifts in staff resources, and enhance the illustrative videos. Therefore, additional time and funds are necessary to ensure the improved completion of the project. The increase in cost is $7,440 with an 8% contingency for a total amount of $96,865. The revised budget can be accommodated within the SB2 grant. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and available in the following Planning and Building expenditure account for FY 2021/2022. Fiscal YearAccounting Unit-Fund Accounting Unit, Amount Account #DescriptionAccount Description FY2021/202215816500-Planning PBA SB2 Planning $14,615 62300Grants ProgramGrants Program, Contract Services- Professional Amendment to Agreement for Planning Informational Videos November 2, 2021 Page 2 EXHIBIT(S) Exhibit:1. Amended Agreement with Enlightened Pictures, Inc. Submitted By: Minh Thai, Executive Director, Planning and Building Approved By: Kristine Ridge, City Manager FIRSTAMENDMENT TO AGREEMENTWITH ENLIGHTENED PICTURES TO PROVIDE PLANNING INFORMATIONAL VIDEOS THIS FIRST AMENDMENT to the above-referenced agreementis entered into on November 2, 2021, by and between Enlightened Pictures, Inc. (“Consultant”), and 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”). RECITALS A. The parties entered into Agreement No. A-2020-227, dated November 17, 2020, by which Consultant agreed to develop and provide informational videos for the City’s Planning and Building Agency (“Agreement”). B. The Agreement remains in effect through November 16, 2021, with provision for extension. C. The parties now wish to expand the scope of work and increase the amount to be expended under the Agreement in consideration of the expanded scope. The Parties therefore agree: 1. Section 1, Scope of Services, is amended to include the scope of services described on Exhibit A. 2. Section 2.a., Compensation, is amended to increase the total sum to be expended under the Agreement, including any extension periods, by $14,615 for the expanded scope of services aboveso that the total sum to be expended shall now be $96,865. 3. Section 3, Term, is amended to extend the term of the Agreement through November 16, 2022. 4. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA _______________________________ ______________________________ Daisy Gomez Kristine Ridge Clerk of the Council City Manager \[signatures continue on next page\] Page 1 of 2 APPROVED AS TO FORMCONSULTANT Sonia R. Carvalho City Attorney By:___________________________ _______________________________ John M. Funk By: Senior Assistant City Attorney Title: RECOMMENDED FOR APPROVAL ________________________________ Minh Thai Executive Director Planning and Building Agency Page 2 of 2 EXHIBIT A DELIVERY TIMELINE 9/22/21 all scripts, except for 9 and 10, have received final approval from Santa Anafor production. 9/22/21 we have completed the first round of animation and received client notes for videos 1, 2, 3, 4, 5, and 7. Video 6 is currently half completed pending approval for additional funds for animation. As of 9/22/21 animation production has stopped pending approval for our revised scope and funds for additional animation for Video 6 “Development Project Review & Discretionary Permits”, Video 7 “Notice of Violation” (replacing text with icons/symbols), and Video 8 “Single Family Additions”. Voice Over recording for our main character Annie, will begin on October 4th. Spanish translation will begin at the end of October. We will scout and film all necessary locations for Video 9 “Harbor Specific Plan”, and 10 “Transit Zoning Code” between October and November. Pending approval for additional fundsanimation productionwill re-commencein December or January. This will include the currently allotted 3 weeks for notes, plus the 2 extra weeksfor additionalanimationforvideos6, 7, and 8. This will give time forstaff reviews, notes, and feedback, and any additional last minute changes. EP INC. RFP No. 20-103 Planning Information Videos page 4 AMENDED COST PROPOSAL This cost proposal is for an animated video series that includes an animated titles sequences, animated narration host, and 2D graphics of buildings and city street views. Demo Proposed PRE-Days/ Description Rate Total Changes PRODUCTION Hours Meetings & Location Scout $500/day 1 day $500 $600/day $6,600 Script Writing (10 scripts) 11 days Production Coordination $600/day 1 days $600 Voice Over Casting $500/day 1 day $500 Animation Design $500/day 5 days $2,500 Sub-Total$10,700 PRODUCTION Directing VO sessions$750/day 2 days $1,500 Animation & Graphics $1,200/day 30 days $36,000 *$7,440 Voice Over Studio Engineer $600/day 2 days $1,200 English VO Talent $900/day 1.5 day $1,350 Spanish VO Studio Recording$900/day 1.5 day $1,350 Sub-total $41,400 $7,440 stndrd POST-Includes 1, 2, and 3 edit PRODUCTION drafts and closed-captioning Editor/Director$70/hr. 250hrs. $17,500 Edit Suite$45/hr.250hrs.$11,250 Library Music$40/cut5cuts$200 Translation to Spanish Text$300/day4 days$1,200 Sub-Total$30,150 $82,250 $89,690 TOTAL 8% Contingency **$7,175 $96,865 Additional proposed changes not to exceed total *6.5 additional days of animation for Development Project Review video flow chart, Notice of Violation video images to replace text, and Single Family Addition video measurement code graphics. ** 8% contingency for possible changes, updates to code information, or additions such as captions for another language. EP INC. RFP No. 20-103 Planning Information Videos page 7 Public Works Agency www.santa-ana.org/pw Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: First Street / Bolsa Avenue Corridor Traffic Signal Synchronization Project AGENDA TITLE Approve a Cooperative Agreement with Orange County Transportation Authority and Partnering Cities for the First Street / Bolsa Avenue Corridor Traffic Signal Synchronization Project, in an Amount Not to Exceed $370,642 (Project 22-6993) (Non- General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a Cooperative Agreement (C-1-3598) with the Orange County Transportation Authority and the cities of Huntington Beach, Tustin, Westminster, and the County of Orange, which identifies each participating agency’s roles and responsibilities, including Santa Ana’s match requirement of $370,642, to implement the First Street / Bolsa Avenue Corridor Traffic Signal Synchronization Project, for the term beginning upon full approval of the agreement by all parties and effective until December 31, 2026, with the option to be extended by mutual consent of all parties, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On November 17, 2020, the City Council authorized staff to submit joint applications with participating agencies to the Orange County Transportation Authority (OCTA) to request funding consideration of the renewed Measure M2 Regional Traffic Signal Synchronization Program. The cooperative agreement for the First Street/ Bolsa Avenue project would provide for inter-jurisdictional traffic signal synchronization and improvements along the corridor traversing Santa Ana, Huntington Beach, Tustin, Westminster, and County of Orange jurisdictions (Exhibit 1). On March 24, 2021, the OCTA Board approved the Measure M2 funding request for the First Street / Bolsa Avenue project. While OCTA will act as lead agency for the project, a cooperative agreement is necessary to identify the roles and responsibilities of each participating agency to maintain inter-jurisdictional synchronization during the three-year grant period, which is scheduled to begin by January 2022. Upon project completion, responsibility for ongoing signal maintenance will revert to the respective local agencies. First Street / Bolsa Avenue Corridor Project Cooperative Agreement November 2, 2021 Page 2 The Measure M2 grant award provides $3,871,890. The match commitments from the participating cities will provide a combined total of $774,378. The City of Santa Ana’s share of the matching funds is $370,642, of which $333,042 is cash and $37,600 is in- kind staff support. On July 1 2021, City Council approved the Fiscal Year 2021-2022 Capital Improvement Program, which included $380,000 for this project. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Funds in the amount of $380,000 are budgeted in the approved Fiscal Year 2021-22 Capital Improvement Program and available in the Measure M2 Street Construction Fund (Account No. 03217662-66220, Project No. 22-6993). $370,642 of the funding is for the ’s share of the project costs – cash and in-kind staff support – and will be spent in the fiscal years identified in the following estimated spending plan: Accounting Unit - Accounting Unit - Fiscal Fund Account No.Account No. Amount YearDescription (Project No.)Description Measure M Measure M2 Local 03217662-66220 Fairshare, Improvements 2021-22Street $34,000 (22-6993) Other Than Building Construction Measure M Measure M2 Local 03217662-66220 Fairshare, Improvements 2022-23Street $333,042 (22-6993) Other Than Building Construction Measure M Measure M2 Local 03217662-66220 Fairshare, Improvements 2023-24Street $3,600 (22-6993) Other Than Building Construction Total$370,642 EXHIBIT(S) 1.Project Location Map 2.Cooperative Agreement Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager 5 NNOORRTTHH 55 First Street/ Bolsa Avenue Corridor Traffic Signal Synchronization Improvements 22 Westminster Ave 17th St 17th St Main St Civic Center Dr 5th St Tustin Ave 4th St Santa Ana Blvd 1st St 1st St Euclid StNewhope St Harbor Blvd Flower St Raitt St Bristol St Fairview StGrand Ave Edinger Ave Warner Ave Dyer Rd Segerstrom Ave Alton Ave MacArthur Blvd. Bear St 405 SANTA ANA City Council Project No. 22-6993: Agenda Date First Street/ BolsaAvenue PWA Traffic Signal Synchronization November 2, 2021 PUBLIC WORKS AGENCY September 16, 2021 Finance and Management Services www.santa-ana.org/finance Item # 16 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Balancing Act Software Suite for Budget Education, Engagement, and Transparency AGENDA TITLE: Approve an Agreement with Healthy Outcomes, Inc. DBA Balancing Act in an Amount not to Exceed $55,000 for a Subscription and Support Services Agreement (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Healthy Outcomes, Inc., DBA Balancing Act for a three-year period effective November 3, 2021, with an option to extend for up to two one-year renewals exercisable by the City Manager and City Attorney, not to exceed $55,000 over the entirety of the five-year period, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The City has provided a number of financial documents such as audited financial statements, City budgets, and budget/financial presentations on the City’s website in an effort to increase transparency. The City also uses a transparency tool, OpenBook, to provide a list of vendor payments and a summary of budgeted and actual revenue and expenses to the public. To enhance the public’s understanding of the City’s Budget, staff has recently reviewed a budget simulation tool, Balancing Act. Balancing Act is an annual subscription service that includes three software tools: The Simulate Tool provides a way for the City of Santa Ana to frame financial tradeoffs by allowing residents to build their own City budget. The Simulate Tool provides multiple budget inputs to work with and produces detailed and visual reports. The Prioritize Tool offers a simple way to present projects and costs. The City sets an overall budget and users select projects up to a specified amount, and then rank-orders them. The report provides weighted and unweighted results and can identify top projects based on three different voting techniques, including instant runoff. The City can utilize this tool to seek assistance with prioritizing projects Balancing Act Software Suite for Budget Education, Engagement, and Transparency November 2, 2021 Page 2 such as those within the Capital Improvement Plan (CIP) and/or Community Development Block Grant (CDBG) funding. The Taxpayer Receipt app asks a few questions to generate an estimate of taxes paid and then creates a “receipt” showing how much a resident pays for each service, which demonstrates the value of a service provided by the City. The Balancing Act software is currently used by the cities of Corona (Tax Receipt & Balancing Act) and Anaheim (Balancing Act). The annual subscription also includes an unlimited subscription to Analytics, which provides detailed insight into who is using the simulation and how they would balance tradeoffs, and Meeting Mode, which modifies Balancing Act for use in face-to-face or online synchronous meetings. Onboarding services and unlimited technical support are included. Balancing Act is a SaaS product and requires no installation. The annual subscription is $10,000 and a contingency of $5,000 has been included for any customization to meet the City’s reporting requirements. The projected completion date is February 2022, with the plan to incorporate this communication/engagement software suite in the upcoming fiscal year 2022-2023 budget development process. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and made available in the following accounts for the specified year: Fiscal Accounting Unit-Fund Accounting Unit, Amount YearAccount #DescriptionAccount Description FY 21-2201110100-62300General FundFMSA- Management & $15,000 Support, Contract Services FY 22-2301110100-62300General Fund FMSA- Management & $10,000 Support, Contract Services FY 23-2401110100-62300General Fund FMSA- Management & $10,000 Support, Contract Services FY 24-2501110100-62300General Fund FMSA- Management & $10,000 Support, Contract Services FY 25-2601110100-62300General FundFMSA- Management & $10,000 Support, Contract Services Balancing Act Software Suite for Budget Education, Engagement, and Transparency November 2, 2021 Page 3 EXHIBIT(S) 1.Subscription and Support Services Agreement with Exhibits A, B, C Submitted By: Kathryn Downs, FMSA Executive Director Approved By: Kristine Ridge, City Manager SUBSCRIPTIONANDSUPPORT AGREEENTFOR CitySantaAna, CA ThisSubscriptionandSupportAgreement(the"Agreement"),ishereby enteredintoasof November 3, 2021 (theEffectiveDat) by and betweenCity of SantaAna, CA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California.(Clien)andHealthy Outcomes, Inc.,DBABalancing Act, locatedat th 7897E. 24Avenue,Denver, CO,80238 (Balancing Act). ClientandBalancing Actare collectivelyreferredtoas"theParties"andindividuallyreferredtoas"Party." WHEREAS,Balancing Actisinthebusinessof developing websoftwareandsitescapableof hosting publicpolicysimulationsand related projectspromoting anexchangeofinformation andideasfor useby governmentalandotherentities; WHEREAS,ClientdesirestosubscribetoaccessBalancing Acproprietary web applicationsto beused for publiceducationandengagement,and NOW, THEREFORE,inconsideration oftheforegoing recitalsandmutual covenantscontained herein,thepartiesagreeasfollows: 1.SCOPEOFENGAGEMENT. A.SubscriptionAgreement.Balancing ActshallprovideClientwithaccesstothe productsand featuresof theBalancing ActwebapplicationspecifiedinExhibit Atothisagreementandagreesto provideallofthetechnical,administrativeand professionalsupportservicesnecessary to performthisAgreement.Clientis granted anon-exclusive, non-transferable,andrevocablelicensetoaccessand usetheBalancing Actwebsite.Clientshallhavetherighttotestandapprovethe application priortoitgoing live. B.SupportServices.Balancing Actshallperformandprovidecertainsupport servicesto Clientinaccordancewiththetermsandconditionsof thisAgreement andtheSOW(theServicesdescribed underSupportServices,theSupport Services). If Clienthereafter requestsadditionalservicesnotdescribed on ExhibitA(AdditionalServices),andBalancing Act iswilling andableto provide thoseAdditionalServices,thepartiesshall mutuallyagreeuponandexecuteone or moreadditionalSOWsthatcontainthe termsandconditionsoftheAdditionalServicesto beperformed. Eachsuch Б SOW shall be attached to and incorporated into this Agreement as an Exhibit through an Amendment to the Agreement signed by both Parties. Except as otherwise provided, any Additional Services to be performed by Balancing Act shall be subject to the terms of this Agreement. C. Fees. Client shall pay Balancing Act pursuant to the Fee Schedule selected by Client and attached hereto as Exhibit C The total amount to be expended during the Term of this Agreement shall not exceed $55,000. 2. FEE PAYMENT AND TIMING. A. Fees. In consideration of Balancing Act granting of access to the Site and performance of the Services, hereunder, Client shall pay Balancing Act fees, and reimburse Balancing Act for expenses, each in the amounts and in accordance with the payment terms and conditions specified in this Agreement and on Exhibit C attached hereto (collectively, the Fees). B. Late Payment. Except with respect to amounts disputed in good faith, all amounts due under this Agreement, if not paid within 45 days of the due date, shall be considered late and shall accrue interest at the rate of one and one-half percent per month or the highest amount allowed by applicable law, whichever is less. Should collection activities become necessary, Client agrees to pay all fees relating to said activity. C. Client Failure to Pay. Client incurring of a late payment (as determined in accordance with Section 2(B)) shall be considered a material breach of this Agreement. As such, until such breach is cured by way of full payment, Balancing Act may (i) refuse to deliver the reports, materials, and other deliverables that it would otherwise be obligated to deliver hereunder, (ii) cease performance of any Services, (iii) issue a notice of non-payment to Client, which, if not satisfied within 15 days after the receipt thereof, shall constitute grounds for Balancing Act to terminate this Agreement or the SOW applicable to the Services. These rights are not exclusive, and Balancing Act reserves its right to seek any other rights or remedies provided in law or equity. D. Taxes. All amounts payable to Balancing Act as specified herein are in United States dollars. Client shall be responsible for any taxes imposed on the transactions contemplated by this Agreement, including all sales, use, value-added, excise and other similar taxes (but specifically excluding taxes in, or measured by, Balancing Act income). Б 3. CLIENT OBLIGATIONS. Client shall be responsible for the accuracy of all data utilized by Balancing Act under this Agreement and shall comply with all laws and governmental regulations affecting its use, including all open and public records laws. Balancing Act shall have no responsibility to advise Client about the applicability of any laws or regulations that may apply to this Agreement. 4. SERVICE LEVEL AGREEMENT A. Support Services. (i) Balancing Ac web platform will be operational and available to Client at least 99.5% of the time in any calendar month (the Balancing Act Application SLA). If Balancing Act does not meet the Balancing Act Application SLA, Client will be eligible to receive the Support Service Credits described below: Uptime Percentage Support Service Credit (Days) < 99.5% - >= 99.0% 3 < 99.0% - >= 95.0% 7 < 95.0% 15 (ii) Service Credit Request. In order to receive any of the Support Service Credits described above, Client must notify Balancing Act within 30 days from the time Client becomes eligible to receive a Service Credit. Failure to comply with this requirement will forfeit Client right to receive a Service Credit. (iii) Maximum Service Credit. The aggregate maximum number of Support Service Credits to be issued by Balancing Act to Client for all Downtime that occurs in a single calendar month shall not exceed fifteen days of Service added to the end of Clients term for the Service. Support Service Credits may not be exchanged for, or converted to, monetary amounts. (iv) Application SLA Exclusions. The Balancing Act Application SLA does not apply to any services that expressly exclude this Balancing Act Application SLA or any performance issues: (i) caused by factors described in the Force Majeuresection of the Agreement; or (ii) that resulted from Client equipment or third party equipment, or both (not within the primary control of Balancing Act). Б 5. TERM. A. Term. This Agreement shall commence on the Effective Date and be effective for three years. B. Option to extend. Client shall have the option to extend for up to two one-year renewals at the same yearly price as during the Term discretion, exercisable through a writing executed by the City Manager and City Attorney. C. Termination. This Agreement may be terminated by the Client or Balancing Act upon thirty (30) days written notice of termination. In such event, Balancing Act shall be entitled to receive and Client shall pay compensation for all services performed by Balancing Act prior to receipt of such notice of termination, except for work which fails to meet the required standard of performance. D. Early Termination Fee. The yearly fee under this contract is based on a three- year term and as such is heavily discounted. If Client terminates before the completion of the three year term, Client agrees to pay an early termination fee of $2,000 and an amount equal to the difference between the discounted fee and the regular fee for each year prior to notification of termination. The difference between the discounted fee and the regular fee is $2,000 per year. 6. OWNERSHIP AND USE OF THE MATERIALS, USER CONTENT. A. Creative Materials. The Parties acknowledge and agree that an integral part of the services is the creation of the Balancing Act application for Client, which includes the development of certain information, content, text, graphics, logos, photos, videos, software and other items, as well as their selection and arrangement ("Creative Materials"). Such Creative Materials are protected by copyrights, trademarks, patents, trade secrets and other intellectual property and proprietary rights, and Balancing Act shall be considered the author of such Creative Materials and retains all right, title and interest in and to such Creative Materials. Client rights to use the Creative Materials are limited to use solely in connection with this Agreement, and the rights and obligations granted hereunder. Any rights granted to Client under this Agreement to use the Creative Materials shall cease upon the termination of this Agreement. B. User Content. The Parties acknowledge and agree that the user content generated on the Balancing Act website by others who are not parties to this Agreement is not owned by either Balancing Act or Client but can be used by either Party for Б promotional purposes or any other purpose during and after the term of this Agreement. Balancing Act acknowledges that the Client can and will retain the right to use any user content and the deliverables under this Agreement for any and all purposes related to the general business of the Client. 7. LIMITATION OF LIABILITY; DISCLAIMER OF WARRANTIES AND LIABILITY FOR ACTIONS OF THIRD PARTIES. A. Except for the terms and conditions set forth in this Agreement, Balancing Act makes no express or implied warranties about the performance of Balancing Act, including warranties of merchantability or fitness for a particular purpose. B. Neither party shall be liable for false or defamatory statements, either orally or in writing, made by others who are not parties to this Agreement. 8. INSURANCE. Vendor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with products and materials supplied to the Entity. The cost of such insurance shall be borne by the Vendor. A. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 00 01) and include products coverage. (i) Minimum Limits of Insurance Coverage shall be at least as broad as Insurance Services Form CG 00 01 covering CGL on an products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. If the Vendor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity. (ii) Self-Insured Retentions Self-insured retentions must be declared to and approved by the Entity. The Entity may require the Vendor to purchase coverage Б with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity. B. OTHER INSURANCE PROVISIONS The insurance policies are to contain, or be endorsed to contain, the following provisions: (i) Additional Insured Status The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Vendor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an surance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). (ii) Primary Coverage For any claims related to this contract, the insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the insurance and shall not contribute with it. (iii) Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity. (iv) Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. rating of no less than A:VII, unless otherwise acceptable to the Entity. (v) Verification of Coverage Vendor shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall Б The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. (vi) Waiver of Subrogation Vendor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Vendor may acquire against the Entity by virtue of the payment of any loss under such insurance. Vendor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer (vii) Special Risks or Circumstances Entity reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 9. ASSIGNMENT. Either Party may assign all or a portion of its rights or obligations under this Agreement but only with the express written consent of the other Party. 10. CONFIDENTIALITY. During the term of this Agreement, each party (the "Disclosing Party") may provide the other (the "Receiving Party") with certain confidential and proprietary information ("Confidential Information"). Confidential Information includes, but is not limited to, (a) the Deliverables under this Agreement, (b) all business, financial and technical trade secrets, (c) any written information which is marked "Confidential", and (d) any information which is orally disclosed, identified as confidential at the time of disclosure and confirmed in writing as being confidential within 30 days thereafter. Confidential Information shall not include information that (a) is publicly known at the time of its disclosure; (b) is lawfully received by the Receiving Party from a third party not under an obligation of confidentiality to the Disclosing Party, or (c) is published or otherwise made known to the public by the Disclosing Party. The Receiving Party will refrain from using the Disclosing Part Confidential Information except to the extent necessary to exercise its rights or perform its obligations under this Agreement. Except as required by law, including the California Public Records Act, the Receiving Party may not disclose the Disclosing Part Confidential Information to any third party, other than its affiliates or representatives who have an absolute need to know such Confidential Information in order for the Receiving Party to perform its obligations and enjoy its rights under this Agreement, and only if such persons are informed of and are subject to the provisions of this Agreement. The Receiving Party remains liable for any unauthorized use or disclosure of the Confidential Information by any such representative or affiliate. Б 11. WEB SOFTWARE AND SITE TERMS OF USE AND PRIVACY POLICY. Balancing Act shall include on the Balancing Act website its privacy policy ("Privacy Policy") that applies to the activities of Balancing Act and the users of Balancing Act, including the use of usersersonal information. Client represents that it has read and is familiar with the Privacy Policy and, to the extent applicable, shall govern itself in accordance therewith. 12. INDEPENDENT CONTRACTOR. Client and Balancing Act intend at all times to be independent contractors. Neither party is an employee, joint venture, agent or partner of the other, nor is either party authorized to assume or create any obligations or liabilities, express or implied, on behalf of or in the name of the other. The employees, methods, facilities and equipment of each Party shall at all times be under the exclusive direction and control of that Party. 13. GOVERNING LAW AND VENUE. This agreement shall be construed in accordance with and governed by the laws of the State of California and any claim or lawsuit brought to enforce the terms of this Agreement shall be brought in the state or federal courts serving City of Santa Ana, CA. 14. FULL AUTHORITY. The person agreeing to the terms and conditions of this Agreement states and affirms that they have the full authority of Client to enter into and execute this Agreement. \[Remainder of This Page Intentionally Left Blank; Signature Page Follows.\] Б INWITNESSWHEREOF, CLIENTandBALANCINGACT haveexecutedthis AgreementasoftheEffectiveDate. ATTEST:CITY OF SANTA ANA ΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗ ΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗΗ Daisy GomezKristine Ridge Date Clerk of the Council City Manager APPROVED AS TO FORM:RECOMMENDED FOR APPROVAL: SONIA R.CARVALHO City Attorney By:______________________________________________________________ Ryan O. HodgeKathryn Downs Date Assistant City Attorney Executive Director Finance and Management Services BALANCING ACT th 7897E. 24Avenue,Denver, CO, 80238 10/13/2021 ___________________________________ Chris Adams Date President В EXHIBIT A SUBSCRIPTION AND SUPPORT FOR SUBSCRIPTION, SUPPORT AGREEMENT BETWEEN BALANCING ACT AND the City of Santa Ana. 1. Client Information. Name: City of Santa Ana, CA Contact Person: Waldo Barela Phone: 714-647-5428 Email: wbarela@santa-ana.org 2. SUPPORT SERVICES A. Balancing Act staff will provide one (1) training session via web conference for client staff. The training session will cover the following items: i) Setting up site, general orientation, strategic advice ii) Unlimited technical support and help understanding how to use features B. Balancing Act staff will be reasonably available during business hours and days to provide technical support and strategic advice, as requested. 3. SUBSCRIPTION AGREEMENT A. Design and Launch of the Site (s) i) Client will have access to design and launch Site (s) beginning on the date of execution of the agreement. B. Live Site (s) ii) The Site (s) shall include the Balancing Act Simulate for Budget, Prioritize and Taxpayer Receipt products. iii) Client is responsible for selecting and uploading all content specific to its intended use of the Balancing Act products, including categories, subcategories, supporting information, additional details, numerical amounts, pictures, graphs or videos. iv) Client is solely responsible for the time and cost associated with content creation and inputting. 1 4. SUPPORT SERVICES A. Administration and Site Support i) Balancing Act will provide up to two (2) hours per live site each month of Site administration, maintenance and support, including Client and user support during the Term. Support Services include, but may not be limited to the following: General user support (password reset, site navigation issues, site utilization questions, etc.) ii) Any Support Services requested by Client other than Site administration, maintenance and support will be considered custom development and billed to client as outlined in Exhibit C. 2 financial issues. Full Suite of Budget Engagement Software: Simulate: this tool provides a way for a government to frame tough financial tradeoffs and puts residents in the shoes of policymakers. It offers several different ways to interact with budget items and produces detailed, visual reports. Simulate is most often used for the general fund, but can also be used for capital budgets or special purposes, such as ARPA funding. Prioritize: this tool offers a simple, visual way to present projects and costs. Government sets an overall budget and users select projects up to the specified amount, and then rank order them. The report provides weighted and unweighted results and can identify top projects based on three different voting techniques, including instant runoff. This is well suited to ARPA outreach, capital projects, and participatory budgeting. Taxpayer Receipt: this app asks a few questions to generate an estimate of taxes paid and then demonstrating the value that government provides. Annual Subscription: Balancing Act is available as an annual subscription that includes all three tools, as well as unlimited subscription to Analytics: which gives you detailed insight into who is using the simulation and how they would balance tradeoffs, and Meeting Mode: which modifies Balancing Act for use in face-to-face or online synchronous meetings. Onboarding and unlimited technical support are included. Balancing Act is a SaaS product and requires no installation. Contract Duration: Three years at $10,000 per year (five-year rate), with two one-year optional renewals Contact: Amy Flynn amy@abalancingact.com 415.294.8787 Healthy Outcomes, Inc., DBA Balancing Act Chris Adams, President 7897 E. 24th Ave. Denver, CO 80238 303.877.0111 Taxpayer ID# 84-1452641 Proposal Valid through 11/30/21 EXHIBIT C FEES FOR SUBSCRIPTION, SUPPORT AGREEMENT BETWEEN BALANCING ACT AND City of Santa Ana DATED September 19, 2021 The following is a summary of the Fees associated with the Services provided by Balancing Act hereunder. 1. Licensing Fee (published budget) i. Subscription fee is $10,000 per year. Invoice will be sent for the yearly licensing fee within 30 days of the effective date of the contract and every year at approximately the same time thereafter for the duration of this Agreement. Invoice for any agreed- upon additional services will be sent within 15 days of delivery. 2. General a. Except as otherwise provided herein or in an applicable SOW, all Fees due to Balancing Act will be payable within 30 days of receipt of the applicable invoice. b. All payments of the Fees must be made by cash or cash equivalent to Balancing Act at th 7897 E. 24Avenue, Denver, CO, 80238 or by ACH. Credit card payment can be arranged, but may incur a 3% fee. 2021 BALANCING ACT RATE SCHEDULE AND REIMBURSEMENT SCHEDULE FOR ADDITIONAL SERVICESAND CUSTOM DEVELOPMENT Effective January 1, 2021 HOURLY RATE SCHEDULE Description Rate in USD Principal Staff $200 / hour Custom Development $180 / hour Customer Success $150 Support Staff $60 / hour These rates listed above are valid for the initial Term of this Agreement, and Balancing Act may, as a condition to agreeing to any extension of the Term, require that the rates be adjusted. Community Development Agency santa-ana.org/cd Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Approve and Launch the New “My First Home” Program AGENDA TITLE: Approve and Launch the New “My First Home” Program with a One-Time Allocation of $1,200,000 from the Inclusionary Housing Fund (Non-General Fund) RECOMMENDED ACTION 1. Authorize the City Manager to launch the new “My First Home” Program. 2. Authorize the City Manager to execute Loan Agreements with qualified and approved homebuyers for the “My First Home” Program, subject to non–substantive changes approved by the City Manager and the City Attorney. DISCUSSION On March 6, 2018, the City Council approved an update to the Down Payment Assistance Loan program to revise the eligibility criteria to make the program more effective and attainable for low- to moderate-income residents in response to changing market conditions. The major updates to the program included a one-time allocation of $400,000 in Inclusionary Housing Funds and an increase to the maximum loan amount for low- income buyers to $80,000 and $40,000 for moderate-income buyers. Since this program update in March 2018, 17 families became first-time homeowners in Santa Ana. To build on this effort from three years ago, staff is seeking approval to launch the new “My First Home” program using the $1.2 million in Inclusionary Housing Funds. The idea for the launch of this program and investment of one-time funds originated with comments from various councilmembers regarding the City’s need to invest in more homeownership opportunities for our residents. While the City continues to invest in affordable rental housing for our lowest income families, it is important that the City help create opportunities for homeownership. Homeownership leads to asset building and the accumulation of wealth instead of solely relying on the City’s financing of affordable rental housing. The “My First Home” program will fulfill this need for increased homeownership opportunities and create wealth-building opportunities for at least ten low-income families or a combination thereof. Approve and Launch the New “My First Home” Program November 2, 2021 Page 2 “My First Home” program will be a limited-time program based upon funding availability. This means that as soon as the $1.2 million in Inclusionary Housing Funds are exhausted, staff will revert the program guidelines back to its original form using Community Development Block Grant funds. The core working part of this one-time program is an increase in down payment assistance available per household. Specifically, staff is increasing the maximum down payment assistance loan amount available for low-income buyers up to $120,000. The maximum down payment assistance loan amount for moderate-income buyers will also be increased to $80,000. By increasing the loan amounts, together with record low mortgage interest rates, more low-income families will qualify to purchase a home. The vision behind the allocation of $1.2 million is to assist at least ten low-income families purchase their first home (e.g. $120,000 x 10 families), or a combination thereof between low- to moderate-income families. The updates to the Down Payment Assistance Program Guidelines and template Loan Agreement are attached as Exhibit 1 and 2 in redline format. The effectiveness of this one-time program will be evaluated if the City is successful to assist at least ten low- to moderate-income families purchase their first home. Staff may adjust the allocation of funds per household depending on the results of the program. Regarding the eligibility of the $1.2 million in funding for this one-time program, pursuant to Section 41-1909 (a)(3) of the Housing Opportunity Ordinance, permissible uses of the Inclusionary Housing Fund include pre-home ownership co-investment. The Ordinance states that the Inclusionary Housing Fund may be used for the benefit of owner-occupied housing. Following approval by City Council, staff will launch the program and begin marketing the program together with NeighborWorks of Orange County. The “My First Home” Program will be available until all of the funds are expended. Program Administration and Contingency As part of the FY 2021-2022 City Budget, a portion of the City’s Inclusionary Housing Funds are already allocated for down payment assistance but it is anticipated that this one–time program will require additional staff time, administration and marketing efforts. Staff estimates needing $19,809 for these additional efforts, as well as a contingency of $1,981 for any unanticipated costs. The Inclusionary Housing Administrative Funds needed were already budgeted in the FY 2021-2022 City Budget as part of the costs required to administer the Housing Opportunity Ordinance: Project ItemTotal “My First Home” Program$1,200,000 Inclusionary Housing Administrative Funds$ 19,809 Contingency$ 1,981 Total Delivery Cost for Project$1,221,790 Approve and Launch the New “My First Home” Program November 2, 2021 Page 3 FISCAL IMPACT Funds in the amount of $1,200,000 are available for anticipated expenditure starting in FY 2021-22 in the Inclusionary Housing Fund, Loans & Grants account no. (41718820- 69152). Any unspent funds at the end of the current fiscal year will be budgeted for carry forward to subsequent fiscal year(s) until all funds have been spent for this program. EXHIBIT(S) 1. Down Payment Assistance Program Guidelines 2. Loan Agreement Template Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 CITY OF SANTA ANA MY FIRST HOME SANTA ANA LOAN PROGRAM PROGRAM GUIDELINES The Program offers zero percent, deferred payment loans of up to $120,000 for Low Income Households and up to $80,000 for Moderate Income Households based on needand funding source. Homebuyer Assistance funds can help meet both a borrower’s down payment and closing cost requirements. FUNDS ARE LIMITED – FIRST COME, FIRST SERVE Eligibility Requirements o Borrower(s)must be a first time homebuyer (a person with no ownership interest in, or who has not held ‘title’ to a principal residence during the three-year period preceding the purchase of the property). o Borrower(s) must be a resident of Santa Ana and/orwork in Santa Ana at least 32 hours per week for at least the last 6 months, with an exception for U.S. military veterans. o Total Annual Income of the household, meaning all persons residing in the home as their principal place of residence, cannot exceed the income limits established below: Household Size Low Income Moderate Income 1 $ 75,300 $89,650 2$ 86,050$102,450 3$ 96,800$115,250 4 $ 107,550 $128,050 5$ 116,200$138,300 6 $ 124,800 $148,550 7 $ 133,400 $158,800 8 $ 142,000 $169,050 *As of April 2017, subject to changeon anannual basis o Complete a minimum of eight (8) hours of in-person homeownership training offered by a counseling center approved by the U.S. Department of Housing and Urban Development (HUD). o Must have at least three percent (3%) of the purchase price for a down payment from buyer’s own funds (at least 90 days seasoned). Three most-recent bank statements are required to verify seasoned funds. Seasoned funds cannot be from gift funds. Gift funds may contribute towards the purchase; gift funds may not exceed 3% of purchase price. o Must have a positive credit history and obtain a fixed-rate first mortgage. Co-signers and variable rate loans are not allowed. Use of Loan Proceeds o Loans of up to $120,000 for Low Income Households and up to $80,000 for Moderate Income Households will be approved based on need. Loan amounts will be based on underwriting front -end ratios of not less than 28 percent. Maximum debt-to-income ratios cannot exceed 38/43. EXHIBIT 1 o City of Santa Ana loan proceeds may be applied to down payment and closing costs associated with the purchase of a home in Santa Ana. o City of Santa Ana down payment assistance loan proceeds may not be applied to down payment and closing costs associated with the purchase of an Inclusionary home made available through the City’s Housing Opportunity Ordinance. Interest Rates and Repayment o Loan proceeds are offered as a deferred loan with a zero percent interest rate. Repayment of the City loan principle balance will be required at the end of the 45-year term of affordability. Santa Ana Student Incentive: Prospective homebuyers that graduated from a high school located in Santa Ana and have a 4-year college degree are eligible for a loan forgiveness up to $40,000 ($10,000 will be forgiven every five (5) years up to a twenty (20) year period). Homebuyer has to reside in the home as their primary residence to qualify for the forgiveness. Application and Approval Process o Prospective homebuyer completes a HUD approved 8-hour homebuyer class. o Homebuyer chooses a local lender and gets pre-qualified. o Homebuyer provides a complete Homebuyer Assistance Loan Application Packet to the City of Santa Ana Housing Division for review and pre-approval with all required documents and forms. All applications must contain the documents indicated in the attached Document Checklist. o Once pre-approved, homebuyers will have 60 days to find a qualified home within Santa Ana to purchase. Pre-approval does notguarantee City funds. o Homebuyer shops for home based on Lender’s pre-qualification amount. o When presenting an offer, Homebuyer and Realtor provide Seller’s Statement for the Seller to sign. o Within three (3) business days, Homebuyer must contact the City of Santa Ana to schedule an inspection by City Staff for lead-based paint hazards and building/health and safety code deficiencies once a purchase contract has been executed. o If homebuyer is eligible and home passes inspection, City of Santa Ana reserves funds and notifies the Homebuyer and Realtor. o A minimum of two (2) weeks prior to close of escrow, the City of Santa Ana needs the lender’s packet for final loan approval. o Realtor notifies the City of Santa Ana of scheduled closing date ten (10) business days prior to close of escrow date. EXHIBIT 2 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 6103 & 27383 When Recorded Mail to: City of Santa Ana 20 Civic Center Plaza, M-26 P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Manager HOMEBUYER DOWNPAYMENT ASSISTANCELOANAGREEMENT THIS LOAN AGREEMENT 202118 the City of Santa Ana, a charter city and municipal corporation duly organized and existing underthe Constitution and laws of the State of California R E C I T A L S A.City is a recipient of Inclusionary Housingfunds from the Housing Opportunity Ordinancepursuant to Sec. 41-1900. B.Borrower has entered into an agreemp purchase residential property, located at _______________________________________, Santa Ana, California, as more particularly described in the legal description, Exhibit A Agreement, the price to be paid for the Property is $____________________ (the C.The City wishes to encourage a greater degree of owner-occupancy of residences in the neighborhoods of the Cityof Santa Ana. In order to promote this goal, the City has established its Homebuyer DownPayment Assistance in the form of a trust deed loan in the maximumamount of $12080,000.00 residence within the City. D.The Program is implemented in accordance with the Housing Opportunity Ordinance, and will be modified whenever necessary to insure compliance with regulations and continued Program feasibility. 1 EXHIBIT 2 E.The City agrees to loan to Borrower and Borrower agrees to borrow from thethe Program,subject to the terms and conditions set forth herein.Borrower must contribute a minimum of three percent (3%) of the purchase price towards down payment. This minimum contribution cannot be from gift funds. F.The Purchase Price for the Property is to be paid by Borrower by a combination of funds, including: a. A loan to be made by __________________________________, b.secured by a first deed of trust, in the principal amount of $___________ b.The City Loan, secured by a deed of trust, in the principal amount c.of$_____________________. G.Borrower has provided the City with written documentation from the lender making the First Mortgage Loan stating thatthe amount of the City Loan requested by Borrower is the minimum amount of additional financing necessary for Borrower to qualify for the First Mortgage Loan. H.The Loan Agreement and all of its attachments shall be enforceable by City in accordance with the terms thereof. Each of the Loan Agreement, the Income And Owner-Occupancy Covenants and Resale Restrictions/Affordability Covenants, the City Promissory Note and the CityDeed of Trust provide a means of enforcement by the City if Developer is in breach of its obligations hereunder and thereunder, including liens on the Property, use and deed restrictions and covenants running with the land \[24 CFR 92.504 (c)(13)\]. NOW, THEREFORE, for good and valuable consideration, the parties agree as follows: Definitions:Unless otherwise defined, the following capitalized terms shall be defined in this Agreement as follows: attached to this Agreement as Exhibit Band incorporated herein by reference. deferred loanofInclusionary Housingfundsto be made by the City to Borrower in the principal amount of $ _______________ in accordance with this Agreement. 2 EXHIBIT 2 note in favor of the City, evidencing the City Loan, in the form attached to this Agreement as Exhibit Cand incorporated herein by reference. income of less than 80% of the area median income for the City, adjusted for - single family residence for occupancy as his, her or their principal residence. as the result of any refinancing of the First Mortgage Loan for a loan amount in excess of the then-current loan balance of the First Mortgage Loan; means the loan to Borrower from____________________ in the amount of $________________________________, or any loan obtained by Borrower to refinance the First Mortgage Loan. - spouse who have not owned a home during the three-year period before the purchase of the Property. The term includes displaced homemakers and single parents as defined in 24 CFR Part 92.2. And Owner-Occupancy Covenants and Resale Restrictions (the - Agreement as Exhibit D and incorporated herein by reference. al description attached to A. Property. m a high school located in Santa Ana and have a four (4) year college degree. portion thereof or interest therein, including, without limitation, any lease, exchange, or otherdisposition of any interest in the Property, whether voluntary or involuntary, except that any transfer by gift, devise or inheritance to an existing spouse surviving joint tenants or other co-owner, or a spouse as part of a dissolution proceeding or in connection with marriage, or by devise or inheritance to children, shall not be considered a Sale for the purposes of this Agreement. 3 EXHIBIT 2 -five (45) years from close of escrow. City Loan. The City agrees to lend to Borrower, and Borrower agrees to 1.borrow from the City, the City Promissory Note Amount, at zero (0%) interest as provided in Section 2 of this Agreement, subject to the conditions and restrictions set forth in this Agreement, in the Promissory Note and in the City Deed of Trust. When all conditions to the close of escrow other than payment of the Purchase Price have been satisfied, the City shall deposit the Loan Amount with the Escrow Agent. The City shall direct the Escrow Agent to apply the proceeds ofthe City Loan on behalf of Borrower to the Purchase Price of the Property for the down payment. Borrower shall execute and deliver to the Escrow Agent the City Promissory Note, the City Deed of Trust and the Affordability Covenants. 2.Authorized Use of City Loan. The City Loan proceeds may only be used for the down payment associatedwith the purchase of the Property. 3.Conditions Precedent. Borrower must complete eight (8) hours of homeownership training offered by a counseling center approved by HUD,and open an impound account for property taxes and insurance costs. Borrower must have a positive credit history and must obtain a fixed rate loan (co-signors and variable rate loans are not allowed). Borrower will be required to provide payment of up to 3% of the purchase price toward the down payment. All properties built before 1978 must have a Visual Lead Based Paint Inspection and must pass the inspection before loan approval. Inspections will be made to ensure that there are not code related issues, including common areas in condominium complexes. 4.Interest Rate and Repayment /Acceleration Terms. (a) Interest Rate.The City is making the City Loan to Borrower at zero percent (0%) interest. (b) Service Charge. Borrowershall be required to pay any and all service charges associated with the City Loan. (c ) Repayment/Acceleration.The unpaid outstanding principal balance of the City Loan and any penalties thereon shall be all due and payable when any of the following events take place: i.at the end of the 45 year Term of Affordability; ii.when the Property is sold; iii.when the Property is not properly being used as the principal residence; iv.The City discovers that Borrower knowingly or willfully made a 4 EXHIBIT 2 misstat as an Eligible Person or Family; v.An uncured default in performance or breach by Borrower of any provision of this Agreement, the Promissory Note, the City Deed of Trust or the AffordabilityCovenants. (d) Excess Refinancing Proceeds.In the event that the First Mortgage Loan is refinanced, any Excess Refinancing Proceeds shall be paid out in accordance with City policy. (e)Returning Student Loan Forgiveness Incentive. Returning Students will be eligible for a loan forgiveness up to $40,000. Under this loan forgiveness incentive, $10,000 will be forgiven from the City Promissory Loan Amount every five (5) continuous years that the Returning Student remains in compliance with all termsand conditions of this Agreement and the Affordability Covenants. The maximum length of time for the Returning Student Loan Forgiveness Incentive shall beover a twenty (20) year period, up to a maximum of $40,000 forgiven from the City Promissory Loan Amount. In the event that the entire City Promissory Loan Amount is forgiven, the Term of Affordability shallnot be affected and shall remain enforceablefor the complete timeframedefined herein. 5.Nondiscrimination.There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, religion, sex, disability, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any part thereof, nor shall Borrower or any person claiming under or through Borrower establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of the Property. The provisions of this section shall be set forth in the Agreement Containing Covenants recorded against the Property. 6.Income Requirement. a.available to persons or families whose household annual income does not exceed 120% of the area median income for the City, adjusted for family at affordable housing cost for the longest feasible time, but in any event not less than Forty Five (45)years from the date of recording of the AffordabilityCovenants, provided that the Property remains habitable. a.Borrower represents and warrants to the City that the information b. for the City Loan is true, correct and complete as of the date such information was provided to the City and as of the date of this Agreement. If any such information changes prior to the close of escrow for the purchase of the Property, Borrower shall promptly notify the City of such change. Borrower acknowledges that the City is relying upon the representations made by 5 EXHIBIT 2 l income were in excess of 120% of the area median income for the City, adjusted for family size, as of the date of this Agreement. As of April 1, 2021June 9,2017120% of the area median income for the City of Santa Ana, adjusted for family size (subjectto change approximately annually) was as follows: Family SizeIncome 1$89,65073,900 2$102,45084,500 3$115,25095,050 4$128,05005,600 5$138,30014,050 6$1248,5502,500 7$158,80030,950 8$169,05039,400 First-Time Homebuyer. Borrower represents and warrants to the City that 7.-Time Homebuyer as defined by this Agreement. Borrower acknowledges that the City is relying on s a First-Time Homebuyer and that the City would not enter into this Agreement if Borrower -Time Homebuyer. 8.Owner-Occupancy Requirement. .Borrower shall occupy the Property as his, her or their primary a.residence, and the Property shall be used as the principal residence of of the Property shall not exceed two persons per bedroom plus one additional person. .The City shall have the right to monitor whether the Property is b.owner-occupied by requesting that Borrower provide the City, no more frequently than annually, with a written certification under penalty of perjury that the Property is owner-occupied, accompanied by supporting documentation reasonably satisfactory to the City. .In the event of a breach of this section, the City Loan shall become c.immediately due and payable. .The provisions of this section shall also be set forth in the Agreement d.Containing Covenants recorded against the Property. 6 EXHIBIT 2 9.Maintenance of Property.Borrower must maintain the interior and exterior of the improvements and the landscaping on the Property in a manner consistent with community standards which will uphold the value of the Property, in accordance, with this Agreement and the Santa Ana Municipal Code. The maintenance requirements are set forth in specific detail in the recorded Affordability Covenants. 10.Defaults.Failure or delay by either party to perform any term of provisions of this Agreement, the Promissory Note, the City Deed of Trust or the Agreement Containing Covenants which is to be performed by such party constitutes a written notice of default to the party in default, specifying in reasonable detail the matter constituting the default. The party in default shall have 15 days following receipt of notice to cure the default. Except as required to protect against further damages, the Complaining Party shall not institute proceedings against the party in default unless the matter is not cured within such 15 day period, or, if the default is of a nature requiring more than 15 days to cure, the party in default commences to cure the matter within such period and diligently pursues such cure to completion within a reasonable time, but in no event more than 45 days after notice of default. Failure to cure the default within the applicable cure period shall entitle the Complaining Party to terminate this Agreement and/or exercise any remedies available to such party, including, without limitation, acceleration of payment due on the City Loan. 11.Loan Servicing.The City may contract with a private lender to originate and service the City Loan, and any costs associated therewith shall be paid by the Borrower. 12.Indemnification.Borrower shall indemnify, defend and hold harmless the City, and itsrespective officers, agents, employees, legal counsel, representatives and volunteers, from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. Borrower shall remain fully obligated for the payment of taxes, liens and assessments relating to the Property. There shall be no reduction in taxes for Borrower, nor any transfer or responsibility to the City to make such payments, by virtue of the City Loan. 13.Insurance.Borrower shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the insurance carrier to notify the City of any material change, cancellation or termination of coverage at least 30 days in advance of the effective date of such material change, cancellation or termination. Borrower shall deliver a copy of the certificate of insurance and loss payee endorsement to the City at the time ofescrow closing, and Borrower shall annually deliver a copy of the certificate of insurance and loss payee endorsement to the City, signed by an authorized agent of the insurance carrier and setting forth the general provisions of 7 EXHIBIT 2 coverage. The copy of the certificate of insurance and loss payee endorsement shall be delivered to the City as follows: City of Santa Ana, Community Development Agency 20 Civic Center Plaza, M26 P.O. Box 1988 Santa Ana, Ca 92702 Attention: Housing Manager Any certificate of insurance required by this section must be a in a form, content and with an insurance company that is acceptable to the City in its sole discretion. 14.Non-Waiver.Failure to exercise or delay in exercising any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 15.Documents.Borrower has reviewed and agrees to execute the following documents in substantially the form as attached to this Agreement prior to receiving the City Loan, and any other documents or instruments reasonably required by City or a participating entity to complete the transaction contemplated herein: (a)Promissory Note (Exhibit C); (b)City Deed of Trust (Exhibit B); (c)AffordabilityCovenants (Exhibit D); and (d)Disclosure Statement and Notice of Rescission (Exhibit E) Borrower agrees and acknowledges that this Agreement, the City Deed of Trust and the Affordability Covenants all be recorded against the Property with the County Recorder of the County of Orange and shall appear of record with respect to and as an encumbrance against the Property. 16.Further Assurances.Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City may from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the City Loan. 17. Governing Law.This Agreement shall be governed by the laws of the State of California, with venue in Orange County. 18. Severability. In the event that any provision or clause of this Agreement conflicts with applicable law, such conflict will not affect other provisions of this Agreement whichcan be given effect without the conflicting provision, and to this end the provisions of the Agreement are declared to be severable. 8 EXHIBIT 2 19. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and the duly authorized representative of the City. 20.Assignment by City Permitted.The City may, in its sole and absolute discretion, assign its rights under this Agreement and/or its right to receive repayment of the City Loan without obtaining the consent of Borrower. 21. Assignment of Borrower Prohibited. In no event shall Borrower assign or transfer any portion of this Agreement or any rights herein without the prior express written consent of the City, which consent the City may give or withhold in its sole and all or any portion of its rights under this Agreement or to the proceeds of the City Loan hereunder. 22.Relationship of Borrower and City. The relationship of Borrower and City pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership or other relationship. 23.Notices.(a)Except as otherwise expressly provided in this Agreement, in every case when, under the provisions of this Agreement, it shall be necessary or desirable for one party to serve any notice, request demand, report or other communication on another party, the same shall be in writing and shall not be effective for any purpose unless served (i) personally, (ii) by independent, reputable, overnight commercial courier, or (iii) by deposit in the United States mail, postage and fees fully prepaid, registered or certified mail, with return receipt requested, addresses as follows: To Borrower:_________________________ _________________________ _________________________ To City:City of Santa Ana Community Development Agency 20 Civic Center Plaza, M26 P.O. Box 1988 Santa Ana, CA 92702 Attention: Housing Manager 24. : In the event that any action is instituted to enforce payment or performance underthis Agreement, or otherwise in connection with this Agreement, the parties agree that the prevailing party shall be reimbursed by the other party for all costs and all attorneyfees incurred by the prevailing party in such action. 9 EXHIBIT 2 25. Entire Agreement. This Agreement, together with all attachments hereto and all documents executed pursuant hereto, constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all prior negotiations, discussions and previous agreements between the City and Borrower concerning all or any part of the subject matter of this Agreement. 26. Conflict of Interest. No member, official or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interest. 27. Captions. The captions and headings in this Agreement are for convenience only and are not to be used to interpret or define the provisions hereof. {Signatures on following page} 10 EXHIBIT 2 IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the day and year written below. BORROWER Dated: ___________________________By:___________________________ Name: ________________________ Dated: ___________________________By:___________________________ Name: ________________________ CITY OFSANTA ANA By:___________________________ Kristine RidgeRaul Godinez, II City Manager Dated: _______________________ APPROVED AS TO FORM: City Attorney _________________________________ By: Ryan O. Hodge Assistant City Attorney Dated: 11 Community Development Agency santa-ana.org/cd Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Downtown Santa Ana Business Improvement District AGENDA TITLE: Adopt Resolution of Intent to Levy 2022 Assessment for Downtown Santa Ana Business Improvement District RECOMMENDED ACTION 1.Approve the 2022 Assessment Report for the Downtown Santa Ana Business Improvement District (BID), which is administered by two organizations: the Santa Ana Business Council and Downtown Incorporated. 2.Adopt a resolution of intention to levy an annual business license tax assessment for the 2022 calendar year and establish a time and place for a public hearing to be held by the City Council on December 7, 2021. DISCUSSION On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to state law, creating a Business Improvement District (BID) in Downtown Santa Ana. The BID was established as a means of providing the Downtown business community with funding to promote events and create promotional materials, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement streetscape improvements. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC, now known as the Community Development Commission (CDC), is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, including the annual budget. The 2022 Assessment Report contains the basis and method of levying the assessment, estimated activities and budgets from the two business associations, the Santa Ana Business Council and Downtown Inc., and a map of the BID boundaries (Exhibit 1A). The Downtown Santa Ana Business Improvement District November 2, 2021 Page 2 Assessment Report presented for consideration and recommended for approval has been reviewed and was determined to meet state law requirements. After approval of the report, the next course of action is to conduct a public hearing where Downtown merchants can vote in favor of or against the BID renewal. The public hearing is scheduled for December 7, 2021. Terms The City Council activated the current BID on July 1, 2013. To administer the activities of the BID, the City executed operating agreements with Downtown Inc. and the Santa Ana Business Council in an effort to address the needs of the two business associations. These agreements contain provisions to ensure proper administration and distribution of funds, such as the annual budget, financial recordkeeping, fund distribution, board composition, and meeting requirements. The agreements are renewed automatically in one-year renewal terms, unless either party gives at least two months’ notice of termination or if the BID is not approved in any given year. If the BID is successfully renewed, each organization will receive approximately $100,000 (collected from the business license tax fee) per calendar year (January through December) and may carry over unspent funds into the next year. In FY 2020-2021, the BID, through the efforts of Downtown Inc. and the Santa Ana Business Council, accomplished hosting several successful events virtually to accommodate for the pandemic restrictions and shifted efforts to assist businesses in establishing an online presence while maintaining promotions that drew the attention of visitors to Downtown Santa Ana. Many events transitioned to livestreaming or virtual settings, including First Saturday Artwalk, Boca De Oro Literary Festival, and continued to promote the weekly Downtown Santa Ana e-newsletter. Both organizations increased social media presences and have over 50,000 followers. FISCAL IMPACT There is no direct fiscal impact associated with this action. The City collects the BID revenue from businesses within the BID boundary and distributes funding to each organization, in accordance with approved operating agreements. Revenues will be deposited equally in the BID Trust and Agency Fund and distributions to each organization will be made from the same accounts as follows: Downtown Santa Ana Business Improvement District November 2, 2021 Page 3 Fiscal YearAccounting Fund Accounting Unit, Estimated Unit-AccountDescriptionAccount Description Amount Business FY 22-23Trust & Agency, 09301001-24036Improvement $50,000 (Jan. – June)Downtown Inc. District Business FY 22-23Trust & Agency, Santa 09301001-24043Improvement $50,000 (Jan. – June)Ana Business Council District Business FY 23-24Trust & Agency, 09301001-24036Improvement $50,000 (July – Dec.)Downtown Inc. District Business FY 23-24Trust & Agency, Santa 09301001-24043Improvement $50,000 (July – Dec.)Ana Business Council District Total Amount $200,000 EXHIBIT(S) 1.2022 Assessment Report a.Attachment A – Business Improvement District Boundary b.Attachment B – 2022 Annual Assessment Formula c.Attachment C – Proposed Budget Summary 2.List of Businesses within the BID 3.Resolution Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2022 ASSESSMENT REPORT Background On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500, et seq., of the 1979 State of California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC, now known as the Community Development Commission (CDC)is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The BID was established as a means of providing the Downtown business community with the funding to promote the Downtown through events and advertising pieces; funding to increase security and enhance the overall aesthetics of the area; and also to maintain the downtown shopping corridors. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 500 retail, service, and professional members (see Exhibit 2). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and/or sales volumes of the business (see Attachment A). 2022 Budget Plan Based on the feedback from the two Associations, Downtown Inc. and the Santa Ana Business Council, the 2022 BID Budget focuses on the continuation of promotions and marketing of the BID. Some of the promotion and marketing will be focused on Downtown events and advertising pieces, which are all designed to enhance the overall aesthetics of the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the two groups’ budgets are attached (Attachment B). The assessments from the 2022 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council—the two business groups that have spearheaded this BID process. Any remaining funds from the previous year will be incorporated into a reserve fund for the groups’ 2022 budgets. This reserve funding may be used for additional events and promotions throughout the year. In 2022, the two representative business associations are proposing to host several events, some special events may be virtual (pending COVID-19 regulations for special events), promotion of outdoor dining and retail sales, and general promotion and marketing of the Downtown, as well as some traditional annual events that will be safe for community members to attend, including: BID-FUNDED OR PARTLY BID-FUNDED ACTIVITIES ADMINISTRATION Coordination of the BID including maintaining the interconnectivity and infrastructure, collectivizing downtown efforts, program and project management, and supporting downtown’s role as a vital community, cultural and economic engine MARKETING PROGRAMS Weekly Newsletter Social Media Accounts (@DtsantaAna, @CalleCuatroDTSA) Videos and Photos to catalogue and promote downtown EXHIBIT 1 ORGANIZATION Business Meetings (Restaurant Assoc., Bridal Assoc., Board and Merchant Meetings) Business Training, Outreach and Support Resident Mixers, Business and Arts Mixers Membership and Training with National Downtown, Main Street and Placemaking Networks Community Involvement/Engagement Support for third-party event producers Customer Support (Providing answers and connections to business, residents and visitors) TECHNOLOGY Downtown Websites Software Licenses Emailing Services Online Forms/Storage/Media Services Artists Registry SOME SUPPORT FOR THE FOLLOWING EVENTS First Saturday Artwalk (12x per year) Boca de Oro: Festival of Arts and Literacy Sponsorships for Downtown Businesses, Creatives and Residents to Activate Public Spaces ACTIVITIES WE PARTNER WITH, FUNDRAISE FOR, OR THAT REQUIRE ADDITIONAL FUNDING ANNUAL EVENTS Boca de Oro: Literary, Visual and Performance Arts Festival Downtown Threads Fashion & Design Show Annual Gathering and Mixer Katrina Festival Savor Santa Ana Tooltesting/Hackathon Trolley Rides at Special Events and Lunch Hour MONTHLY EVENTS First Saturday Artwalk Expansion, Free Art Workshops and Music Witches Brew (2nd St Promenade) Kids Corner at Calle Cuatro Plaza Sidewalk Sales (Bi-monthly: 1st and 3rd Weekend of the Month) Amigas Social Club Business Mixers and Professional Development Workshops Movies in the Park WEEKLY EVENTS Dancing in the Streets (Salsa, Cumbia, Tango, Bachata) Loteria Mexicana Clowns & Face Painting Santa Ana Sundays Series Free Yoga and Zumba SEASONAL PROMOTIONS Black Friday/Small Business Saturday Turkey and Ham Giveaway (Thanksgiving) Rib Giveaway (Christmas) Holiday Show at Calle Cuatro Plaza Carriage Rides and Carolling Festival of Lights EXHIBIT 1 Other programming for the associations will include ongoing social media marketing, funding for the Downtown Restaurant Association, Bridal Association, Art Association, Professional Internship Programs, downtown stakeholder meetings, holiday promotions, website development and maintenance, and ongoing support for small businesses. EXHIBIT 1 EXHIBIT 1 – ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY EXHIBIT 1 EXHIBIT 1 – ATTACHMENT B 2022 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one-half times their annual business license fee. Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one-quarter times their annual business license fee. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. EXHIBIT 1 EXHIBIT 1 - ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) 1 of 2 Budgets EXHIBIT 1 EXHIBIT 1 - ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) 2 of 2 Budgets EXHIBIT 2 DATA AS OF 10/18/2021 Intent to Levy BID Assessment List Weighted Protest Value NumberBID AreaBID Eligible (% of 100% Total) Business NameBusiness Address 1 ADVANCE AUTO PARTS120 E 1ST ST YesYes 0.040322% 2 PEP BOYS, THE-MANNY/MOE/JACK120 E 1ST ST UNIT# A YesYes 0.080644% 3 PEP BOYS, THE-MANNY/MOE/JACK120 E 1ST ST UNIT# B YesYes 0.697052% 4 SANTA ANA EXPRESS CAR WASH202 E 1ST ST YesYes 0.458105% 5 NUNEZ AUTO REPAIR219 E 1ST ST YesYes 0.113873% 6 PURPLE PENUMBRA LLC224 E 1ST ST YesYes 0.021001% 7 ABBA AUTOMOTIVE, LLC224 E 1ST ST YesYes 0.176223% 8 MCDONALDS RESTAURANT 301 E 1ST ST YesYes 1.360876% 9 MCDONALD'S USA LLC301 E 1ST ST YesYes 0.062257% 10 SAINTS SOCCER CLUB (SANTA ANA HS GIRLS SOCCER)301 E 1ST ST YesYes 0.089605% 11 THEO HOLDINGS, LP302 E 1ST ST YesYes 0.021188% 12 GO USED TIRES302 E 1ST ST YesYes 0.217292% 13 ROIC SANTA ANA, LLC (301, 307, 407, 419, 423, 431)307 E 1ST ST YesYes 0.176503% 14 FARMACIA SANTA ANA307 E 1ST ST UNIT# 1-D YesYes 0.106406% 15 HIT MOBILE307 E 1ST ST UNIT# 1E YesYes 0.366820% 16 T-MOBILE LEASING LLC307 E 1ST ST UNIT# 1E YesYes 0.111446% 17 T-MOBILE WEST LLC 307 E 1ST ST UNIT# 1E YesYes 0.263215% 18 T-MOBILE FINANCIAL LLC307 E 1ST ST UNIT# 1E YesYes 0.777323% 19 JUGOS ACAPULCO #2 INC307 E 1ST ST UNIT# A YesYes 0.546590% 20 KALI BOTANICA LATINA312 E 1ST ST YesYes 0.053763% 21 FOOD 4 LESS 382315 E 1ST ST YesYes 6.863182% 22 ECOATM, LLC315 E 1ST ST YesYes 0.017921% 23 ACE AUTO CARE, LLC401 E 1ST ST YesYes 0.053763% 24 SUPER KIDS DENTAL407 E 1ST ST UNIT# 2A YesYes 0.430104% 25 PROCESSING CENTER OF ORANGE COUNTY407 E 1ST ST UNIT# 2E YesYes 0.109019% 26 TACO BELL #3434411 E 1ST ST YesYes 0.723560% 27 MARSHALLS #1220419 E 1ST ST YesYes 1.579848% 28 PERONI PIZZA200 W 1ST ST UNIT# 104 YesYes 0.427304% 29 ANOTHER LEVEL SMOKE SHOP200 W 1ST ST UNIT# 105 YesYes 0.080644% 30 MOHALE, MICHA210 W 1ST ST YesYes 0.013441% 31 BROADWAY FAMILY DENTISTRY210 W 1ST ST YesYes 0.098565% 32 PROFESSIONAL SERVICES CENTER210 W 1ST ST YesYes 0.055256% 33 GONZALEZ AUTO INSURANCE SVCS210 W 1ST ST YesYes 0.115740% 34 NUTRICION TOTAL210 W 1ST ST UNIT# 107 YesYes 0.113126% 35 OMALEXA'S BEAUTY SALON210 W 1ST ST UNIT# 108 YesYes 0.062723% 36 HIMALAYAN THREADING SALON210 W 1ST ST UNIT# 109 YesYes 0.063097% 37 FLOR DE OAXACA210 W 1ST ST UNIT# 111 YesYes 0.174730% 38 COMERCIAL NUTRITION MEXICANA210 W 1ST ST UNIT# 112-11 YesYes 0.080644% 39 BEAUTY GLAM ACADEMY210 W 1ST ST UNIT# 212 YesYes 0.089605% 40 VHD CONSTRUCTION, INC.210 W 1ST ST UNIT# 212 YesYes 0.107526% 41 OASIS SPA210 W 1ST ST UNIT# 213 YesYes 0.055630% 42 OASIS SPA 210 W 1ST ST UNIT# 213 YesYes 0.026881% 43 TU CENTRO MOBILE 220 W 1ST ST UNIT# 101 YesYes 0.184810% 44 CLINICA MEDICA MICHOACAN220 W 1ST ST UNIT# 102 YesYes 0.107526% 45 828 PHO220 W 1ST ST UNIT# 103 YesYes 0.208332% 46 BROADWAY ARCO/AFGHANI FAMILY302 W 1ST ST YesYes 0.997602% 47 HALL, TOM (101 S BIRCH ST)310 W 1ST ST YesYes 0.008960% 48 SANTA ANA SENIOR HOUSING LP401 W 1ST ST YesYes 0.229613% 49 MOHAMMAD, MOBIN & SINGH, DAVINDER601 W 1ST ST UNIT# F101 YesYes 0.006720% 50 GONZALEZ, ALFONSO & ALICIA601 W 1ST ST UNIT# F105 YesYes 0.006720% 51 TEKCHANDANI, NARAIN601 W 1ST ST UNIT# F201 YesYes 0.006720% 52 WU, HONG601 W 1ST ST UNIT# F204 YesYes 0.006720% 53 KIMBERLY ANNE LLC611 W 1ST ST UNIT# E102 YesYes 0.006720% 54 QIAO, LI Q (A109/E103)611 W 1ST ST UNIT# E103 YesYes 0.006720% 55 SADEGHI, MITRA & AALAM 611 W 1ST ST UNIT# E202 YesYes 0.006720% 56 ANDRA, KISHORE V611 W 1ST ST UNIT# E203 YesYes 0.006720% 57 WU, HONG 611 W 1ST ST UNIT# E204 YesYes 0.006720% 58 GAO, QUANYIN & YANG, ZUIRONG 621 W 1ST ST UNIT# D102 YesYes 0.006720% 59 ALPHA STRUCTURAL, INC104 W 2ND ST YesYes 0.107526% 60 RUNNING WITH SCISSORS HAIR STUDIO106 W 2ND ST YesYes 0.119847% 61 SAINT CITY BARBERS151 W 2ND ST YesYes 0.053763% 62 NOVEL IP191 W 2ND ST YesYes 0.161289% 63 JAY'S CATERING, INC.207 W 2ND ST UNIT# A&B YesYes 0.196011% 64 C A ELKS LODGE NO 794207 W 2ND ST UNIT# B YesYes 0.080644% 65 LOLA GASPAR211 W 2ND ST YesYes 0.080644% 66 THE COURT AT ARTISTS VILLAGE301 W 2ND ST YesYes 0.225133% 67 EVA'S BEAUTY SALON103 E 3RD ST YesYes 0.053763% 68 THE POINTE SHOP200 E 3RD ST YesYes 0.316978% 69 BUTTERFIELD, LEE C / FESTIVAL210 E 3RD ST YesYes 0.023801% 70 TAPIA, CANDELARIO216 E 3RD ST YesYes 0.013441% 71 FESTIVAL HALL220 E 3RD ST YesYes 0.129927% 72 FESTIVAL HALL220 E 3RD ST YesYes 0.072057% 73 GILLY'S BARBERSHOP109 W 3RD ST YesYes 0.053763% 74 CEDELCO CONSTRUCTION190 W 3RD ST YesYes 0.107526% 75 CALIFORNIA TEAM REALTY190 W 3RD ST YesYes 0.058243% 76 ALFA INVESTMENTS & LOANS190 W 3RD ST YesYes 0.257241% 77 DOWNTOWN SUGAR218 W 3RD ST YesYes 0.190784% 78 SANDY'S BEAUTY SALON305 W 3RD ST YesYes 0.063844% 79 SANTOS PIZZA307 W 3RD ST YesYes 0.080644% 80 EL INDIO BOTANAS Y CERVEZA309 W 3RD ST YesYes 0.390342% 81 ACE MESSENGER & ATTORNEY SERVICE310 W 3RD ST YesYes 0.087738% 82 LAW OFFICES OF CHRISTOPHER P RUIZ315 W 3RD ST YesYes 0.116486% 83 LAW OFFICES OF LOIDA D TELLEZ315 W 3RD ST YesYes 0.098565% 84 HARRIS TAYLOR MANAGEMENT INC315 W 3RD ST YesYes 0.195638% 85 EAST SECOND STREET LLC315 W 3RD ST YesYes 0.160916% 86 MOJTAHEDI, MICHAEL LAW OFFICES322 W 3RD ST YesYes 0.259854% 87 NGUYEN, DIANA500 W 3RD ST UNIT# A105 YesYes 0.006720% 88 CUSTOM FLOORING DESIGNED BY ARAEL600 W 3RD ST UNIT# 117B YesYes 0.072057% 89 G&R ELITE BUILDING MAINTENANCE600 W 3RD ST UNIT# A101 YesYes 0.057870% 90 HAKIMI, FARZIN 600 W 3RD ST UNIT# A103 YesYes 0.006720% 91 CERRUTI-TIPITTO, PATRICIA600 W 3RD ST UNIT# A118 YesYes 0.006720% 92 J K L VICTORVILLE LLC600 W 3RD ST UNIT# A210 YesYes 0.006720% 93 LABRA, CLAUDIO600 W 3RD ST UNIT# A216 YesYes 0.006720% 94 FTI HOLDINGS, INC. (#A218/B109/B306)600 W 3RD ST UNIT# A218 YesYes 0.010081% 95 CORDOVA, MARIANO (A219)600 W 3RD ST UNIT# A219 YesYes 0.006720% 96 PHAM, THOMAS600 W 3RD ST UNIT# A305 YesYes 0.006720% 97 CREEK ROSEDALE LLC 600 W 3RD ST UNIT# A306 YesYes 0.006720% 98 DESAI M V (A310, C205)600 W 3RD ST UNIT# A310 YesYes 0.007840% 99 HX TOUZI SNA LLC600 W 3RD ST UNIT# A311 YesYes 0.006720% 100 HECTOR & ELVA CORTES600 W 3RD ST UNIT# A313 YesYes 0.006720% 101 MATINPOUR FAMILY TRUST 600 W 3RD ST UNIT# A318 YesYes 0.006720% 102 TEKCHANDANI, NARAIN600 W 3RD ST UNIT# B104 YesYes 0.006720% 103 SAN JUAN INVESTMENT CO, LLC (B106, B212)600 W 3RD ST UNIT# B106 YesYes 0.007840% 104 JIANG, YIHAI & SHI, RU600 W 3RD ST UNIT# B108 YesYes 0.006720% 105 CHAHNOUI, MOHAMMED GHASSEMI 600 W 3RD ST UNIT# B113 YesYes 0.006720% 106 HITCHENS, DEAN AND MARIA600 W 3RD ST UNIT# B114 YesYes 0.006720% 107 ALAN MARTINEZ LAZARO600 W 3RD ST UNIT# B114 YesYes 0.031362% 108 KATO, MAKOTO MARK600 W 3RD ST UNIT# B201 YesYes 0.006720% 109 WU, HONG (A122/A304/B208/C302)600 W 3RD ST UNIT# B208 YesYes 0.010081% 110 HAIDER, RICHARD & SAM 600 W 3RD ST UNIT# B210 YesYes 0.006720% 111 YANG, JENNY & YINGER, QIANG 600 W 3RD ST UNIT# B213 YesYes 0.006720% 112 HANNA INTERPRETING SERVICES600 W 3RD ST UNIT# B216 YesYes 0.053763% 113 YANG, TONY & HOU, NANCY600 W 3RD ST UNIT# B217 YesYes 0.006720% 114 PACIFIC HEIGHT HOLDING CO, LLC600 W 3RD ST UNIT# B221 YesYes 0.006720% 115 HONG, ROBERTO600 W 3RD ST UNIT# B301 YesYes 0.006720% 116 TAING, WILLIAM 600 W 3RD ST UNIT# C101 YesYes 0.006720% 117 JKL VICTORVILLE, LLC600 W 3RD ST UNIT# C103 YesYes 0.006720% 118 MINI MAX GROUP LLC 600 W 3RD ST UNIT# C104 YesYes 0.006720% 119 HX TOUZI SNA LLC600 W 3RD ST UNIT# C202 YesYes 0.006720% 120 JIANG, YIHAI600 W 3RD ST UNIT# C206 YesYes 0.006720% 121 KHORRAM, SHANIA/JAFERKHANI, MEHRI 600 W 3RD ST UNIT# C207 YesYes 0.006720% 122 AZVES LLC 600 W 3RD ST UNIT# C304 YesYes 0.006720% 123 DORA ORLANDI VALUTA SANTA ANA102 E 4TH ST YesYes 0.085125% 124 ACAPULCO TRAVEL102 E 4TH ST YesYes 0.053763% 125 GOLDEN STAR102 E 4TH ST YesYes 0.064590% 126 CRYSTAL-MAKE UP STUDIO102 E 4TH ST YesYes 0.081765% 127 VALNER SERVICES102 E 4TH ST UNIT# 2ND FL YesYes 0.151208% 128 JOYERIA ACAPULCO102 E 4TH ST UNIT# 2ND FL YesYes 0.080644% 129 DENTAL 4102 E 4TH ST UNIT# 2ND FL YesYes 0.152328% 130 YANEZ, RAUL102 E 4TH ST UNIT# 2ND FL YesYes 0.020534% 131 FOIGELMAN, NORBERT104 E 4TH ST YesYes 0.017828% 132 EL RINCON MEXICANO104 E 4TH ST YesYes 0.154009% 133 RASPADOS EL SUR104 E 4TH ST UNIT# B-PE YesYes 0.268815% 134 FRUTAS LA PLACITA104 E 4TH ST UNIT# PE YesYes 0.268815% 135 RHODES JEWELRY & LOAN106 E 4TH ST YesYes 0.537630% 136 YANEZ, RAUL & GILDA108 E 4TH ST YesYes 0.024828% 137 MI MODA108 E 4TH ST YesYes 0.138328% 138 NANA FASHION110 E 4TH ST YesYes 0.165209% 139 HOLIDAY TRAVEL & TOURS110 E 4TH ST YesYes 0.063097% 140 ANTIQUE TIME110 E 4TH ST YesYes 0.054136% 141 AV NAILS STUDIO & NAIL SUPPLIES110 E 4TH ST UNIT# 203 YesYes 0.053763% 142 VERONICA'S BRIDAL110 E 4TH ST UNIT# 207 YesYes 0.090165% 143 LA ZAPATERIA MEXICO112 E 4TH ST YesYes 0.174730% 144 R & Q ENTERPRISES, LLC112 E 4TH ST YesYes 0.015681% 145 NINO'S BRIDAL COUTURE114 E 4TH ST YesYes 0.089605% 146 TELAS FABRIC114 E 4TH ST YesYes 0.013907% 147 TELAS FABRIC114 E 4TH ST YesYes 0.058617% 148 CEBALLOS, JOSE/AURORA116 E 4TH ST YesYes 0.017268% 149 ALVAREZ CHECK CASHING116 E 4TH ST YesYes 0.106779% 150 BOOST MASTER INC116 E 4TH ST YesYes 0.162409% 151 E.S. DOCUMENT SERVICES116 E 4TH ST UNIT# F YesYes 0.057497% 152 ORANGE GROVE LLC116 E 4TH ST UNIT# H YesYes 0.053763% 153 RUIZ PAWN SHOP118 E 4TH ST YesYes 0.537630% 154 STRAIGHT SHOT BARBERS118 1/2 E 4TH ST YesYes 0.053763% 155 YANEZ, RAUL (318 N BUSH)120 E 4TH ST YesYes 0.007187% 156 EL VAQUERO120 E 4TH ST YesYes 0.206091% 157 STUSSY200 E 4TH ST YesYes 0.080644% 158 CULINARY PROVISIONS & COMPANY201 E 4TH ST YesYes 0.083445% 159 JUJU FOOD201 E 4TH ST YesYes 0.114246% 160 SALSA EL GUERO201 E 4TH ST YesYes 0.080644% 161 SEMILLA DE MAIS CATERING201 E 4TH ST YesYes 0.091845% 162 LA VEGANA MEXICANA201 E 4TH ST YesYes 0.127127% 163 HERITAGE ROASTING COMPANY201 E 4TH ST YesYes 0.080644% 164 THREE BEARS BAKE AT HOME201 E 4TH ST YesYes 0.084005% 165 LUNCHBOX BY PLAYGROUND 201 E 4TH ST YesYes 0.191531% 166 4th STREET MARKET201 E 4TH ST YesYes 0.080644% 167 CULTURE HOT SAUCE201 E 4TH ST YesYes 0.080644% 168 SUN GARDEN BAKE SHOP201 E 4TH ST YesYes 0.042562% 169 MR BOCADOS 1201 E 4TH ST YesYes 0.092965% 170 MODEL MEALS LLC201 E 4TH ST YesYes 0.060483% 171 ALTA BAJA MARKET201 E 4TH ST UNIT# 101 YesYes 0.240813% 172 ELECTRIC CITY BUTCHER201 E 4TH ST UNIT# 104 YesYes 0.552751% 173 CHUNK-N-CHIP201 E 4TH ST UNIT# 107 YesYes 0.128807% 174 EAST END REALTY PARTNERS, LP201 E 4TH ST UNIT# 109 YesYes 0.058430% 175 DELI STATION201 E 4TH ST UNIT# 126 YesYes 0.159609% 176 THE GOLDEN HOT FRIED CHICKEN201 E 4TH ST UNIT# 127 YesYes 0.103606% 177 NAUGHTY PANDA201 E 4TH ST UNIT# 129 YesYes 0.299057% 178 LOOSE LEAF BOBA COMPANY201 E 4TH ST UNIT# 132 YesYes 0.168009% 179 BURRITOS LA PALMA201 E 4TH ST UNIT# 136 YesYes 0.188170% 180 EAT GOOD FOOD MAR LLC201 E 4TH ST UNIT# 137 YesYes 0.218412% 181 SUPERNATURAL SANDWICHES201 E 4TH ST UNIT# 138 YesYes 0.080644% 182 BANH XEO BOYS201 E 4TH ST UNIT# 139 YesYes 0.080644% 183 TUK TUK THAI STREET FOOD201 E 4TH ST UNIT# 139 YesYes 0.080644% 184 RIVAS FOOD202 E 4TH ST UNIT# PE YesYes 0.268815% 185 DIJAN SKIN CARE204 E 4TH ST UNIT# D YesYes 0.112006% 186 CLUB DE NUTRICION DE HERBALIFE204 E 4TH ST UNIT# G YesYes 0.086245% 187 KEEP IT CHULA204 E 4TH ST UNIT# O YesYes 0.053763% 188 THE GCS CLOTHING STORE206 E 4TH ST UNIT# B YesYes 0.089605% 189 RIF.OC208 E 4TH ST YesYes 0.080644% 190 BAIT210 E 4TH ST YesYes 0.159049% 191 PHOUNSACK CHANTHAPANYA216 E 4TH ST YesYes 0.018761% 192 AL'S SHOP216 E 4TH ST YesYes 0.123767% 193 ALUMNI ADVOCATE ASSISTANCE216 E 4TH ST UNIT# A YesYes 0.053763% 194 TOPAZ JEWELRY REPAIR216 E 4TH ST UNIT# B YesYes 0.053763% 195 FAINBARG, ALLAN TR219 E 4TH ST YesYes 0.021375% 196 4TH STREET MARKET219 E 4TH ST YesYes 0.089605% 197 RIVAS FOOD219 E 4TH ST UNIT# PE YesYes 0.268815% 198 THE PLAYGROUND220 E 4TH ST YesYes 1.055099% 199 SLUSHCULT220 E 4TH ST UNIT# 106 YesYes 0.202171% 200 LIBROMOBILE220 E 4TH ST UNIT# 107 YesYes 0.092405% 201 RANGEL, RAYMOND (300-308)300 E 4TH ST YesYes 0.027908% 202 LA MICHOACANA EXPRESS300 E 4TH ST UNIT# 101 YesYes 0.109206% 203 CONNATURA PRODUCTOS CAMACHO300 E 4TH ST UNIT# 107 YesYes 0.080644% 204 EAST END REALTY PARTNERS, LP305 E 4TH ST YesYes 0.026881% 205 TAQUERIAS GUADALAJARA REAL MEXICAN FOOD INC305 E 4TH ST YesYes 0.395942% 206 M. LOVEWELL LLC305 E 4TH ST UNIT# 103 YesYes 0.172863% 207 MARCAS GALLERY305 E 4TH ST UNIT# 104 YesYes 0.237827% 208 BIRD & BARREL305 E 4TH ST UNIT# 105 YesYes 0.243054% 209 FIN DU MONDE305 E 4TH ST UNIT# 105 YesYes 0.080644% 210 WURSTHAUS305 E 4TH ST UNIT# 106 YesYes 0.288976% 211 NATIVE SON ALEHOUSE305 E 4TH ST UNIT# 200 YesYes 0.304097% 212 RRWESTERNWEAR CASA DEL SOMBRERO INC308 E 4TH ST YesYes 0.080644% 213 COFFEE MUSE LLC310 E 4TH ST YesYes 0.163529% 214 QUERETARO CASTING & DESIGNER312 E 4TH ST YesYes 0.196011% 215 CATANO INSURANCE BROKERS312 E 4TH ST UNIT# A YesYes 0.092218% 216 MEXICANA TRAVEL312 E 4TH ST UNIT# A YesYes 0.070191% 217 AB COMPUTERS312 E 4TH ST UNIT# B YesYes 0.090725% 218 CEBALLOS, JOSE314 E 4TH ST YesYes 0.022868% 219 AMERICAN BROADBAND AND CABLE CORP.314 E 4TH ST YesYes 0.080644% 220 SERVICENTRO314 E 4TH ST UNIT# A YesYes 0.053763% 221 MICELANIAS314 E 4TH ST UNIT# B YesYes 0.092965% 222 CHARLIE'S TATTOO STUDIO316 E 4TH ST YesYes 0.053763% 223 EAST END REALTY PARTNERS II, LP316 E 4TH ST YesYes 0.032855% 224 CHARLIE'S TATTOO SUPPLIES & BODY JEWELRY318 E 4TH ST YesYes 0.160169% 225 AMERICAN BARBER SHOP DTSA / AMERICAN BARBER SHOP320 E 4TH ST UNIT# A YesYes 0.076538% 226 GON-REY LP409 E 4TH ST YesYes 0.013441% 227 NORTHGATE MARKET #8409 E 4TH ST YesYes 4.297119% 228 NORTHGATE FINANCIAL409 E 4TH ST YesYes 0.294576% 229 MERCADO, LYDIA MAE410 E 4TH ST YesYes 0.006720% 230 NGHIEM, MINH THU 450 E 4TH ST UNIT# 137 YesYes 0.006720% 231 SAN JUAN INVESTMENT CO LLC (133, 134, 141,406,433)450 E 4TH ST UNIT# 141 YesYes 0.011201% 232 HEATON, DAVID & JAN 450 E 4TH ST UNIT# 149 YesYes 0.006720% 233 TAN, PAUL & JOYCE 450 E 4TH ST UNIT# 237 YesYes 0.006720% 234 NGUYEN, HONORA 450 E 4TH ST UNIT# 240 YesYes 0.006720% 235 RIJHWANI, ASHOK (242, 251, 311, 318)450 E 4TH ST UNIT# 242 YesYes 0.010081% 236 EONGRACIA LLC 450 E 4TH ST UNIT# 243 YesYes 0.006720% 237 WILLIAMS, JOHN 450 E 4TH ST UNIT# 245 YesYes 0.006720% 238 VAN VELDNE, LAMBERTUS & ELKE(247, 336)450 E 4TH ST UNIT# 247 YesYes 0.007840% 239 LEE, DR. YEE LEAN450 E 4TH ST UNIT# 247 YesYes 0.006720% 240 SHARMA, SUDHEEP450 E 4TH ST UNIT# 337 YesYes 0.006720% 241 501-511 ISIS LLC450 E 4TH ST UNIT# 338 YesYes 0.006720% 242 PANDJI, EVELINA450 E 4TH ST UNIT# 348 YesYes 0.006720% 243 JAFARIMOJARROD, ELHAM LIVING TRUST 450 E 4TH ST UNIT# 438 YesYes 0.006720% 244 OROZCO, JESUS A 450 E 4TH ST UNIT# 439 YesYes 0.006720% 245 WAYY, BRIAN 450 E 4TH ST UNIT# 441 YesYes 0.006720% 246 J K L VICTORVILLE LLC450 E 4TH ST UNIT# 449 YesYes 0.006720% 247 ADGER, JOHN THE JOHN ADGER TRUST101 W 4TH ST YesYes 0.033789% 248 FRUTAS LA PLACITA101 W 4TH ST UNIT# PE YesYes 0.268815% 249 SHOE PALACE #236102 W 4TH ST YesYes 0.727480% 250 MILLER-BURG-DUPONT, INC .(102-106)106 W 4TH ST YesYes 0.068697% 251 GLOBAL ENVIRONMENTAL NETWORK106 W 4TH ST YesYes 0.072057% 252 HANNAH MONROE PHOTOGRAPHY LLC106 W 4TH ST UNIT# 304 YesYes 0.040322% 253 MARINE PARK ESCROW/CYNTHIA ARAGON, ESQ.106 W 4TH ST UNIT# 416 YesYes 0.089605% 254 PRETTY GREAT LLC106 W 4TH ST UNIT# 515 YesYes 0.080644% 255 CORTEZ CPA, P.C.106 W 4TH ST UNIT# 600 YesYes 0.089605% 256 VISIONEERING STUDIOS, INC106 W 4TH ST UNIT# 600 YesYes 0.215052% 257 VISIONEERING STUDIOS CONSTRUCTION, INC106 W 4TH ST UNIT# 600 YesYes 0.107526% 258 JR BEAUTY GURUS108 W 4TH ST YesYes 0.227933% 259 CHA, WON 108 W 4TH ST YesYes 0.017268% 260 CONTINENTAL HALL108 W 4TH ST UNIT# A YesYes 0.058243% 261 BUFFCO INVESTMENTS, LLC.109 W 4TH ST YesYes 0.013441% 262 COLLEEN O'HARA'S BEAUTY ACADEMY109 W 4TH ST UNIT# B YesYes 0.078778% 263 CAPILLA LAS ROSAS WEDDING CHPL110 W 4TH ST YesYes 0.159422% 264 SOUTHWEST FAMILY 2004 TRUST110 W 4TH ST YesYes 0.018294% 265 LA MODA110 W 4TH ST YesYes 0.091098% 266 CHANTHAPANYA,PHOUNSACK (112-116)112 W 4TH ST YesYes 0.024361% 267 YCU LLC113 W 4TH ST YesYes 0.015214% 268 HISPANOAMERICAN SERVICES113 W 4TH ST UNIT# A YesYes 0.080271% 269 M & J114 W 4TH ST YesYes 0.096885% 270 CASSANDRA'S BRIDAL BANQUETS115 W 4TH ST YesYes 0.080644% 271 CDHF PROPERTY MANAGEMENT115 W 4TH ST YesYes 0.015494% 272 SANCTUARY SOUND115 W 4TH ST UNIT# 200 YesYes 0.080644% 273 VALENCIA, MEDARDO & VICTORIA116 W 4TH ST YesYes 0.032948% 274 VALENCIA JEWELRY 116 W 4TH ST YesYes 1.154784% 275 PRODUCTOS VIENESTAR HERBALIFE116 W 4TH ST UNIT# 12 YesYes 0.082325% 276 REVOLUTION BEAUTY SALON116 W 4TH ST UNIT# 7 YesYes 0.058243% 277 VALENCIA & ASSOCIATES APC116 W 4TH ST UNIT# A YesYes 0.277775% 278 FAINBARG V LP 117 W 4TH ST YesYes 0.045829% 279 THE PIZZA PRESS117 W 4TH ST UNIT# 101 YesYes 0.270495% 280 SALON SYCAMORE, LLC117 W 4TH ST UNIT# 103 YesYes 0.082885% 281 YUM RESTAURANT SERVICES GROUP, LLC117 W 4TH ST UNIT# 200 YesYes 0.088112% 282 LOCKOUT MUSIC STUDIOS117 W 4TH ST UNIT# LL YesYes 0.108646% 283 SANTA ANA SALON118 W 4TH ST YesYes 0.065710% 284 FRUTAS LA PLACITA118 W 4TH ST UNIT# PE YesYes 0.268815% 285 DON ROBERTO JEWELERS120 W 4TH ST YesYes 0.566191% 286 BMA INVESTMENT LLC120 W 4TH ST YesYes 0.031268% 287 FAINBARG & FRIEDMAN I, LP201 W 4TH ST YesYes 0.015308% 288 SHARINORI201 W 4TH ST YesYes 0.268815% 289 SANFRI GENERAL MERCHANDISE201 W 4TH ST YesYes 0.080644% 290 LEVE1 PROMOTION INC.201 W 4TH ST YesYes 0.053763% 291 FRUTAS LA PLACITA201 W 4TH ST UNIT# PE YesYes 0.268815% 292 HOPPER & BURR202 W 4TH ST YesYes 0.308577% 293 D & D SNACK FOOD202 W 4TH ST UNIT# PE YesYes 0.268815% 294 VACATION204 W 4TH ST YesYes 0.289536% 295 SPURGEON DTOC, LLC206 W 4TH ST YesYes 0.080178% 296 RHOMBUS INDUSTRIES206 W 4TH ST UNIT# 201 YesYes 0.160169% 297 GRACE'S ENTERPRISES206 W 4TH ST UNIT# 203 YesYes 0.078031% 298 MUSICAL ARTISTRY206 W 4TH ST UNIT# 210B YesYes 0.053763% 299 POMADE, INC.206 W 4TH ST UNIT# 220 YesYes 0.479947% 300 NALLE FINE ART206 W 4TH ST UNIT# 223 YesYes 0.083445% 301 SC CREATIVE CORP.206 W 4TH ST UNIT# 225 YesYes 0.090725% 302 PINNED UP206 W 4TH ST UNIT# 229 YesYes 0.081765% 303 COSMIC BEAUTY BRANDS, LLC206 W 4TH ST UNIT# 231 YesYes 0.080644% 304 PICKAXE & SHOVEL, LLC206 W 4TH ST UNIT# 241 YesYes 0.053763% 305 YOLI'S TAX PRO206 W 4TH ST UNIT# 313 YesYes 0.053763% 306 LOS 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0.056003% 322 JESSICA'S BRIDAL212 W 4TH ST YesYes 0.087365% 323 ANGELS213 W 4TH ST YesYes 0.144488% 324 DUEL, EBRAHIM M.D. - INC214 W 4TH ST YesYes 0.013441% 325 ROBBINS, ROSALIND K (215-217)215 W 4TH ST YesYes 0.019134% 326 DISCREET LOVING215 W 4TH ST YesYes 0.097445% 327 THE NET BARBER SHOP217 W 4TH ST YesYes 0.053763% 328 MKT.INC/METRO PCS217 W 4TH ST YesYes 0.080644% 329 ETERNA ILUSION218 W 4TH ST YesYes 0.086805% 330 THE HEAVEN SPOT218 W 4TH ST YesYes 0.080644% 331 FUR FRIENDS219 W 4TH ST YesYes 0.080644% 332 219 W 4TH ST TRUST219 W 4TH ST YesYes 0.013441% 333 HWANG, THOMAS D220 W 4TH ST YesYes 0.015961% 334 SHELSYES BRIDAL & PARTY PLANNERS220 W 4TH ST YesYes 0.080644% 335 AVA ENTERPRISES, LLC221 W 4TH ST YesYes 0.002240% 336 BARBERIA EL CATRIN221 W 4TH ST YesYes 0.053763% 337 HOLIDAY TRAVEL & TOURS II222 W 4TH ST YesYes 0.063844% 338 BOTANICA LATINA222 W 4TH ST YesYes 0.132167% 339 ALFA INSURANCE SERVICES222 W 4TH ST UNIT# A YesYes 0.053763% 340 CHAPALA'S BEAUTY SALON222 W 4TH ST UNIT# A YesYes 0.053763% 341 CELENE'S BRIDAL222 W 4TH ST UNIT# B YesYes 0.080644% 342 FRUTAS ACAPULCO222 W 4TH ST UNIT# PE YesYes 0.268815% 343 VALLEJO, ANTONIO(223 W 4TH ST & 409 N BROADWAY ST)223 W 4TH ST YesYes 0.040229% 344 TERESA'S JEWELERS223 W 4TH ST YesYes 0.467626% 345 STARBUCKS COFFEE #8941301 W 4TH ST YesYes 0.520269% 346 PHILLIPS HUTTON PARTNERS LLC301 W 4TH ST YesYes 0.036775% 347 LEDWIN,BRUNO & RAQUEL(302-306)302 W 4TH ST YesYes 0.002240% 348 CARTER BOWL302 W 4TH ST UNIT# PE YesYes 0.268815% 349 ANA'S EVERYTHING STORE304 W 4TH ST YesYes 0.131607% 350 PEER MENTAL WELLNESS305 W 4TH ST YesYes 0.143368% 351 KEBAB PLACE306 W 4TH ST YesYes 0.080644% 352 CERVECERIA SANTA ANA307 W 4TH ST YesYes 0.128807% 353 CHA, WON (310-318)312 W 4TH ST YesYes 0.015028% 354 DOWNTOWN JEWELRY AND LOAN314 W 4TH ST YesYes 0.537630% 355 U.S. FINANCING314 W 4TH ST YesYes 0.060857% 356 I-DELTA316 W 4TH ST UNIT# 232 YesYes 0.072057% 357 MONTE DE PIEDAD318 W 4TH ST YesYes 0.099126% 358 4th STREET THEATRE BLDG, LLC324 W 4TH ST YesYes 0.027722% 359 CAFE CULTURA: CONTERMPORARY MEXICAN CAFETERIA(A&B)324 W 4TH ST UNIT# A YesYes 0.495628% 360 GUNTHER'S324 W 4TH ST UNIT# E YesYes 0.080644% 361 PERLA MEXICAN CUISINE400 W 4TH ST YesYes 0.080644% 362 CAFE CITO400 W 4TH ST YesYes 0.080644% 363 BARBERIA EL CATRIN, INC.400 W 4TH ST UNIT# B YesYes 0.053763% 364 THE COMB SALON402 W 4TH ST YesYes 0.068697% 365 LOCKOUT MUSIC STUDIOS404 W 4TH ST YesYes 0.072804% 366 BROADWAY IMPROVEMENT CO INC404 W 4TH ST YesYes 0.035002% 367 CAMPSITE MEDIA HOUSE404 W 4TH ST UNIT# A YesYes 0.053763% 368 ASAP LEGAL SOLUTION404 W 4TH ST UNIT# B YesYes 0.496188% 369 HAIR ATELIER BY KARLY GISELLE404 W 4TH ST UNIT# E YesYes 0.053763% 370 REED, KENNETH ALAN ATTY AT LAW406 W 4TH ST YesYes 0.098565% 371 YV DENTAL PRACTICE OF ORANGE COUNTY INC.408 W 4TH ST YesYes 0.107526% 372 CRAVE410 W 4TH ST YesYes 0.464266% 373 SIMPLE VENTURE LLC412 W 4TH ST UNIT# 201 YesYes 0.053763% 374 LFT PROPERTY MANAGMENT, LLC414 W 4TH ST YesYes 0.027908% 375 I CAN BARBECUE SANTA ANA414 W 4TH ST YesYes 0.080644% 376 SHOFFNER, GARY E414 W 4TH ST UNIT# A YesYes 0.089605% 377 GOOD DAZE TATTOO414 W 4TH ST UNIT# L YesYes 0.059737% 378 PREMIERE ASSOCIATION MGMT414 W 4TH ST UNIT# O YesYes 0.053763% 379 VELVET LOUNGE416 W 4TH ST YesYes 0.080644% 380 LAVA KITCHEN AND BAR416 W 4TH ST YesYes 0.060483% 381 RAMONA BUILDING LLC (118-120)118 W 5TH ST YesYes 0.055910% 382 ESPORTS ARENA120 W 5TH ST UNIT# 100 YesYes 0.294950% 383 SVN / VANGUARD120 W 5TH ST UNIT# 210 YesYes 0.648889% 384 FINANCIAL ADVOCATES, INC.120 W 5TH ST UNIT# 220 YesYes 0.215052% 385 LOCKOUT MUSIC STUDIOS224 W 5TH ST YesYes 0.067204% 386 THE WEST END KITCHEN & PUB300 W 5TH ST YesYes 0.080644% 387 BROADWAY IMPROVEMENT CO (300-322)306 W 5TH ST YesYes 0.023801% 388 LOCKOUT MUSIC STUDIOS310 W 5TH ST YesYes 0.109766% 389 THE CHICKEN RICE318 W 5TH ST YesYes 0.153449% 390 MIL JUGOS320 W 5TH ST YesYes 0.249774% 391 THE ARMORY HALL313 N BIRCH ST YesYes 0.039482% 392 SHAFIR LAW, APC313 N BIRCH ST UNIT# 100 YesYes 0.152328% 393 GO RN, LLC313 N BIRCH ST UNIT# 102 YesYes 2.552995% 394 MORRISSEY ASSOCIATES, INC.313 N BIRCH ST UNIT# 103 YesYes 0.313617% 395 HOUSEABLES313 N BIRCH ST UNIT# 200 YesYes 0.493947% 396 HALL, TOM101 S BIRCH ST YesYes 0.006720% 397 MATTINGLEY, MIKE 105 S BIRCH ST YesYes 0.006720% 398 CASA LINDA FURNITURE INC116 N BROADWAY ST YesYes 1.482962% 399 109 BROADWAY, LLC117 N BROADWAY ST YesYes 0.035842% 400 GUADALAJARA FURNITURE OUTLET117 N BROADWAY ST YesYes 0.080644% 401 HIPCOOKS125 N BROADWAY ST UNIT# C YesYes 0.126567% 402 GYPSY DEN125 N BROADWAY ST UNIT# D YesYes 0.201611% 403 NEXT ROUND BAR & GRILL200 N BROADWAY ST YesYes 0.207772% 404 CONGREGATION ALE HOUSE201 N BROADWAY ST YesYes 0.155129% 405 EMPIRE BROADWAY LLC204 N BROADWAY ST YesYes 0.033602% 406 HAL BRISCOE FINE ART204 N BROADWAY ST UNIT# M YesYes 0.080644% 407 SMARTY SOCIAL MEDIA, INC204 N BROADWAY ST UNIT# N YesYes 0.652623% 408 SANTORA GROUP LLC 207 N BROADWAY ST YesYes 0.058150% 409 ATILANO SALON207 N BROADWAY ST UNIT# 100 YesYes 0.054136% 410 CALENDAR FACTORY INC dba TETHOS CREATIVE207 N BROADWAY ST UNIT# A YesYes 0.225133% 411 GENE, ARTIST STUDIO/ GALLERY207 N BROADWAY ST UNIT# B11 YesYes 0.080644% 412 FIROUZEH KARAMLO/FIROUZEH FINE ART207 N BROADWAY ST UNIT# B5 YesYes 0.080644% 413 THE ARTBAR207 N BROADWAY ST UNIT# B6 YesYes 0.080644% 414 SMARTMUSE LLC207 N BROADWAY ST UNIT# E YesYes 0.076911% 415 LAW OFFICES OF FERNANDO LEONE207 N BROADWAY ST UNIT# F YesYes 0.089605% 416 JONNYS PHOTOS BY JONNY GAUTNEY207 N BROADWAY ST UNIT# J YesYes 0.053763% 417 LAW OFFICE OF ROBERT NEWMAN207 N BROADWAY ST UNIT# K YesYes 0.098565% 418 ESPARZA,ROSEMARY J LAW OFFICES207 N BROADWAY ST UNIT# N YesYes 0.098565% 419 NEXTLINKS208 N BROADWAY ST YesYes 0.053763% 420 CALIFORNIA CENTER FOR DIGITAL ARTS209 N BROADWAY ST YesYes 0.091845% 421 THE MAIN CAVE BARBER SHOP210 N BROADWAY ST YesYes 0.055256% 422 BLACKMARKET BAKERY SA LLC211 N BROADWAY ST YesYes 0.080644% 423 ELITE FITNESS DOWNTOWN, LLC214 N BROADWAY ST YesYes 0.101552% 424 CORBIZ LLC 214 N BROADWAY ST YesYes 0.070937% 425 PROOF215 N BROADWAY ST YesYes 0.330418% 426 CORBIZ LLC (217-221)217 N BROADWAY ST YesYes 0.020161% 427 ARTIST VILLAGE HAIR STUDIO BY BREJHON217 N BROADWAY ST YesYes 0.060483% 428 BELLABYBC217 N BROADWAY ST YesYes 0.076164% 429 TACO LIBRE BY AZUL219 N BROADWAY ST YesYes 0.080644% 430 BROADWAY STUDIOS OC219 N BROADWAY ST YesYes 0.053763% 431 STRANGE SUPPLY219 N BROADWAY ST YesYes 0.080644% 432 SUBWAY #26294220 N BROADWAY ST YesYes 0.216732% 433 AKINSPARKER CREATIVE, LLC225 N BROADWAY ST YesYes 0.589526% 434 CLIMB ALPHA HOLDINGS LLC(225-227)225 N BROADWAY ST YesYes 0.047696% 435 THE COPPER DOOR BAR225 1/2 N BROADWAY ST YesYes 0.080644% 436 RUMORZ KUTZ225 N BROADWAY ST UNIT# 201 YesYes 0.053763% 437 CROOK + CO225 N BROADWAY ST UNIT# 214 YesYes 0.064964% 438 LSR BUILDERS, INC225 N BROADWAY ST UNIT# 216 YesYes 0.107526% 439 CHAPTER ONE: THE MODERN LOCAL227 N BROADWAY ST YesYes 0.701719% 440 GILMAKER, DEBORAH (300-306)300 N BROADWAY ST YesYes 0.017361% 441 CHAMPION FINANCIAL SERVICES300 N BROADWAY ST YesYes 0.056003% 442 TROPHIES304 N BROADWAY ST YesYes 0.053763% 443 CENTRO NATURISTA310 N BROADWAY ST YesYes 0.087365% 444 ARA'S BRIDAL323 N BROADWAY ST UNIT# B YesYes 0.080644% 445 SAADI, JOSEPH I325 N BROADWAY ST YesYes 0.013441% 446 LIGHTS OC405 N BROADWAY ST UNIT# B YesYes 0.080644% 447 DAPPER DON BARBER LOUNGE405 N BROADWAY ST UNIT# D YesYes 0.053763% 448 SOUL SWEET STUDIO405 N BROADWAY ST UNIT# G YesYes 0.054510% 449 COLOR BEAUTY BAR407 N BROADWAY ST YesYes 0.040322% 450 HECTOR'S # 3409 N BROADWAY ST YesYes 0.885409% 451 FAINBARG, ALLAN413 N BROADWAY ST YesYes 0.017734% 452 UNISEX BEAUTY SALON413 N BROADWAY ST YesYes 0.074671% 453 RIVAS FOOD CO.413 N BROADWAY ST UNIT# A YesYes 0.099686% 454 BEATNIK BANDITO MUSIC EMPORIUM417 N BROADWAY ST YesYes 0.081765% 455 AVANT GARDEN THE ART GALLERY417 1/2 N BROADWAY ST YesYes 0.080644% 456 PORT CITY TATTOO419 N BROADWAY ST YesYes 0.094085% 457 TRUTH & ADVERTISING454 N BROADWAY ST YesYes 0.421143% 458 KC OF BROADWAY518 N BROADWAY ST YesYes 0.060483% 459 DOWNTOWN TIRES AND AUTO REPAIR119 N BUSH ST UNIT# A YesYes 0.124887% 460 SPEEDFORCE AUTO REPAIR119 N BUSH ST UNIT# A1 YesYes 0.053763% 461 STANDARD REBUILDERS119 N BUSH ST UNIT# B YesYes 0.117980% 462 HID.N204 N BUSH ST YesYes 0.080644% 463 AES GLOBAL INC205 N BUSH ST YesYes 0.118353% 464 SPLITENDS SALON207 N BUSH ST YesYes 0.057870% 465 PARLOR TATTOO PRINTS209 N BUSH ST YesYes 0.104726% 466 KICKER FISHING BRAND LLC213 N BUSH ST YesYes 0.110326% 467 IMAGE LAB216 N BUSH ST YesYes 0.053763% 468 S.M. DESIGN ASSOC., INC.220 N BUSH ST YesYes 0.157182% 469 DONALD KROTEE PARTNERSHIP INC230 N BUSH ST YesYes 0.179210% 470 FABYS WIGS232 N BUSH ST YesYes 0.092405% 471 BARBARINO, RICHARD265 N BUSH ST YesYes 0.006720% 472 FORKAN, JOE A.265 N BUSH ST YesYes 0.031362% 473 LA CASA BLANCA BEAUTY SALON300 N BUSH ST YesYes 0.060110% 474 PARKING CO OF AMER CAL300 N BUSH ST YesYes 0.054510% 475 PARKING CO OF AMERICA/CAL302 N BUSH ST YesYes 0.014187% 476 ELMA'S BEAUTY SALON308 N BUSH ST YesYes 0.078031% 477 ELISA RADILLO TRUST (308,310,& 312)308 N BUSH ST YesYes 0.013441% 478 JALISCO BRIDAL FOTO & VIDEO310 N BUSH ST YesYes 0.082325% 479 LAS CASUELAS312 N BUSH ST YesYes 0.080644% 480 THE WILCOX GROUP, LLC712 N BUSH ST YesYes 0.017921% 481 CUSTOM AUTO SERVICE302 N FRENCH ST YesYes 0.053763% 482 LOCKOUT MUSIC STUDIOS320 N FRENCH ST YesYes 0.114993% 483 LEFT OF THE DIAL RECORDS320 N FRENCH ST UNIT# B YesYes 0.122087% 484 CVS/PHARMACY #9583102 N MAIN ST YesYes 2.986646% 485 M & A GABAEE, A CAL LTD PTNERSHIP102 N MAIN ST YesYes 0.054416% 486 RITE AID #5759111 N MAIN ST YesYes 0.080644% 487 SWINERTON BUILDERS200 N MAIN ST YesYes 0.053763% 488 THE GORDON PROFESSIONAL GROUP217 N MAIN ST YesYes 0.089605% 489 LAW OFFICES OF ERNESTO BARRETO, APC217 N MAIN ST YesYes 0.089605% 490 450 ATTORNEY, APC217 N MAIN ST YesYes 0.143368% 491 217 N MAIN IVESTMENTS, LLC217 N MAIN ST YesYes 0.013441% 492 HYDROLOGY GROUP, INC. 217 N MAIN ST UNIT# 115 YesYes 0.098565% 493 3211 E MANDEVILLE, LLC300 N MAIN ST YesYes 0.013441% 494 MIX MIX KITCHEN BAR300 N MAIN ST YesYes 0.266015% 495 DUEL, EBRAHIM301 N MAIN ST YesYes 0.028095% 496 WESTERN WOMENS INSTITUTE, INC.301 N MAIN ST YesYes 0.107526% 497 TONY'S BASEMENT302 N MAIN ST YesYes 0.398182% 498 TONY'S BASEMENT302 N MAIN ST YesYes 0.035842% 499 OMAKASE BY GINO304 N MAIN ST YesYes 0.289536% 500 QUAN M. TRAN, O.D. OPTOMETRY305 N MAIN ST YesYes 0.143368% 501 MADLINE TATTOO307 N MAIN ST YesYes 0.053763% 502 ESTETICA GUADLAJARA315 N MAIN ST YesYes 0.026881% 503 WESTERN DENTAL SERVICES INC500 N MAIN ST YesYes 0.439064% 504 LOCKOUT MUSIC STUDIOS501 N MAIN ST YesYes 0.199371% 505 CROSSFIT DOWNTOWN SANTA ANA503 N MAIN ST YesYes 0.124700% 506 S A CLINICA MEDICA GENERAL505 N MAIN ST YesYes 0.134407% 507 MAIN ST PHARMACY510 N MAIN ST YesYes 0.086805% 508 McFADDEN PUBLIC MARKET515 N MAIN ST YesYes 0.315858% 509 515 N MAIN LLC515 N MAIN ST YesYes 0.013441% 510 DOKUDAI RAMEN515 N MAIN ST UNIT# B YesYes 0.080644% 511 MYMEN515 N MAIN ST UNIT# B YesYes 0.060483% 512 MUNCHIES OC LLC515 N MAIN ST UNIT# C YesYes 0.374661% 513 WINGS & BOWLS515 N MAIN ST UNIT# C YesYes 0.215052% 514 PL3R SYSTEMS, INC. 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P. C.600 W SANTA ANA BLVD UNIT# 700 YesYes 0.206091% 579 SUNNY HILLS MANAGEMENT CO. INC.600 W SANTA ANA BLVD UNIT# 800 YesYes 0.161289% 580 BETTER HEALTH NETWORK MANAGEMENT, INC.600 W SANTA ANA BLVD UNIT# 802 YesYes 0.329298% 581 ROSEN, MARK S - ATTORNEY600 W SANTA ANA BLVD UNIT# 814 YesYes 0.098565% 582 COUNTYWIDE SMART HOMES600 W SANTA ANA BLVD UNIT# 900 YesYes 0.053763% 583 LAW OFFICE OF RENEE GARCIA600 W SANTA ANA BLVD UNIT# 910 YesYes 0.089605% 584 MUNOZ & ASSOCIATES600 W SANTA ANA BLVD UNIT# 910 YesYes 0.107526% 585 LAW OFFICES OF MARK S. MARTINEZ600 W SANTA ANA BLVD UNIT# 925 YesYes 0.313617% 586 H&H LAW600 W SANTA ANA BLVD UNIT# 950 YesYes 0.143368% 587 SCHULMAN, THOMAS L600 W SANTA ANA BLVD UNIT# 955 YesYes 0.098565% 588 LAW OFFICE OF DEBORAH M. VASQUEZ600 W SANTA ANA BLVD UNIT# 955 YesYes 0.089605% 589 WEB GROUP CLUB, INC600 W SANTA ANA BLVD UNIT# 960 YesYes 0.053763% 590 SPEECH & STUTTERING THERAPY, INC. 600 W SANTA ANA BLVD UNIT# 960 YesYes 0.089605% 591 PACIFIC TECHOLOGY INDUSTRIES CO600 W SANTA ANA BLVD UNIT# 960 YesYes 0.053763% 592 CHLOE M. STATON TRUST (219 E 1ST ST)116 N SPURGEON ST YesYes 0.015214% 593 EAST END REALTY PARTNERS, LP301 N SPURGEON ST YesYes 0.027722% 594 EL MERCADO MODERN CUISINE301 N SPURGEON ST YesYes 0.224012% 595 KAIZEN SHABU303 N SPURGEON ST YesYes 0.298497% 596 THE YOST - 1912305 N SPURGEON ST YesYes 0.184250% 597 THE YOST307 N SPURGEON ST YesYes 0.311377% 598 GUS'S WORLD FAMOUS FRIED CHICKEN102 N SYCAMORE ST YesYes 0.617714% 599 Q ART SALON205 N SYCAMORE ST YesYes 0.081205% 600 LIVE SCAN FINGERPRINTING211 N SYCAMORE ST YesYes 0.053763% 601 WESTCLIFF PROPERTIES211 N SYCAMORE ST YesYes 0.053763% 602 HICHMAN, ALEXANDER B. (221, 223, & 223 1/2)221 N SYCAMORE ST YesYes 0.008960% 603 JMACH INC231 N SYCAMORE ST YesYes 0.091472% 604 LAW OFFICE OF MICHAEL D. FRANCO261 N SYCAMORE ST YesYes 0.161289% 605 CREACIONES ALEJANDRA FOTO ESTUDIO Y BRIDAL SHOP318 N SYCAMORE ST YesYes 0.087365% 606 ARIES BEAUTY SALON AND SUPPLY320 N SYCAMORE ST YesYes 0.055256% 607 LOMELI, ARTURO DDS415 N SYCAMORE ST YesYes 0.170249% 608 DIAMOND PARKING SERVICES LLC #SA01416 N SYCAMORE ST YesYes 0.072431% 609 VITARELLI511 N SYCAMORE ST YesYes 0.081765% 610 ESCAPE VR LLC515 N SYCAMORE ST YesYes 0.080644% 611 SONI, NEIL (701-703)701 N SYCAMORE ST YesYes 0.010081% 100.00% EXHIBIT 3 RESOLUTION NO. 2021- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO LEVY AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICTFOR THE YEAR 2022 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby, finds, determines and declares as follows: A.By Ordinance No. NS-1715, adopted February 6, 1984, the City Council of the City of Santa Ana established the Downtown Santa Ana Business Improvement Area pursuant to sections 36500 et seq. of the California Streets and Highways Code; and B.As provided in Ordinance No. NS-1715, the City Council is authorized to levy an assessment in the following amounts for theimprovements and activities of the Downtown Santa Ana Business Improvement Area: (a)For amusement services, pawnbrokers, service stations, retail sales of goods, hotels, motels, theaters, food establishments: an assessment in an amount equal to one and one-half (1.5) the annual business license fee. (b)For commercial and residential rental property: an assessment in an amount equal to one-fourth (0.25) the annual business license fee. (c)For all other businesses: an assessment in an amount equal to the annual business fee. Section 2. The improvements and activities for which the assessment revenues may be used in the Downtown Santa Ana Business Improvement Districtpursuant to Ordinance No. NS-1715 are as follows: (a)Decoration of any public place. (b)Promotion of public events. (c)Furnishing of music in any public place. Resolution No. 2021-XXX Page 1 of 3 EXHIBIT 3 (d) The general promotion of business activities. Section 3. The Downtown Santa Ana Business Improvement District is located as shown on Attachment A to the Assessment Report, attached hereto as Exhibit 1 and incorporated herein by reference. Section 4. The Assessment Report is also on file with the Clerk of the Council to which reference may be made for a full and detailed description of the improvements and activities to be provided for the year 2022, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2022. Section 5. A public hearing shall be held by the City Council at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California at its regular meeting of December 7, 2021, at 5:45 p.m., or as soon thereafter as the matter may be heard, for the purpose of determining whether to impose the above said assessment for the year 2022 for the improvements and activities described in the report. Section 6. At the public hearing, written and oral protests may be made in accordance with sections 36524 and 36525 of the California Streets and Highways Code. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest shall be filed with the Clerk of the Council at or before the time fixed for the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business.A written protest which does notcomply with this section shall not be counted in determining a majority protest. Section 7. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2020-XXX Page 2 of 3 EXHIBIT 3 ADOPTED this ______ day of ______________, 2021. _______________________ Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:________________________ Ryan O. Hodge Assistant City Attorney AYES: Councilmembers _______________________________________ NOES: Councilmembers _______________________________________ ABSTAIN: Councilmembers _______________________________________ NOT PRESENT: Councilmembers _______________________________________ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on _______________. Date: ____________________________________________________ Clerk of the Council City of Santa Ana Resolution No. 2021-XXX Page 3 of 3 EXHIBIT 3 EXHIBIT 1 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2022 ASSESSMENT REPORT Background On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500, et seq., of the 1979 State of California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC, now known as the Community Development Commission (CDC) is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The BID was established as a means of providing the Downtown business community with the funding to promote the Downtown through events and advertising pieces; funding to increase security and enhance the overall aesthetics of the area; and also to maintain the downtown shopping corridors. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 500 retail, service, and professional members (see Exhibit 2). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and/or sales volumes of the business (see Attachment A). 2022 Budget Plan Based on the feedback from the two Associations, Downtown Inc. and the Santa Ana Business Council, the 2022 BID Budget focuses on the continuation of promotions and marketing of the BID. Some of the promotion and marketing will be focused on Downtown events and advertising pieces, which are all designed to enhance the overall aesthetics of the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the two groups’ budgets are attached (Attachment B). The assessments from the 2022 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council—the two business groups that have spearheaded this BID process. Any remaining funds from the previous year will be incorporated into a reserve fund for the groups’ 2022 budgets. This reserve funding may be used for additional events and promotions throughout the year. In 2022, the two representative business associations are proposing to host several events, some special events may be virtual (pending COVID-19 regulations for special events), promotion of outdoor dining and retail sales, and general promotion and marketing of the Downtown, as well as some traditional annual events that will be safe for community members to attend, including: BID-FUNDED OR PARTLY BID-FUNDED ACTIVITIES ADMINISTRATION Coordination of the BID including maintaining the interconnectivity and infrastructure, collectivizing downtown efforts, program and project management, and supporting downtown’s role as a vital community, cultural and economic engine MARKETING PROGRAMS Weekly Newsletter Social Media Accounts (@DtsantaAna, @CalleCuatroDTSA) EXHIBIT 3 Videos and Photos to catalogue and promote downtown ORGANIZATION Business Meetings (Restaurant Assoc., Bridal Assoc., Board and Merchant Meetings) Business Training, Outreach and Support Resident Mixers, Business and Arts Mixers Membership and Training with National Downtown, Main Street and Placemaking Networks Community Involvement/Engagement Support for third-party event producers Customer Support (Providing answers and connections to business, residents and visitors) TECHNOLOGY Downtown Websites Software Licenses Emailing Services Online Forms/Storage/Media Services Artists Registry SOME SUPPORT FOR THE FOLLOWING EVENTS First Saturday Artwalk (12x per year) Boca de Oro: Festival of Arts and Literacy Sponsorships for Downtown Businesses, Creatives and Residents to Activate Public Spaces ACTIVITIES WE PARTNER WITH, FUNDRAISE FOR, OR THAT REQUIRE ADDITIONAL FUNDING ANNUAL EVENTS Boca de Oro: Literary, Visual and Performance Arts Festival Downtown Threads Fashion & Design Show Annual Gathering and Mixer Katrina Festival Savor Santa Ana Tooltesting/Hackathon Trolley Rides at Special Events and Lunch Hour MONTHLY EVENTS First Saturday Artwalk Expansion, Free Art Workshops and Music Witches Brew (2nd St Promenade) Kids Corner at Calle Cuatro Plaza Sidewalk Sales (Bi-monthly: 1st and 3rd Weekend of the Month) Amigas Social Club Business Mixers and Professional Development Workshops Movies in the Park WEEKLY EVENTS Dancing in the Streets (Salsa, Cumbia, Tango, Bachata) Loteria Mexicana Clowns & Face Painting Santa Ana Sundays Series Free Yoga and Zumba SEASONAL PROMOTIONS Black Friday/Small Business Saturday Turkey and Ham Giveaway (Thanksgiving) Rib Giveaway (Christmas) Holiday Show at Calle Cuatro Plaza Carriage Rides and Carolling Festival of Lights EXHIBIT 3 Other programming for the associations will include ongoing social media marketing, funding for the Downtown Restaurant Association, Bridal Association, Art Association, Professional Internship Programs, downtown stakeholder meetings, holiday promotions, website development and maintenance, and ongoing support for small businesses. EXHIBIT 3 EXHIBIT 1 – ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY EXHIBIT 3 EXHIBIT 1 – ATTACHMENT B 2022 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one-half times their annual business license fee. Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one-quarter times their annual business license fee. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. EXHIBIT 3 EXHIBIT 1 - ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) 1 of 2 Budgets EXHIBIT 3 EXHIBIT 1 - ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) 2 of 2 Budgets Public Works Agency www.santa-ana.org/pw Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Revision of the Environmental and Transportation Advisory Commission Bylaws AGENDA TITLE Adopt Resolution Approving Revised Environmental and Transportation Advisory Commission Bylaws RECOMMENDED ACTION Adopt a resolution whereby the City Council declares newly revised bylaws for governance over the business matters of the Environmental and Transportation Advisory Commission. DISCUSSION In 1991, the City Council established the Environmental and Transportation Advisory Committee (ETAC) by adopting Resolution 91-112. After adoption of various administrative amendments in 1999, an ordinance codified the Committee’s duties in Chapter 33 of the Municipal Code. In 2014, the City Attorney’s Office determined that the ETAC may only advise the City Council on matters related to trees and the urban forest. Thereafter, in 2016, the City Council adopted modernized roles and responsibilities that included the study, review, and recommendation of transportation issues, streetscape issues, and general water and wastewater policies. In 2017, the City Council approved a companion set of revised bylaws. On September 1, 2020, the City Council enacted Ordinance NS-2992, making several charter amendments to the City Code for administrative and modernization purposes, including the renaming of ETAC from Committee to Commission. At the request of several ETAC members, the proposed resolution (Exhibit 1) also updates the bylaws (Exhibit 2) by changing the time of regularly scheduled meetings. It is anticipated that the time change of regular meetings from 7:30 a.m. to 4:00 p.m. on the second Tuesday of each month should facilitate public participation. ETAC approved the changes to the ETAC bylaws on October 12, 2021 by a vote of four in favor of the changes to the bylaws, with two absences and one abstention. Resolution Adopting Revised ETAC Bylaws November 2, 2021 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1.Resolution Adopting Revised Environmental and Transportation Advisory Commission Bylaws 2.Environmental and Transportation Advisory Commission Bylaws 3.Redline version of Environmental and Transportation Advisory Commission Bylaws Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager jmf 5/6/21 RESOLUTION NO. 2021-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING REVISED BYLAWS FOR THE ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMISSION WHEREAS, on September 1, 2020, Ordinance No. NS-2992 was adopted by the City Council, modernizing the municipal code by organizing and consolidating all boards, commission, and committee matters into Chapter 2; and WHEREAS, Ordinance No. NS-2992 established that the body previously known as the Environmental and Transportation Advisory Committee is now known as the Environmental and Transportation Advisory Commission (ETAC); and WHEREAS, revised bylaws for ETAC were developed to be in alignment with Ordinance No. NS-2992 in this respect and others. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1.The revised bylaws for the Environmental and Transportation Advisory Commission, attached as Exhibit A, are hereby approved. Section 2.This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this___day of ____________,2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: John M. Funk Sr. Assistant City Attorney Resolution No. 2021-XXX Page 1 of 2 jmf 5/6/21 AYES:Councilmembers NOES: Councilmembers ABSTAIN:Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No.2021-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on ______________, 2021. Date: Daisy Gomez Clerk of the Council City of Santa Ana Resolution No. 2021-XXX Page 2 of 2 Exhibit A THE SANTA ANA ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMISSION BY-LAWS ARTICLE I THE COMMISSION SECTION 1.Name of Commission. The name of the Commissionshall be the Santa Ana ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMISSION. SECTION 2.Duties of the Chair. The chair shall be an officer of the Commissionand preside at all the meetings of the Commission, authorize calls for any special meetings subject to the availability of Public Works Agency staff, and execute all documents authorized by the Commission. SECTION 3.Duties of the Vice-Chair.The vice-chair shall be an officer of the Commission and perform the duties of the chair in the absence or incapacity of the chair; and in the case of the resignation or death of a chair, the vice-chair shall perform duties as are imposed on the chair until such time as the Commissionshall elect a new chair. SECTION 4.Recording Secretary.The City Manager or his or her designeeshall appoint an employee to serve as Recording Secretary of the Commission, who shall issue notice of all regular and special meetings, and shall perform such duties as are generally associated with that office. SECTION 5.Additional Duties of CommissionOfficers. The officers of the Commissionshall perform such other duties and functions as may from time to time be required by the Commission, the Santa Ana Municipal Code, the bylaws, or rules and regulations of the Commission. SECTION 6.Appointment/Removal. CommissionMembers shall be subject to appointment and removal in accordance withSection 2-326 and Section 2-554of the Santa Ana Municipal Code and shall serve terms in accordance with the same. ARTICLE II COMMISSIONOFFICERS SECTION 1.Selection and Term of Officers.The Commissionshall have two elected offices: Chair and Vice Chair. The chair and vice-chair shall be elected as prescribed in Section 2-328of the Santa Ana Municipal Code. SECTION 2. Absence of Chair and Vice-Chair. In the event that both the Chair and Vice Chair are absent from the same meeting of the Commission, the Commissionshall, as the first order of business, nominate a member to serve as Chair pro tem for the meeting. ETAC By-Laws06-15-2021 Page 1of5 ARTICLE III MEETINGS SECTION 1. Time and Place. A. Regular Meetings. Regular meetings of the Commission are held monthly, but no more than twice per month, and are held on the second Tuesday of the month, held at Room 1600, City Hall Annex, 20 Civic Center Plaza, Santa Ana, at 4:00 p.m., or, in the event that Room 1600 is not available, in a suitable available alternate location as decided by the Commission. In the event any regular meeting falls on a holiday, the regular meeting may be held on the next business day at a time designated by the chairperson. A regular meeting may be adjourned to a time and place designated by the chairperson, or cancelled at the direction of the Executive Director of the Public Works Agency with appropriate notice. B. Special Meetings. Special meetings may be called at the direction of the Chairperson, or by a majority of the Commission members subject to the availability of Public Works Agency staff. SECTION 2. Quorum. More than one half of the members, but at least four (4), shall constitute a quorum for the purpose of conducting the Commission business and exercising its powers and, for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. SECTION 3. Order of Business. At the regular meetings of the Commission, the following will be the order of business: 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Public Comments (Agenda Items) 5. Consent Calendar 6. Business Calendar 7. Work Study Session (if any) 8. Public Comments (Non Agenda Items) 9. Staff Member Comments 10. Commission Member Comments SECTION 4. Ad-Hoc Commissions. The Chair, in consultation with the Commission, may appoint ad-hoc committees created for a specific task on an as-needed basis to study a specific topic or subject and return to the full Commission with a recommendation. SECTION 5. Commission Member Absences. Absence of a commission member from a meeting shall be governed by Section 2-326 of the Santa Ana Municipal Code. Notification to the Recording Secretary of non-attendance by either e-mail, telephone or through message relayed by staff or other Commission consideration and vote of a majority of the Commission. Failure to give notification of non- attendance as described herein ETAC By-Laws 06-15-2021 Page 2 of 5 SECTION 6.Abstentions and Conflicts of Interest. No member of the Commissionshall abstain from any vote unless disqualified. If a member of the Commission feels that he/she is disqualified from voting, the member shall openly state the fact and the nature of the SECTION 7. Discussion. Each Commission member may speak for five minutes on an agenda item, if he/she desires. Once all Commission Members have had the opportunity to speak, a Commission Member may speak again when recognized by the chair. SECTION 8. Brown Act Compliance. All proceedings of the Commission shall be conducted in accordance with the Ralph M. Brown Act (California Government Code Section 54950 fu!tfr/), as amended from time to time. SECTION 9. Parliamentary Procedures Revised shall be the authority on all questions of parliamentary procedure, unless in conflict with the Santa Ana Municipal Code, the laws of the State of California or these bylaws. SECTION 10. Amendment of Bylaws. The Bylaws of the Commission shall be amended only with the approval by a supermajority, but at least four (4), of the members of the Commission at a regular or special meeting, but no such amendment shall be adopted unless at least seven (7) days written notice thereof has been previously given to all members of the Commission. Such notice shall identify the section(s) of the bylaws proposed to be amended. ARTICLE IV ACTION ON ITEMS SECTION 1. Manner of Voting and Decision. The voting on Commission agenda items shall be entered upon the minutes of such meeting with the ayes and the noes and any abstentions set forth with specificity. No action shall be taken by the Commission unless it is concurred upon and adopted by the affirmative vote of the majority of Commission members present. Any member who voted with the majority on any action may move for reconsideration of such action only at the same meeting. SECTION 2. Order of Voting. When a motion has been made and seconded, the members of the Commission supporting the motion shall indicate their votes verbally or by a show of hands. SECTION 3. Processing of Motions. A motion shall be made and seconded. Any debate, if any, would then follow. If it is likely there may be confusion as to the motion, the chair should ask the Recording Secretary to read from his/her notes. A motion may be withdrawn by the mover at any time before its consideration. SECTION 4. Motion by Chair. The chair has the right to make or second motions and, in his/her absence, when the vice-chair is acting in the same capacity, he/she has the same right, using discretion and tact as to recognition of other members. ETAC By-Laws 06-15-2021 Page 3 of 5 SECTION 5.Priority of Motion.When a motion is before the Commission, no motion shall be entertained except (1) to adjourn, (2) to fix hour of adjournment, (3) to lay on the table, (4) for the previous question, (5) to postpone to a certain day, (6) to refer, (7) to amend, and (8) to postpone indefinitely. These motions shall have precedence in the order indicated. SECTION 6. Motion to Approve or Deny. The vote is affirmative when a motion to approve the matter before the Commission is approved by the majority of Commission members present. In the event a motion to deny fails to carry, the chair shall call for a motion to approve. SECTION 7. Tie Vote. In the event of a tie vote on a motion, the Commission shall be deemed to have made no decision, and the Minutes shall reflect the tie vote. SECTION 8. Vote Required on Other Motions. The vote required to decide motions in the affirmative shall be the confirming vote by the majority of Commission members present. SECTION 9. Appeal of Decision. Any decision or ruling of the chair may be appealed to the Commission by request of any member and seconded by another. The chair shall then call a vote SECTION 10. Motion to Reconsider. Any member who voted with a majority may move a reconsideration of any action at the same meeting or the immediately next succeeding meeting. After a motion for reconsideration has once been acted on, no other motion for reconsideration thereof shall be made without unanimous consent. ARTICLE V - CONDUCT OF PUBLIC HEARINGS SECTION 1. Matters to be Considered. The Commission shall hold public hearings as mandated by law. As to each public hearing, the chair shall state the matter before the Commission, and open the public hearing. Staff presents a report, and then the chair shall then recognize any members of the public wanting to speak with regard to the matter. SECTION 2. Time Limit to Address Commission. No person addressing the Commission shall speak more than three (3) minutes unless the meeting chair allows the speaker more time. All persons addressing the Commission shall be recognized by the chair. SECTION 3. Closing the Hearing. After all speakers have been heard, the chair shall declare the hearing closed. A closed hearing may be reopened only on motion and vote as hereinafter provided. After close of the hearing, members of the Commission may publicly discuss the matter before them and may ask questions of persons who have spoken before the Commission. Upon conclusion of the discussion, the chair shall ask for a motion declaring the decision of the Commission. The motion shall be made and seconded. Prior to a vote, the motion may be discussed by members of the Commission. ETAC By-Laws 06-15-2021 Page 4 of 5 ARTICLE VI POWERS AND DUTIES OF THE COMMISSION SECTION 1. As more fully described by Section 2-555 of the Santa Ana Municipal Code, the duties of ETAC shall consist of acting in an advisory capacity to the City Council, in the study, review, and recommendation with regard to the removal, planting, replanting or disposition of public trees along city streets in the public right of way. SECTION 2. As more fully described by Section 2-555 of the Santa Ana Municipal Code, the duties of ETAC shall also consist of acting in an advisory capacity to the City Council, in the study, review, and recommendation with regard to transportation issues, streetscape issues, and general water and wastewater policies. ETAC By-Laws 06-15-2021 Page 5 of 5 jmf 9/25/20 EXHIBIT 3 Exhibit A THE SANTA ANA ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMITTEECOMMISSION BY-LAWS ARTICLE I THE COMMITTEECOMMISSION SECTION 1. Name of CommitteeCommission. The name of the Commissionittee shall be the Santa Ana ENVIRONMENTAL AND TRANSPORTATION ADVISORY COMMITTEECOMMISSION. SECTION 2. Duties of the Chair. The chair shall be an officer of the committee Commission and preside at all the meetings of the CommitteeCommission, authorize calls for any special meetings subject to the availability of Public Works Agency staff, and execute all documents authorized by the Commissionttee. SECTION 3. Duties of the Vice-Chair. The vice-chair shall be an officer of the committee Commission and perform the duties of the chair in the absence or incapacity of the chair; and in the case of the resignation or death of a chair, the vice- chair shall perform duties as are imposed on the chair until such time as the Committee Commission shall elect a new chair. SECTION 4. Recording Secretary. The City Manager or his or her designeeExecutive Director of the Public Works Agency shall appoint an employee to serve as Recording Secretary of the CommitteeCommission, who shall issue notice of all regular and special meetings, and shall perform such duties as are generally associated with that office. SECTION 5. Additional Duties of Committee Commission Officers. The officers of the Committee Commission shall perform such other duties and functions as may from time to time be required by the CommitteeCommission, the Santa Ana Municipal Code, the bylaws, or rules and regulations of the CommitteeCommission. SECTION 6. Appointment/Removal. Committee Commission Members shall be subject to appointment and removal, and shall serve terms in accordance with section 901 of the Charter of the City of Santa Ana. Section 2-326 and Section 2-554 of the Santa Ana Municipal Code and shall serve terms in accordance with the same. ARTICLE II COMMITTEE COMMISSION OFFICERS SECTION 1. Selection and Term of Officers. The Committee Commission shall have two elected offices: Chair and Vice Chair. The chair and vice-chair shall be elected during the month of June in each calendar year and shall take office effective the first day of July following each said election. Nominations for officers shall be made in person. In the event of a vacancy in the office of chair or vice-chair, the Committee shall elect one of its members to the unexpired term. ETAC By-Laws 10-19-2020 06-15-2021 Page 1 of 5 jmf 9/25/20 as prescribed in the Santa Ana Municipal Code Chapter 2, Article IV, Section2-326 and Section 2-328 of the Santa Ana Municipal Code. SECTION 2. Absence of Chair and Vice-Chair. In the event that both the Chair and Vice Chair are absent from the same meeting of the Commissionttee, the Committeession shall, as the first order of business, nominate a member to serve as Chair pro tem for the meeting. ARTICLE III MEETINGS SECTION 1. Time and Place. A. Regular Meetings. Regular meetings of the Commissionttee may be are held as frequently as monthly, but no more than twice per month, and oare held on the second Tuesday of the month, held at Room 1600, City Hall Annex, 20 Civic Center Plaza, Santa Ana, at 4:007:30 p.m.a.m., or, in the event that Room 1600 is not available, in a suitable available alternate location as decided by the Commissionttee. In the event any regular meeting falls on a holiday, the regular meeting may be held on the next business day at a time designated by the chairperson. A regular meeting may be adjourned to a time and place designated by the chairperson, or cancelled at the direction of the Executive Director of the Public Works Agency with appropriate notice. B. Special Meetings. Special meetings may be called at the direction of the Chairperson, or by a majority of the Commissionttee members subject to the availability of Public Works Agency staff. SECTION 2. Quorum. More than one half of the members, but at least four (4), that are nominated shall constitute a quorum for the purpose of conducting the Commissionttee business and exercising its powers and, for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. SECTION 3. Order of Business. At the regular meetings of the Commissionttee, the following will be the order of business: 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Public Comments (Agenda Items) 5. Consent Calendar 6. Business Calendar 7. Work Study Session (if any) 8. Public Comments (Non Agenda Items) 9. Staff Member Comments 10. Commissionttee Member Comments ETAC By-Laws 10-19-2020 06-15-2021 Page 2 of 5 jmf 9/25/20 SECTION 4.Resolutions.All written resolutions shall be designated by number, reference to which shall be inscribed in the minutes and an approved copy shall be filed in the official Book of Resolutions of the Committeession. SECTION 45. Ad-Hoc CommitteesCommissions. The Chair, in consultation with the Commissionttee, may appoint ad-hoc committees Commissions committees created for a specific task on an as-needed basis to study a specific topic or subject and return to the full Commissionttee with a recommendation. SECTION 56. Commissionttee Member Absences. Absence of a commission member from a meeting shall be governed by Section 2-326 of the Santa Ana Municipal Code.If a member of the Commissionttee absents himself or herself from two (2) regular meetings of the Commissionttee, consecutively, unless by permission of the Commissionttee expressed in its official minutes, or fails to attend at least one-half (1/2) of the regular meetings of the Commissionttee within a calendar year, or is convicted of a crime involving moral turpitude, or ceases to be a qualified elector of the city \[except that members representing the Chambers of Commerce shall not be required to be qualified electors of the City\], the office shall become vacant and shall be so declared by the city council. A nNotification to the Recording Secretary of non-attendance by either e-mail, telephone or through message relayed by staff or other Commissionttee member may be deemed as an itteeission. Failure to give notification of non- SECTION 67. Abstentions and Conflicts of Interest. No member of the Commissionttee shall abstain from any vote unless disqualified. If a member of the Committeession feels that he/she is disqualified from voting, the member shall openly state the fact and the nature of the SECTION 78. Discussion. Each Committeession member may speak for five minutes on an agenda item, if he/she desires. Once all Committee Commission Members have had the opportunity to speak, a Committee Commission Member may speak again when recognized by the chair. SECTION 89. Brown Act Compliance. All proceedings of the CommitteeCommission shall be conducted in accordance with the Ralph M. Brown Act (California Government Code Section 54950 fu!tfr/), as amended from time to time. SECTION 910. Parliamentary Procedures Revised shall be the authority on all questions of parliamentary procedure, unless in conflict with the Santa Ana Municipal Code, the laws of the State of California or these bylaws. SECTION 101. Amendment of Bylaws. The Bylaws of the CommitteeCommission shall be amended only with the approval by a supermajority, but at least four (4), of the members of the CommitteeCommission at a regular or special meeting, but no such amendment shall be adopted unless at least seven (7) days written notice thereof has been previously given to all members of the CommitteeCommission. Such notice shall identify the section(s) of the bylaws proposed to be amended. ETAC By-Laws 10-19-2020 06-15-2021 Page 3 of 5 jmf 9/25/20 ARTICLE IV ACTION ON ITEMS SECTION 1. Manner of Voting and Decision. The voting on CommitteeCommission agenda items shall be entered upon the minutes of such meeting with the ayes and the noes and any abstentions set forth with specificity. No action shall be taken by the CommitteeCommission unless it is concurred upon and adopted by the affirmative vote of the majority more than one-half of the CommitteeCommission members present. Any member who voted with the majority on any action may move for reconsideration of such action only at the same meeting. SECTION 2. Order of Voting. When a motion has been made and seconded, the members of the CommitteeCommission supporting the motion shall indicate their votes verbally or by a show of hands. SECTION 3. Processing of Motions. A motion shall be made and seconded. Any debate, if any, would then follow. If it is likely there may be confusion as to the motion, the chair should ask the Recording Secretary to read from his/her notes. A motion may not be withdrawn by the mover at any time before its consideration without the consent of the second and the approval of the CommitteeCommission. SECTION 4. Motion by Chair. The chair has the right to make or second motions and, in his/her absence, when the vice-chair is acting in the same capacity, he/she has the same right, using discretion and tact as to recognition of other members. SECTION 5. Priority of Motion. When a motion is before the CommitteeCommission, no motion shall be entertained except (1) to adjourn, (2) to fix hour of adjournment, (3) to lay on the table, (4) for the previous question, (5) to postpone to a certain day, (6) to refer, (7) to amend, and (8) to postpone indefinitely. These motions shall have precedence in the order indicated. SECTION 6. Motion to Approve or Deny. The vote is affirmative when a motion to approve the matter before the CommitteeCommission is approved by the majority of Commission members present. In the event a motion to deny fails to carry, the chair shall call for a motion to approve. SECTION 7. Tie Vote. In the event of a tie vote on a motion, the CommitteeCommission shall be deemed to have made no decision, and the Minutes shall reflect the tie vote. SECTION 8. Vote Required on Other Motions. The vote required to decide motions in the affirmative shall be the confirming vote byof the majority more than one-half of the members of the CommitteeCommission members present. ETAC By-Laws 10-19-2020 06-15-2021 Page 4 of 5 jmf 9/25/20 SECTION 9.Appeal of Decision.Any decision or ruling of the chair may be appealed to the CommitteeCommission by request of any member and seconded by another. The chair shall then SECTION 10. Motion to Reconsider. Any member who voted with a majority may move a reconsideration of any action at the same meeting or the immediately next succeeding meeting. After a motion for reconsideration has once been acted on, no other motion for reconsideration thereof shall be made without unanimous consent. ARTICLE V - CONDUCT OF PUBLIC HEARINGS SECTION 1. Matters to be Considered. The CommitteeCommission shall hold public hearings as mandated by law. As to each public hearing, the chair shall state the matter before the CommitteeCommission, and open the public hearing. Staff presents a report, and then the chair shall then recognize any members of the public wanting to speak with regard to the matter. SECTION 2. Time Limit to Address CommitteeCommission. No person addressing the CommitteeCommission shall speak more than three (3) minutes unless the meeting chair allows the speaker more time. All persons addressing the CommitteeCommission shall be recognized by the chair. and shall state their name and address prior to speaking. SECTION 3. Closing the Hearing. After all speakers have been heard, the chair shall declare the hearing closed. A closed hearing may be reopened only on motion and vote as hereinafter provided. After close of the hearing, members of the CommitteeCommission may publicly discuss the matter before them and may ask questions of persons who have spoken before the CommitteeCommission. Upon conclusion of the discussion, the chair shall ask for a motion declaring the decision of the CommitteeCommission. The motion shall be made and seconded. Prior to a vote, the motion may be discussed by members of the CommitteeCommission. ARTICLE VI POWERS AND DUTIES OF THE COMMITTEECOMMISSION SECTION 1. As more fully described by Section 2-555 of the Santa Ana Municipal Codesection 33-184Chapter 2, Article IV, Section 2-555,, the duties of ETAC shall consist of acting in an advisory capacity to the City Council, in the study, review, and recommendation with regard to the removal, planting, replanting or disposition of public trees along city streets in the public right of way. SECTION 2. As more fully described by Section 2-555 of the Santa Ana Municipal Code, Chapter 2, Article IV, Section 2-555,section 33-184, the duties of ETAC shall also consist of acting in an advisory capacity to the City Council,Executive Director of the Public Works Agency, in the study, review, and recommendation with regard to transportation issues, streetscape issues, and general water and wastewater policies. ETAC By-Laws 10-19-2020 06-15-2021 Page 5 of 5 Public Works Agency www.santa-ana.org/pw Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Grant Application for Well 38 Water Treatment Project AGENDA TITLE Adopt a Resolution Authorizing a Grant Application Submission for the Bureau of Reclamation WaterSMART Drought Response Program for the Well 38 Water Treatment Project RECOMMENDED ACTION Adopt a Resolution authorizing the Executive Director of the Public Works Agency to submit a grant application to the U.S. Department of the Interior, Bureau of Reclamation, Sustain and Manage America’s Resources for Tomorrow Drought Response Program Grant for the Well 38 Water Treatment Project, in an amount of up to $2,000,000. DISCUSSION The majority of the City of Santa Ana’s potable water comes from the Orange County Groundwater Basin (OC Basin) and is pumped through 20 existing City wells. Due to the presence of per- and polyfluoroalkyl substances (PFAS) found in routine well monitoring, several wells in the OC Basin have been taken offline, including the City’s Well 38. Given the limited water supplies in the region and recent recurring drought conditions, removing wells from the City’s potable water distribution system will reduce its reliability. This action will also increase the burden on other City water production facilities and the reliance on imported water sources. The City is currently in the preliminary design phase of a PFAS treatment facility for Well 38 that will effectively remove PFAS contamination from the water before it is introduced into the distribution system. The United States Department of the Interior offers financial assistance in the form of grant funding through its Bureau of Reclamation WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Drought Response Program for this type of project. The program provides two levels of funding and up to a maximum of $2,000,000 in grant funding, but not to exceed 50 percent of the total project cost. If the grant application (Exhibit 1) is successful, the grant funding would offset up to $2,000,000 of the estimated $5,300,000 total project cost. The resolution (Exhibit 2) authorizes staff to submit the application. Adopt Resolution for BOR WaterSMART Grant November 2, 2021 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. Staff will return to Council with a request for approval of further actions and will indicate the fiscal impact of any such awards and associated expenditures at that time. EXHIBIT(S) 1.Grant Application (https://www.santa- ana.org/sites/default/files/pw/documents/Grant_Application_Exh_1_Well_38_Wat er_Treatment_Project_October_5_2021.pdf) 2.Resolution Authorizing Grant Application for Well 38 Water Treatment Project Submitted By: Nabil Saba, Executive Dir Public Works Approved By: Kristine Ridge, City Manager RESOLUTION NO. 2021-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN APPLICATION FOR GRANT FUNDING FROM THE BUREAU OF RECLAMATION’S WATERSMART DROUGHT RESPONSE PROGRAM FOR THE WELL 38 WATER TREATMENT PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City’s potable water comes from an underground basin and is pumped through 21existing wells. B. The region’s water supply is limited due to drought conditions. C. The City relies on groundwater pumped from the Orange County Water Basin to satisfy the majority of its potable water needs. D. Well 38 has been taken offline due to the presence of per- and polyfluoroalkyl substances (PFAS) found in routine well monitoring. E. The Well 38 Water Treatment Project will install PFAS treatment to bring Well 38 back online for potable water distribution. F. The United States Department of the Interior offers financial assistance in the form of grant funding through its Bureau of Reclamation’s WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Drought Response Program for this type of project. The program provides two levels of funding and up to a maximum of $2,000,000 in grant funding, but not to exceed 50% of the total project cost. G. The City desires to fund part of the cost of the Well 38 Wellhead Treatment Project with grant funding from the WaterSMART Drought Response Program. Section 2.The City Council of the City of Santa Ana hereby authorizes and directs the Executive Director of Public Works, or his or her designee, to sign and submit, for and on behalf of the City of Santa Ana, a grant application from the Bureau of Reclamation’s WaterSMART Drought ResponseProgramfor the Well 38 Water Treatment Project up to the amount of $2,000,000. Section 3.The Executive Director of Public Works, or his or her designee, is designated to provide the assurances, certifications, and commitments required for the grant application, including executing a financial assistance or similar agreement with the Resolution No. 2021-XXX Page 1 of 3 Bureau of Reclamation within established deadlines and any amendments or changes thereto. Section 4. The Executive Director of Public Works, or his or her designee, is designated to represent the City of Santa Ana in carrying out the City’s responsibilities under the grant agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws. Section 5. If a grant award is made by the Bureau of Reclamation, the City of Santa Ana commits to providing up to$2,000,000in matching funds for theWell 38 Water Treatment Project plus any remaining balance. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this ____ day of ___________________, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: John M. Funk Sr. Assistant City Attorney AYES: Councilmembers NOES:Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution No. 2021-XXX Page 2 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2021 -_____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2021. Date: Clerk of the Council City of Santa Ana Resolution No. 2021-XXX Page 3 of 3 Planning and Building Agency www.santa-ana.org/cm Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Status of Santa Ana Unified School District Facilities Use for Neighborhood Meetings AGENDA TITLE: Status and Future Option for Neighborhoods to Access School Facilities at Santa Ana Unified School District Schools for Neighborhood Association/Community Meetings RECOMMENDED ACTION Receive and file. DISCUSSION For decades, the Santa Ana Unified School District (SAUSD) has supported and sponsored Santa Ana’s neighborhood associations and groups by allowing them to use their campus facilities for neighborhood and community meetings free of charge. This has been a long-standing practice of SAUSD that benefits the constituents served by the City and the SAUSD. These school venues have served as an important, safe, and nearby location to convene residents to discuss and organize themselves on quality-of-life issues. Although the City of Santa Ana identifies 64 unique neighborhoods in Santa Ana, approximately 20 of those neighborhoods regularly use SAUSD facilities for their meetings. Of the remaining neighborhoods, some use their own space (i.e., a resident’s home), reserve space at a City of Santa Ana-owned facility (such as a park or community center), or do not convene meetings at all because those neighborhoods have not or do not self-organize into an active neighborhood. The Neighborhood Initiatives Division works to provide auxiliary support to Santa Ana’s various neighborhoods, which all operate independently and are independent of the City of Santa Ana and SAUSD. These constituents are not mutually exclusive to either one of these local government organizations. Based on past practice, there has been a strong desire to support the constituents outside the City’s and SAUSD traditional role of serving the community. One of the ways in which the Neighborhood Initiatives Division works to support neighborhood groups is to facilitate facility use reservations between the neighborhood Status of Santa Ana Unified School District Facilities Use for Neighborhood Meetings November 2, 2021 Page 2 groups and the representatives from SAUSD. Recently, City staff has encountered mixed communication with SAUSD staff regarding collaboration for neighborhood association/community meetings. For example, SAUSD staff offers to improve the process via sponsorship by the Superintendent’s Office while other staff request full payment for reservation fees in advance. City staff have also observed an inconsistent fee structure applied toward the SAUSD online reservations platform, Facilitron, in addition to an increase rate of cancelled reservations for nonpayment. This recent experience moves away from the 30+ year arrangement by the City and SAUSD to provide facilities for neighborhood/community meetings. The attached exhibit references information regarding the venues accessed by neighborhood groups for neighborhood meetings prior and during COVID-19. Considering that the City of Santa Ana and SAUSD serve the same constituents, the City appreciates the opportunity to have discussions with representatives from SAUSD to identify the problems, improve communication, and work toward a solution that will work for our shared constituents—particularly our neighborhood groups. Next Steps This item is an informational report only and no action is required. Staff recommends that the School Collaboration City Council subcommittee consider this matter and discuss options to collaborate with officials from the Santa Ana Unified School District to provide a sustainable method of ensuring continued access to SAUSD facilities for Santa Ana constituents to convene neighborhood meetings. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact association with this action. EXHIBIT(S) 1. Inventory – Santa Ana Neighborhoods and Meeting Locations Oct. 2021 Submitted By: Minh Thai, Executive Director of Planning and Building Agency Approved By: Kristine Ridge, City Manager Page 1 of 2 Church ResidenceResidenceResidenceResidence Delhi Center 15 OTHER SITES Pentecostal Church KidWorks Unit onsite Immaculate Heart of Mary Mercy House or Residence Lighthouse Learning Center (RESIDENCE, CHURCH, ETC.) CenterCenter Newhope Library (Santa Clara/Alona) 16 CITY FACILITIES Santa Ana Senior Center Southwest Senior Center Jack Fisher Park Log Cabin Izaak Walton League Cabin Garfield Community CenterGarfield Community Center Santiago Park Lawn Bowling Roosevelt Walker Community El Salvador Community Center Davis ElementaryDavis Elementary PRIOR TO COVID-19, NEIGHBORHOODS MET AT THE FOLLOWING LOCATIONS: Monte Vista School Pio Pico Elementary Madison Elementary Thorpe FundamentalThorpe Fundamental Heninger Elementary 20 SAUSD FACILITIES John Muir Fundamental ZoomZoomZoomZoomZoomZoomZoom Watch COVID-19 Pentecostal Church Zoom -IndependentZoom -Independent Zoom -Neighborhood 27 NEIGHBORHOODS HELD MEETINGS DURING Lacy Delhi Logan Mar-Les INVENTORY - SANTA ANA NEIGHBORHOODS - VIRTUAL MEETINGS AND LOCATIONS PRIOR TO COVID-19 Riverview Floral Park Fisher Park Downtown Pacific Park French Park French Court / Casa Bonita Metro ClassicPark Santiago Madison Park Heninger ParkMorrison Park Riverview West Republic Homes Cedar Evergreen Casa De Santiago Morning Sunwood Cornerstone Village Pico-Lowell / Mid-City Artesia Pilar / Flower Park ASSOCIATIONS/GROUPS 54 ACTIVE NEIGHBORHOOD Meredith Parkwood / Portola Park Bella Vista / Central City / New Horizons Oct. 26, 2021 Page 2 of 2 Center Center future useResidenceResidenceResidence 15 OTHER SITES West Grove Valley St. Peters Lutheran Church South Coast Global Medical Remington Adult Education (RESIDENCE, CHURCH, ETC.) Russell Elementary (GGUSD) for Center City Hall Riverglen Windsor Park Thornton Park Sunwood Central Santa Ana Triangle 16 CITY FACILITIES SAPD Community Room Memorial Park Recreation SAPD Westend-Sub Station Santa Anita Community Center (future) Northwest Valley High Lyon Street Mabury Park PRIOR TO COVID-19, NEIGHBORHOODS MET AT THE FOLLOWING LOCATIONS: Wilson Elementary Jackson Elementary Santiago Elementary Willard Intermediate Manuel Esqueda and Thorpe Fundamental Lathrop Intermediate Adams Elementary or 20 SAUSD FACILITIES Jefferson Elementary or Washington Elementary McFadden Intermediate MacArthur FundamentalMacArthur Fundamental ZoomZoomZoomZoomZoomZoomZoomZoom Fairhaven COVID-19 Residence Grand Sunrise Fairbridge Square Zoom -Independent 27 NEIGHBORHOODS HELD MEETINGS DURING Willard INVENTORY - SANTA ANA NEIGHBORHOODS - VIRTUAL MEETINGS AND LOCATIONS PRIOR TO COVID-19 Concord Edna Park Sandpointe Santa Anita South Coast Young Square Thornton ParkWatch Groups Wilshire Square Com-Link Board West Floral Park Rosewood BakerSaddleback View Windsor Village & Com-Link General Washington Square Windsor Village North Bristol Memory Coalition Santa Ana Memorial Park Laurelhurst / Shadow Run 13 INACTIVE NEIGHBORHOODS PRIOR TO COVID-19 ASSOCIATIONS/GROUPS 54 ACTIVE NEIGHBORHOOD Valley Adams / Centennial Park / Summerfield Neighborhood Watch WESTEND COP & other Neighborhood Oct. 26, 2021 City Attorney Office www.santa-ana.org/ca Item # 22 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Receivership Petitions and Nuisance Abatement Action Against Owners of Real Properties AGENDA TITLE: Authorize to File and Prosecute Receivership Petitions and a Nuisance Abatement Action Against Owners of Real Properties Located in the City of Santa Ana RECOMMENDED ACTION Authorize the filing and prosecution of receivership petitions and a nuisance abatement action against the owners of the following real properties: 1. 2901 Lingan Lane – Receivership Petition 2. 930 N. Dianne Street – Receivership Petition 3. 2639 W. 1st Street – JC Tires – Public Nuisance DISCUSSION The City of Santa Ana (“City”) has successfully resolved numerous difficult code enforcement matters through the use of civil litigation. Specifically, the City has brought receivership actions pursuant to the California Health and Safety Code and nuisance abatement actions pursuant to the California Code of Civil Procedure and the California Civil Code. Health and Safety Code Receiverships California Health and Safety Code section 17980.7 allows a city to seek the appointment of a receiver over substandard housing that has been previously cited for violations which pose health and safety risks. The powers granted to a receiver are broad. The receiver may: (1) take full and complete control of the property; (2)manage the property and pay the operational expenses of the property; (3)secure a cost estimate and construction plan from a licensed contractor for the repairs necessary to correct the substandard conditions; (4) enter into contracts and employ a licensed contractor as necessary to correct substandard conditions; (5) borrow funds to pay for repairs necessary to correct substandard conditions; and (6) with Court approval, secure debt with a recorded first lien on the property, first in priority to all other liens. (Ibid., Code Civ. Proc. section 568.) Receivership Petitions and Nuisance Abatement Action Against Owners of Real Properties November 2, 2021 Page 2 The use of the receivership option is a comprehensive process that can rehabilitate properties and correct longstanding violations. If the City prevails, it may recover all attorney's fees and staff costs incurred in the abatement of substandard conditions. Civil Nuisance Abatement Lawsuit In order to protect its residents, the City may abate a public nuisance by filing a civil nuisance action for violations of the Santa Ana Municipal Code and/ or conditions which are offensive or annoying to the senses, detrimental to property values and community appearance, or injurious to the health, safety or welfare of the general public in such ways as to be a nuisance. (California Code of Civil Procedure section 731; California Civil Code sections 3479 and 3480.) Civil Code section 3480 further explains, “A public nuisance is one which affects at the same time an entire community or neighborhood, or any considerable number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal.” Through the civil nuisance abatement procedure, the City may seek temporary and permanent injunctions to prevent the property from continuing to operate or exist as a public nuisance. If the City prevails, it may seek recovery of attorney's fees and costs. Attached are fact sheets concerning the real properties at 2901 Lingan Lane, 930 N. st Dianne Street, and 2639 W. 1 Street (Exhibit 1). The Code Enforcement Division has identified these properties as candidates for receivership petitions and a nuisance abatement action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Fact Sheets Regarding Listed Properties Submitted By: Sonia Carvalho, City Attorney Approved By: Kristine Ridge, City Manager City Attorney Office www.santa-ana.org/ca Item # 23 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: City Attorney Evaluation and Restated Legal Services Agreement AGENDA TITLE: City Attorney Evaluation and Restated Legal Services Agreement with Best Best and Krieger LLP to reflect positive performance evaluation conducted on October 5, 2021 RECOMMENDED ACTION Authorize the Mayor, on behalf of the Council, to execute the Restated Legal Services Agreement with Best Best and Krieger LLP for City Attorney and Special Counsel Legal Services. DISCUSSION The City of Santa Ana City Charter provides that the City Council shall conduct evaluations of its appointees on an annual basis. In addition, the City’s Legal Services Agreement with Best Best and Krieger LLP, for City Attorney Sonia Carvalho’s services, provides for an annual evaluation and opportunity for consideration of adjustments based on a positive evaluation. On October 5, 2021, the City Council conducted this evaluation of City Attorney Carvalho and agreed that Ms. Carvalho is doing an excellent job as City Attorney. Based on their evaluation, the City Attorney has proposed adjustments to the Legal Services Agreement, which has not been amended since 2014 and, in that instance, compensation for the City Attorney’s annual retainer services were decreased. The City Attorney’s Legal Services Agreement was adopted by the City Council on April 2, 2012 and provided for an annual retainer of $300,000 with provisions for hourly rates for discretionary services to only be provided upon by written requests. In September 2014, during economically challenging times, employees were asked to take reductions and the City Attorney took part in this effort and agreed to a reduction of her annual retainer to $270,000 per year which the City Council approved an amendment to the Agreement. The legal services agreement has not been adjusted or amended since 2014 and during the ten-year period, since services were initially engaged upon in 2012, other employee bargaining units negotiated salary and benefit increases. For example and comparison, the Santa Ana Management Association negotiated and received salary increases of 24% and the Police Officers Association 35%. The City Attorney has requested an adjustment. The City Council has agreed to an annual retainer in the amount of $325,000 with a possible additional increase in six months based on continued City Attorney Evaluation and Restated Legal Services Agreement November 2, 2021 Page 2 positive performance. The proposed agreement also provides for terms and increased hourly rates for the discretionary services which can only be provided upon written approval of department directors and the City Manager. For example, additional discretionary hourly rates depending on the type of matter and the complexity of the work are adjusted: General from $254 per hour to $295 per hour; and Complex from $225-$350 per hour to $250-$375 per hour The annual retainer amount of $325,000 for the City Attorney provides cost savings to the City as the City does not pay any additional benefits such as medical insurance, car allowances, retirement health plan, or any long-term CalPERS pension payments. In comparison, see total costs for a City Attorney in the following cities: City of Anaheim$460,516 City of Newport Beach$338,958 City of Huntington Beach$367,560 City of San Jose$629,574 City of Pasadena$416,410 City of Glendale$413,472 City of Riverside$410,652 City of Vallejo$375,100 City of Burbank$364,876 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The City Council’s adoption of the Restated Agreement will result in an annual total increase in costs of $55,000. There are sufficient funds in the City Attorney’s Office Contractual Services Account to cover the increased expenses. The increase in hourly rates will only have an impact if additional services are requested and generally the costs for those services are covered by the department requesting the services. EXHIBIT(S) 1. Restated Legal Services Agreement Submitted By: Sonia Carvalho, City Attorney Approved By: Kristine Ridge, City Manager RESTATED LEGAL SERVICES AGREEMENT RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES BETWEEN THE CITY OF SANTA ANA AND BEST BEST & KRIEGER LLP 1. P ARTIES AND D ATE This Agreement is made and entered into as of the second day of November, 2021 by and between the City of Santa Ana (Client) and Best Best & Krieger LLP, a limited liability partnership engaged in the practice of law (BB&K). 2. R ECITALS 2.1 Client wishes to engage the services of BB&K, and specifically, Sonia R. Carvalho, as its City Attorney to perform all necessary legal services for the Client on the terms set forth below. For purposes of this Agreement, the term Client shall include the communitys Successor Agency, Housing Authority, and any other affiliated entities. 3. T ERMS. 3.1 Term. The term of this Agreement shall commence on November 2, 2021 and shall continue in full force and effect until terminated in accordance with Section 3.12. 3.2 Scope of Services. BB&K shall serve as City Attorney and shall perform legal services (Services) as may be required from time to time by the Client as set forth by this Agreement, unless otherwise agreed to by the Client and BB&K. As part of the Services to be performed hereunder, BB&K shall be responsible for the following: 3.2.1 Preparation for, and attendance at, regular meetings of the Client; 3.2.2 Provision of legal counsel at such other meetings as directed by the Client; 3.2.3 Preparation or review of Client ordinances and resolutions, together with such staff reports, orders, agreements, forms, notices, declarations, certificates, deeds, leases and other documents as requested by the Client; 3.2.4 Rendering to the officers and employees of the Client legal advice and opinions on all legal matters affecting the Client, including new legislation and court decisions, as directed by the Client; 3.2.5 Researching and interpreting laws, court decisions and other legal authorities in order to prepare legal opinions and to advise the Client on legal matters pertaining to Client operations, as directed by the Client; 3.2.6 Performing legal work pertaining to property acquisition, property disposal, public improvements, public rights-of-way and easements, as directed by the Client; - 1 - 3.2.7 Responding to inquiries and review for legal sufficiency ordinances, resolutions, contracts, and administrative and personnel matters, as directed by the Client; 3.2.8 Representing and assisting on litigation matters, as directed by the Client. Such services shall include, but shall not be limited to, the preparation for and making of appearances, including preparing pleadings and petitions, making oral presentations, and preparing answers, briefs or other documents on behalf of the Client, and any officer or employee of the Client, in all federal and state courts of this State, and alternative dispute resolution officer, and before any governmental board or commission, including reviewing, defending or assisting any insurer of the Client or its agents or attorneys with respect to any lawsuit filed against the Client or any officer or employee thereof, for money or damages. ADDITIONAL SERVICES FOR AN ADDITIONAL FEE 3.2.9 BB&Ks Project 5 Program. Provides participants with memoranda summarizing new changes in case law under the California Environmental Quality Act (CEQA), an annually updated set of CEQA notices and forms to aid participants in meeting CEQAs requirements, an annually updated set of Local CEQA Guidelines and a draft Resolution for adopting Local CEQA Guidelines, memoranda summarizing pending and recently passed CEQA legislation, and other CEQA resources and materials. Memoranda, forms, and guidelines are provided to participating agencies via the CEQA Guidelines Client Portal, a secure website providing an on-demand and continually updating library of CEQA resources. By providing our Project 5 Program updates to a large pool of participants, BB&K is able to divide the overall cost of the products among all participants and charge only a fraction of the total costs to the individual client agencies. The Project 5 services will be included within the annual retainer and no additional charges will be billed to the City for these special services. 3.2.10 BB&Ks Advanced Records Center Services. Through its new Advanced Records Center (ARC), BB&K combines its legal acumen and experience with cutting-edge technology to provide comprehensive and cost-effective support for non-routine records-related matters. Specifically, at the Clients option, the ARC team will assist Client with non-routine Public Records Act Processing and Policy Drafting, as detailed below. 3.2.11 BB&K Trainings. Best Best & Krieger LLP offers a variety of trainings to public agency and private business leadership and staff on topics required by law, as well as preventative and educational legal topics. The trainings are interactive and can be given onsite, via live webinar or virtual on-demand. Some of our most popular trainings include AB 1234 Ethics, Workplace Civility and Sexual Harassment Avoidance Training, The Brown Act Open Meetings Law, Crystalizing Your Agencys CPRA Policies & Procedures and SB 1343 Sexual Harassment Avoidance Training for Non-Supervisors. 3.2.12 BB&Ks Election Law Center Subscription Services. Participants in BB&Ks Election Law Center will be given access to up-to-date election document templates, including resolutions and other mandatory election documents. The annual subscription also gives participants access to BB&Ks Election Law Center hotline, which participants can use for guidance on day-to-day election law questions that arise during campaign and election season. The annual fee shall be billed each December. The current fee is $1,950. - 2 - 3.3 Designated City Attorney. Sonia R. shall be designated as City Attorney in accordance with the City of Santa Ana City Charter, and shall be responsible for the performance of all Services under this Agreement, including the supervision of Services performed by other members of BB&K. Carvalho shall be designated as Housing Authority and Successor Agency Counsel. No change in these assignments shall be made without the consent of the Client. 3.4 Time of Performance. The Services of BB&K shall be performed expeditiously in the time frames and as directed by the Client. 3.5 Assistance. The Client agrees to provide all information and documents necessary for the attorneys at BB&K to perform their obligations under this Agreement. 3.6 Independent Contractor. BB&K shall perform all legal services required under this Agreement as an independent contractor of the Client and shall remain, at all times as to the Client, a wholly independent contractor with only such obligations as are required under this Agreement. Neither the Client, nor any of its employees, shall have any control over the manner, mode or means by which BB&K, its agents or employees, render the legal services required under this Agreement, except as otherwise set forth. The Client shall have no voice in the selection, discharge, supervision or control of BB&Ks employees, representatives or agents, or in fixing their number, compensation, or hours of service. 3.7 Fees and Costs. BB&K shall render and bill for legal services in the following categories and at rates set forth in Exhibit A and in accordance with the BB&K Billing Policies set forth in Exhibit D, both of which are attached hereto and incorporated herein by reference. In addition, the Client shall reimburse BB&K for reasonable and necessary expenses incurred by it in the performance of the Services under this Agreement. Authorized reimbursable expenses shall include, but are not limited to, printing and copying expenses, mileage expenses at the rate allowed by the Internal Revenue Service, toll road expenses, long distance telephone and facsimile tolls, computerized research time (e.g. Lexis or Westlaw), research services performed by BB&Ks library staff, extraordinary mail or delivery costs (e.g. courier, overnight and express delivery), court fees and similar costs relating to the Services that are generally chargeable to a client. However, no separate charge shall be made by BB&K for secretarial or word processing services. 3.8 Billing. BB&K shall submit monthly to the Client a single-page invoice for the Retainer Services and a detailed statement of account for all Special Legal Counsel Services. The Client shall review BB&Ks monthly statements and pay BB&K for Services rendered and costs incurred, as provided for in this Agreement, on a monthly basis. 3.9 Annual Reviews. The Client and BB&K agree that a review of performance and the compensation amounts referenced in this Agreement should occur at least annually. 3.10 Insurance. BB&K carries errors and omissions insurance with Lloyds of London. After a standard deductible, this insurance provides coverage beyond what is required by the State of California. A declaration page containing information about BB&Ks errors and omissions insurance policy is available upon Clients request. - 3 - 3.11 Attorney-Client Privilege. Confidential communication between the Client and BB&K shall be covered by the attorney-client privilege. As used in this article, confidential communication means information transmitted between the Client and BB&K in the course of the relationship covered by this Agreement and in confidence by a means that, so far as the Client is aware, discloses the information to no third persons other than those who are present to further the interests of the Client in the consultation or those to whom disclosure is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which BB&K is consulted, and includes any legal opinion formed and advice given by BB&K in the course of this relationship. 3.12 Termination of Agreement and Legal Services. This Agreement and the Services rendered under it may be terminated at any time upon a vote of five members of the City Council in accordance with the City of Santa Ana City Charter and with thirty (30) days prior written notice from either party, with or without cause. In the event of such termination, BB&K shall be paid for all Services authorized by the Client and performed up through and including the effective date of termination. BB&K shall also be reimbursed for all costs associated with transitioning any files or other data or documents to a new law firm or returning them to the Client. 3.13 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. 3.14 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County. 3.15 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed, in writing, and signed by both parties. 3.16 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 3.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.19 Delivery of Notices. All notices permitted or required under this Agreement notices shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: - 4 - Client: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Attention: City Manager BB&K: Best Best & Krieger LLP 18101 Von Karmen, Suite 1000 Irvine, CA 92614 Attention: Sonia R. Carvalho 3.20 Indemnification. (A) BB&K agrees to indemnify City / Agency, its officers, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein claims or liabilities) that may be asserted or claimed by any person, firm or entity arising from the negligent acts or omissions of BB&K hereunder, or arising from BB&Ks negligent performance of any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the negligence or willful misconduct of City, its officers, agents or employees. (B) City acknowledges BB&K is being appointed as City Attorney pursuant to the authority of Government Code Section 36505, and has the authority of that office. Accordingly, the City is responsible pursuant to Government Code Section 825 for providing a defense for the City Attorney for actions within the scope of its engagement hereunder. Therefore, City agrees to undertake its statutory duty and indemnify BB&K, its officers, employees and agents against and will hold and save each of them harmless from, any and all claims or liabilities that may be asserted or claims by any person, firm or entity arising out of or in connection with the work, operations or activities of BB&K within the course and scope of its performance hereunder, but nothing herein shall require City to indemnify BB&K for liability arising from its own negligence or alleged negligence. In connection herewith: (i) City will promptly provide a defense and pay any judgment rendered against the City, its officers, agency or employees for any such claims or liabilities arising out of or in connection with such work, operations or activities of City hereunder; and (ii) In the event BB&K, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against City for such damages or other claims solely arising out of or in connection with the work operation or activities of City hereunder, City agrees to pay to BB&K, its officers, agents or employees any and all costs and expenses incurred by attorney, its officers, agents or employees in such action or proceeding, including, but not limited to, legal costs and attorneys fees. IN WITNESS WHEREOF, the Client and BB&K have executed this Agreement for City Attorney and Special Counsel Legal Services as of the date first written above. (SIGNATURES CONTAINED ON FOLLOWING PAGE) - 5 - EXHIBIT A TO RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES BETWEEN CITY OF SANTA ANA AND BEST BEST & KRIEGER LLP BILLING ARRANGEMENTS 1. Basic Legal Services - Description. Basic legal services shall include all services provided to Client that are not otherwise specifically identified below as either Special Legal Services, Third Party Reimbursable Legal Services, or Public Finance Legal Services (Basic Legal Services). The Client shall pay for Basic Legal Services in the amount of $325,000 per year which will be charged as a flat rate monthly retainer with a single page invoice. The City Council agrees to conduct an additional evaluation on or before the end of the 21-22 Fiscal Year and if the results are announced in public as positive then the Council may also announce an increase of the annual amount to $350,000. The Client shall also provide for one parking space at the Ross Annex Parking Garage and for the use of City equipment such as a desktop computer and a mobile device such as an IPad or similar device to assist the City Attorney when working on site. 2. Discretionary Basic Legal Services at Hourly Rates. Additional legal services may be provided by BB&K at the discretion of the members of the Santa Ana City Attorney at the following blended rates, in an amount not to exceed One Hundred Thousand Dollars ($100,000) per year: Attorneys $ 295.00 per hour Paralegals & Law Clerks $ 160.00 per hour Other Para-Professionals* $ 160.00 per hour *Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those other personnel titles and rates. Utility Matters at Hourly Rates. Certain matters identified at Utility Matters, such as but not limited to the NPDES Program and Utility Enterprise matters, shall be billed at the following rates: Attorneys $ 300 / 325.00 per hour Paralegals & Law Clerks $ 160.00 per hour Other Para-Professionals* $ 160.00 per hour *Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those other personnel titles and rates. 3. Special Legal Services - Description. Special Legal Services shall include the following types of services: A. Litigation and formal administrative or other adjudicatory hearing matters B. Labor relations and employment matters C. Non-routine real estate matters (e.g. CC&Rs, deed or title work) D. Land acquisition and disposal matters (including pre-condemnation) E. Successor Agency and housing matters F. Taxes, fees and charges matters (e.g. Prop. 218 & Mitigation Fee Act) G. Public construction disputes H. Non-routine contract negotiation matters (including non-BB&K model agreements and franchise agreements) I. Non-routine land use and development matters (including general plan updates, Williamson Act issues, annexations and development agreements) J. Environmental matters (e.g. CEQA, NEPA, endangered species) K. Water law matters (e.g. water rights & quality) L. Tax and ERISA related matters M. Toxic substances matters (e.g. CERCLA, RCRA) N. Complex public utility matters (e.g. electric, natural gas, telecommunications, water, rail or transit that involve state or federal regulatory issues) O. Renewable energy and energy efficiency project contracts and power purchase agreements P. Intergovernmental Relations and Advocacy efforts (e.g. legislative and regulatory representation) at the federal and state level. Q. Non-routine election law matters, including election law litigation. R. PRA Policy drafting including reviewing, assessing, and updating records-related policies to reflect current legal standards and best practices. S. Other matters mutually agreed upon between BBK and the City Manager. 4. Special Legal Services Rates. The Client shall pay for Special Legal Services at the following rates and as specified in the specific letter confirming the request for such Special Legal Services. Partners & Of Counsel From $295 up to $375 per hour Partners - Employee Benefits/CALPERS $425 per hour Associates From $250 up to $290 per hour Paralegals & Clerks $175 per hour Other Para-Professionals* $175 per hour *Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those other personnel titles and rates. These rates are reviewed annually and may be increased from time to time with advanced written notice to the client. 5. Agreement Regarding Rate Categories. If BB&K believes that a matter falls within the Special Legal Services, Third Party Reimbursable Legal Services, or Public Finance Legal Services rate categories, BB&K shall seek written approval from the City Manager or his/her designee. The City Managers or his/her designees approval of such a request from BB&K shall not be unreasonably withheld. 6. Other Billing Personnel. Additional billing personnel shall bill at the following rates for all services performed when approved in writing by the City Manager: Muni & Litigation Analysts At applicable rates Research Analysts At applicable rates Administrative Assistants At applicable rates (for docketing and audit letter responses) 7. Annual Adjustments. st Beginning July 1, 2023, and every July 1 thereafter, the above rates and retainer amounts will be adjusted annually by the amount of the salary cost of living adjustment, if any, given to employees who are members of the SAMA bargaining unit. EXHIBIT B TO RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES BETWEEN CITY OF SANTA ANA AND BEST BEST & KRIEGER LLP THIRD PARTY REIMBURSABLE BILLING POLICIES Third Party Reimbursable Legal Services - Description. Third Party Reimbursable Legal Services shall include legal services provided to the City for which the City receives reimbursement from a developer or other third party. These reimbursable legal services include, but are not limited to, negotiation and review of development agreements, planning entitlements, review of CC&Rs; establishment of financing districts (i.e., Community Facilities Districts; Assessment Districts; Landscape and Lighting Maintenance Districts); the processing of land use/environmental projects for which the City is entitled to reimbursement, as well as defending any challenges to project entitlements or any dispute or litigation related to such reimbursable legal services. Third Party Reimbursable Legal Services - Rates. The Client shall pay for Third Party Reimbursable Legal Services at BB&Ks then current published standard private client rates, minus ten percent (10%) or at a lower rate agreed upon. Upon execution of this Agreement, BB&K shall provide a copy of its published rate schedule to the Client. BB&K shall also provide annual written updates to the Client when changes are made to the published rate schedule. EXHIBIT C TO RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES BETWEEN CITY OF SANTA ANA AND BEST BEST & KRIEGER LLP PUBLIC FINANCE & BOND BILLING POLICIES 1. Public Finance & Bond Rates. BB&K will provide bond counsel, special counsel or disclosure counsel services at the request of the Client. Such bond counsel and special counsel services include the preparation of all legislative approvals and legal documentation relating to the appropriate sale and delivery of the bonds, notes or other obligations. BB&K will also prepare such closing certificates and legal opinions necessary for the delivery of the bonds. As disclosure counsel, we will prepare the disclosure documents for the Client and conduct the necessary due diligence related to the transaction. Our fees will be determined based upon the type of financing and the expected involvement of the attorneys involved. We will provide the Client with a detailed description of our services and our fees and reimbursable costs upon the Clients request. Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at BB&Ks option it may proceed on an hourly basis and utilize the Third Party Reimbursable Legal Services category provided for in this Amendment, including with respect to services rendered for the formation of, or annexation to, a CFD (of either the City or other local public agency), as well as the negotiation and preparation of funding agreements and joint financing agreements. Legal services related to the Clients compliance with its continuing disclosure covenants and provide such necessary advice on the Clients compliance shall be billed as Special Legal Services, above. C-1 EXHIBIT D TO RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES BETWEEN CITY OF SANTA ANA AND BEST BEST & KRIEGER LLP BB&K BILLING POLICIES Our century of experience has shown that the attorney-client relationship works best when there is mutual understanding about fees, expenses, billing and payment terms. Therefore, this statement is intended to explain our billing policies and procedures. Clients are encouraged to discuss with us any questions they have about these policies and procedures. Clients may direct specific questions about a bill to the attorney with whom the client works or to our Accounts Receivable Department (accounts.receivable@bbklaw.com). Any specific billing arrangements different from those set forth below will be confirmed in a separate written agreement between the client and the firm. INVOICE AND PAYMENT OPTIONS Best Best & Krieger strives to meet our clients needs in terms of providing a wide variety of invoice types, delivery and payment options. Please indicate those needs including the preferred method of invoice delivery (Invoice via Email; or USPS). In addition, accounts.receivable@bbklaw.com can provide a W-9 upon request and discuss various accepted payment methods. FEES FOR ELECTRONICALLY STORED INFORMATION (ESI) SUPPORT AND STORAGE BBK provides Electronically Stored Information (ESI) services for matters requiring ESI support typically litigation or threatened litigation matters. BBK provides services for basic ESI processing and storage at the following rates per month based on the number of gigabytes of data (GB) processed and stored: 1GB -250GB: $10 per GB 251GB - 550GB: $8 per GB 551GB - 750GB: $6 per GB 751GB - 1TB: $4 per GB The amount BBK charges for basic processing and storage of ESI allows BBK to recover the costs of providing such services, plus a net profit for BBK. BBK believes that the rates it charges for processing and storage are lower than comparable services available from third party vendors in the market. If you wish to contract separately with a third party vendor for processing and storage costs, please notify BBK in writing. \[OPTIONAL BBK also provides advanced ESI processing services at hourly rates for personnel in its Litigation Support Group. A copy of BBKs current rates for such services will be provided upon request.\] BBK shall not incur costs for ESI support on a particular matter without first confirming by email or written correspondence with the client that the client agrees such services are necessary for the matter at hand. FEES FOR PROFESSIONAL SERVICES Unless a flat fee is set forth in our engagement letter with a client, our fees for the legal work we will undertake will be based in substantial part on time spent by personnel in our office on that clients behalf. In special circumstances which will be discussed with the client and agreed upon in writing, fees will be based upon the novelty or difficulty of the matter, or the time or other special limitations imposed by the client. Hourly rates are set to reflect the skill and experience of the attorney or other legal personnel rendering services on the clients behalf. All legal services are billed in one-tenth of an hour (0.10/hour) or six-minute D-1 increments. Our attorneys are currently billed at rates from $220 to $795 per hour, and our administrative assistants, research assistants, municipal analysts, litigation analysts, paralegals, paraprofessionals and law clerks are billed at rates from $150 to $290 per hour for new work. These rates reflect the ranges in both our public and our private rates. These hourly rates are reviewed annually to accommodate rising firm costs and to reflect changes in attorney status as lawyers attain new levels of legal experience. Any increases resulting from such reviews will be instituted automatically and will apply to each affected client, after advance notice. Non-Attorney Personnel: BBK may employ the services of non-attorney personnel under the supervision of a BBK attorney in order to perform services called for in the legal services agreement. The most common non- attorney personnel utilized are paralegals. Other types of non-attorney personnel include, but are not limited to, case clerks, litigation analysts, and specialty consultants. The client agrees that BBK may use such non-attorney personnel to perform its services when it is reasonably necessary in the judgment of the responsible BBK attorney. Hourly fees for non-attorney personnel will be charged at the rate then in effect for such personnel. A copy of BBKs current rates and titles for non-attorney personnel will be provided upon request. FEES FOR OTHER SERVICES, COSTS AND EXPENSES We attempt to serve all our clients with the most effective support systems available. Therefore, in addition to fees for professional legal services, we also charge separately for some other services and expenses to the extent of their use by individual clients. These charges include but are not limited to, mileage at the current IRS approved rate per mile, extraordinary telephone and document delivery charges, copying charges, computerized research, court filing fees and other court-related expenditures including court reporter and transcription fees. No separate charge is made for secretarial or word processing services; those costs are included within the above hourly rates. We may need to advance costs and incur expenses on your behalf on an ongoing basis. These items are separate and apart from attorneys fees and, as they are out-of-pocket charges, we need to have sufficient funds on hand from you to pay them when due. We will advise the client from time to time when we expect items of significant cost to be incurred, and it is required that the client send us advances to cover those costs before they are due. ADVANCE DEPOSIT TOWARD FEES AND COSTS Because new client matters involve both a substantial undertaking by our firm and the establishment of client credit with our accounting office, we require an advance payment from clients. The amount of this advance deposit is determined on a case-by-case basis discussed first with the client, and is specified in our engagement letter. Upon receipt, the advance deposit will be deposited into the firms client trust account. Our monthly billings will reflect such applications of the advance deposit to costs and not to attorneys fees (unless otherwise noted in our accompanying engagement letter). At the end of engagement, we will apply any remaining balance first to costs and then to fees. We also reserve the right to require increases or renewals of these advanced deposits. By signing the initial engagement letter, each client is agreeing that trust account balances may be withdrawn and applied to costs as they are incurred and to our billings, when we issue our invoice to the client. If we succeed in resolving your matter before the amounts deposited are used, any balance will be promptly refunded. MONTHLY INVOICES AND PAYMENT Best Best & Krieger LLP provides our clients with monthly invoices for legal services performed and expenses incurred. Invoices are due and payable upon receipt. Each monthly invoice reflects both professional and other fees for services rendered through the end of the prior month, as well as expenses incurred on the clients behalf that have been processed by the end of the prior month. Processing of some expenses is delayed until the next month and billed thereafter. D-2 Our fees are not contingent upon any aspect of the matter and are due upon receipt. All billings are due and payable within ten days of presentation unless the full amount is covered by the balance of an advance held in our trust account. If a bill is not paid within 30 days, a late charge of one percent per month on the unpaid invoice may be added to the balance owed, commencing with the next statement and continuing until paid. It is our policy to treat every question about a bill promptly and fairly. It is also our policy that if a client does not pay an invoice within 60 days of mailing, we assume the client is, for whatever reason, refusing to pay. We reserve the right to terminate our engagement and withdraw as attorney of record whenever our invoices are not paid. If an invoice is 60 days late, however, we may advise the client by letter that the client must pay the invoice within 14 days or the firm will take appropriate steps to withdraw as attorney of record. If the delay is caused by a problem in the invoice, we must rely upon the client to raise that with us during the 14-day period. This same policy applies to fee arrangements which require the client to replenish fee deposits or make deposits for anticipated costs. From time to time clients have questions about the format of the bill or description of work performed. If you have any such questions, please ask them when you receive the bill so we may address them on a current basis. CHANGES IN FEE ARRANGEMENTS AND BUDGETS It may be necessary under certain circumstances for a client to increase the size of required advances for fees after the commencement of our engagement and depending upon the scope of the work. For example, prior to a protracted trial or hearing, the firm may require a further advance payment to the firms trust account sufficient to cover expected fees. Any such changes in fee arrangements will be discussed with the client and mutually agreed in writing. Because of the uncertainties involved, any estimates of anticipated fees that we provide at the request of a client for budgeting purposes, or otherwise, can only be an approximation of potential fees. BEST BEST & KRIEGER LLP D-3 Public Works Agency www.santa-ana.org/pw Item # 24 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Ordinance Amending Chapter 36 of the Santa Ana Municipal Code AGENDA TITLE Ordinance Amending Chapter 36 of the Santa Ana Municipal Code for Placement of Parking Meters Next to Class IV Bikeways RECOMMENDED ACTION Approve first reading of an ordinance amending Chapter 36 of the Santa Ana Municipal Code to allow motorists parked along Class IV bikeways to pay the parking meter located on the sidewalk. DISCUSSION Currently, SAMC 36-400 & 36-401 requires all parking meters be placed upon the curb alongside of and next to the parking spaces. However, Class IV (protected) bikeways have a raised median separating the parking space and the bikeway from the sidewalk. According to the existing SAMC sections 36-400 and 36-401, the parking meters would need to be placed on the median island separating the parking space from the bikeway. However, the raised median for the Class IV bikeways is very narrow and does not provide sufficient room for someone to stand on it to pay the meter. This recommended code change will allow parking meters placed on the sidewalk curb to be effective for the parking spaces adjacent to the raised bikeway median. For safety reasons and enforcement, the best place to install the parking meters is on the sidewalk. Staff recommends adopting the ordinance for the placement of parking meters along Class IV bikeways (Exhibit 1). ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1.Ordinance Ordinance Amending Chapter 36 of the SAMC November 2, 2021 Page 2 Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, AMENDING SECTION 36- 400 OF CHAPTER 36OF THE SANTA ANA MUNICIPAL CODEREGARDING THE LOCATION OF PARKING METERS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: A.Currently, Santa Ana Municipal Code Section 36-400 requires all parking meters to be placed upon the curb alongside of and next to parking spaces; B.Class IV (protected) bikeways have a raised median separating the parking space and the bikeway from the sidewalk; and C.The useof protected bikeways requires modification of Santa Ana Municipal Code Section 36-400 to allow parking meters to be placed on the sidewalk adjacent to parking spaces. Section 2.Section 36-400of Articleof Chapter 36 of the Santa Ana Municipal Code is hereby amended to read as follows(new language isunderlinedand deleted language is stricken): Sec. 36-400. -Location onsidewalkcurb; space markings. All parking meters shall be placed upon thesidewalkcurbalongside ofadjacent parking spaces orandnext to parking spaces. Such parking spaces shall be of sufficient sizeto accommodate an automobile and shall indicate parallel or diagonal parking by painted lines on the pavement. Section 3.If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance andeach section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Ordinance No. NS-XXX Page 1 of 2 Section 4. This ordinance shall become effective thirty (30) days after its adoption. Section 5.The Clerk of Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law. ADOPTED this ____day of November, 2021. _________________________ Vicente Sarmiento Mayor APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: Laura A. Rossini Chief Assistant City Attorney AYES:Councilmembers: _________________________________ NOES:Councilmembers: _________________________________ ABSTAIN:Councilmembers: _________________________________ NOT PRESENT:Councilmembers: _________________________________ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXto be the original ordinance adopted by the City Council of the City of Santa Ana on ______________, 2021,and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: ______________________________________________________ Daisy Gomez Clerk of the Council City of Santa Ana Ordinance No. NS-XXX Page 2of 2 Clerk of the Council Office www.santa-ana.org/cc Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Streamlining City Council Meetings AGENDA TITLE: Options to Streamline City Council Meetings RECOMMENDED ACTION Accept informational report and provide direction to staff. DISCUSSION At the October 5, 2021 City Council meeting, the City Council directed staff to prepare a report on best practices for streamlining City Council meetings. Staff conducted research on existing policies relating to the rules and procedures for City Council meetings, meeting duration for City Council meetings during the 2021 calendar year, and best practices on streamlining City Council meetings. Review of Duration of City Council Meetings Staff analyzed City Council meetings dating back to January 2021. Over the course of 18 meetings, the average meeting duration hovered just above seven hours. Two of these meetings lasted over twelve hours each. Closed sessions were determined to take approximately two hours on average, and at times were resumed at the end of the City Council meetings if the initial session ran past 6:00 p.m. The proclamations and presentations period takes over an hour on average. Pulled Consent Calendar items averaged ten minutes per item, with an average of pulled items hovering at five per meeting. Business calendar and public hearing items averaged thirty minutes per item. Lastly, contentious items account for over five hours of public comment period alone, on average. Streamlining City Council Meetings at a Comparable City: Long Beach, CA In March 2019, the City of Long Beach conducted a study, referred to as the Council Meeting Streamlining Outreach Survey, to obtain feedback from constituents regarding the then-current structure of their City Council meetings. This study was conducted in response to an inquiry from a councilmember relating to the duration of their City Council meetings. A community survey, composed of six questions asking for feedback from constituents about their thoughts on streamlining City Council meetings, along with demographics-related questions, received 210 responses. Common suggestions to their Streamline City Council Meetings November 2, 2021 Page 2 survey included the following suggestions to streamline their meetings: (1) limit public comment during high attendance meetings; (2) limit councilmember discussion; (3) limit repetition of praise and agreement between councilmembers; (4) adhere to the agenda order; (5) establish time limits for agenda items; (6) limit presentation/ceremonies at the beginning of meetings; (7) publish agendas and estimated times for each item at least a week in advance; and (8) meet more frequently than their then-once-a-week schedule of regular City Council meetings. In response to the community survey and discussion at their City Council meetings, the Long Beach City Council adopted an ordinance to implement procedures that they believed would shorten the duration of (or “streamline”) their meetings. Examples of some of the procedural changes imposed by the ordinance include the following: (1) reducing individual public comment from three minutes to 90 seconds if ten or more people request to speak on the same topic; (2) requiring individuals requesting to speak during public comment to sign up to speak before an agenda item is called for discussion; (3) imposing a five-minute speaking limit for individual council members while they’re discussing items; (4) updating the order of business for the City Council meeting agenda; and (5) limiting the number of ceremonial presentations. Long Beach isn’t the only city to have conducted such studies or imposed procedures to streamline their City Council meetings. The Cities of Anaheim, Downey, and Los Angeles, for example, have all recently enacted changes to their City Council meeting procedures to respond to the increase in duration of their City Council meetings. Existing Policies that Establish Procedures for City Council Meetings In addition to general rules set forth in the City Charter and the Santa Ana Municipal Code relating to conduct of the City Council at public meetings, there are three specific guidance documents that set forth rules and procedures for City Council meetings: (1) Resolution No. 2013-2019 amending the City Council rules and procedures for calling special meetings, altering the agenda format to provide for reports from the City Council, and changing the day of regular City Council meetings; (2) Robert’s Rules of Order; and (3) the City Council Handbook. Resolution No. 2013-019, also referred to as the “City Council Rules and Procedures Resolution”, sets forth procedures that encompass the time and place of City Council meetings, the City Council meeting agenda, and decorum. Robert’s Rules of Order is a manual of parliamentary procedure that governs the meetings of organizations that have adopted it as their parliamentary authority. The City Council Rules and Procedures Resolution incorporates Robert’s Rules of Order as the parliamentary authority that governs City Council meetings and City Council committee meetings. The City Council Handbook is a guidance document that incorporates written procedures from both the City Council Rules and Procedures Resolution and Robert’s Rules of Order. Separately, there exists a City Council Recognition Policy, and administrative policy that was approved by the City Council in June 2018. This policy sets parameters for members Streamline City Council Meetings November 2, 2021 Page 3 of the City Council to recognize individuals, groups, and events by issuing proclamations and certificates of recognition. Methods to Streamline City Council Meetings Staff researched methods to reduce the duration of City Council meetings so as to streamline the meetings. Below is an overview of options that the City Council may consider. 1.GET ANSWERS TO TECHNICAL QUESTIONS PRIOR TO THE MEETING. It is suggested that members of the Council reach out to staff prior to the City Council meeting to reduce the amount of time devoted to technical questions or general clarification during the City Council meeting. 2.IDENTIFY PARAMETERS FOR CEREMONIAL PRESENTATIONS. Set scheduled time and time limits for ceremonials and presentations. Presentations for the community are an important part of the meeting and are valued by the community. Having a set time to conduct presentations would provide structure to this part of the meeting and limit their carryover into the general City Council meeting. Staff recommends setting a time limit of five minutes per presentation, with the goal of limiting the number of presentations per meeting to three. The Clerk of the Council would keep track of time during the presentations. 3.DECREASE TIME FOR PUBLIC COMMENTS. Reduce the public comment time to 90 seconds if ten (10) or more speakers are speaking on the same item, with language access and ADA exceptions. 4.REARRANGE THE TIME, PLACE, AND MANNER OF PUBLIC COMMENTS. In addition to encouraging members of the public to submit written comments to share their thoughts on City Council agenda items, the City Council may consider rearranging public comments so that the Public Comments portion of the meeting is either staggered, categorized by item type, or scheduled to a different section of the City Council meeting agenda 5.SCHEDULE SPECIAL MEETINGS WHEN NECESSARY. Schedule special meetings for contentious items. For items where large crowds are expected, it is recommended to schedule a special meeting for the stand-alone item. 6.CALL FOR A POINT OF ORDER. Call for a “point of order” after discussion on any one item has gone longer than 30 minutes. The City Council will be required to vote by majority to continue discussing the item or table it for the next meeting. 7.START THE CITY COUNCIL MEETING EARLIER. Start the Closed Sessions at 4:00 p.m. instead of 5:00 p.m. and start the regular City Council meetings at 5:00 p.m. If Closed Session items require additional discussion, then the closed session can continue upon adjournment of the regular City Council meeting. Or consider starting the City Council meeting earlier altogether. 8. ROBERT’S RULES OF ORDER TRAINING. Hold a Robert’s Rules of Order refresher training for the City Council by the City Attorney. The City Attorney can explore modified rules used by other agencies and could provide information on those rules at an upcoming meeting. Streamline City Council Meetings November 2, 2021 Page 4 9.UPDATE THE ORDER OF BUSINESS. Revise the agenda order so as to hear items in the following order: public hearings, business calendar, and then consent calendar items. Standard or frequent types of items are placed under the Consent Calendar. Staff recommends hearing the items that would require discussion first before hearing the routine items. Members of the Council would always have the opportunity to pull items from the Consent Calendar for discussion 10.SURVEY CONSTITUENTS TO FIND OUT WHAT THEY THINK. Conduct a City Council Meeting Streamlining Outreach Survey. To increase our community outreach efforts, staff recommends obtaining feedback regarding the current meeting structure. The survey does not need to be a formal, scientific survey with requisite controls; but instead will allow members of the community to vote on different options and allow them to suggest how City Council may streamline meetings. 11.INCREASE THE FREQUENCY OF CITY COUNCIL MEETINGS. Schedule one or more additional regular City Council meeting each month. 12.TIME LIMITS FOR COUNCILMEMBER COMMENTS. Impose a time limit that councilmembers may speak on any City Council agenda item. 13.IMPOSE A SET MEETING END TIME. End City Council meetings at a set time. Next Steps The options presented in this staff report are for discussion by the City Council. Should it be the desire of the City Council, staff can prepare a revised City Council Rules and Procedure document, in the form of a resolution, to include revised procedures to streamline City Council meetings. Alternatively, staff can return to the City Council with additional information at a future meeting. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. Submitted By: Daisy Gomez, Clerk of the Council Approved By: Kristine Ridge, City Manager Clerk of the Council Office www.santa-ana.org/cc Item # 26 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Assembly Bill 361 AGENDA TITLE: Consider Approving the Continued Use of Teleconferencing for Meetings of City Council and all Boards, Committees, and Commissions Pursuant to the Provisions of Assembly Bill 361 RECOMMENDED ACTION Adopt resolution to consider continuing the use of teleconferencing for the meetings of City Council and all boards, committees, and Commissions pursuant to the provisions of Assembly Bill 361 for the next 30 days. DISCUSSION On March 17, 2020, Governor Gavin Newsom issued Executive Order N-29-20 suspending certain provisions of the Brown Act in order to allow legislative bodies to conduct their meetings completely telephonically or by other electronic means. City Council meetings have been conducted by Zoom with councilmembers and staff all joining from remote locations when necessary. The suspension of certain provisions of the Brown Act was further extended by Governor Newsom on June 11, 2021 by the issuance of Executive Order N-08-21 which continued to allow completely virtual City Council (and other legislative body) meetings. This order stayed in effect until September 30, 2021. In response, AB 361 was signed into effect by Governor Newsom on September 16, 2021. It amends the Brown Act to allow legislative bodies to meet virtually, provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees. The City of Santa Ana’s current practices with respect to live public comment via Zoom already satisfy all of the new requirements in AB 361. Additionally, the individual legislative bodies can make their own findings for the AB 361 telecommuting resolution for future meetings. Determinations to continue to utilize remote meetings as allowed by Streamline City Council Meetings November 2, 2021 Page 2 AB 361 must be re-visited by the legislative body every 30 days with the support of new findings. Staff recommends this extension period to act as a helpful transitional stage for boards, committees, and commissions who still currently meet virtually. th On October 5, 2021, Council adopted Resolution No. 2021-055 making the required findings under AB 361 in order to allow the City to continue to offer teleconference accessibility for public meetings after September 30, 2021, to help mitigate the spread of COVID-19. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Resolution Submitted By: Daisy Gomez, Clerk of the Council Approved By: Kristine Ridge, City Manager RESOLUTION 2021-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA EXTENDING THE AUTHORIZATION FOR USE OF REMOTE TELECONFERENCING PROVISIONS (AB 361) WHEREAS, the Ralph M. Brown Act (Government Code section 54950 fu!tfr/) generally requires local agencies meeting via teleconference, including through other virtual or electronic means, to, among other things, provide public access at each location in which members of the legislative body are teleconferencing; and WHEREAS, Assembly Bill 361 (AB 361) amends Government Code section 54953 to allow local agencies to meet fully virtually, without fully adhering to the rules otherwise applicable to teleconferencing, during a proclaimed state of emergency if state or local officials have imposed or recommended measures to promote social distancing; and WHEREAS, the Governor issued a proclamation declaring a state of emergency on March 4, 2020 due to the COVID-19 pandemic, pursuant to section 8625 of the California Emergency Services Act, and this proclaimed state of emergency currently remains in effect; and WHEREAS, the City Council of the City of Santa Ana declared a local emergency on March 17, 2020 pursuant to Santa Ana Municipal Code section 2-404A (now section 2-646A); and WHEREAS, on October 5, 2021, the City Council of the City of Santa Ana approved Resolution 2021-055 authorizing the use of remote teleconferencing provisions pursuant to AB 361; and WHEREAS, in order to continue teleconferencing pursuant to the provisions of AB 361, the City Council is required to make certain findings every thirty (30) days; and WHEREAS, Orange County, California is in an area of substantial transmission of COVID-19, including the highly transmissible Delta Variant, as identified by the Center for Disease Control; and WHEREAS, the City Council of the City of Santa Ana has reconsidered the circumstances of the state of emergency; and WHEREAS, state and local officials continue to recommend measures to promote social distancing to prevent the spread of COVID-19; and WHEREAS, the continuation of virtual meetings will allow for full participation by members of the public until social distancing recommendations are lifted; and WHEREAS, the City Council of the City of Santa Ana desires to continue to hold virtual meetings pursuant to AB 361 and Government Code section 54953(e). Resolution 2021-XXX Page 1 of 3 NOW THEREFORE BE IT RESOLVED,by theCity Council of the City of Santa Anaas follows: SECTION 1.The above recitals aretrue and correct and shall be the findings of the City of Santa Ana SECTION 2.The City Council of the City of Santa Ana hereby extends the authorization provided by Resolution No. 2021-055 allowing for teleconferencing pursuant to AB 361. SECTION 3.The City Council and all other legislative bodies of the City of Santa Anacreated by the City Council or createdthrough its City Charter shall continue to meet virtually in accordance with Government Code section 54953(e) and without compliance with section 54953(b)(3)based upon the findings and determinations hereby made by the City Council. SECTION 4. TheCity Clerk shall attest to and certify to the passage and adoption of this resolution and it shall be effective immediately upon its approval. ADOPTED this ___day ofNovember, 2021. ___________________________ Vicente Sarmiento Mayor APPROVED AS TO FORM: SoniaR. Carvalho City Attorney By: __________________ Laura A. Rossini Chief Assistant City Attorney Resolution 2021-XXX Page 2of 3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-___ to be the original Resolution adopted by the City Council of the City of Santa Ana on _____________, 2021 Date: ___________________ ____________________________ Clerk of the Council City of Santa Ana Resolution 2021-XXX Page 3 of 3 Housing Authority santa-ana.org/cd Item # 2 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: Quarterly Report for Housing Choice Voucher Program AGENDA TITLE: Quarterly Report for the Housing Choice Voucher Program for the Period of July 2021 to September 2021 RECOMMENDED ACTION Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of July 2021 to September 2021. DISCUSSION The July 2021 to September 2021 Quarterly Report for the Housing Choice Voucher (HCV) Program provides statistics for the day-to-day activities of the Santa Ana Housing Authority. The report is divided into three (3) sections: Applicants, Participants, and Production. Applicants The Santa Ana Housing Authority accepted applications from July 1, 2015 through July 30, 2015 and received a total of 16,375 applications. A random lottery procedure was applied and the Santa Ana Housing Authority accepted 5,000 of the 16,375 applications to establish a 2015 HCV Waiting List. Charts 1 and 2 depict the characteristics of those applicants currently on the Waiting List. As of September 30, 2021, there are 748 applicants on the 2015 HCV Waiting List. Chart 1 illustrates the percentage of applicants on the 2015 HCV Waiting List who live or work in Santa Ana. These applicants are given a preference on the waiting list together with U.S. military veterans. Quarterly Report for Housing Choice Voucher Program November 2, 2021 Page 2 Chart 2 illustrates the number of applicants by total household size. The majority of applicants on the waiting list consist of only one or two household members. Over half of all applicants (410 of the 748 applicants or 54%) have one- or two- member households and would qualify for a one-bedroom voucher. The Santa Ana Housing Authority’s occupancy standard is one (1) bedroom for every two family members. Participants At the end of the reporting period, there were 2,754 households receiving rental assistance from the Housing Authority. Chart 3 illustrates participating families, sorted by number of family members. Over three-fourths (85%) of families receiving assistance have three or fewer members. Chart 4 illustrates the family type for program participants. Over half (68%) of participating households have elderly and/or disabled members. \[“Other” consists of households that are non-elderly, non-disabled, with no minor children.\] Chart 5 depicts participants by percentage of Orange County median income. As of September 2021, the County’s median income is $106,700 per year for a family of four. Approximately 88% of families on the program earn less than 30% of the median income, which is $40,350 per year for a family of four. Quarterly Report for Housing Choice Voucher Program November 2, 2021 Page 3 Participants’ incomes come from a variety of sources, as illustrated in Chart 6. A total of 32% of participating families have income from employment. Participating families pay a portion of their monthly rent based upon their income and the payment standard for their unit. The Housing Authority pays the difference between the tenant’s portion and the contract rent. This payment is the Housing Assistance Payment (HAP). The average HAP for July 2021 to September 2021 was $1,324. Production HQS Inspections: At least once every two (2) years, the Housing Authority must inspect each assisted-unit to ensure it meets ’s Housing Quality Standards (HQS) in compliance with the federal regulations. From July 2021 to September, 2021 a total of 275 inspections and re- inspections of our assisted-units were performed of which 97 inspections failed. Chart 7 illustrates the number of inspections performed on a monthly basis during the reporting period. Recertifications / Interims: Each year, the Housing Authority must re-certify every assisted-family to verify the family is still eligible for assistance. In addition, when a participant’s income changes, an interim examination must be performed. During the reporting period, a total of 799 recertifications and interims were conducted. Chart 8 illustrates the number of recertifications and interims performed. Quarterly Report for Housing Choice Voucher Program November 2, 2021 Page 4 Other Change of Unit: These actions are completed when a family moves to a different rental unit. Fifteen change of unit actions were processed during the reporting period. New Admissions: This action is completed when a family is admitted to the HCV Program. Twenty-two new admissions were processed during the reporting period. End of Participation: This action is completed when the family is no longer interested in participating in the program, the family becomes deceased, the family is no longer eligible for the program, or the family is terminated from the program due to program violations. Nineteen end of participations were processed during the reported period. Expired Vouchers: This action is completed when an applicant is unable to locate a unit within the timeframe of the voucher and all extensions have been exhausted or no extension is requested. There were no expired vouchers processed during the reporting period. FISCAL IMPACT There is no fiscal impact associated with this action. Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager Community Development Agency santa-ana.org/cd Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 2, 2021 TOPIC: HUD-VASH and FYI Special Fees Agreement with the Orange County United Way AGENDA TITLE: Approve Two Agreements with the Orange County United Way to Provide Housing Stabilization Services and Supportive Services for the HUD-Veterans Affairs Support Housing Program (HUD-VASH) and Foster Youth to Independence (FYI) Programs (Contingent upon approval of City Council Item #11) RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute two (2) agreements with the Orange County United Way to provide housing stabilization and supportive services beginning November 2, 2021 and expiring June 30, 2023, for a total amount not to exceed $168,034 subject to non-substantive changes approved by the Executive Director of the Housing Authority and Authority General Counsel. DISCUSSION On March 24, 2021, HUD issued PIH Notice 2021-10 announcing Federal Fiscal Year (FFY) 2021 Funding Provision for the Housing Choice Voucher. This notice also included an application opportunity for the HUD’s Special Fee Applications for the HUD-Veterans Affairs Support Housing Program (HUD-VASH) and Foster Youth to Independence (FYI) Program. The Housing Authority administers 280 HUD-VASH vouchers for homeless veterans and 46 FYI vouchers for foster youth. On May 7, 2021, the Housing Authority submitted an application for the HUD-VASH and FYI Special Fees, and on September 9 the Housing Authority received an award of $84,017 in HUD-VASH Special Fees and $84,017 in FYI Special Fees to provide housing stabilization services and supportive services (Exhibit 1). The purpose of the HUD-VASH Special Fees is to support additional or extraordinary related administrative expenses incurred to increase lease-up success rates or decrease the time it takes for a homeless veteran to locate and move-in to a unit, such as landlord incentives, housing search assistance, unit holding fee, security deposit fee and application fee. This $84,017 in administrative fee funding may be used by the Housing HUD-VASH and FYI Special Fees Agreement with the Orange County United Way November 2, 2021 Page 2 Authority for administrative expenses and other eligible activities/expenses related to housing stabilization. The purpose of the FYI Special Fees is to support necessary additional or extraordinary related administrative expenses incurred to achieve either of the following activities: 1) Full (100%) FYI voucher utilization; and 2) Increase access to the program for eligible youth. With these one-time funds, staff is recommending approval of two agreements with the Orange County United Way’s WelcomeHomeOC program to administer these funds on behalf of the Housing Authority (Exhibit 2 and 3). The WelcomeHomeOC program conducts extensive landlord outreach in the private market and provides landlord incentives to increase the availability of rental units and decrease the time involved in the search for an eligible and affordable unit for voucher holders. Their housing navigators connect landlords to clients through housing navigation services, and facilitates the lease- up process while ensuring wrap-around service case management services are in place afterwards for the tenants. The WelcomeHome OC program works with many homeless and nonprofit service providers to ensure clients have the case management and supportive services they need to keep them in their home. In 2019, the Housing Authority entered into a similar partnership with the Orange County United Way to assist 25 foster youth find and lease-up affordable permanent housing with their FYI vouchers. The WelcomeHomeOC team leased up all 25 FYI individuals and families within a very short period of time. This success made our Housing Authority one of the first in the nation to reach 100% utilization with HUD’s first allocation of FYI vouchers. The results were recognized by HUD’s Los Angeles Field Office and staff were invited to share our results with other housing authorities across the State of California. FISCAL IMPACT Funds for the agreements will be available in the following accounts for estimated expenditure as follows: Fiscal Accounting Fund Accounting Unit, Account Amount YearUnit-AccountDescriptionDescription Housing Authority Voucher Admin, FY 21-22 14018760-62300Housing Authority$ 97,268 (Nov.-June) Contract Services-Professional Housing Authority Voucher Admin, FY 22-23 14018760-62300Housing Authority$ 70,766 (July-June) Contract Services-Professional Total Expenditure$168,034 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director – Finance and Management Services Agency HUD-VASH and FYI Special Fees Agreement with the Orange County United Way November 2, 2021 Page 3 EXHIBIT(S) 1. HUD Award Letter dated September 20, 2021 2. Agreement with the Orange County United Way for HUD-VASH Special Fees 3. Agreement with the Orange County United Way for FYI Special Fees Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager EXHIBIT 1 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Financial Management Center 2380 McGee, Suite 400 Kansas City, MO 64108-2605 OFFICE OF PUBLIC AND INDIAN HOUSING September 20, 2021 CA093 CITY OF SANTA ANA HSG AUTH 20 CIVIC CENTER PLAZA P.O. BOX 22030 SANTA ANA, CA 92701 Dear Executive Director: SUBJECT: Calendar Year (CY) 2021 Housing Choice Voucher (HCV) Program Special Fees This letter is to notify you that funds have been obligated for CY 21 HCV Program Special Fees per the award letter dated September 15, 2021. This is a one-time award and has been automatically disbursed in a lump sum. No action is required by your PHA to receive the disbursement. The specific information concerning the obligation(s) for your public housing agency (PHA) is identified below. Funding Increment Budget Effective Date Term Category NumberAuthority(months) CA093AF0144$84,0179/1/20211Special Fees-FUP CA093AF0145 $84,017 9/1/2021 1 Special Fees-HUD-VASH Attached is your Notice to Amend the Consolidated Annual Contributions Contract (CACC) with revised funding exhibits reflecting the change(s) described above. The amendment notice and revised funding exhibits should be filed with your most recent CACC. No execution by HUD or your PHA is required. Public housing agencies receiving an increment in excess of $100,000 in Budget Authority (BA) are required to submit Form HUD-50071, Certification of Payments to Influence Federal Transactions, and if applicable, Form SF-LLL, Disclosure of Lobbying Activities. If this letter notifies you of a renewal in excess of $100,000, and your PHA has not submitted the Form(s) HUD-50071 (and SF-LLL where applicable) for your current fiscal year; the documents must be submitted to your Financial Analyst at the Financial Management Center (FMC) within 30 days of the date of this letter. These forms are located on the Internet at the following addresses: Form HUD-50071 https://www.hud.gov/sites/documents/50071.pdf www.hud.gov espanol.hud.gov EXHIBIT 1 Form SF-LLL https://files.hudexchange.info/resources/documents/HUD-Form-Sflll.pdf If you have any questions about the matters discussed in this letter, please contact your Financial Analyst (FA) at the Financial Management Center (FMC). Sincerely, Jennifer Marshall Division Director Attachment EXHIBIT 1 Consolidated U.S. Department of Housing and Urban Development Annual Contributions Contract Office of Public and Indian Housing Housing Choice Voucher Program Section 8 HUD NOTICE TO HOUSING AGENCY AMENDING CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT Housing Agency: City of Santa Ana Housing Authority, CA093 (Type or print name of housing agency.) In accordance with Paragraph 2.c. of the Consolidated Annual Contributions Contract between HUD and the HA, you are notified that the funding exhibit of the Consolidated Annual Contributions Contract is hereby revised to add a new funding increment as provided in the attached revised funding exhibit. (This notice adds one or more funding increments listed on the attached funding exhibit.) The revised funding exhibit is attached to this HUD notice. This revised funding exhibit replaces and revises the prior funding exhibit. In accordance with Paragraph 2.d. of the Consolidated Annual Contributions Contract, this HUD notice and the attached funding exhibit constitutes an amendment to the Consolidated Annual Contributions Contract. United States of America: Secretary of Housing and Urban Development Date of Document: Authorized Representative Robert H. Boepple, Director /2021 Financial Management Center Form HUD-52520A (12/97) EXHIBIT 1 V/T/!Efqbsunfou!pg!Ipvtjoh!boe!Vscbo!Efwfmpqnfou QJI!Tfdujpo!9!.!Gvoejoh!Fyijcju Qsphsbn.Cbtfe BDD!OVNCFS;!!!DB1:4BG GJFME!PGGJDF;!!:EQI MPTGP-!QJI IB!OVNCFS;!!!!!DB1:4 DJUZ!PG!TBOUB!BOB!ITH!BVUI 31!DJWJD!DFOUFS!QMB\[B Q/P/!CPY!33141 TBOUB!BOB-!DB:3812 IB!GJTDBM!ZFBS!FOE;!!!17041 QSPHSBN!UZQF;!!!BENJO!GFF GJ!OvncfsGjstu!Ebuf!pg!UfsnMbtu!Ebuf!pg!UfsnDpousbdu!UfsnCvehfu!BvuipsjuzVojut!Dpvou DB1:4BG124417.12.31311:.41.31315%:9:-759/11O0B DB1:4BG124521.12.313121.42.31312%358-523/11O0B DB1:4BG124822.12.313123.42.31313%5:9-9:5/11O0B DB1:4BG124912.12.313213.39.31323%5:9-9:5/11O0B DB1:4BG124:23.12.313123.42.31312%39-554/11O0B DB1:4BG125114.12.313214.42.31322%487-98:/11O0B DB1:4BG125215.12.313216.42.31323%626-179/11O0B DB1:4BG125317.12.31321:.41.31325%2-147-1:3/11O0B DB1:4BG125421.12.313221.42.31322%36:-134/11O0B DB1:4BG12551:.12.31321:.41.31322%95-128/11O0B DB1:4BG12561:.12.31321:.41.31322%95-128/11O0B DB1:4BGS3311:.12.31311:.41.31312%47-4:2/11O0B DB1:4BGS3321:.12.31321:.41.31322%58-462/11O0B DB1:4BGS43123.12.313123.42.31312%2-95:/11O0B DB1:4BGS53115.12.313215.41.31322%75-681/11O0B Qsjou!Ebuf;!Npoebz-!Tfqufncfs!31-!3132-!!21;65;66!BNGjobodjbm!Ebub!Nbsu!)B86S*Qbhf!2!pg!2 Sfqpsu!Qbui;!0dpoufou0gpmefs\\Aobnf>(B86S.TVC!Tvctjejbsz!Efubjm! B86S.TVC.133b!Qsphsbn!Cbtfe!Gvoejoh!.!QB12Sfqpsut(^0gpmefs\\Aobnf>(B86S.TVC!IVEDBQT!Tfdujpo!9!Sfqpsut(^0sfqpsu\\Aobnf>(B86S. TVC.133b!Qsphsbn!Cbtfe!Gvoejoh!.!QB12(^ )Tubuvt!Dpef!jo!)(d(-(v(-(q(-(e(-(f(**!boe!)Mjof!Ovncfs!>!(112(*!boe!)Ipvtjoh!Bvuipsjuz!Ovncfs!tubsut!xjui!DB1:4*!boe!)Qsphsbn!Uzqf!jo!)!BG**!boe! Gjmufs;! )Dpousbdu!Fyqjsbujpo!Ebuf!?!)Dvssfou!Ebuf!.!476!ebzt** Sfoefsfe!cz!Dphopt EXHIBIT 2 HOUSING CHOICE VOUCHER PROGRAM HUD-VASHSPECIALFEES SUBCONTRACTORAGREEMENTBETWEEN THE HOUSINGAUTHORITY OFTHECITY OFSANTAANA AND ORANGECOUNTYUNITED WAY - and entered into this November 2, 2021, by and between the Housing Authority of the City of aCalifornia nonprofit organization RECITALS: A.The Appropriations Act, 2021 (P.L. 116- establishestheallocationmethodologyforcalculatinghousingassistance paymentsrenewalfunds,newincrementalvouchersandadministrativefees. B.Contractor is the recipient of the HCV Special Fees funds from the U.S. Department of HousingandUrban Developmentof PublicandIndianHousing. C.Subcontractor has beenmade aware oftheHUD HCV programandagrees tocomply with all the conditions of the HUD-VASH Special Fees Agreement and the applicable requirementsgoverningthe useof HUD-VASHSpecial Fees funds. D.ContractornowapprovestheprovisionofHUD-VASHSpecialFeesfundsto Subcontractor in an amount not to exceed $84,017.00, to be used in the operation of the WelcomeHomeOC Program E.Subcontractor represents that it has the requisite qualifications, expertise, and experience in the provision of the Program and is willing to use said HUD-VASH Special Fees funds tooperate said Program. F.This HUD-VASH Special Fees Agreement is contingent upon the award of HCV Special Feesfunds fromHUD. G.ContractorandSubcontractorhavedulyexecutedthisHUD-VASHSpecialFees Agreement fortheexpenditureandutilizationofsaidHUD-VASHSpecialFeesfunds. NOW THEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this HUD-VASH Special Fees Agreement, and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entireHUD-VASHSpecial Fees Agreementbetween theContractorandSubcontractor: 1 EXHIBIT 2 1.SCOPEOFSERVICES SubcontractorshallperformduringthetermofthisHUD-VASHSpecialFees Agreement,thetasksandobligations,includingalllabor,materials,tools,equipment,and incidental customary work required to fully and adequately complete the services necessary for theProgram, in accordancewiththeScopeof Work attachedhereto asExhibit B. 2.TERM ThisHUD-VASHSpecialFeesAgreementshalltakeeffectonthedatefirstwritten above and shall terminate on June 30, 2023, unless otherwise cancelled or modified according to theterms ofthis HUD-VASH Special Fees Agreement. 3.DISBURSEMENTANDFUNDS A.Contractor was allocated $84,017.00 in HUD-VASH Special Fees funds from HUD to be expended by June 30, 2023. Contractor agrees to pay to Subcontractor when, if and to the extent HUD-VASH Special Fees funds are received a sum not to exceed $84,017.00 for through the term of this HUD-VASH Special Fees Agreement, in accordance with the Budget attached hereto as Exhibit C. Contractor shall make payments to Subcontractor not to exceed $5,000 for each HUD-VASH voucher leased, as detailed in Exhibit B, up to themaximum amount of eligible funding.Said sum shall be paid after Contractor receives invoices submitted by Subcontractor as providedherein. th B.Subcontractor shall submit quarterly invoices (on or before the 15day of April, July,October, andJanuary) ina formprescribedby theContractor,detailing suchexpenses. Suchschedule maybemodified with theapprovaloftheContractor. C.Payment is subject to the receipt and approval of such invoices and quarterly activity reports. Contractor shall pay such invoices within thirty (30) days after receipt thereof, provided Contractor is satisfied that such expenses have been incurred within the scope of this HUD-VASH Special Fees Agreement and that the Subcontractor is in compliance with the terms and conditions of this HUD-VASH Special Fees Agreement.The thirty (30) day period will discontinue if the reimbursement request is determined to be incomplete and will restart the thirty-daytimelineoncetheremainingrequiredelementshavebeensubmitted.Failureto provide any of the required documentation will cause the Contractor to withhold all or a portion of a request for reimbursement until such documentation has been received and approved by the Contractor. D.Subcontractor agrees to use said funds pursuant to this HUD-VASH Special Fees Agreement to pay for necessary and reasonable costs allowable understate law and regulations to operate said HCV HUD-VASH Program only. Said amounts shall include and will be limited to the operation of the WelcomeHomeOC program only. requiredmay,inadditiontootherremediessetforthinthisHUD-VASHSpecialFeesAgreement, resultinreadjustmentoftheamountoffundstheContractorisotherwiseobligatedtopaytothe 2 EXHIBIT 2 Subcontractorpursuanttothetermshereof,orterminationofthisHUD-VASHSpecialFees Agreement. 4.HUDAGREEMENT A.Contractoradherestothe2021Act,whichestablishestheallocationmethodology for calculating HAP renewal funds, new incremental vouchers and administrative fees.A true and correct copy of the HUD PIH Notice 2021-10 recognizing $84,017.00 in HUD-VASH Special Fees grant funds to be used by Contractor to address immediate homeless challenges is attached hereto as Exhibit A.Subcontractor has been made aware of the HUD PIH Notice 2021-10 and agrees to comply with all the conditions of the HUD-PIH Notice 2021-10 and the applicable HUDrequirementsgoverningthe useofHUD-VASH Special Feesgrant funds. B.Pursuanttothe HUDPIH Notice2021-10,Subcontractorisrequiredto: i.Perform the work in accordance with Federal, State and Local housing and buildingcodes, asapplicable. ii.Maintain at least the minimum State- thoseemployees who will perform thework oranypart ofit. iii.Maintain,asrequiredbylaw,unemploymentinsurance,disability insurance,andliabilityinsuranceinanamountthatisreasonableto compensateanyperson,firmorcorporationwhomaybeinjuredor damaged bythe Subcontractor in performing the work or anypart ofit. iv.Agree to include all the terms of the HUD PIH Notice 2021-10 in each subcontract. 5.INDEPENDENTCONTRACTOR Subcontractor shall, during the entire term of this HUD-VASH Special Fees Agreement, be construed to be an independent contractor and not an employee of the Contractor.This HUD- VASH Special Fees Agreement is not intended nor shall it be construed to create an employer- employeerelationship,ajointventurerelationship,ortoallowtheContractortoexercise discretion or control over the professional manner in which Subcontractor performs the services which are the subject matter of this HUD-VASH Special Fees Agreement; however, the services to be provided by Subcontractor shall be provided in a manner consistent with all applicable standardsandregulationsgoverningsuchservices.Subcontractorshallpayallsalariesand wages, employer's social security taxes, unemployment insurance and similar taxes relating to employeesand shall beresponsiblefor all applicable withholdingtaxes. 6.OWNERSHIPOF MATERIALS This HUD-VASH Special Fees Agreement creates a non-exclusive andperpetual license for Contractor to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and otherintellectualpropertyembodiedinplans,specifications,studies,drawings,estimates,and 3 EXHIBIT 2 other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Subcontractor under this HUD-VASH to agree in writing that Contractor is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this HUD-VASH Special Fees Agreement. Subcontractor represents and warrants that Subcontractor has the legal right to license any and all Documents & Data.Subcontractor makes no suchrepresentation and warranty in regard to Documents & Data which were provided to Subcontractor by the Contractor. Contractor shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this HUD-VASH Special Fees Agreement shall be atrisk. 7.INSURANCE PriortoundertakingperformanceofworkunderthisHUD-VASHSpecialFees Agreement,Subcontractorshallmaintainandshallrequireitssubcontractors,ifany,toobtain andmaintain insuranceas described below: a.CommercialGeneralLiabilityInsurance.Subcontractorshallmaintain commercial general liability insurance naming the Contractor, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protectionagainstclaimsarising frombodily andpersonalinjury,including deathresulting therefromanddamagetoproperty,resultingfromanyactoroccurrencearisingoutof -VASH Special Fees Agreement, including, without limitation, acts involving vehicles.The amounts of insurance shall be not less than the following: single limit coverage applyingto bodily and personal injury, including death resultingtherefrom,andpropertydamage,inthe totalamountof $1,000,000peroccurrence,with $2,000,000intheaggregate.Suchinsuranceshall(a)nametheContractor,itsofficers, employees,agents,andrepresentativesasadditionalinsured(s);(b)beprimaryandnot contributory with respect to insurance or self-insurance programs maintained by the Contractor; and(c)contain standardseparation ofinsureds provisions. b.Businessautomobile liability insurance,orequivalentform,witha combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage forowned, hired and non-owned automobiles. c.In accordance with the provisions of Section 3700 of the Labor Code, Subcontractor, if Subcontractor has any employees, is required to be -insurance.Prior to commencing the performance of the work under this HUD-VASH Special Fees Agreement, lessthan $1,000,000 peraccident. 4 EXHIBIT 2 d.If Subcontractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of notless than $1,000,000 per claim with $2,000,000 in theaggregate. e.Thefollowingrequirementsapplytotheinsurancetobeprovidedby Subcontractorpursuant to this section: i.Subcontractor shall maintain all insurance required above in full force and effectfor theentire periodcoveredby thisHUD-VASH SpecialFees Agreement. ii.CertificatesofinsuranceshallbefurnishedtotheContractorupon executionofthisHUD-VASHSpecialFeesAgreementandshallbe approved bythe Contractor. iii.Certificates and policiesshall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty(30)days priorwritten noticeto theContractor. iv.Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this HUD-VASH Special Fees Agreement, the amounts provided by the certificates of insurance shallbeincorporatedbyreferenceintotheHUD-VASHSpecialFees Agreement. v.Subcontractorshallsupply Contractorwithafully executedadditional insuredendorsement. f.If Subcontractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the Contractor with required proof that insurance has been procured and is in force and paid for, the Contractor shall have the r election, to forthwith terminate this HUD-VASH Special Fees Agreement.Such termination notification of termination. Subcontractor waives the right to receive compensation and agrees to indemnify the Contractorfor any work performed prior to approvalof insurance by the Contractor. 8.INDEMNIFICATION Subcontractor agrees to defend, and shall indemnify and hold harmless the Contractor, its officers, agents,employees, contractors, special counsel,and representatives fromliability:(1) for personal injury, damages, just compensation,restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligentoperations of theSubcontractor, its subcontractors, agents,employees, or other persons acting on its behalf which relates to the services described in section 1 of this HUD-VASH Special Fees Agreement; and (2) from any claim that personal injury, damages, just compensation,restitution,judicialorequitablereliefisduebyreasonofthetermsoforeffects 5 EXHIBIT 2 arisingfromthisHUD-VASHSpecialFeesAgreement.Thisindemnityandholdharmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable reliefsuffered,orallegedtohavebeensuffered,byreasonoftheeventsreferredtointhis Section or by reason of the terms of, or effects, arising from this HUD-VASH Special Fees Agreement.The Subcontractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the Contractor, including fees and costs for special counsel to be selected by the Contractor, regarding any action by a third party challenging the validity of this HUD-VASH SpecialFeesAgreement,orassertingthatpersonalinjury,damages,justcompensation, restitution, judicial or equitable relief dueto personal or property rights arises by reason of the terms of, or effects arising from this HUD-VASH Special Fees Agreement. Contractor may makeallreasonabledecisionswithrespecttoitsrepresentationinanylegalproceeding. Section2782.8,theabove indemnity shallbe limited,to theextentrequiredby CivilCode Section 2782.8, to claims that arise out of, pertain to, or relate tothe negligence, recklessness, or willfulmisconduct of theSubcontractor. 9.RECORDS Subcontractorshallkeeprecordsandinvoicesinconnectionwiththeworktobe performedunderthisHUD-VASHSpecialFeesAgreement.Subcontractorshallmaintain complete and accurate records with respect to the costs incurred under this HUD-VASH Special Fees Agreement and any services, expenditures, and disbursements charged to the Contractor for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Subcontractor under this HUD-VASH Special FeesAgreement.All such records and invoices shall be clearly identifiable.Subcontractor shall allow a representative of the Contractor to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this HUD-VASH Special Fees Agreement during regular business hours.Subcontractor shall allow inspection of all work, data, documents, proceedings, and activities related to this HUD-VASH Special Fees Agreement for a period of three (3) years from thedateoffinalpaymentto Subcontractorunderthis HUD-VASHSpecialFeesAgreement. 10.CONFIDENTIALITY IfSubcontractorreceivesfromtheContractorinformationwhichduetothenatureof such information is reasonably understood to be confidential and/or proprietary, Subcontractor agrees that it shall not use or disclose such information except in the performance of this HUD- VASH Special Fees Agreement, and further agrees to exercise the same degree of care it uses to protectitsowninformationoflikeimportance,butinnoeventlessthanreasonablecare. includesnotonlywritteninformation,butalsoinformationtransferredorally,visually, electronically, or by other means.Confidential information disclosed to either party by any subsidiaryand/oragentoftheotherpartyiscoveredbythisHUD-VASHSpecialFees Agreement.The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Subcontractor disclosed in a publicly available source; (c) is in rightful possession of the Subcontractorwithoutanobligationofconfidentiality;(d)isrequiredtobedisclosedby 6 EXHIBIT 2 operationoflaw;or(e)isindependentlydevelopedbytheSubcontractorwithoutreferenceto informationdisclosed bythe Contractor. 11.CONFLICTOFINTEREST CLAUSE Subcontractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified underthis HUD-VASH Special FeesAgreement. 12.NON-DISCRIMINATION Subcontractor shall not discriminate because of race, color, creed, religion, sex, marital status,sexualorientation,age,nationalorigin,ancestry,ordisability,asdefinedandprohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or otheremploymentrelatedactivities.Subcontractoraffirmsthatitisanequalopportunity employerandshallcomplywithallapplicable federal, state andlocal laws andregulations. 13.EXCLUSIVITYANDAMENDMENT ThisHUD-VASHSpecialFeesAgreementrepresentthecompleteandexclusive statementsbetweentheContractorandSubcontractor,andsupersedeanyandallother agreements, oral or written, between the parties.This HUD-VASH Special Fees Agreement may not be modified except by written instrument signed by the Contractor and by an authorized representative of Subcontractor.The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Subcontractor or the Contractor. Each party to this HUD-VASH SpecialFeesAgreementacknowledgesthatnorepresentations,inducements,promisesor agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party,which is not embodied herein. 14.ASSIGNMENT InasmuchasthisHUD-VASHSpecialFeesAgreementisintendedtosecurethe specializedservicesofSubcontractor,Subcontractormaynotassign,transfer,delegate,or subcontract any interest herein without the prior written consent of the Contractor and any such assignment, transfer, delegation or subcontract withouttheContractor'sprior written consent shall be considered null and void.Nothing in this HUD-VASH Special Fees Agreement shall be are the subject to this HUD-VASHSpecialFeesAgreementperformedbyContractorpersonnelorbyother Subcontractorsretained byContractor. 15.TERMINATION This HUD-VASH Special Fees Agreement may be terminated by the Contractor upon thirty (30) days written notice of termination.In such event, Subcontractor shall be entitled to receive and the Contractor shall pay Subcontractor compensation for all services performed by Subcontractorpriortoreceipt ofsuchnoticeoftermination,subject tothefollowingconditions: 7 EXHIBIT 2 a.Asaconditionofsuchpayment,theExecutiveDirectormayrequire Subcontractor to deliver to the Contractor all work product(s) completed as of such date, and in such case such work product shall be the property oftheContractor unless prohibited by law, deemsappropriate. b.Payment need not be made for work that fails to meet the standard of performance specifiedin theRecitalsof thisHUD-VASH Special FeesAgreement. 16.WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this HUD-VASH Special Fees Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of anybreach,failureorright,orremedyshallbedeemedawaiverofanyotherbreach,failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unlessthe writingso specifies. 17.JURISDICTION-VENUE ThisHUD-VASHSpecialFeesAgreementhasbeenexecutedanddeliveredintheState of California and the validity, interpretation, performance, and enforcement of any of the clauses of thisHUD-VASH Special FeesAgreement shallbe determined andgoverned by the laws of the State of California.Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reasonof this HUD-VASH Special FeesAgreement. 18.PROFESSIONALLICENSES Subcontractor shall, throughout the term of this HUD-VASH Special Fees Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations ofthe United States, theStateofCalifornia,theCityofSantaAnaandallothergovernmentalagencies. Subcontractor shall notify the Contractor immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be causefor termination ofthisHUD-VASH Special FeesAgreement. 19.NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this HUD- VASH Special Fees Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or othertelegraphiccommunicationinthemannerprovidedinthisSection,tothefollowing persons: 8 EXHIBIT 2 CONTRACTOR:SUBRECIPIENT: HongloanJ HullBecksHeyhoe OperationsSupervisorExecutiveDirector CityofSanta AnaUnitedtoEndHomelessness CommunityDevelopmentAgency(M-25)Orange County United Way 20CivicCenterPlaza18012 Mitchell South P.O.Box1988Irvine,CA92614 SantaAna, CA92702-1988(949)263-6112 (714)667-2247becksh@unitedwayoc.org (714)547-5411FAX hhull@santa-ana.org A party may change its address by giving notice in writing to the other party.Thereafter, any communicationshallbeaddressedandtransmittedtothenewaddress.Ifsentbymail, communication shall be effective or deemed to have been given three (3) days after it has been deposited inthe United Statesmail,duly registeredorcertified,withpostageprepaid,and addressed as set forth above.If sent by fax, communication shall beeffective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above.For purposes of calculating these timeframes, weekends, federal,state, Countyor Cityholidays shall be excluded. 20.MISCELLANEOUSPROVISIONS a.Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this HUD- VASH Special Fees Agreement, and shall indemnify Contractor fully, including reasonable costs poweris not, in fact, heldbythe signatoryor is withdrawn. b.All Exhibits referenced herein and attached hereto shall be incorporated as if fully setforth in the bodyof thisHUD-VASHSpecial FeesAgreement. {Signatureson followingpage} 9 EXHIBIT 2 IN WITNESS WHEREOF, the parties hereto have executed this HUD-VASH Special Fees Agreement on thedateand yearfirstwritten above. ATTESTHOUSING AUTHORITY OF THE CITY OFSANTA ANA DAISYGOMEZSTEVENA. MENDOZA RecordingSecretaryExecutiveDirector APPROVEDASTO FORMORANGECOUNTYUNITEDWAY SONIAR.CARVALHO AuthorityGeneral Counsel By:_ RYANO.HODGEEmileeTello AssistantCounselChiefFinancialOfficer We have no further revisions to this agreement. 10 EXHIBIT 2 EXHIBIT A U.S.DEPARTMENTOFHOUSINGANDURBANDEVELOPMENT WASHINGTON,DC20410-5000 OFFICEOFPUBLICANDINDIANHOUSING SpecialAttentionof:PIHNotice2021-10 OfficeDirectorsofPublicHousing; RegionalDirectors:PublicHousingIssued:March24,2021 Agencies Expires:Thisnoticeremainsin effect until amended, superseded, or rescinded. Cross References: P IH Notice 2021-08, PIH Notice 2020-17, PIH Notice 2020-04, PIH Notice 2020-19,PIHNotice2020-01, PIHNotice2019- 01/H-2019-02,PIHNotice2019-20,PIHNotice 2018-12,PIHNotice2018-09, PIHNotice2017- 06,PIHNotice 2015-17,PIHNotice 2013-28, PIHNotice 2011-28 SUBJECT: Implementation of the Federal Fiscal Year (FFY) 2021 Funding Provisions for the Housing Choice Voucher Program, and Availability of FFY 2020 Housing Assistance Payments (HAP) Set-Aside Funds for Second Round Per Unit Cost (PUC) Increases due to Unforeseen Circumstances 1.Purpose. This notice implements the Housing Choice Voucher (HCV) program funding provisionsoftheConsolidatedAppropriationsAct,2021(P.L.116-260),referredtohereafter methodology for calculating housing assistance payments (HAP) renewal funds, new incrementalvouchers and administrativefees. This notice also sets forth the second-round application process for HAP set-aside funds remaining from the Further Consolidated Appropriations Act, 2020 (P.L. 116-94, hereafter ref increasesthatoccurredin calendaryear(CY)2020 asaresultofunforeseen circumstances, includingbut not limited to theCOVID-19pandemic. 2.Organization. This notice is grouped into two parts. Sections 3 through 16 describe the funding made available under the 2021 Act, the 2020 Act HAP set-aside second round, and provisions related to the allocation of that funding. Sections 17 through 23 provide other HCVProgram. 3.Summaryg is provided through the 2021 Act, which HUD allocates to PHAs in accordance with such Act asdescribedinthisnotice.The2021ActrequiresHUDtoproviderenewalfundingbasedon validated Voucher Management System (VMS) leasing and cost data for the prior calendar year (CY) (January 1, 2020 December 31, 2020). The CY 2021 total amount appropriated byCongress tofund the HCVProgramis split upby budgetlineitemsas follows: EXHIBIT 2 2 CY2021Appropriations 1 HAPRenewalFunding$23,075,000,000 2 TenantProtectionVouchers$116,000,000 AdministrativeFees$2,159,000,000 1 TribalHUD-VASH$5,000,000 MainstreamVouchers$314,000,000 VeteransAffairsSupportiveHousing$40,000,000 FamilyUnificationProgram$25,000,000 HousingStabilityVouchers$43,439,000 TotalAvailableCY2021Appropriations$25,777,439,000 This notice provides information on how HUD calculates HAP renewal funding for the the calculations or this notice, the PHA should contact its Financial Analyst (FA) at the FinancialManagement Center(FMC). PHAs administering the HCV Program and/or Mainstream Vouchers are encouraged to pay particular attention to the set-aside funding provisions (listed in Section 5 and Section 13 and Appendix H,Application for $110 Million Set-Aside for Categories 2b Portability; 3- Project-Based Vouchers (PBVs); 4 HUD-VASH; and/or 5Lower-than-average Leasing. Appendix G, Application for $110 Million Set-Aside for Category 2a Unforeseen Circumstances; and Appendix J,Application for $110 Million Set-Aside for Category 6 - Disaster). 4.CalculationofCY2021HAPRenewalFunding.The2021ActrequiresthatHUDapplya re-benchmarking renewal formula based on validated leasing and cost data in VMS for CY 2020 The renewal provisions of the Act are stated in Appendix A, Consolidated Appropriations Act,2021 (PublicLaw 116-260). HUDisprovidingrenewalfundingasfollows: Step1:AnewHAPfundingbaselineisestablishedbasedonallvalidatedleasingandcost data(nottoexceedunitmonthsavailableundertheAnnualContributionsContract 1 The2021Actprovidesthatof the$23.08billionforHAPRenewalFunding,up to$5millionisforTribalHUD- VASHrenewalgrants.Theamountfor HAPRenewalshasbeenreducedhereaccordingly. 2 replacement of housing units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project-based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financedbetween1959 and 1974 thatarerefinanced pursuantto PublicLaw106569, as EXHIBIT 2 3 3 (ACC)inVMSforCY2020). Step 2: As required by the 2021 Act, HUD adjusts allocations for the first-time renewals of tenant protection vouchers and special purpose vouchers (SPVs), such as HUD Veterans Affairs Supportive Housing (HUD-VASH) vouchers, Family Unification Program (FUP), Foster Youth to Independence (FYI), and Non-Elderly Disabled (NED) vouchers for which the initial increment expires in CY 2021. Affected provided for CY 2021 for first-time increments not initially funded for twelve months. Note: Reissuance of vouchers originally issued to families under the Disaster Voucher Program/Disaster Housing Assistance Payments-IKE (DVP/DHAP-IKE) is not permitted. For DVP/DHAP-IKE vouchers, as with vouchers issued under the sunset provisions identified in Section 6 ofPIH Notice 2018-09, Annual Contributions Contract (CACC) unit authorizations and CY 2021 renewal funding allocations reflect a reduction in units based on the number of such families underassistanceas reported in VMSas ofDecemberof2020. Step 3: The Renewal Funding Inflation Factor (RFIF), adjusted for localities, is applied -month renewal requirement after all adjustments have been ice of Policy, Development and Research (PD&R) and can be found at https://www.huduser.gov/portal/datasets/rfif/rfif.html. Step 4: HUD determines the total HAP renewal funding eligibility for all PHAs and compares that amount to the total HAP renewal funds available per the 2021 Act to 2021 eligibility. A proration of less than 100% is applied if the nationwide eligibility exceedstheavailableHAP renewal funding. Step 5 Net Position (RNP), including HUD-held program reserves (in accordance with VMS data in CY 2020 that is verifiable and complete), as determined by the Secretary. PIH will perform a small offset (impacting a limited number of PHAs) for reallocation in CY 2021 to ensure the national HAP prorationiscloserto100%.GiventhefundingprovidedfromtheAmerican RescuePlan Act (ARPA) for the adjustment of PUC cost increases and to prevent the termination of rental assistance for families as the result of insufficient funding, PIH may reconsider to offsetaportionoftheprogramreservestosupplement theHAP shortfallcategory. Detailed calculations of the offsets will be provided to impacted PHAs in the renewal allocation enclosure. Offsets will come from excess program reserves reconciled December 31, 2020 and will protect multiple categories of eligibility. In accordance with PIH Notice 2020-17, amounts originating from CARES Act HAP awards are not included with program reserves. Appendix B to this notice,CY2021 Offset Reallocation,is anexampleoftheoffset enclosuresthat willbeprovided 3 In rare instances where vouchers were transferred from one PHA to another during the re-benchmarking period, the leasing and cost data of the PHAs will be adjusted to ensure that the leasing and costs represented by the transferredvouchersareproperlyaccountedfor intheeligibility determinations. EXHIBIT 2 4 to PHAs and specifically describes this calculation as well as the protected categories of eligibility. 5.Set-aside of up to $110 million to Adjust PHA Allocations. HUD has authority to provide eligible PHAs in accordance with need, as determined by HUD, following an application by the PHA as described in Section 13 of this notice. Awards could be reduced, in whole or in part, if PHAs have available reserves RNP and/or HUD-held reserves) above a reasonable threshold, as defined by the Secretary, and/or prorated if the $110 million is insufficient to cover all awards. Additionally, HUD reserves the right to fund one, some, or all of the categories. Set-AsideCategories: Category1:PreventionofTerminationsDuetoInsufficientFunding(Shortfall) Category2a:UnforeseenCircumstances Category2b:Portability Category3:Project-BasedVouchers(PBV) Category4:HUD-VASH Category5:Lower-than-averageLeasing Category6:Disaster The above numbering of the categories does not reflect priority; however, HUD reserves the righttoprioritize or limitCategory1:Preventionof TerminationsDue toInsufficient Funding. Please refer to Section 13 of this notice for more details about theset-aside categories, eligibility requirements, and submission deadlines. PHAs may apply for more than one category of funding and the funding provided within categories 2 6 does not impact the awardamount oftheothercategories(applicableonlyto categories 26). PHAs administering Mainstream Vouchers may apply for categories 1, 2a, and 2b. For additionaldetails on how toapply, pleasereferto Section13. 6.TenantProtectionVouchers(TPVs). a.Definition. TPVs are provided to protect HUD-assisted families from hardship as the -Rent) and Multifamily Housing portfolios. Therefore, if the PHA applies for and is awarded replacementTPVs,itmustofferthereplacementTPVsintheformoftenant-basedoras 4 project-basedassistancetoeligiblefamiliesimpactedbytheconversion.Undercurrent HUDpolicy,asfurtherdescribedbelow,replacementTPVsarealsoprovidedforvacant unitsthatwereoccupiedbyanassistedfamilyintheprevious24months.Relocation 4 Thisstatementsupersedesthelastsentenceinfootnotes5and6ofPIH2018-09,whichstatedthataPHAcannot offerimpactedresidentsanotherformofcomparablehousing(i.e.anotherpublichousingunit,aRADunit)ifit applies forandreceivesTPVsforthePublicHousingaction.WhilethePHAisrequiredtoofferthereplacement TPVtotheeligibleimpactedfamily,inthecontextofPublicHousingconversions,thePHAhasdiscretion,atthe time oftheTPVoffer,toinformallfamiliesthatthefamilyis notrequiredtoaccepttheTPV,andthat,ifthe familychooses,atthesolediscretion,nottoaccepttheTPV,thePHAintendstoofferthefamilyanother formofhousing. EXHIBIT 2 5 TPVs must only be used by the family impacted by the conversion action as described in 5 Section6 ofPIH2018-09. b.Funding.Asnotedabove,the2021Actprovides$116millionforTPVs. c.Continued Applicability of PIH Notice 2018-09. Except as specifically revised in Section6aand6dofthisnotice,theprogrammaticandpolicyguidanceinSection6of PIH Notice 2018-09, Implementation of the Federal Fiscal Year (FFY) 2018 Funding ProvisionsfortheHousingChoiceVoucherProgram,continuestoapplytoTPVs. d.Eligibility for Replacement TPVs (Vacant Units) in PIH 2018-09, was to provide replacement TPVs only for occupied units. This policy was revised in the FY 2019 HCV Funding Notice and continues to apply under this notice, so that, in addition to providing replacement TPVs for occupied units, HUD will also provide replacement TPVs for vacant units that were occupied by an assisted family within the previous 24 months that are no longer available as assisted housing, subject to theavailabilityoffunding.Theexamplesbelowexplainhowthis policywill work: i.For Public Housing Actions, vacant units that were occupied by an assisted family withintheprevious24monthsfromthetimeoftheSpecialApplicationCenter(SAC) approval or the Choice Neighborhoods Initiative (CNI) award date. For example: on February 1, 2021, PHA A was approved for demolition/disposition of 25 public housing units. Of 25 units in property A, 5 of those units were last occupied on February 1, 2019. The remainder of the units continue to be occupied. Replacement TPV funding may be provided for all 25 units (vacant and occupied) because the 5 vacantunitswerelastoccupiedlessthan24monthsfromtheSACapproval. ii.For Multifamily Housing Actions, vacant units that were occupied within the previous 24 months from the eligibility event. For example: on February 1, 2021, the prepayment of a section 236 mortgage in property A triggered eligibility for TPVs. Of 25 units in property A, 5 were last occupied on February 1, 2019. The remainder of the units continue to be occupied. Replacement TPV funding may be provided for all 25 units (vacant and occupied) because the 5 vacant units were last occupied within24 months from theeligibility event. e.TPV Set-Aside. The 2021 Act provides that at least $5,000,000of the $116 million appropriated for TPVs may be set-aside to provide TPVs to certain at-risk households in low-vacancy areas. On February 15, 2019, HUD issuedPIH Notice 2019-01/H-2019-02, FundingAvailabilityforSet-AsideTenantProtectionVouchers.HUDhasdeterminedthat the continued use of this notice is fully consistent with congressional directives on this subject. 5 neverincludevouchersforvacantunits.ForinformationonreplacementandrelocationTPVallocations,seeSection 6 ofPIH 2018-09. EXHIBIT 2 6 6 f.TPVFunding.HUDcalculatesTPVfundingforalleligibleTPVactions(including thoseinthePublicHousingandMultifamilyHousingportfolios)basedontheaverage PerUnitCost(PUC)intheHCVprogram.IfthePHAthatwilladministerthe TPVshasconcernsregardingthesufficiencyoftheTPVfundingbasedonitsaverage PUC,thePHAcaneither:(a)requestanupfrontincreasedPUCalongwiththeTPV fundingapplication,or(b)requesthigherTPVfundingafterthePHAhasalready submittedtheTPVfundingapplication,ifatthetimethatthePHAsubmitstheTPV fundingapplicationthePHAisunsureifitwillneedadditionalfunding(e.g.thePHAis unsureoftheactualcoststhatjustifyanincreasedPUC).Ineithercase,thePHAmust submittherequestbyemailtothePortfolioManagementSpecialistattheHUD PIHFieldOffice,withcopytotheFieldPublicHousingDirector.IfthePHA doesnotknowtheirassignedPortfolioManagementSpecialist,thePHAmayemailthe FieldPublicHousingDirectorforassistance.ThePHAmustjustifythe requestedincreasebyprovidingevidenceofrentamountsthatresultinhigherHAPcosts andajustificationexplainingthattherentsarereasonable.7 Ataminimum,thePHAmust submititsrentreasonablenessanalysisandabudgetauthoritygapanalysisthatincludes thefollowingdata: UnitType/BedroomSize CountofUnitsbyType/BedroomSize ContractRent UtilityAllowance(ifownerpaid) MonthlyTotal(ContractRent+UtilityAllowance) ResidentRent Monthly/Annualsubsidyneedbyunitandproperty and/or projected subsidy costs are appropriately calculated and may follow-up with the PHAifadditionalinformationisneeded.IftheFieldOfficedeterminesthattheincreased PUC is appropriate, they will notify HCV FMD of the revised need via a Field Office documentation (and the TPV funding application, if applicable), to PIHConversionActions@hud.gov. The following additional requirements also apply where the PHA is submitting its request forincreased TPVfunding subsequentto theTPVaward: The following additional information must be submitted with the request: Housing Assistance Payments contract(s), Monthly/Annual subsidy provided in the TPV award,and ACC letterreflecting theTPVaward. PHAscanapplyforhigherPUCsduringthetimeoftheirinitialfundingincrement. The effective date for TPV increments is provided in the amended ACC letter sent from the FMC to PHAs. Once the initial funding increment is renewed, no additionalPUC will beprovided. 6 The provided in this section applies to all TPV actions, including those in the Public Housing and Multifamily Housing portfolios. 7 Rentreasonablerequirementsarefoundinregulationat24CFR982.507and24CFR983.303,asapplicable.Rent reasonablenessguidance maybe found intheRentReasonablenessChapter oftheHCV Guidebook. EXHIBIT 2 7 Note that all additional TPV funding is subject to available appropriations. Questions concerning the TPV adjustment process described above may be sent to PIHConversionActions@hud.gov. g.FosterYouthtoIndependencenolongerfundedthroughTPVs.OnJuly26,2019, HUDissuedNoticePIH2019-20,TenantProtectionVouchersforFosterYouthto IndependenceInitiative.ThenoticeannouncedaninitiativetoprovideTPVsforyouth eligibleundertheFamilyUnificationProgram(FUP)incommunitiesthatdonot administerFUP.HUDisnolongerprocessingrequestsforTPVsunderthatnoticefor FUP-eligibleyouth.TPVsawardedunderNoticePIH2019-20mustcontinuetooperate under therequirementsofthenotice.Thisincludesturnoverrequirementsandthe requirementtoinformHUDshouldayouthnotuseavoucherorleavetheprogram.On October6,2020,HUDissuedNoticePIH2020-28,FosterYouthtoIndependence Initiative,whichexplainstheeligibilityandapplicationrequirementsforFYIvouchers tobemadeavailableforeligibleyouthnon-competitively.Additionally,HUD announcedtheFYICompetitiveNoticeofFundingAvailability(NOFA)onJanuary19, 2021,making$20millionavailablecompetitivelyforFYI,withanapplicationdeadline ofMarch 22,2021. 7.Funding for Administrative Costs. The 2021 Act provides $2,159,000,000 for administrative expenses of PHAs administering the HCV Program (see Appendix A for Appropriations text). Of the appropriated amount, no less than $2,129,000,000will be availableforongoingadministrativefeesandfeesfornewvouchersandupto$30,000,000 will be made available to allocate to PHAs that need additional funds to administer their COVID-19eligibleexpensesasauthorizedinCY2020bytheCARESAct. A.Ongoing Administrative Fees and Administrative Fees for New Vouchers. Ongoing administrative fees and administrative fees for new vouchers are allocated based on leasing. These administrative fees are calculated for CY 2021 as provided for by Section 8(q) of the United States Housing Act, and related Appropriation Act provisions, as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act (QHWRA) of 1998 (P. L. 105-276). Under this calculation, PHAs are allocated a fee amount for each voucher that is under HAP contract as of the first day of each month. Administrative fees for new incremental vouchers are alsoallocated based on leasing. 1.Proration and Reconciliation of Administrative Fees: HUD is developing and will post administrative fee rates for each PHA to enable PHAs to calculate potential fee eligibility. An announcement will be made when they become http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housin g/programs/hcv. HUDdisbursesadministrativefeestoPHAseachmonthbasedonactualleasing reconciled after every quarter based on actual reported leasing, adjusted by an estimatedprorationbasedontotalannualfundingforadministrativefees.HUD EXHIBIT 2 8 th eligibility for administrative fees to one quarter (1/4) of the appropriated amount available for ongoing administrative fees. HUD will disburse any amount due to the PHA and will offset any amount due from the PHA via a reduction from a subsequent administrative fee payment. A final reconciliation will be completed after the December 2021 leasing data is reported in VMS, at which time the final pro-ration for the calendar year (CY) will be determined. It is likely that HUD will start using IMS-PIC leasing data to determine HAP and administrative fee monthly disbursements as we transition to the Enterprise Voucher Management System (eVMS) in CY 2021. HUD will alert each PHA when their payments will becalculated based onIMS-PICleasing data. 2.BlendedRateAdministrativeFeesandHigherAdministrativeFeeRates: a.BlendedRateAdministrativeFees:PHAsservingmultiple administrativefeeareasmay,inlieuofthefeedeterminedfortheir agency, request a blended rate based on the actual location of their assisted units.Theblended ratewill beused fortheentireCY2021. How to Submit Requests (new):Due to the COVID-19 pandemic, PHAs must submit applications electronically as HUD employees are currently on mandatory telework and are not able to access regular mail on a consistentbasis. ElectronicMail(email)Requests: PHA requests for Blended Rate Fees must be submitted to HUD at the followingmailbox:PIHFinancialManagementDivision@hud.gov. Thesubjectlineofthe e-mailmustreadas follows: PHA Number, Request for Blended Rate Administrative Fees (e.g., TX001,2021Request forBlended RateAdministrativeFees). Deadline to Submit Requests: Requests for Blended Rate Administrative Fees must be received Friday,May 28, 2021. b.HigherAdministrativeFeeRates:APHAthatoperatesoveralarge geographicarea,definedastwoormorecounties,mayrequesthigher administrativefees.Anapprovedhigheradministrativefeeratewillapply onlytoCY2021andisapplicabletotheHCV ProgramandMainstream Vouchers.ThePHAwillberequiredtosubmitevidenceofactualcostsat theendoftheCYtoenableHUDtodetermine iftheentireapproved increasewasneeded.ExcessfundswillbeoffsetbyHUDviaareductionin afuturedisbursement. Submission Requirements for Higher Administrative Fee Rates (New): To request higher fees, an agency must submit the following financial documentationto theFAat theFMC: EXHIBIT 2 9 Actual Unrestricted Net Position (UNP) (formerly referred to as Unrestricted Net Assets or administrative fee reserves) balance as of December31, 2020. Actual administrative costs for the HCV Program for CY 2020 insufficient detail to allowforreview. ncluding anticipated reasonable and necessary administrative costs broken out in sufficient detail to allow for review (positions and salaries, detailed travel costs, overhead and pro-rations, etc.). There is no HUD form, nor amandated format, forthis budget. An explanation of why the unit month and budget authority utilization in CY 2020 was below 95 percent of the unit month and budget authorityavailableforrenewal units (ifthis occurred). If the PHA has made withdrawals from the Administrative Fee reserves per official guidance provided inPIH Notice 2015-17:Uses and ReportingofAdminFeeReserves, certificationisrequired.Shouldthere be no withdrawals at this point, a statement that none were made is required. An explanation as to why the projected CY 2021 administrative fees areinsufficienttocoverexpectedprogramoperating costs. CertificationbytheexecutivedirectorofthePHAthatthedataisaccurate. HUDreservestherighttoreducethedocumentationrequired. To request a higher administrative fee rate, PHAs must provide the above information to the FMC. The required information must be received no later .PHAs must submitapplications electronically. Electronic Mail (email) Requests: PHA requests for a higher administrativefee ratemust besubmittedtoHUDatthefollowingmailbox: FinancialManagementCenter@hud.gov.Subjectlinemustreadas follows:PHA Number, (e.g., TX001) 2021 Request for Higher AdministrativeFee. B.SpecialFees.Asstatedabove,HUD willmake upto$30,000,000availabletoallocate to PHAs that need additional funds to administer their Section 8 programs. A portion of the $30,000,000 set-aside may be used for ongoing administrative fees to increase the national fee proration, should HUD determine during the course of the calendar year (after the submission deadlines outlines below) that the entire $30,000,000 may not be needed for extraordinary costs. HUD will consider requests for other unanticipated increases in Administrative Fees on a case-by-case basis. Please note that requests for additional fees because of a lower national fee proration will not be accepted. Special fees are not applicable to Mainstream Vouchers. These funds may beprovided forthefollowing non-exclusivepurposes: EXHIBIT 2 10 1.HCV Homeownership Fees: HUD provides a $200 special fee for every homeownership closingreportedinthePublicHousingInformationCenter (PIC) for HCV families who have become homeowners through the HCV Homeownership program, Moving To Work (MTW) Homeownership program, and the Family Self-Sufficiency program (HCV only). These special fees are allocated to the PHAs administering the vouchers, or FSS participation, after the FMC staff. PHAs do not need to apply for these funds as HUD provides these fees automatically based on PIC data and closing dates confirmations. HUD will also fund a one-time $500 special fee for each newly created HCV HomeownershipProgram at any PHAin CY2021. 2.SpecialFeesforPHAsthatAdministerTPVsinConnectionwithMultifamily Housing Conversion Actions: For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event. PHAs do not need to apply for these funds as HUD provides thesefeesautomaticallybasedonPICdata.Thisspecialfeewillalsobeallocated to PHAs that agree to administer vouchers on behalf of a Multifamily Choice NeighborhoodsGrantee. 3.SpecialFeesforPortability:ReceivingPHAswithnumbersofportability vouchersthatcompriseasignificantportionoftheirvouchersunderleaseare eligibleforaspecialfee.PHAsmusthavebeenadministeringanumberofport- invouchersequalto20%ormoreofthetotalnumberofleasedvouchers asofDecember31,2020tobeeligiblefor specialportabilityfees.Foreach eligibleport-invoucher,thereceivingPHAwillreceive12monthsoffunding equalto15%ofthe2021ColumnArateforadministrativefees.Thisis aone-timeawardofspecialfeesandwillbecalculatedbasedonPHAportability datafoundinPICforactionsthroughDecember31,2020andleaseddatafrom theVMSasofDecember31,2020(fromthe sameVMSdatabaseusedto determine the2020HCVrenewalallocations).PHAsdonotneedtoapplyfor thesefundsasHUDprovidesthesefeesautomaticallybasedonPICdataandthe VMSdatausedforthe2020renewalallocation.PHAswereadvisedviaemail onFebruary9,2021,ofthedeadlinedateofnolaterthan5p.m.,perthe st timezone,Monday,March31,2021toensureallPICdataisupdated and successfullysubmitted. 4.SpecialFeesfor AuditCostsforDeclaringMajorHCVProgramsper Notice 2021-08, and for HCV Voluntary Transfers per PIH Notice 2018-12: Please refer to Section 4,PIH Notice 2021-08or a superseding notice published by HUD: Financial Reporting requirements for the HCV Program Submitted through the Financial Assessment Subsystem (FASS) for Public Housing and the Voucher Management System (VMS), and Section 6,PIH Notice 2018-12: Process for PHA Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream Vouchers, PBV and Project-Based Certificates, for the eligibilityrequirementsandprocesstorequestspecialfeesunderthiscategory. PIHNotice2021-08,Section4.Forthosegeneral-purposegovernmentsthathave notdeclaredtheirHCVrelatedprogramsasamajorfundforfinancialstatement EXHIBIT 2 11 purposes or as a major enterprise fund under Code of Federal Regulations (CFR), Title 2, Subtitle A, Chapter II, Part 200, Subpart F; Audit Requirements, the audit obtained may not be sufficient for HUD to properly monitor its financialandcompliance interest in theseentities. Therefore, for HUD to gain an acceptable level of assurance, these PHAs may be directed to procure Independent Public Accountant (IPA) services for financial and compliance proceduresasspecifiedby HUD.Thisadditionalworkis Housing Voucher Programs (OHVP), Financial Management Division (FMD) at PIHFinancialManagementDivision@hud.govto confirm whether they must procure an IPA service. If the PIH OHVP, FMD determines that IPA services must be performed, HUD will provide set-aside funding, if available, to reimburse the agency for any additional audit costs unless sufficient Unrestricted Net Position (UNP) exists, in which case these funds may be used for the special purposeaudit cost. PIH Notice 2018-12, Section 6. While reviewing the transfer of UNP to the receiving/consolidated PHA, the HUD Field Office will ensure the divesting PHA has properly procured and entered into a contract with an independent public accountant to conduct its close-out audit, and has the funds available to cover it, HUD may assign extraordinary administrative fees (EAF). This is subject to availabilityoffundsandjustifiablecircumstances,fromtheAdministrativeFeeset- aside funds to cover close-out audit costs and may conduct a finalclose-out or forensic audit of a divesting PHA, either prior to or following to the transfer/consolidation. The HUD Field Offices must contact the Housing Voucher Financial Management Division at PIHFinancialManagementDivision@hud.govto confirmavailabilityofEAF;however,thedivestingavailableadministrative fee,UNP,and/orothernon-federalfundsmustbeconsideredfirstandrestrictedfor thispurpose. 5.Special Fees Needed for Administration of Section 8 Tenant-Based Rental Assistance Program: PHAs experiencing increased administrative expenses that need additional funds to administer their Section 8 HCV Programs, including as a result of administration of tenant protection rental assistance, disaster related vouchers,HUD-VASHvouchers,andotherspecialpurposeincrementalvouchers, as shown in this section under Guidance for Special Fee Applications Per Category,canrequest special fees. To qualify for additional funding under these categories, PHAs must experience increased administrative expenses as a result of the administration of tenant protectionrentalassistance,HUD-VASHvouchers,FUPincludingFYI,disaster- related vouchers, and other special purpose incremental vouchers. Requests for other unanticipated administrative fee funding increases will be considered on a case-by- applicableapplicationcriteriawhenpreparingyourapplicationforthesefunds. EXHIBIT 2 12 Please note, HUD will limit the total award amount for all categories combined below: Maximum Number ofAward PHASizeUnitsPercentage Small1-24912% Medium2504996% Large500ormore4% Additionally,HUDreservestherighttodenyorlimittheawardamountbasedon funds.HUDreservesthe right tofund one,some, orall thecategories. Reporting and recording of awarded Special Fees are included as part of theHCVadministrativefinancialrecordsunderCFDA14.871. Applications for Special Fees under the HUD-VASH and FUP categories must be received 2021. Applications for Special Fees under the Discretion categories must be time zone, Friday, October 29, 2021. All applications must be sent to 2021SpecialFees@hud.gov.ThesubjectlineoftheemailshouldincludethePHA Number and the specific Special Fee category of applications, for example, clarification of items provided with the application. Clarifications or corrections mustbereceivedby HUDwithinthetimeframe specifiedin thenotification. The following information must be included for each category the PHA applies tobeconsideredforfunding undereach requestedcategory: The application page that identifies the categories for application that iscertifiedbysignature(formatAppendix Ctothis document); A letter signed by the appropriate PHA official, clearly indicating the amountbeingrequested, thecalculationusedtodeterminetheamountof the request, and the estimated UNP (Administrative fee reserve) balance asoftheday oftherequest; Astatementdescribinganactivitythatisbeingproposed,underwayorhas beencompleted; Adescriptionofthelocalneedthattheactivitywillserve; Dataonthenumberoffamiliesthattheactivitywill help; How the activity will lead to an increase in leasing success rates and/or reduceprocessing time; Documentation to support the cost of the activity; the supporting documentationcouldbeaninvoice/receipt,jobposting,anestimatebased EXHIBIT 2 13 on what the activity has cost in a prior year along with documentation of theprioryearcosts, etc.;and Budget justification to support the request. The budget justification must supporttheneedforadditionaladministrativeexpenses.Theexpensesmust ongoingadministrativefeesfortheyear.Foryourconvenience,anexample budgetjustificationisprovidedinAppendixDtothisdocument. GuidanceforSpecialFeeApplicationsperCategory: A.Category1HUD-VASHSpecialFees PurposeoftheHUD-VASHProgram: For eligible homeless veterans and their families, the HUD-VASH Program combines the HUD HCV rental assistance program with case management and clinical services provided The Department of Veterans Affairs (VA) at its medical centers and community clinics.HUD-VASH assists homeless veterans and their families afford decent, safe, and sanitary housing through the distribution of housing vouchers. Beneficiaries are selected based on certain requirements including health care eligibility, homelessness status, and income. Award Information. HUD will reserve up to $5,000,000 for HUD-VASH Special Fees (HUD-VASH). Eligible Activities/Expenses. Under this notice, PHAs may apply for HUD-VASH Special Fees to support necessary additional or extraordinary related administrative expenses incurred to increase lease-up success rates or decrease the time it takes for a veteran to locate and move-in to a unit. To apply for these funds, applicants must justify ordocumentactions specificallyforadministeringtheHUD-VASHprogram. Underthisnotice,eligibleactivities/expensescouldinclude,butarenotlimitedto: Hiringtemporarystaffto processRequestforTenancyApprovals(RFTA)forms; HiringtemporarystafftoconductHousingQualityStandards(HQS)inspections, orpre-inspect unitsthat HUD-VASHclientsarelikelyto rent; Hiring temporary staff to provide HUD-VASH clients with housing search assistance; Hiringtemporarystafftoserveas aPortabilityCoordinatorforHUD- VASHclients; -VASH-stopresource for intake,issuingprovisional vouchers,etc.; Hosting Landlord Recruitment Fairs and other activities to engage landlords to participatein theHUD-VASHprogram; HoldingextrabriefingsforHUD-VASHclients;and OtherservicestoensurethatHUD-VASHclientscanmoveintotheirnewhomes withavoucherin theshortest time-period possible. EXHIBIT 2 14 B.Category2FamilyUnificationProgramSpecialFees PurposeoftheFUP: FUPisaprogramunder whichHCVsareprovidedtotwodifferentpopulations: 1.Familiesforwhomthe lackofadequatehousing isaprimaryfactorin: a.Theimminentplacementofthechildorchildreninout-of- homecare, or b.Thedelayinthedischargeofthechildor childrentothefamilyfrom out-of-homecare. 2.For a period not to exceed 36 months, otherwise eligible youths who have attained at least 18 years and not more than 24 years of age and who have left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act, and is homeless or is at risk of becoming homeless at age 16 or older. PHAs administer FUP in partnership with Public Child Welfare Agencies (PCWAs) who are responsible for referring FUP families and youths to the PHA for determination ofeligibility forrental assistance. 3.The 2020 and 2021 Acts included assistance to be targeted to foster youth. HUDreferstothistargetedFUPassistanceastheFosterYouthtoIndependence (FYI) program. FYI is a program under which HCV assistance is provided for a period not to exceed 36 months, to otherwise eligible youths who have attained atleast18yearsandnotmorethan24yearsofageandwhohaveleftfostercare, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act, and is homeless or is at risk of becoming homeless at age 16 or older. PHAs administer FYI in partnership with PCWAs who are responsible for referring youths to the PHA fordetermination ofeligibility forrental assistance. AwardInformation.HUDwillreserveupto$5,000,000forFUPSpecialFees,to include FYI. Additional funds may become available for FUP Special Fees at the discretionoftheSecretary. Eligible Activities/Expenses. Under this notice, PHAs may apply for FUP Special Fees to support necessary additional or extraordinary related administrative expenses incurred toachieveeitherofthefollowing activities: Full(100%)FUP/FYIvoucherutilization;and Increaseaccesstotheprogramfor FUP-eligibleyouth. To apply for these funds, applicants must justify or document actions specifically for administering the FUP/FYI. Under this notice, eligible activities/expenses could include, butarenotlimitedto: Establishing a new/revised Memorandum of Understanding (MOU) with thePCWAand otherpartners; EXHIBIT 2 15 Working with community partners to establish and implement a system to with the Continuum of Care (CoC), including integrating the prioritization and referral process for eligi localCoC's coordinatedentry process; Hiringtemporarystaffto processRFTAforms; Hiring temporary staff to conduct HQS inspections or pre-inspect units thatFUP/FYIclients arelikelyto rent; Hiringtemporarystaffto provideFUP/FYIclients withhousingsearchassistance; -stop resource for intake, issuing provisionalvouchers, etc.; Hosting Landlord Recruitment Fairs and other activities to engage landlords to participatein FUP/FYI; HoldingextrabriefingsforFUP/FYIclients; OtherservicestoensurethatFUP/FYIclientscanmoveintotheirnewhomes withavoucherin theshortesttimeperiod possible; and Training PCWA, CoC, and other community partners on FUP/FYI and the HCV Program. C.Category3DisasterRelatedSpecialFees In the event of a future allocation of disaster vouchers during CY 2021, PIH will provideeligibilityandapplicationguidancefordisasterrelatedspecialfees atthat time. D.Category 4 Application for other Special Fees under The Discretion PurposeoftheDiscretionSet-aside: The purpose of this set-aside is to provide Extraordinary Administrative Fee (EAF) to cover administrative expenses incurred as the result of a situation outside of the specific categories described within this notice. HUD will consider requests for other unanticipated increases in Administrative Fees on a case-by-case basis. Please note that requests for additional fees because of a lower national fee proration willnot beaccepted. Award Information. HUD will reserve up to $5,000,000 for other unanticipated increasesin AdministrativeFeesona case-by-casebasis. Eligible Activities/Expenses. Activities and expenses considered eligible under Administrative Fees that are not covered under another special fee category are eligibleforfunding undertheDiscretion. Due to the limited nature of Special Feefunds available, payments made directly to assisted families or individuals, such as transportation reimbursement, security depositassistance, etc.,arenotconsidered eligibleexpenses. EXHIBIT 2 16 8.HUD-VASH Funding. The 2021 Act provides $40,000,000 for new incremental vouchers fortheHUD-VASHprogram.Asprovidedbythe 2021Act,voucherswillbeawardedbased on geographic need and PHA administrative performance. HUD will issue comprehensive guidanceon the2021 HUD-VASHallocationatalaterdate. All PHAs are responsible for tracking new units and funding for special purpose vouchers (SPVs), such as HUD-VASH vouchers, to include new incremental vouchers and renewals. HUD-VASH funds can only be used for the intended purposes and are not subject to MTW fungibilityprovisions. 9.Tribal HUD-VASH Renewals. The 2021 Act provides up to $5,000,000 of the amounts forHAPRenewalsfortheTribalHUD-VASHprogram,whichprovidesrental assistance and supportive services to Native American Veterans who are homeless or at- risk of homelessness living in Indian Country. Guidance on the Tribal HUD-VASH programis providedbyOfficeofNativeAmericanPrograms. 10.Mainstream Vouchers. The 2021 Act provides $314,000,000 for renewal funding and administrative fees for Mainstream units. The renewal funding will be re-benchmarked during CY 2021. Renewals are calculated based on validated Mainstream Vouchers leasing and HAP expenses reported in VMS for the period January 1, 2020 to December 31, 2020. PHA funding for Mainstream units is limited to such calendar year eligibility and HUD-held Mainstream reserves. As with the regular voucher program, PHAs may not over-lease. (See Section 22, below, for more information on over-leasing.) As in previous appropriations Acts, the 2021 Act further clarifies that all existing Mainstream Voucher assistance shall be provided to non-elderly persons with disabilities upon turnover.PIH Notice 2020-01 providesfurtherguidance. AdministrativefeesaredisbursedbasedonthemostrecentMainstreamVoucherleasing data in VMS and fee reconciliations are performed on a quarterly basis. In addition, the 2021 Act requires that the administrative and other non-HAP expenses of the PHAs administering these vouchers shall be funded under the same terms and be subject to the same pro rata administrative fee reductions that apply to all other PHAs administering vouchers under the HCV Program. Consistent with the HCV Program, PHAs are not eligible to receive reimbursementforhard-to-housefees and audit costs. All PHAs are responsible for tracking new units and new funding for SPVs. Mainstream funds can only be used for the intended purposes. These funds are not subject to MTW fungibilityprovisions. The 2021 Act provides that the $110 million HAP set-aside for regular HCVs may also be used to make adjustments to Mainstream Voucher renewal allocations for the followingeligibility categories: (1)Category1Prevention ofTerminationsDuetoInsufficient Funding(Shortfall); (2)Category2aUnforeseenCircumstances;and (3)Category2bPortability. EXHIBIT 2 17 Please see section 13 below for further details and the Mainstream PHA applicationrequirements. 11.Family Unification Program (FUP). The 2021 Act provides $25,000,000 for new incrementalvoucher assistancefor theFUP.Ofthisamount,$20,000,000islimitedtouse on behalf of FUP-eligible youth under FYI, up to $10,000,000of which may be made available non-competitively. HUD included the $10,000,000 in the Foster Youth to IndependenceCompetitive Notice of Funding Availability (NOFA), published on January 19,2021.Anyamountstobemadeavailablenon-competitivelywillbeannouncedthrougha PIH notice under the FYI initiative (See Section 6). The remaining $5,000,000 will be used to make awards under the 2019 FUP NOFA. These funds may be used on behalf of FUP- eligiblefamilies and FUP-eligibleyouth. The 2021 Act also provides that any PHA administering voucher assistance appropriated in a prior Act under the FUP, or competitively under the 2021 Act, that determines that it no longer has an identified need for such assistance upon turnover, shall notify the Secretary, and the Secretary shall recapture such assistance from the agency and reallocate it to any other PHA(s) based on need for FUP voucher assistance. This includes assistance made non-competitive amounts and awards and will recapture and reallocate any unused amounts inaccordancewiththe2021Act.HUDwillimplementtheseprovisionsthroughguidanceat alaterdate. All PHAs are responsible for tracking new units and new funding for Special Purpose Vouchers.FUPfunds,includingthosemadeavailableundertheFYIinitiative,canonlybe usedfortheintendedpurposes.ThesefundsarenotsubjecttoMTWfungibilityprovisions. 12.Housing Stability Vouchers. The 2021 Act provides $43,439,000for new incremental voucherstargetedtoindividualsandfamiliesexperiencinghomelessnessandthoseat-risk of homelessness as those terms are defined in the McKinney Vento Homeless Assistance Act.HUDwill provide additional information at alaterdate. 13.InstructionsforApplyingforFundswithinthe$110MillionHAPSet-Aside. HOW TO SUBMIT REQUESTS-PHAs must submit requests via electronic mail (email)withtheappropriatesignedAppendicesF,G,H,I,andJalongwithallrequired documentation and calculations (if applicable) must be submitted to HUD at the followingmailbox: 2021Set-AsideApplications@hud.gov. The subject line of the email must include the following: PHA Number, 2021 Set-Aside Application(e.g., TX001, 2021 Set-AsideApplication). HUD will automatically reject incomplete applications, including those missing signatures. PHAs may resubmit complete applications within the application acceptance period. Additional Information as the 2021 Set-aside Relates to the American Rescue Plan Act(ARPA)-HUDhasauthorityunderARPA(P.L.117-2),whichwasenactedon EXHIBIT 2 18 funding allocation, including mainstream vouchers, for public housing agencies that experience a significant increase in voucher per-unit costs due to extraordinary circumstances or that, despite taking reasonable cost savings measures, would otherwise be Accordingly, HUD will use its discretion to prioritize the 2021 HAP set-aside or ARPA funds for Shortfall Prevention and PUC Increases (referred to as Category 1 Prevention of Terminations Due to Insufficient Funding (Shortfall) and Category 2a Unforeseen Circumstances in this notice). Finally, the FMD will accept both Appendices under the 2021 HCV Funding Notice HAP set aside, Appendix F for Category 1 and Appendix G for Category 2a) and the forthcoming ARPA Notice for these purposes, to ensure PHAs donot haveto resubmit applicationsunderPUCIncreaseorShortfalls. SET-ASIDECATEGORIESANDELIGIBILITYANDSUBMISSION REQUIREMENTS: A.Category 1 Prevention of Terminations Due to Insufficient Funding (Shortfall) This category of HAP set-aside is for PHAs that, despite taking reasonable cost savings measures as determined by the Secretary, would otherwise be required to terminate participating families from the program due to insufficient funds, also known as funding shortfalls. Note that there are two options related to shortfalls for which PHAs may be eligible for funding under this category: the regular HCV Programand/orMainstream Vouchers. To be eligible forfunding under this category, the PHA mustmeet the criteria outlined below andmust submit 2021 Appendix F PHA Application for Category1,PreventionofTerminationsDueto InsufficientFunding(Shortfall)and PHA Certification of Reasonable Cost Savings Measures Undertaken to Prevent TerminationofHCVParticipants DuetoInsufficientFunds. In addition to preventing terminations in the regular HCV Program due to insufficient funding, this set-aside funding is also available to prevent terminations of Mainstream Vouchers. A PHA administering Mainstream Vouchers may apply for and receive shortfallfunds inaccordancewith therequirements described below. In cases where the Mainstream PHA also administers regular HCVs, the shortfall determination is program specific (e.g., in determining whether the PHA is in a confirmed shortfall with respect to Mainstream Vouchers, only Mainstream Voucherfundingistakenintoconsideration,nottheregularHCVfunding). A PHA that is experiencing a shortfall in the regular HCV Program and Mainstream Vouchers must indicate the application is covering a request for funds for both Mainstream and regular HCVs by checking both boxes on Appendix F Set-aside funding awarded to the PHA is specific to either the Mainstream Vouchers or regular HCVs and may not be used interchangeably by the PHA. For example, shortfall funding awarded for Mainstream Vouchers may not be used for regular HCVs. HUD willindicatethespecific amountandthetypeofvoucherthe fundingisdesignatedfor intheaward letter. EXHIBIT 2 19 Note: In determining a shortfall for HCV and/or Mainstream Vouchers and the amount of funding to be provided, HUD will use the HCV Two-Year Projection Tool. PHAs should refer to Appendix E of the notice, which provides the criteria HUD will use to determine if the PHA has a HUD-confirmed shortfall and the -Year Forecasting Tool and the instructions for it can be found through a link on theOffice of Housing Vouchers website. Depending on the number of applications and amount of total eligibility, HUD reserves the right to prioritize awards for the Prevention of Terminations Due to Insufficient Funding (Shortfall) category and may need to prorate eligibility for other categoriesoftheset-aside. Inegregious situations, for PHAsnot followingHUD Shortfall Prevention Team(SPT)guidanceonvoucherreissuance,HUDreservestherighttofurther requireaPHAtorescindrecentlyissuedvoucherstoattainfullset-aside eligibility. PHAs with specific questions related to the calculation and determination of a HUD- confirmed shortfall should contact the SPT at: 2021ShortfallInquiries@hud.gov.The subjectlineoftheemailmustincludethenumber(for example,TX001). PHAs applying for shortfall funding must send their application to 2021Shortfallapplications@hud.gov.The subject line of the email must include the Application -HCV) and indicate if the application is for the regular HCV Program and/orMainstream Vouchers orboth. SUBMISSION:AppendixFasapplicable. DEADLINE:The application period will remain open. PHAs may apply at any time during the application period. PHAs that receive set-aside funds based on their current HAP costs may find additional funding is needed later in the year; however, theydonotneedtoreapplytoreceive additionalfunding.TheSPTwillautomatically d additional funding in accordance with its established set-aside funding priorities and available funding. PHAs that have concerns about potential shortfalls should be in contactwith the HUD field office or SPT, regardless of whether they are currently in ashortfall situation. B.Category 2a -Unforeseen Circumstances: PHAs should be aware that an unforeseen circumstance is an occurrence within or after the re-benchmarking period which the PHA adjustments for this category are based on cost increases occurring in CY 2021. MainstreamVouchersareeligibleto applyforthiscategoryofset-aside funding. EXHIBIT 2 20 i.PHA Eligibility. The 2021 Act provides that the cost increase must be significant, as defined by the Secretary, for the PHA to be eligible for the unforeseen -aide. HUD is establishing the followingcriteria forsignificantcost increase: Thelatestvalidated2021PUCperVMS mustbe102percentorgreater (theCY2021 Renewal PUC)to beeligibleforfunding. ii.Funding Award Calculations for PHAs. For PHAs (both Non-MTW and MTW),thefundingaward amountwill becalculated asfollows: a. CY 2021 HAP renewal PUC. The increased PUC is calculated by dividing HAP costs by unit months leased (UMLs) for the most recent month of total HAP based on the most recent month provided by the PHA as part of the HCV renewal Enclosure A, line 28, described as CY 2021 Inflated Per Unit Cost. amounton the b. and then by the remaining months in 2021 to determine the total funding amount. In the absence of PUC and UML data provided by the PHA, HUD will use the mostrecentvalidatedVMS data availableto calculatePHAeligibility. PHAExample:UnforeseenCircumstancesHAPSet-asideAward In the absence of the PHA providing the most recent Most Recent Month's PUC month'sPUC, HUDwilluse the provided by the PHA (in this most recent validated month of 1example,$500 VMSreporting MTW renewal enclosures have a CY2021PUC(2021HCV different format. PUC RenewalEnclosureA,line28for informationcanbe foundbythe Non-MTW,describedasCY2021 2$405proratedeligibilityamount. InflatedPerUnitCost) 3DifferencebetweenthePUCs$95 Is the difference between to the 2 PUCs 2% or greater than the CY 2021PUC(Line1dividedbyLine 42,mustbegreaterthan1.02)?23% In the absence of the PHA providing the most recent month's UML, HUD will use themost recentvalidatedmonth ofVMSreporting 5MostRecentMonth'sUnitsleased300 EXHIBIT 2 21 Unit months leased (Line 5 * 6Multiplied by the number of 61,800 Months)month'sremaininginCY2021. 7TotalRequest(Line3*Line6)$171,000 criteria for application review due to significant increased costs. The PHA is eligible for $171,000. The next step is to ascertain if this is a Priority Application - RegularApplicationtodeterminewhenthefundingwill bemadeavailable. iii.Priority Status. If expenses,the PHAapplicationqualifiesforprioritystatus.Forthisexercise, HUD determines the amount of PHA HAP reserve reconciled December 31, 2020 HAP reserve balance and adjusting it to account for the validated CY 2021 VMS data for HAP expenses and the budget authority disbursed to the PHA for the same period. HUD will then take the most recent validated month of expenses from VMS or the expense data provided by the PHA (if it was included within their application) and adjust it by adding a 2 percent margin to calculate adjusted HAP expenses. The adjusted reserve balance is divided by the adjusted HAPexpenses to determine if the PHA reserve balance is lessthan theequivalentoftwo (2)months of HAPexpenses. HUD will fully fund the priority applications before considering applications that do not qualify as priority applications. If funding is insufficient to fully fund the priority applications, HUD will prorate the funding awards for the priority applications and will not fund non-priority applications. If there is funding remaining after the priority applications have been fully funded, HUD will prorate the funding for the non-priority applications if the remaining funding is insufficientto fully fund thoseapplications. withfour(4)months ormoreofreserveswill notbeconsideredforany fundingunderthis category at this time. SUBMISSION:To be eligible for funding under this category, a PHA must submitthefollowing: a.Completed Appendix G Application for $110 Million Set-Aside for Category 2aUnforeseenCircumstancestoincludePUCinformationwiththe providedtables. b.If the PHA is applying for a PUC increase related to an unforeseen circumstance other than COVID-19, the PHA must also include a written narrative describing the unforeseen circumstances that significantly increased renewal costs in CY 2021. This narrative is not required if the unforeseen circumstanceis related toCOVID-19. For applications under the unforeseen circumstances Category 2a, it is important to notethatPHAsmustsubmit allitems(a.andb.)abovebytheapplicationdeadlinefor EXHIBIT 2 22 the application to be considered. Failure to provide any of the required documents and informationwill resultin denial oftheapplication. 2021. B.Category2b -Portability:Tobeeligibleforfundingunderthiscategory,thePHAmust have experienced a significant increase in renewal costs due to portability for tenant- basedrental assistanceunderSection8(r)oftheAct. The 2021 Act provides that the set-aside is also available to assist PHAs that have experienced a significant increase in Mainstream renewal costs due to portability. A PHA may apply for and receive set-aside funds for Mainstream Vouchers under this portabilitycategory. In cases where the Mainstream PHA also administers the regular HCVs, the increased cost due to portability determination is voucher funding specific (e.g., for Mainstream Vouchers, HUD will consider only Mainstream Voucher portability costs and A PHA that is experiencing increased renewal costs due to portability for both the regular HCVs and their Mainstream Vouchers must check off both types on their applicationattachment. Set-asidefundingawardedtothePHAisvoucherspecificandmaynotbeused interchangeably by the PHA. For example, HAP set-aside portability funding awardedforMainstreamVouchersmaynotbeusedfortheirregularHCVs. To determine eligibility and calculate funding under this category for regular HCVs, HUD will compare the average HAP Per Unit Cost (PUC) for the re-benchmarking period(January1,2020toDecember31,2020)to theaveragePort-outVouchersHAP PUC based on year-to-date reporting in PIC (as of April 1, 2021). If the portability average HAP exceeds 110% of the HCV Program-wide average HAP PUC for the re- benchmarking period, the PHA will be eligible for set-aside funding. The difference between the portability average PUC and 110% of the program-wide average PUC is multiplied by the year-to- reported in PIC, extrapolated to12 months. To determine eligibility and calculate funding under this category for Mainstream Vouchers, HUD will follow the same process, only all the PUCs and UMLs used will beforMainstream Vouchers insteadoftheregularHCVs. SUBMISSION: HUD calculates eligibility under this category, therefore, no additional documentation will be required or accepted other than Appendix H, which mustbecompleted, signed andsubmitted by thedeadlinedate. 2021. EXHIBIT 2 23 C.Category 3 -PBVs: To be eligible for funding under this category, a PHA must show that vouchers were withheld from use during the CY 2020 re-benchmarking periodto be available to meet a commitment for PBV assistance under Section 8(o)(13) of the Act. Adjustments only apply to vouchers withheld pursuant to a PBV Agreement to Enter into a Housing Assistance Payments Contract (AHAP) for newly constructed or rehabilitated housing. Adjustments do not apply to existing housing, as there is no waiting period for existing housing PBV commitments and accordingly, there is no need to withhold vouchers for such commitments. Adjustments will not be made under any circumstances forunitsunderanAHAPcommitmentthat,whenaddedtounitsunderleaseforCY2020, been able to lease those withheld vouchers during CY 2021 due to the restriction on over- leasing.) MainstreamVouchersarenoteligibleforset-asidefundsunder category3-PBVs. The 2021 Act provides that in addition to vouchers that were not in use during the previous 12-month period in order to be available to meet a PBV commitment, an previous calendar year for a MTW-eligible activity to develop affordable housing for an agency added to the MTW demonstration under the expansion authority provided in section239 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2016 (division L of Public Law 114 because the first PHAs selected for the MTW expansion under the 2016 Act did not formally join the MTW demonstration until CY 2021, no such MTW-eligible activity funding obligation could have been made in CY 2020. Consequently, this expansion MTW PHA adjustment will not factor into the FY 2021 HAP renewal set-aside funding award process. It is anticipated that this category will be available in CY 2022, subject to appropriations.Additional informationwill beprovidedat alaterdate. SUBMISSION:PHAsaretosubmitthedocumentsbelowasfollows: 1.AHAP:ForeachPBVcommitmentforwhicha requestisbeingmadeunderthis category, the PHA must provide, fromPart 1 of the executed Agreement to Enter into a HAP Contract (AHAP) for New Constructions/Rehabilitation, thefollowing: a.The page which identifies the parties to the AHAP (both the Housing Authorityand theowner); b.Identificationoftheproject; c.Section1.1Awhichidentifiestheeffectivedateof theagreement; d.Section1.1Bwhichidentifiesthedateofthecommencementofthe work; e.Section1.1Cwhichidentifiesthetimeforcompletionofthework; f.Exhibit C which identifies the units by size and applicable initial contract rentsfortheunits to beproject-based; g.If the project is to be completed in stages: Exhibit E that identifies the schedule of completion of stages (if applicable). (This exhibitshall identify theunits in each stage.);and EXHIBIT 2 24 h.SignaturepagethatprovidesthesignatureofboththeHousingAuthorityand theownerandthedates theAHAPwas signed. 2.HAP Contract: To be eligible for set-aside funding, the HAP contract must be executed within CY 2021. If the HAP Contract has not been executed by the application submission date, the PHA must state when the HAP contract will be executed. If the HAP contract has been executed by the application submission date, the PHA must provide, fromPART 1 of the HAP Contract forNewConstructionsorRehabilitation,thefollowing: a.The page which identifies the parties to the HAP Contract (both the Housing Authorityand theowner); b.ExhibitAwhichidentifiesthetotalnumberofunitsintheproject coveredby the HAP Contract; the initial Contract Rent to owner, and the number and descriptionofthecontract units; c.If the project is to be completed in stages: in addition to item b. described in phasecovered by theHAP Contract; d.Exhibit B which identifies the services, maintenance and utilities to be providedby theowner; e.ExhibitCwhichidentifiestheutilitiesavailableinthecontractunit,including a listing of utility services to be paid by the owner (without charges in additionto therent toowner)and utilitiesto bepaid by thetenant; f.Section2awhichidentifiestheinitialtermofthecontract;and g.Signature page which provides the signature of both the Housing Authorityandtheowner andthedatestheHAPwassigned. 3.CompletedandsignedAppendixI,PBVData(foreachproject-based commitment). 2021. E.Category 4 -HUD-VASH: For PHAs administering HUD-VASH vouchers that can demonstrateaneedforadjustmentfundingforatleastoneofthefollowingsituations: 1.PUC Increase: For PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD-VASH HAP PUC, based on their latest HUD- VASH HAP expenses in CY 2021. HUD will calculate eligibility under this category. Eligibility is determined by comparing the highest HUD-VASH PUC for CY 2021 to the program-wide funded prorated HAP PUC, then multiplying thedifferencebetween thePUCs by thefundedUMLs. 2.Leasing Increase: For PHAs whose total HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewal funding, plus the leasing that will be supported by the RNP and HUD-Held Program Reserves, HUD will calculateeligibilityunderthiscategory.Eligibilityisdeterminedbyadding EXHIBIT 2 25 UMLs for all the CY 2021validated VMS data available to a projection for the remainder of the CY and comparing that total to the initial funded HUD- VASH UMLs (limited to 100% of the PHAs UMAs), then multiplied by the CY2021 PUC. SUBMISSION: No additional documentation will be required or accepted other thana completedand signed AppendixH. 2021oruntil funding isdepleted. F.Category 5 Lower-than-average Leasing: To be eligible for funding under this category, the PHA must be leasing a lower-than-average percentageof their authorized vouchers, have low amounts of budget authority in their net restricted assetaccountsandHUD-heldprogrammaticreserves,relativetootheragenciesand arenot participating in theMTWdemonstration. Eligibility for this category of set-aside funding will be determined using December 31, 2020 leasing and reserves, by first separating PHAs by size, small (0 249 units), medium (250 499 units) and large (500 or more units). Second, determining the average leasing as well as average reserves based on PHA size. Next, the eligibility th will be limited to PHAs that are below both the 25percentile of average leasing and th below the 25percentile of median reserves based on PHA size. Regardless of PHA si units. PHAs must lease additional vouchers with this award. If PHAs need assistance withthenumberofvouchersforreissuance,theymaycontacttheirlocalFieldoffice representative. The field will be able to assist with developing a leasing plan to maximize the use of this award. PHAs receiving awards under the Lower-than- average Leasing category that also experience a Shortfall in CY 2021, please see the list ofexceptions provided in Appendix F. Note: The link that accompanies this notice provides a list of PHAs that are eligible toapply forthis categoryofset-asidefunding. TheawardamountwillbedeterminedbyofPHAneed. SUBMISSION: To be eligible for funding under this category, a PHA must submit thefollowing: a.SignedAppendixHApplicationfor$110MillionSet-AsideforCategory 5 Lower-than-AverageLeasing; b.A written narrative that describes leasing need. This narrative will include the following: 1.The amount of inventory of units in their jurisdiction, with the source ofthis information identified; 2.Thetotalnumberoffamiliesontheirwaitinglist;and EXHIBIT 2 26 3.Assertion that the PHA has the administrative capacity to issue the vouchersand get thefamilies intotheunits. 2021. NOTE: PHAs that apply for Category 5 set-aside funding may come in for that do not have the required administrative capacity nor the administrative reserves necessary to get these vouchers leased. Please refer to the following sectionfor detailsonhow toapply:Section7.FundingforAdministrative Costs,B.Special Fees, 5. Special Fees Needed for Administration of Section 8 Tenant-Based Rental Assistance Program, D. Category 4Application for Other Special Fee Under The SecretaDiscretion. G.Category 6 Disaster: To be eligible for funding under this category, the PHA must have experienced increased costs or loss of units in an area for which the President declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) in CY 2020 or CY 2021, except for the COVID-19 declaration. The funding provided through this category will addresstheimpact disasters havehad on CY2021expenses. 1.Loss of Units Due to Disaster. This adjustment is provided to assist the PHA in authorizedunits,tohelpaddresshousingneedsintheimpactedcommunity.HUD willusethemostrecentlyreportedandvalidatedVMSdatatodetermine the number of units currently under lease. HUD will use the higher of: (1) the - monthaverageforthemostrecentreportedandvalidatedVMSdatatodetermine the PUC to calculate the funding adjustment. However, if the PHA requests and s request for an increased PUC, the approved PUC will be used to calculate the increased leasing adjustment, as well as to make the increasedPUCadjustmentfortheHCVProgramasawhole. SUBMISSION: To be eligible for funding under the Loss of Units due to Disastercategory, aPHAmust submitthefollowing: a.Appendix J CY 2021 Housing Choice Voucher Program Request for DisasterSet-aside; b.Written narrative, detailing the impact of the disaster that has caused a loss of PHAsjurisdiction,adescriptionofanyplansinthe jurisdictiontoincrease - base additional vouchers to increase the supply of units available to voucher andifthewaiting listiscurrently open orclosed; c.Evidencetosupportthenarrative;and d.Thenumberofmonthsimpacted in CY2021 by theloss ofunits. EXHIBIT 2 27 2.Increased Costs. The PHA may request an adjustment for a higher PUC. The requested PUC must be higher than the higher of the most recent reported and validated PUC in VMS or the most recent three-month average reported and validated in VMS. The requested adjustment must be supported by documentation that the PHA is required to include with their application. For example, the PHA may provide data supporting the higher requested PUC by providingPICdataforrecentnew admissionsand/orrecentmoversorotherdata supportingits requestforafunding adjustment. SUBMISSION: To be eligible for funding under this category, a PHA must submitthefollowing: a.AppendixJCY2021HousingChoiceVoucherProgramRequestforDisaster Set-aside; b.Written narrative detailing the impact the disaster had in causing the increased costs,thePUC requested; c.Evidence to support the narrative (how the requested PUC was determined); and d.Thenumberofunit monthsimpactedby theincreasedcosts. For applications under the disaster category, category 6, it is important to note that PHAs must submit all items (a. through e.) above by the application deadline for the application to be considered. Failure to provide any of the required documents, including the PHA calculation of the increased costs, will result in denialoftheapplication. 2021 or until funding has been depleted. The Secretary reserves the right to accept additional applications for this category of HAP Set-aside for PresidentiallyDeclaredDisasters thatoccurafterOctober1,2021. QuickReferenceand TimelineSheet forHAP Set-AsideFunds: CategoryDeadlinePHAsmustsubmitAre Mainstream VouchersEligible? Yes 1.ShortfallFundsWillremainopen 2021Appendix F Yes 2a. Unforeseen 05/14/2021 2021CompletedAppendix G Circumstances WrittennarrativedescribingtheU/Cincases wheretheU/CisnotrelatedtoCOVID-19 2b.Portability05/14/2021Yes 2021Appendix H No 2021Appendix H 3.PBV 05/14/2021 AppendixI for eachproject EXHIBIT 2 28 AHAPForeachPBVproject: Identification of the project; fromPart1of theAHAP; ThepagethatidentifiesthepartiestotheAHAP (boththeHousingAuthorityandtheowner); Section 1.1A which identifies the effective date of theagreement; Section 1.1B which identifies the date of the commencementofthe work; Section 1.1C which identifies the time for completionofthe work; Exhibit C which identifies the units by size and applicable initial contract rents for the units to be project-based; If the project is to be completed in stages: Exhibit E which identifies the schedule of completion of stages (if applicable) (This exhibit shall identify theunitsineachstage);and Signature page which provides the signature of both the Housing Authority and the owner and the datesthe AHAP wassigned. HAP Contract: Tobeeligibleforset-asidefunding, the HAP contract must be executed within CY2021. If the HAP Contract has not been executed by the application submission date, the PHA must state when the HAP contract will be executed. If the HAP contracthas been executed by the application submission date, the PHA must provide, fromPART 1 of the HAP Contract for New Constructions or Rehabilitation,the following; The page which identifies the parties to the HAP Contract (both the Housing Authority and the owner); Exhibit A which identifies the total number of units in the project covered by the HAP Contract; the initial Contract Rent to owner, and the number and descriptionof the contractunits; If the project is to be completed in stages: in addition to item b. described in the above AHAP section that states the requirement for the also identify the units to be completed in each phasecoveredby the HAPContract; Exhibit B which identifies the services, maintenance and utilities to be provided by the owner; Exhibit C which identifies the utilities available in the contract unit, including a listing of utility services to be paid by the owner (without charges in addition to the rent to owner) and utilities to be paid bythe tenant; Section 2a which identifies the initial term of the contract;and Signaturepagewhich providesthe signature ofboththeHousingAuthorityandtheowner andthedatestheHAPwassigned. EXHIBIT 2 29 CategoryDeadlinePHAsmust submitAre Mainstream VouchersEligible? Note:Failuretoprovidetherequireddocumentation listedabovewillresultin denialoftheapplicationfor fundsunderthiscategory. 4.HUD-VASH 10/1/2021No AppendixHwith a. and/orb.marked. a.Per Unit Cost Increase: For PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD- VASH HAP PUC based on their latest HUD-VASH HAP expenses in CY 2021, HUD will calculate eligibility under this category. Therefore, no additional documentation will be required or accepted other than Appendix H, which must be completed, signed and submitted bythedeadlinedate. and/or b.Leasing Increase: For PHAs whose HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewalfunding,plustheleasingthatwill be supported by the RNP and HUD-Held Program Reserves, HUD will calculate eligibility under this category. Therefore, no additional documentation will be requiredoracceptedotherthanAppendix H, which must be completed, signed and submittedbythedeadlinedate. 5. Lower-than- 05/14/2021No Signed Appendix H Application for $110 Averageleasing Million Set-Aside for Category 5 Lower-than- AverageLeasing; o A written narrative that describes leasing need. This narrative will include the following: Theamountofinventoryofunits in their jurisdiction, to include thesourceofthisinformation; The total families on theirwaitinglist;and Assertion that the PHA has the administrative capacity to get the familiesintothe unit. resultinarejectionoftheapplicationforLower- than-Averageleasing. EXHIBIT 2 30 Are Mainstream CategoryDeadlinePHAsmust submit VouchersEligible? 6.Disaster 10/1/2021 No LossofUnitsCategoryofDisaster:Completed Appendix J CY 2021 Housing Choice Voucher ProgramRequestforDisasterSet-aside; Written narrative, detailing the impact of the disasterthathascausedalossofunits,the assessment of the availability of rental housing stock in the PHAs jurisdiction, a description of any plans in the jurisdiction to increase the availabilityofrentalstock,whichmayincludethe plantoproject-baseadditionalvouchersto increase the supply of units available to voucher families, and the number of families currently on theHCVwaitinglistandifthewaitinglist iscurrentlyopenorclosed; Evidencetosupportthenarrative;and The number of months impacted in CY 2021 by the lossofunits. Increased Costs Category of Disaster: CompletedAppendixJCY2021HousingChoice VoucherProgramRequestforDisasterSet-aside; Written narrative detailing the impact the disaster had in causing the increased costs, the PUCrequested; Evidencetosupportthenarrative(howthe requestedPUCwasdetermined);and The number of months impacted in CY 2021 by thelossofunits. Failuretoprovidetheitemsidentifiedabove,WILL resultina rejectionoftheapplicationfor Disaster. 14.FY2020HAPSet-AsideFundsPUCIncreasesduetoUnforeseenCircumstances Round2:ELIGIBILITYANDSUBMISSIONREQUIREMENTS A.Background. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94, to set-aside up to $100 million of the HAP renewal appropriations to make funding newal funding allocations for certain specified reasons. One of the eligible categories for set-aside HAP funding under the 2020 Act was an adjustment for PHAs that experienced a significant increase, as determined by the Secretary, in renewal costs of vouchers resulting from unforeseen circumstances or portability.PIH Notice 2020-04,Implementation of the FFY 2020 Funding Provisions for the HCV Program, issued March 31, 2020 provided details about the set-aside categories, eligibility requirements and submission deadlines. The deadline to submit an application for a funding adjustment for a significant increase in voucher costs resulting from unforeseencircumstances(category2aunderPIH Notice2020-04)wasMay15,2020. EXHIBIT 2 31 Increasedcostsattributabletoportabilitywereaddressedthroughaseparateapplication andfunding process, 2b-Portability,underthePIHNotice-2020-04. Approximately $60 million remains from the $100 million originally set aside by HUD with the 2020 Act. Due to the unprecedented increase in voucher costs during CY 2020 and the continued impact of the COVID-19 pandemic, HUD has decided to provide a second 2020 HAP costs may be eligible to apply for and receive funding from the CY 2020 set- asidefunding underthissecond round. This Second Round 2020 Unforeseen Circumstances funding is available to provide adjustments for increased costs that the PHA experienced in CY 2020. PHAs that experience increased costs in CY 2021 must apply for an adjustment for those increased costsfromtheCY2021HAPset-aside(seesection13.B.,Category2a,above).Sincethis funding is being awarded after the calendar year for which the funding adjustment is beingmade,HUDisrevisingtheprocesssetforthforinPIHNotice2020-04forboththe VMSforCY2020todeterminetheadjustmentnecessarytocovertheincreasedcosts. B.Applications.PHAswillbeconsideredforSecondRound2020Unforeseen Circumstancesfunding in oneoftwo ways: 8 (1)Unfunded CARES Act applications.In this instance, the PHA previously submitted an eligible application for CARES Act supplemental HAP funding for HCV PUC increases in accordance withPIH Notice 2020-17but the application was not funded because there was insufficient CARES Act funding remaining to do so. These PHAs will automatically be considered for Second Round 2020 Unforeseen increased costs in CY 2020 must meet the increased cost threshold described below. Additionally,thefundingawardissubjecttoalltherequirements,includingthe fundingcalculationandprioritystatusdetermination,outlinedlaterinthissection. Mainstream Vouchers are not eligible for adjustments under the 2020 set-aside. Consequently,requestsforMainstreamVoucherPUCadjustmentsarenoteligiblefor Second Round 2020 Unforeseen Circumstances funding, regardless of whether the PHApreviouslysubmittedanunfundedCARESActapplicationunderPIHNotice 8 Congress appropriated $400 million in supplemental HAP funding in the Coronavirus Aid, Relief, and Economic SecurityAct(CARESAct)(PublicLaw116-136),enactedonMarch27,2020.ThissupplementalHAPfundingwas made available for PHAs that either (1) experience a significant increase in voucher PUC due to extraordinary circumstances, or (2) despite taking reasonable cost saving measures, as determined by the Secretary, would otherwise be requiredtoterminaterentalassistanceforfamiliesasaresultofinsufficientfunding.HUDissuedPIHNotice2020-17, CARESActHousingChoiceVoucher(HCV)ProgramHousingAssistancePayments(HAP)SupplementalFunding, onJuly30,2020,whichprovidedinformationonhowPHAscouldapplythatfunding.TheCARESActsupplemental HAPfundinghasbeenawardedinaccordancewiththatnotice,however,HUDwasunabletofundalleligibleapplications forincreasedPUCbecausetheneedexceededtheavailablefunding. EXHIBIT 2 32 2020-17. PHAs that submitted a CARES Act application that covered both regular HCV and Mainstream Vouchers will be considered for Second Round 2020 Unforeseen Circumstances funding but only with respect to the 2020 increased costs fortheirregularvouchers. (2)Appendix K application submitted by the PHA. All other PHAs may choose to apply directly for Second Round 2020 Unforeseen Circumstances funding in accordance with the application submission requirements listed below, with the exception of PHAs wishing to apply for increased costs for Mainstream Vouchers. MainstreamVouchersarenoteligibletoreceive2020 HAP set-asidefunds. The PHA may apply for funding for its HAP cost increase in CY 2020 if the unforeseen circumstance wasCOVID-19 or if the unforeseen circumstance wasunrelated to COVID-19. Applicationsubmissionrequirements.ThePHAmustsubmit: A completed and signed Appendix K, Second Round CY 2020 HAP Set-Aside Remaining $60 Million for Category 2aUnforeseen Circumstances, which is attachedto this notice. If the PHA is applying for a PUC increase related to an unforeseen circumstance other than COVID-19, the PHA must also include a written narrative describing the unforeseen circumstances that significantly increased renewal costs in CY 2020.ThisnarrativeisnotrequirediftheunforeseencircumstanceisCOVID-19. DEADLINE:Nolater than5p.m.,perthetimezone,Friday,May14,2021. HOW TO SUBMIT REQUESTS -PHAs must submit requests via electronic mail (email) with the signed Appendix K along with all required documentation (if applicable)to:2020COVIDHCV@hud.gov. The subject line of the email must include the following: PHA Number, CY 2020 Set-AsideApplicationSecondRound(e.g.,TX001,CY2020Set-AsideApplication Second Round). C.IncreasedCostThreshold.The 2020Actprovidesthatthecostincreasemustbe significant,asdeterminedbytheSecretary,forthe PHAtobeeligibleforset-aside fundingduetounforeseencircumstances.FortheSecondRound2020Unforeseen Circumstancesfunding,HUDisestablishingthefollowingcriteriaforthecostincrease to besignificant: UMLs reported and validated in VMS) must be 102 percent or greater than the PUC RenewalPUC)to beeligibleforfunding. EXHIBIT 2 33 D.FundingAwardCalculationsforPHAs.Thefundingawardamountwillbecalculated asfollows: CY2020 HAP renewal PUC. TheActual2020PUCiscalculatedbydividingthetotalCY2020 HAPcosts by total CY2020 UMLs. renewalEnclosureAonline29,whereitisdescribedastheCY2020 InflatedPUC. fundingamount. If the PHA was previously awarded funding under either the CY 2020-Unforeseen Circumstances category or the CARES Act HAP Supplemental Funding for PUC Increases,thepreliminaryfundingamountwillbereducedbytheamountoftheprevious fundingaward(s)to determinethefundingeligibility. ExampleFundingEligibilityCalculation 1Actual2020PUC$800 2CY2020 PUC(2020HCV$705 RenewalEnclosureA, line29, described as CY 2020 Inflated Per Unit Cost) 3DifferencebetweenthePUCs$95 4Is the difference between to the twoYes 13.4% PUCs 2% or greater than the CY (800/705=1.134) 2020PUC(Line1dividedbyLine2, mustbegreaterthan1.02)? 5CY2020UnitMonthsLeased4800 6EligibleFunding(Line3*Line5)$456,000 7PreviouslyAwardedCARES$0 ActHAPSupplementalFunding and 2020 Set-aside Round One UnforeseenCircumstances 8Fundingeligibility(Line7Line8)$456,000 E.Priority Status 12/31/2020 HAP reserve balance. HUD will then divide the total validated 2020 HAP expenses from VMS by 12 to determine the CY 2020 average monthly HAP expenses. If thatamountmultipliedby2exceedsthe2020HAPreservebalance,thePHAapplication qualifiesforPriority Status. EXHIBIT 2 34 HUD will fully fund the priority applications before considering applications that do not qualify as priority applications. If funding is insufficient to fully fund the priority applications, HUD will prorate the funding awards for the priority applications and will not fund non-priority applications. If there is funding remaining after the priority applications have been fully funded, HUD will prorate the funding for the non-priority applicationsiftheremainingfundingisinsufficienttofullyfundthoseapplications. 15.Moving To Work Agencies determined pursuant to their Standard MTW Agreements and appropriations requirements. HUD is directed by the 2021 Act to apply the same proration factor to the HCV HAP renewal allocations and administrative fee eligibility for MTW agencies as is applied to all other PHAs. All MTW agencies may utilize their funds in accordance with their Standard MTW Agreements ortheMTWOperationsNotice. 16.ExcludedPrograms.Theprovisionsimplementedbythisnoticedonotapplytorenewal fundingfortheModerateRehabilitationProgramorSingleRoomOccupancy(SRO). 17.HCV Financial Management. HUD is focused on ensuring that PHAs appropriately manage their HCV Programs within the funding provided for the CY and existing Restricted Net Position (RNP) and HUD-Held Program Reserves. PHAs are encouraged to use the Two-Year ForecastingTool to assist them in theirbudgeting and leasing plans. 18.HAP Disbursements and Frontloading. PHAs receive monthly disbursements from their budgetaryallocationsinaccordancewiththecashmanagementprocedures inPIHNotice2017- 06.PHAs may request a frontload when monthly disbursements and available RNP and HUD- held reserves will not cover expenses for the month. PHAs may request a frontload via the two- year tool or by submitting a request to the FMC FA. PHAs will be required to provide HAP expenses not yet reported in VMS and actual HAP expenses for the period requested. The frontload will be limited to the amount necessary to cover the actual HAP expenses. PHAs in need of a frontload during the year and have excess SPV funding available in their RNP, will be provided with a frontload that does not consider their available SPV funds as SPV funds may only be used for their intended purposes. PHAs must remember that frontloading early in the CYaffects theamounts availablein latermonths in theCY. 19.UseofHAPandHAPRNP/HUD-HeldProgramReserves.PHAsareremindedthatfunds in the HAP RNP account and HUD-Held Program Reserves shall only be used for eligible HAP needs in the current CY. CACC requires PHAs to use HAP funding to cover housing assistance payments. HAP and/or PHA reserves (HAP RNP and HUD-held reserves) shall not under any circumstances be used for any other purpose, such as to cover administrative expenses or be loaned, advanced, or transferred (referred to as operating transfers due to/due from) to other component units or other programs such as the Low-Rent (Public Housing) program. Use of HAPforanypurposeotherthaneligibleHAPneedsisaviolationoflaw,andsuchillegalusesor transfers may result in sanctions and possible declaration of breach of the ACC. Current year fundingmaynotbeusedforprioryearcosts,includingbyMTWagencies. IninstanceswhereaPHAisfoundtohavemisappropriatedHAPand/orHAPRNP/HUD-held reservefundsbyusingthefundsforanypurposeotherthanvalidHAPexpensesforunitsupto thebaseline,HUDrequirestheimmediatereturnofthefundstotheHAPorHAPRNP/HUD- EXHIBIT 2 35 held reserves account. HUD may take action, including suspension and debarment, against a PHA or any party that has used HAP funds and/or the HAP RNP/HUD-held reserves account fornon-HAP purposes. 20.UsesofAdministrativeFees.ForproperusesandreportingofAdministrativeFeesand -17:Use and Reporting of Administrative Fee Reserves. 21.VMS/FASSReportingandDataIntegrity.PHAsmustcontinuetosubmitrequired financialdocumentsincluding,butnotlimitedto,monthlyVMSandannualFASSelectronic submissions.PHAsthatdonotsubmittherequireddatabythereportingdeadlinemaybe sanctionedasprovidedby24CFR982.152(d),andinaccordancewiththeproceduresoutlined inPIHNotice2021-08oranysuccessornotice.PHAsthatfailtomeetthesubmission requirementsmaybesubjecttoadministrativeactions,includingbutnotlimitedto,an impositionofapenaltyagainstthemonthlyadministrativefeesuntilthePHAcomplies withtheserequirements.ThispenaltyrepresentsapermanentreductionforthecurrentCYthat shallnotbereversed. 22.Prohibition on Over-leasing. The 2021 Act prohibits the use of appropriated HAP funds by any PHA, except for PHAs in the MTW demonstration, to lease units above their CACC baseline units during any CY, even if the PHA has sufficient budget authority (BA) and/or RNP to support the additional units. If a PHA engages in over-leasing, it must identify other eligible sources to pay for the over-leasing, and the PHA must take immediate steps to eliminate any current over-leasing. Renewal funding allocations will not include over-leased units. Renewal funding eligibility will be reduced based on the number of over-leased unit months and the average PUC during the re-benchmark period. PHAs must still report all over- leasinginVMSandmust alsoreport$0 HAPsin theappropriatecategoriesinVMS. 23.Use of Outside Sources of Funds. HUD issuedPIH Notice 2013-28,Guidance on the Use of Outside Sources of Funds in the HCV Program. HUD recommends that all PHAs carefully reviewtheinformation contained in thenotice. 24.Paperwork Reduction Act. The additional information collection requirements contained in this document are approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number is 2577- 0169.InaccordancewiththePaperworkReductionAct,HUDmaynotconductorsponsor, and a person is not required to respond to, a collection of information unless the collection displaysacurrently valid OMBcontrol number. EXHIBIT 2 36 25.FurtherInformation.AnyquestionsconcerningthisNoticeshouldbedirectedtoHousing VoucherFinancialManagementDivision,Office ofPublicHousingandVoucherPrograms,at (202)708-2934(thisisnotatoll-freenumber). Personswithhearingorspeechimpairmentsmay accessthesenumbersviaTTYbycalling thetoll-freeFederalInformation RelayServiceat (800)877-8339. /s/ DominiqueBlom GeneralDeputyAssistantSecretary forPublicandIndianHousing EXHIBIT 2 37 Appendix A FurtherConsolidated AppropriationsAct, 2021(PublicLaw116-260) Tenant-BasedRentalAssistanceOverallFundingandRenewals: For activities and assistance for the provision of tenant-based rental assistance authorized under the not otherwise provided for, $21,777,439,000, to remain available until expended, which shall be available on October 1, 2020 (in addition to the $4,000,000,000 previously appropriated under this heading that shall be available on October 1, 2020), and 5 $4,000,000,000, to remain available until expended, which shall be available on October 1, 2021: Provided, That the amounts made available under this headingare provided as follows: (1) $23,080,000,000 shall be available for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act) 14 and including renewal of other special purpose incremental vouchers: Provided, That notwithstanding any other provision of law, from amounts provided under this paragraph and any carryover, the Secretary forthe calendaryear2021 fundingcycleshallproviderenewalfundingfor eachpublichousing agency based on validated voucher management system (VMS) leasing and cost data for the prior calendar year and by applying an inflation factor as established by the Secretary, by notice published intheFederalRegister,andbymakinganynecessaryadjustments forthecostsassociatedwiththe first time renewal of vouchers under this paragraph including tenant protection and Choice Neighborhoods vouchers: Provided further, That none of the funds provided under this paragraph may authorized levelofunits under contract,exceptforpublichousing agencies participatinginthe Moving to Work (MTW) demonstration, which are instead governed in accordance with the requirements of the MTW demonstration program or their MTW agreements, if any: Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified under this allocation otherwise established pursuant to this paragraph: Provided further, That except asprovided in the following provisos, the entire amount specified under this paragraph (except as otherwise modified under this paragraph) shall be obligated to the public housing agencies based on the allocation and pro rata method described above, and theSecretary shall notify public housing agencies of their annual budget by the latter of 60 days after enactment of this Act or March 1, 2021: Provided further, That the Secretary may extend the notification period with the prior written approval of the House and Senate Committees on Appropriations: Provided further, That public housing agencies participating in the MTW demonstration shall be funded in accordance with the requirements of the MTW demonstration program or their MTW agreements, if any, and shall be subject to the same pro rata adjustments under the previous provisos: Provided further, That the Secretary may offset public accounts, including HUD-held programmatic reserves (in accordance with VMS data in calendar year 2020 that is verifiable and complete), as determined by the Secretary: Provided further, That public housing agencies participating in the MTW demonstration shall also be subject to the offset, as determined by the Secretary, excluding amounts subject to the single fund funding allocation: Provided further, That the Secretary shall use any offset referred to in the previous two provisos throughout thecalendar yearto preventtheterminationof rentalassistanceforfamilies as the result of insufficient funding, as determined by the Secretary, and to avoid or reduce the proration of renewal funding allocations: Provided further, That up to $110,000,000 shall be available only:(1) for adjustmentsin the EXHIBIT 2 38 allocationsforpublichousingagencies,afterapplicationforanadjustmentbyapublichousing agency that experienced a significant increase, as determined by the Secretary, in renewal costs of vouchers (including Mainstream vouchers) resulting from unforeseen circumstances or from portability under section 8(r) of the Act; (2) for vouchers that were not in use during the previous 12- month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act, or an adjustment for a funding obligation not yet expended in the previous calendar year for a MTW- eligible activity to develop affordable housing for an agency added to the MTW demonstration under the expansion authority provided in section 239 of the Transportation, Housing and Urban Development,andRelatedAgenciesAppropriationsAct,2016(divisionL ofPublicLaw114113); (3) for adjustments for costs associated with HUDVeterans Affairs Supportive Housing (HUD VASH) vouchers; (4) for public housing agencies that despite taking reasonable cost savings measures, as determined by the Secretary, would otherwise be required to terminate rental assistance for families, including Mainstream families, as a result of insufficient funding; (5) for adjustments in the allocations for public housing agencies that (i) are leasing a lower-than average percentage of their authorized vouchers, (ii) have low amounts of budget authority in their net restricted assets accounts and HUD-held programmatic reserves, relative to other agencies, and (iii) are not participating in the Moving to Work demonstration, to enable such agencies to lease more vouchers; and (6) for public housing agencies that have experienced increased costs or loss of units in an area for which the President declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.): Provided further, That the Secretary shall allocate amounts underthepreviousproviso based onneed,asdeterminedby theSecretary; TenantProtection: $116,000,000 shall be for section 8 rental assistance for relocation and replacement of housing units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses (including victims of violent crimes) in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project-based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financed between 1959 and 1974 that are refinanced pursuant to Public Law 106569, as amended, or under the authority as provided under this Act: Provided, That when a public housing development is submitted for demolition or disposition under section 18 of the Act, the Secretary may provide section 8 rental assistance when the units pose an imminent health and safety risk to residents: Provided further, That the Secretary may 23 provide section 8 rental assistance from amounts made available under this paragraph for units assisted under a project-based subsid-Based units pose an imminent health and safety risk to residents: Provided further, That to the extent that the Secretary determines that such units are not feasible for continued rental assistance payments or transfer of the subsidy contract associated with such units to another project or projects and owner or owners, any remaining amounts associated with such units under such contract shall be recaptured and used to reimburse amounts used under this paragraph for rental assistance under the previous proviso: Providedfurther,Thatoftheamountsmadeavailableunderthisparagraph,atleast$5,000,000may be available to provide tenant protection assistance, not otherwise provided under this paragraph, to residents residing in low vacancy areas and who may have to pay rents greater than 30 percent of household income, as the result of: (A) the maturity of a HUD-insured, HUD held or section 202 loan that requires the permission of the Secretary prior to loan prepayment; (B) the expiration of a rental assistance contract forwhich thetenantsarenot EXHIBIT 2 39 eligibleforenhancedvoucherortenantprotectionassistanceunderexistinglaw;or(C)theexpiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary:Providedfurther,Thatsuchtenantprotectionassistancemadeavailableundertheprevious proviso may be provided under the authority of section 8(t) or section 8(o)(13) of the United States HousingActof1937(42U.S.C.81437f(t)):Providedfurther,ThattheSecretaryshallissue guidance to implement the previous provisos, including, but not limited to, requirements for defining eligible at-risk households within 60 days of the enactment of this Act: Provided further, That any tenant protection voucher made available from amounts under this paragraph shall not be reissued by any public housing agency, except the replacement vouchers as defined by the Secretary by notice, when the initial family that received any such voucher no longer receives such voucher, and the authority for any public housing agency to issue any such voucher shall cease to exist: Provided further, That the Secretary may only provide replacement vouchers for units that were occupied within the previous 24 months that cease to be available as assisted housing, subject only to the availabilityof funds; AdministrativeFees: $2,159,000,000 shall be for administrative and other expenses of public housing agencies in administering the section 8 tenant-based rental assistance program, of which up to $30,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, including fees associated with section 8 tenant protection rental assistance, the administration of disaster related vouchers, HUDVASH vouchers, and other special purposeincrementalvouchers:Provided,Thatnolessthan$2,129,000,000oftheamountprovidedin this paragraph shall be allocated to public housing agencies for the calendar year 2021 funding cycle based on section 8(q) of the Act (and related Appropriation Act provisions) as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105 276):Providedfurther,Thatiftheamountsmadeavailableunderthisparagraphareinsufficienttopay theamountsdeterminedunderthepreviousproviso,theSecretarymaydecreasetheamountsallocated toagenciesbyauniformpercentageapplicabletoallagenciesreceivingfundingunderthisparagraph or may, to the extent necessary to provide full payment of amounts determined under the previous proviso, utilize unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Developmentunder this heading from prior fiscal years, excluding special purpose vouchers, notwithstanding the purposes for which such amounts were appropriated: Provided further, That all public housing agencies participating in the MTWdemonstrationshallbefundedinaccordancewiththerequirementsoftheMTW demonstration program or their MTW agreements, if any, and shall be subject to the same uniform percentage decrease as under the previous proviso: Provided further, That amounts provided under this paragraphshall be only for activities related to the provision of tenant-based rental assistance authorizedunder section8, includingrelateddevelopmentactivities; MainstreamVouchers: $314,000,000 for the renewal of tenant based assistance contracts under section 811 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including necessary administrative expenses: Provided, That administrative and other expenses ofpublic housing agencies in administering the special purpose vouchers in this paragraph shall be funded under the same terms and be subject to the same pro rata reduction as the percent decrease for administrative and other expenses to public housing agencies under paragraph (3) of this heading: Provided further, That upon turnover, section 811 special purpose vouchers funded under this heading in this or prior Acts, or underanyotherheadinginpriorActs,shallbe providedtonon-elderlypersonswithdisabilities; EXHIBIT 2 40 TribalHUD-VASHRenewals: Oftheamountsprovidedunderparagraph(1)upto$5,000,000shallbeforrentalassistanceand associatedadministrativefeesforTribalHUDVASHtoserveNativeAmericanveteransthatare homelessorat-riskofhomelessnesslivingonornearareservationorotherIndianareas:Provided, Thatsuchamountshallbemadeavailableforrenewalgrantstorecipientsthatreceivedassistance underpriorActsundertheTribalHUDVASHprogram:Providedfurther,ThattheSecretaryshall beauthorizedtospecifycriteriaforrenewalgrants,includingdataontheutilizationofassistance reportedbygrantrecipients:Providedfurther,Thatsuchassistanceshallbeadministeredin accordancewithprogramrequirementsundertheNativeAmericanHousingAssistanceandSelf- DeterminationActof1996andmodeledaftertheHUDVASHprogram:Providedfurther,Thatthe Secretaryshallbeauthorizedtowaive,orspecifyalternativerequirementsforanyprovisionofany statuteorregulationthattheSecretaryadministersinconnectionwiththeuseoffundsmade availableunderthisparagraph(exceptforrequirementsrelatedtofairhousing,nondiscrimination, laborstandards,andtheenvironment),uponafindingbytheSecretarythatanysuchwaiversor alternativerequirementsarenecessaryfortheeffectivedeliveryandadministrationofsuch assistance:Providedfurther,ThatgrantrecipientsshallreporttotheSecretaryonutilizationofsuch rentalassistanceandotherprogramdata,asprescribedbytheSecretary:Providedfurther,Thatthe Secretarymayreallocate,asdeterminedbytheSecretary,amountsreturnedorrecapturedfrom awardsundertheTribalHUDVASHprogramunderpriorActstoexistingrecipientsunderthe TribalHUDVASHprogram; HUD-VASHProgram: $40,000,000 for incremental rental voucher assistance for use through a supported housing program administered in conjunction with the Department of Veterans Affairs as authorized under section 8(o)(19) of the United States Housing Act of 1937: Provided, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 203 (competition provision) of 4this title, to public housing agencies that partner with eligible VA Medical Centers or other entities as designated by the Secretary of the Department of Veterans Affairs, based on geographical need for such assistance as identified by the Secretary of the Department of Veterans Affairs, public housing agency administrative performance, and other factors as specified by the Secretary of Housing and Urban Development in consultation with the Secretary of the Department of Veterans Affairs: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for (in consultation with the Secretary of the Department of Veterans Affairs), any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That assistance made available under this paragraph shall continue to remain available for homelessveteransuponturn-over; FamilyUnificationProgram: $25,000,000shallbemadeavailableforthefamilyunificationprogramasauthorizedundersection 8(x) of the Act: Provided, That the amounts made available under this paragraph are provided as follows: (A) $5,000,000 shall be for new incremental voucher assistance: Provided, That the assistance made available under this subparagraph shall continue to remain available for family unification upon turnover; and (B) $20,000,000 shall be for new incremental voucher assistance to assisteligibleyouthasdefinedbysuchsection8(x)(2)(B):Provided,Thatassistancemadeavailable EXHIBIT 2 41 under this subparagraph shall continue to remain available for such eligible youth upon turnover: Provided further, That of the total amount made available under this subparagraph, up to $10,000,000 shall be available on a noncompetitive basis to public housing agencies that partner with public child welfare agencies to identify such eligible youth, that request such assistance to timely assist such eligibleyouth,andthatmeetanyothercriteriaasspecifiedbytheSecretary:Providedfurther,Thatthe Secretary shall review utilization of the assistance made available under the previous proviso, at an interval to be determined by the Secretary, and unutilized voucher assistance that is no longer needed shallberecapturedbytheSecretaryandreallocatedpursuanttothepreviousproviso:Providedfurther, ThatforanypublichousingagencyadministeringvoucherassistanceappropriatedinapriorActunder the family unification program, or made available and competitively selected under this paragraph, thatdeterminesthatitnolongerhasanidentifiedneedforsuchassistanceuponturnover,suchagency shall notify the Secretary, and the Secretary shall recapture such assistance from the agency and reallocate it to any other public housing agency or agencies based on need for voucher assistance in connectionwithsuchspecifiedprogramoreligibleyouth,asapplicable; HomelessVouchers-DomesticViolence: $43,439,000 shall be for incremental rental voucher assistance under section 8(o) of the United States Housing Act of 1937 for use by individuals and families who are homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)), at risk of homelessness,asdefinedinsection401(1)ofthe McKinney-VentoHomelessAssistance Act(42 U.S.C. 11360(1)), fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking,orveterans andfamiliesthatinclude aveteranfamilymemberthatmeetoneofthe precedingcriteria:Provided,Thatassistancemadeavailableunderthisparagraphshallcontinueto remainavailableforsucheligibleindividualsandfamiliesuponturnover:Providedfurther,Thatthe Secretaryshallmakesuchfundingavailable,notwithstandingsection203ofthistitle(competition provision)topublichousingagenciesthatpartnerwitheligiblecontinuumsofcareorotherentities asdesignatedbytheSecretary,basedongeographicalneedofsuchassistance,publichousing agencyadministrativeperformance,andotherfactorsasspecifiedbytheSecretary:Provided further,ThattheSecretaryshallreviewutilizationoftheassistancemadeavailableunderthe precedingproviso,atanintervaltobedeterminedbytheSecretary,andunutilizedvoucher assistancethatisnolongerneededshallberecapturedbytheSecretaryandreallocatedpursuantto theprecedingproviso:Providedfurther,That,theSecretaryshallgivepreferencetoapplicantsthat demonstrateastrategytocoordinateassistancewithservicesavailableinthecommunity:Provided further,Thatnoneofthefunds providedinthisparagraphmaybeusedtorequirepeople experiencinghomelessnesstoreceivetreatmentorperformanyotherprerequisiteactivitiesasa conditionforreceivingshelter,housingorotherservices:Providedfurther,ThattheSecretaryshall issueguidancetoimplementtheprecedingproviso;and TrackingofSpecialPurposeVouchers: TheSecretaryshallseparatelytrackallspecialpurposevouchersfundedunderthisheading. EXHIBIT 2 42 AppendixB CY2021OffsetReallocation HANumber: HAName: CY2020EndofYearReserves PROTECTEDCATEGORIES A.DifferencebetweenthePHA'sEligibilityandProratedEligibility B.CY2021AmountsneededtofullyleaseVASHunits UnfundedVASHUMAs(Capped) VASHPUC TotalUnfundedVASHUMAsProtected C.Difference between higher of December 2020 UMLs x 12 or CY 2020 UMLs up to baseline on units underCACC DecemberUMLs(Capped) InflatedPUC TotalDecemberUMLsProtected D.CY2020NewincrementalBA-1/2of Eligibility E.CY2020SetAsideProtection-1/2ofEligibility F.CARESActHAPAwardsprotection-TotalEligibility G.PortionofCY2021RenewalEligibility(Basedon unitsunderCACC): 5&.611boebcpwfvojut 7&.361up!5::vojut 23&.Mfttuibo361vojut H.PHAswith CY2020inflationfactorsthatwerehigherthantheCY2020nationalweightedaverage inflator Difference of CY 2020 Inflated Renewal Funding compared to CY 2021 Inflated Renewal funding isprotected I.Protect 1/2ofRAD1HAPforProjectsin their1stFullofYearofFundingduringCY2020 J.TotalFundsAvailableforOffset K.OffsetAmount(TotalFundsAvailableforOffsetxdetermined%) .ProratedEligibilityAfterOffset PHA'sthatreceived2020ShortfallSet-Asidefundsareexemptfromthis offset. thatreceived2020Lower-than-averageLeasingfundsareexemptfromthis offset. EXHIBIT 2 43 AppendixC CY2021HousingChoiceVoucherProgram SpecialFees Application for $30 Million Set-Aside for some Categories of Special Fees 1 HUD-VASH; 2FUP;3Disaster;and/or4 NameofPHA: PHANumber: ExecutiveDirector: CHECKALLBOXESTHATAPPLY HUD-VASH FUP Disaster-Related SpecialFeesUnderTheDiscretion Documentation requirements and Deadlines for each of the above categories are contained withinthedocumentthis pageis attached. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification:Iherebycertifythatallthe informationstatedherein,aswellasanyinformation providedintheaccompanimentherewith,istrueandaccurate.Ialsocertifythatshouldfunding beawardedunderanyoftheselectedspecialfeecategoriesperthispage,thatIwillkeepclear andorganizedrecordsonhowallawardedthefundswerespentshouldHUDrequesttoreview theoutcomesofthisfeefunding.Warning:Anyonewhoknowinglysubmitsafalseclaimor makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforup to5years,fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31 U.S.C.§3729,3802). SignatureofExecutiveDirectorand Date ContactNameandPhoneNumber EXHIBIT 2 44 ExampleBudgetJustificationAppendix D TOTAL FY22 BUDGET WITH PROPOSED Proposed HUD-VASH Budget FYE EXTRA FEES 6/30/22 Extraordinary Fees Description RECEIPTS AMIN FEE EARNED 1,028,855 52,749 1,081,604 INTEREST ON RESERVE 800 800 OTHER 10,000 10,000 TOTAL OP RECPTS 1,039,655 52,749 1,092,404 EXPENSE ADMIN SALARIES 607,254 - 607,254 EMP BENEFITS 268,410 - 268,410 TEMP HUD-VASH COORDINATOR 35,360 35,360 LEGAL 2,000 2,000 TRAINING 10,000 3,784 13,784 AUDIT & ACCOUNTING 5,000 5,000 PHONES/MOBILE PHONES 10,000 600 10,600 POSTAGE 8,000 1,147 9,147 OFFICE SUPPLIES & EQUIP. 12,000 1,033 13,033 PUB. & MEMBERSHIPS 3,500 - 3,500 FSS EXPENSES 10,200 - 10,200 - PORTABILE ADMIN FEE 16,500 16,500 SUNDRY ADMIN 22,000 22,000 EXTRA HUD-VASH ACTIVITIES: 10,825 10,825 HUD-VASH DAY 3600 LANDLORD RECRUIT 2400 TRANSPORTATION 4825 INSURANCE 10,359 - 10,359 TOTAL ADMIN EXP 985,223 52,749 1,037,972 CONTRACTS 35,000 - - TOTAL ORDINARY MAINT 35,000 - - TOTAL OPERATING EXP 1,020,223 52,749 1,072,972 RESIDUAL RCPT/DEF 19,432 - 19,432 HSG ASSIST PYMTS 9,453,345 HSG FUNDS RECEIVED 9,453,345 RESTRICTED FUNDS - Calculation of Admin Fees earned @95% Lease Rate Total # of HCV (PUM) 1,444 1,372 16,462 Col A Rate Col B Rate Proration Rate Admin Fee Unit Months 7,200 9,262 CY 2021: $82.19 $76.72 79% $1,028,855 EXHIBIT 2 Appendix E Calculation ofHUD-ConfirmedShortfallandShortfallAmount The amount that a PHA will be eligible to receive from the $110,000,000 set-aside will be -Year Forecasting Tool (see link) and the most Two-Year Forecasting Tool can be found at theOffice of Housing Choice Vouchers websitethat includes alink tothetwo-yeartool instruction page. The two-year tool compares all resources available (including CARES Act HAP for PUC 2021projectedthrough theend oftheCYbasedupon thebest informationavailable. Resources are calculated using the HUD-calculated RNP as of 12/31/2020, the HUD-held r 2021, and any new voucher incremental funding applicable to CY 2021 or set-aside amountsawarded orexpected to beawarded in2021. HAP expenses are calculated based on current leasing and expense data, projected through -aside funds, adjusted for accuracy if the PHA has more recent information that will impact the attrition rate in future months, as reported in PIC, and considering any updated information suppliedby thePHA. The requirement to suspend general voucher issuance is subject to the following exclusions: 1.VouchersissuedtocurrentHCVparticipantstoallowthemtomove. 2.ThereissuanceofturnovervoucherslosttoattritiononlyduringtheperiodthePHA is impacted by COVID 19; however, PHAs must not exceed the number of units leased at the time of the SPT confirmed shortfall. This unit cap may only be exceededbytheSPVslistedinitem4belowandvouchersreissuedfromtheLower- than-averageLeasingaward. In general, a PHA may reissue the turnover voucher to a family from the PHA waiting list, except for eligible VASH turnovers where a referral is provided by the Veterans Administration Medical Centers (VAMC), issue the voucher to a family moving from a Project-Based Voucher (PBV) unit in accordance with 24 CFR983.261,orusethe vouchertoabsorbafamilyunderportability.However, a PBV family that has the right to move in accordance with 24 CFR 983.261 and wishesto do so has priority fortheturnovervoucher. 3.Instances in which the PHA is leasing under the HUD-VASH program up to the baseline level of units under all HUD-VASH allocations (not just recent allocations),including turnoverofHUD-VASHvouchers. EXHIBIT 2 46 4.Vouchers issued to program applicants under special-purpose voucher increments awarded in CY 2020 or CY 2021. These special-purpose vouchers (SPVs) include Family Unification Program (FUP), Non-Elderly Disabled (NED), Foster the Youth to Independence (FYI)Initiative, and Tenant Protection vouchers initially awardedin 2020 and/or2021, toincludeSet-asidefunding. 5.Project-BasedVouchers(PBV)undertheRentalAssistanceDemonstration(RAD) 1,in theirfirst full yearoffunding through theHCVProgram. 6.PHAs may allow applicants to move into PBV units to allow the PHA to meet its contractualobligationtofillPBVAHAPunitsbeingplacedunderHAPforthefirst time,andPBVunitscurrentlyunderHAPthatarevacatedbyprogramparticipants. 7. against a PHA. PHAs must request approval to continue leasing Litigation Vouchers and submit supporting documentation. HUD will review and decide on a case-by-case basis usingthe supporting documentation received as the basis for thedecision. 8.Vouchers issued using funds awarded under the Lower-than-average Leasing HAP Set-Asidecategory. 9.TheSecretaryreservestherighttoconsideradditionalexceptionsonacase-by-case basis. PHAs cannot issue vouchers and/or execute HAP contracts for families that do not meet any of the exceptions through the end of CY 2021, or until advised in writing by the SPT thatthey no longerhaveashortfall. The application period for shortfall set-aside funding will remain open until SPT has reconciled Shortfalls for all PHAs for CY 2021, subject to funding availability. PHAs that receive set-aside funds based on their current HAP costs are encouraged to maintain contact with the SPT to ensureall shortfall needs are met. Similarly, PHAs that do not initially qualify for shortfall funding because they have suspended leasing and expect to decrease leasing by attrition are also encouraged to maintain contact with the local Field Office and theSPTiftheattrition failsto resolvetheirshortfall. AllPHAsapplyingfortheshortfallset-asidemustbeworkingwithSPTatthetime leasing and expense data to date, to determine whether the PHA has a shortfall and the amount needed to resolve the shortfall. The PHA will continue to work with the SPT throughouttheyeartomonitorthefinancialpositionandtoimplementcostsavings measuresoutlinedinPIHNotice2011-28orasupersedingnoticepublishedbyHUDto EXHIBIT 2 47 decrease the possibility of an increased shortfall. PHAs must adhere to the eligibility requirementsdetailed inSection 13ofthisNoticeorasupersedingnotice. Factors considered by the SPT to determine the amount of a potential shortfall will be determinedas follows: a.Cash Supported Total Reserves as of 12/31/2020: SPT will use the Cash Supported Total Reserves as of 12/31/2020, which consists of the HUD-Held Reserve, and the lower of HUD-Estimated RNP, PHA Reported RNP as of 12/31/2020, or the actual amount of cash on hand to support the RNP. If there is a discrepancy with any of these amounts the PHA will be required to provide documentationas requestedbeforethis adjustmentwill bemade. b.CARES Act HAP awards for PUC increases:Unspent but available untilDecember31, 2021. c.HUD-held reserve as of 12/31/2020: SPT will use the balance reported to SPT by FMC. d.2021RenewalABA:ActualrenewalABAawardsforCY2021. e.SPV and tenant protection funding and set-asides: FMC will provide amounts to be made available to the PHA in CY 2021 for special-purpose voucher and tenant protection funding increments applicable to any portion of CY 2021, and for any set-aside funding previously awarded in CY 2021. If necessary, the SPT will make adjustments to the shortfall set-aside award to ensure that new increment funding for Mainstream, SPVs, Lower-than-average Leasing Set-aside,and/or TPVs remains available to lease the newly awarded number of SPVs and/or TPVs, rather thanbeing used to coverthegeneral shortfall. f.Unit months leased: The unit months leased (UML) for CY 2021 will be projected by taking the number of units reported in VMS in the last month available and projecting that number through the end of the year. Reductions to projected leasing willbemadetoadjustforattrition,inaccordancewiththeannualturnoverrateused inthetwo-yeartool.ThisrateisderivedfromthePICdataonfamiliesendof participation(EOP).Increasestoprojectedleasingwillbemadeforvouchersissued prior to the date of the notification by the SPT of a potential shortfall and for additional leasing resulting from the admission of families described in exception categories 2 and 3 above families receiving new special-purpose vouchers, and families moving into new or vacant PBV units. No adjustments will be made for moverfamilieswhoreceivevouchersinaccordancewithcategory1above. EXHIBIT 2 48 g.Total HAP expense: Total HAP expense for CY 2021 will be based on a projectionoftheunitmonthsleasedforCY2021(describedineabove)attheper- months, and the PHA again determines that it is in danger of a shortfall, an additionalshortfall awardmay bemadewithout theneed toreapply. h.Vouchers issued or projected to be issued: The number of vouchers issued as of VMS report, will be used to determine future leasing, if any, from vouchers issued prior to the date of notification by the SPT of a potential shortfall. PHAs can only reissue turnover vouchers after receiving SPT notification of a potential shortfall to maintain their leasing levels during the period theprogram is impacted by COVID-19. Planned issuances for vouchers exempt from the suspension will be shown in the months they will be issued. The projected HAP costs for these units will be affected by the voucher success rate provided by the PHA and average time from issuance of the voucher to the HAP effective date. HUD has the right to suspendleasing altogetherifnecessary. i.OtherPlannedAdditionsorReductionstoLeasedUnits:Thisfieldincorporates into the leasing schedule other planned additions to leasing with fixed start dates, such as the dates that PBV units currently under AHAP are scheduled to come under HAP. The calculated HAP cost for these units is not subject to the success ratecalculation. j.2021Year-EndTotalHAPReserveBalance:AnyPHAwithanegative projected 2021 year-end balance will be considered a shortfall PHA. PHAs with year-end balances of $0 or above will not be considered shortfall PHAs or eligible to receive shortfallset-asidefunds. k.Available UNP and Other Non-Federal Cash:In cases where the needed shortfall amount is hard to determine due to factors like many potential voucher lease ups still to occur, rapidly changing PUCs, unclear attrition rates, etc., the SPT will consider the availability UNP or other non-federal cash that the PHA could use to temporarily cover HAP payments and may reduce the shortfall award amount accordingly. If the shortfall award does not fully meet the need, the PHA then has UNP or othernon-federalfunds toensurealllandlords getpaid ontime, andthe SPT can provide an additional shortfall award at the appropriate time to make the HCV or Mainstream Vouchers whole, allowing the PHA to repay the UNP or other non- reduce the number of shortfall awards that are estimated and end up more than the PHAactually needed. EXHIBIT 2 49 Appendix F CY2021HousingChoiceVoucherProgramApplicationforFundsfrom the$110MillionSet-Aside PHAApplicationforCategory1,PreventionofTerminationsDuetoInsufficientFunding(Shortfall) and PHA Certification of Reasonable Cost Savings Measures Undertaken to Prevent Termination of HCV ParticipantsDue toInsufficientFunds. NameofPHA:_PHANumber: ExecutiveDirector: The above referenced agency is applying for Shortfall Funds and has undertaken reasonable cost savings measuresto prevent termination ofHCVParticipantsduetoinsufficientfunds. PleasecheckRegularHCVProgram and/orMainstreamVouchersfortheprogram/vouchersimpactedbythe Shortfall. The applicationmustbe signedby the appropriatePHA official. ShortfallappliestotheRegularHCVProgram,and/or ShortfallappliestoMainstreamVouchers I,,herebycertifytothefollowing: (1)At the time of application, the PHA is working with the HUD Shortfall Prevention Team (SPT) and SPT has confirmed the PHA is in a shortfall position. (PHAs that are not currently working with the SPT but believe they are in a shortfall position should immediately contact their HUD Field Officeforassistance.) (2)ThePHAhasceasedissuingvoucherstoapplicantsasofthedateofnotificationbytheSPTof a potentialshortfall.Pleasenote thatthisrestriction doesnot applyto: Vouchersissued tocurrentHCVparticipantstoallowthemtomove. The reissuance of turnover vouchers lost to attrition only during the period the PHA is impacted by COVID 19; however, PHAs may not exceed the number of units leased at the time of the SPT th confirmed shortfall. This unit cap may only be exceeded by the SPVs listed in the 4bullet point within thislistand vouchersreissued fromtheLower-than-averageLeasing award. In general, a PHA may reissue the turnover voucher to a family from the PHA waiting list, except for eligible VASH turnovers where a referral is provided by the VAMC, issue the voucher to a family moving from a PBV unit in accordance with 24 CFR 983.261, or use the voucher to absorb a family under portability. However, a PBV family that has the right to move in accordance with 24 CFR983.261and wishesto doso haspriority fortheturnovervoucher. Instances in which thePHA is leasing under the HUD-VASH program up to the baseline level of units under all HUD-VASH allocations (not just recent allocations), including turnover of HUD- VASHvouchers. EXHIBIT 2 50 Vouchers issued to program applicants under special-purpose voucher increments awarded in CY 2020 or CY 2021. These SPVs include FUP, NED, FYI Initiative, and Tenant Protection vouchers initially awardedin 2020and/or2021, toincludeSet-aside funding. PBVs undertheRentalAssistanceDemonstration(RAD)1,intheirfirstfull yearoffundingthrough theHCV Program. PHAs may allow applicants moving into PBV units to allow the PHA to meet its contractual obligation to fill PBV AHAP units being placed under HAP for the first time, and PBV units currentlyunderHAP thatarevacatedbyprogramparticipants. PHAs must request approval to continuing leasing Litigation Vouchers and submit supporting documentation. HUD will review and decide on a case-by-case basis using the supporting documentation receivedasthebasisfor the decision. Vouchersreissued usingawardsunderLower-than-averageLeasingHAPSet-Asidecategory. TheSecretaryreservestherighttoconsideradditionalexceptionsonacase-by-casebasis. Certification: I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowinglysubmits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines,and civilandadministrativepenalties(18 U.S.C.§§287,1001,1010,1012;31 U.S.C.§3729, 3802). Signature of Executive Director and Date ContactNameandPhoneNumber EXHIBIT 2 51 CY2021HousingChoiceVoucherProgramandMainstreamVouchersAppendix G Applicationfor$110Million Set-AsideforCategory2aUnforeseenCircumstances NameofPHA: PHANumber: ExecutiveDirector: CHECK ALL BOXES THAT APPLY in Sections 1 & 2. Complete the table(s) that applies to this request. PHAs applying under both programs must ensure they complete each table with the data that applies to that program. Ensure completion of the month of your request. Ensure that you check the appropriatebox inSection 2ontheapplicable circumstancefortheapplication. SECTION1: Category2a:UnforeseenCircumstancesforMainstreamVouchers. TotalHAP ExpensesandUMLsforthemonthof,2021 Most recent month of TotalUMLs for the most recentHAP Expenses divided by HAPExpensesmonthofHAPExpensesUMLs= PUC $$ Category2a:UnforeseenCircumstancesfortheHCVProgram. TotalHAP ExpensesandUMLsforthemonthof,2021 Most recent month of TotalUMLs for the most recentHAP Expenses divided by HAPExpensesmonthofHAPExpensesUMLs= PUC $$ SECTION2: UnforeseenCircumstanceisduetoCOVID-19;or, Unforeseen Circumstance is due to a circumstance unrelated to COVID-19, whichisdescribed withinattached narrative. Documentation requirements and Deadlines for each of the above categories are contained in Section 13 ofthisnotice. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification:I,, hereby certify that the HCV Program and/or Mainstream Vouchers experienced increased renewal costs in CY 2021 due to the unforeseen circumstances of COVID-19 or those described intheattachednarrative,as applicable. Iadditionallyherebycertifythatalltheinformationstatedherein,aswellasanyinformationprovidedinthe accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforupto5years, fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date ContactNameandPhoneNumber EXHIBIT 2 52 AppendixH CY2021HousingChoiceVoucherProgram Application for $110 Million Set-Aside for Category 2b Portability; 3 Project-Based Vouchers; 4 - HUD-VASH;and/or5Lower-than-average Leasing. NameofPHA: PHANumber:_________________________________________ ExecutiveDirector: CHECKALLBOXES THATAPPLY Category2b:Portability(Pleasealsochecka.and/orb.belowasapplicable): a.RegularHCVProgram,and/or b.MainstreamVouchers Category3:Project-BasedVouchers. Category4:HUD-VASH(Pleasealsocheck a.and/orb.below,asapplicable):a.PerUnit Cost Increase: PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD-VASH HAP PUC based on their latest HUD-VASH HAP expenses in CY 2020,and/or b. Leasing Increase: PHAs whose total HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewal funding plus the leasing that will be supportedbytheRNPandHUD-HeldProgram Reserves. Category5:Lower-than-averageLeasing. DocumentationrequirementsandDeadlinesforeachoftheabovecategoriesarecontainedin Paragraph13ofthisnotice. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification: I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines,and civiland administrativepenalties(18U.S.C. §§287, 1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date ContactName and Phone Number 53 2 EXHIBIT I 20 - Dec 20 - UNITS Appendix Nov OF # 20 - DATE: BEING Oct IS 20 - DATE): Sep 20 - FUNDING Aug COMPLETION Y/N 20 - ASIDE Jul COMPLETION - RENT 20 - SET PROJECT Jun TO PBV 20 - HAP UTILITIES INCLUDED IN GROSS May REHABILITATION: NAME: OF WHICH FOR DATE PROJECT CONSTRUCTION/REHAB of 2) RENT 1 CATEGORY AHAP: NEW PROJECT OF OF EFFECTIVE (Page THIS - GROSS NAME: EACH DATE FOR (DATE FROM PHA DATA FOR I CONSTRUCTION: PBVDATE DAYS 20 - - NEW EFFECTIVE #OFEND INELIGIBLE 20 Apr ASIDE IS RENT - APPENDIX - Mar SET 20 - - HOUSING Feb PROJECTS Jan COMPLETEON 20 BEDROOM SIZE $110 MILLION - of EXISTING PLEASE UNIT UNITS: 2021 OF PROJECTTYPE: NOTE:PERIODALLOWED: CYNOTE:REQUESTED # PHA#:#INFORMATION AHAP: 54 2 EXHIBIT civil . returned and official PHA 2) of 2 (Page appropriate the by and accurate. #: DIRECTOR: signed be PHONE must AND EXECUTIVE herewith, is true : I hereby certify that all the information stated herein, as well as any information provided in the OF 1012; 31 U.S.C. §3729, 3802). NAME BEDROOMBEDROOMBEDROOMBEDROOMBEDROOM certification SIGNATUREDATE:CONTACT COMMENTS: ThisCertificationaccompanimentWarning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/orpenalties, including confinement for up to 5 years, fines, and civil and administrative penalties (18 U.S.C. §§ 287,1001, 1010, EXHIBIT 2 55 AppendixJ CY2021HousingChoiceVoucherProgram RequestforDisasterSet-aside NameofPHA: PHANumber: ExecutiveDirector: The PHA may request both the additional leasing adjustment and the per unit cost adjustment ormay request only oneadjustment. Pleasechecktheboxes that apply. PresidentiallyDeclaredDisasterthatimpactedyourPHA: LossofUnits Unitsloss,needingfunding: ThenumberofCY2021monthsimpactedby theloss ofunits: IncreasedCosts RequestedPUCAmount: ThenumberofCY2021monthsimpactedby theloss ofunits: Certification:Ihereby certifythatalltheinformationstatedherein,aswellasanyinformation provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to5years,fines,and civilandadministrativepenalties(18 U.S.C.§§287,1001, 1010,1012;31U.S.C.§3729, 3802). SignatureofExecutiveDirectorand Date ContactNameandPhoneNumber EXHIBIT 2 56 AppendixK SecondRoundCY2020HAPSet-AsideRemaining$60MillionforCategory2aUnforeseen Circumstances AdjustmentsforIncreasedCostsfromCY2020Category2a-UnforeseenCircumstances NameofPHA: PHANumber: ExecutiveDirector: CHECKALLBOXESTHATAPPLY Category2a:UnforeseenCircumstances UnforeseenCircumstanceis duetoCOVID-19. Unforeseen Circumstance is due to a circumstance unrelated to COVID-19, which is described within the attachednarrative. Documentation requirements and Deadlines for each of the above categories are contained in Section 14 ofthis notice. ThiscertificationmustbesignedbytheappropriatePHAofficialand returned. Certification:I,, hereby certify that the HCV Program experienced increased renewal costs in CY 2020 due to the unforeseen circumstances of COVID-19 or those described in the attached narrative, as applicable. Iadditionallyherebycertifythatalltheinformationstatedherein,aswellasanyinformationprovidedinthe accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforupto5years, fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date Contact Nameand PhoneNumber EXHIBIT 2 EXHIBIT B SCOPE OFWORK Subcontractor will utilize HUD- WelcomeHomeOClandlordincentiveprograminhousingtheSantaAnaHousing VASHvoucher holders. WelcomeHomeOChelpshomeless individuals withrentalvouchersto securehousinginprivate market apartments with the goals of (1) increasing available rental units through landlord outreach, engagement and incentives, (2) reducing the length of time between voucher issuance to increase voucher lease up success rate and (4) permanently housinghomeless households. HUD-VASH Special Fees will support necessary administrative expenses incurred to increase lease-upsuccessrates or decreasethe timeit takesforaVeterantolocate andmove-in toaunit. Subcontractor will provide the following eligible activities with the $84,017.00 in HUD-VASH SpecialFees funding: StafftoprovideHUD-VASHclientswithhousingsearchassistance Landlord Recruitment activities to engage landlords to participate in the HUD-VASH program Contractor shall make payments to Subcontractor not to exceed $5,000 for each HUD-VASH voucherleased, up to themaximum amountof eligiblefunding. Subcontractor will provide quarterly reports and invoices to the Contractor. Contractor is responsibleforreportingandrecordingofawardedSpecialFeesaspartoftheHCV administrativefinancial records under CFDA14.871 12 EXHIBIT 2 EXHIBIT C BUDGET 13 EXHIBIT 3 HOUSINGCHOICEVOUCHERPROGRAM FUP/FYISPECIALFEES SUBCONTRACTORAGREEMENTBETWEEN THE HOUSINGAUTHORITY OFTHECITY OFSANTAANA AND ORANGECOUNTYUNITED WAY THISGRANTAGREEMENTSpecialFeesisherebymade and entered into this November 2, 2021, by and between the Housing Authority of the City of aCalifornia nonprofit organization RECITALS: A. Appropriations Act, 2021 (P.L. 116- establishestheallocationmethodologyforcalculatinghousingassistance paymentsfunds, newincrementalvouchers andadministrative fees. TheFUP fundingis for FYI;HUD usesFUPandFYIinterchangeably. B.Contractor is the recipient of the HCV Special Fees funds from the U.S.Department of HousingandUrban Developmentof PublicandIndianHousing. C.Subcontractor has beenmade aware of theHUD HCV programandagrees tocomply withalltheconditionsoftheFUP/FYI SpecialFeesAgreementandtheapplicable requirementsgoverningthe useofFUP/FYISpecialFees funds. D.Contractor now approves the provision of FUP/FYI Special Fees funds to Subcontractor inanamountnottoexceed$84,017.00,tobeusedintheoperationofthe WelcomeHomeOC Program E.Subcontractor represents that it has the requisite qualifications, expertise, and experience in the provision of the Program and is willing to use said FUP/FYI Special Fees funds to operatesaid Program. F.This FUP/FYI Special Fees Agreement is contingent upon the award ofHCV Special Feesfunds fromHUD. G.Contractor and Subcontractor have duly executed this FUP/FYI Special Fees Agreement forthe expenditureand utilizationof saidFUP/FYISpecial Fees funds. NOW THEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this FUP/FYI Special Fees Agreement, and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entireFUP/FYISpecialFeesAgreementbetweenthe Contractorand Subcontractor: 1 EXHIBIT 3 1.SCOPEOFSERVICES Subcontractor shall perform during the term of thisFUP/FYI Special FeesAgreement, thetasksandobligations,includingalllabor,materials,tools,equipment,andincidental customaryworkrequiredtofullyandadequatelycompletetheservicesnecessaryforthe Program,in accordancewiththeScopeof Workattached hereto asExhibitB. 2.TERM This FUP/FYI Special FeesAgreement shall take effect on the date firstwritten above and shall terminate on June 30, 2023, unless otherwise cancelled or modified according to the termsof this FUP/FYISpecial FeesAgreement. 3.DISBURSEMENTANDFUNDS A.Contractor wasallocated$84,017.00 inFUP/FYI Special Fees funds from HUD tobe expended by June 30, 2023.Contractor agrees to pay to Subcontractor when, if and to the extentFUP/FYISpecialFeesfundsarereceivedasumnottoexceed$84,017.00for he term of this FUP/FYISpecialFeesAgreement,inaccordance withthe Budget attachedheretoasExhibit C. Contractor shall make payments to Subcontractor not to exceed $14,002.83 for each FUP/FYI voucher leased as detailed in Exhibit B, up to the maximumamount of eligiblefunding.Said sum shall be paid after Contractor receives invoices submitted by Subcontractor asprovided herein. th B.Subcontractor shall submit quarterly invoices (on or before the 15day of April, July,October, andJanuary) ina formprescribedby theContractor,detailing suchexpenses. Such schedule may be modified with the approval of the Contractor.This Agreement shall also cover any andall services provided by the Subcontractor to the FUP/FYI voucher holder since the effective dateof theFUP/FYI Special Feesawarded to theSanta Ana Housing Authority fromHUD. C.Payment is subject to the receipt and approval of such invoices and quarterly activity reports. Contractor shall pay such invoices within thirty (30) days after receipt thereof, provided Contractor is satisfied that such expenses have been incurred within the scope of this FUP/FYI Special Fees Agreement and that the Subcontractor is in compliance with the terms and conditions of this FUP/FYI Special Fees Agreement.The thirty (30) day period will discontinue if the reimbursementrequest is determinedtobe incompleteand willrestartthe thirty-day timeline once the remaining required elements have been submitted. Failure to provide any of the required documentation willcause the Contractor to withhold all or a portion of a request for reimbursementuntilsuchdocumentationhasbeenreceivedandapproved bytheContractor. D.Subcontractor agrees to use said funds pursuant to this FUP/FYI Special Fees Agreement to pay for necessary and reasonable costsallowable under state law and regulations to operate said HCV FUP/FYI Program only. Said amounts shall include and will be limited to theoperationoftheWelcomeHomeOCprogramonly.failuretoperformas 2 EXHIBIT 3 requiredmay,inadditiontootherremediessetforthinthisFUP/FYISpecialFeesAgreement,result in readjustment of the amount of funds the Contractor is otherwise obligated to pay to the Subcontractorpursuanttothetermshereof,orterminationofthisFUP/FYISpecialFees Agreement. 4.HUDAGREEMENT A.Contractoradherestothe2021Act,whichestablishestheallocationmethodology for calculating HAP renewal funds, new incremental vouchers and administrative fees.A true and correct copy of the HUD PIH Notice 2021-10 recognizing $84,017.00 in FUP/FYI Special Fees grant funds to be used by Contractor to address immediate homeless challengesis attached hereto as Exhibit A.Subcontractor has been made aware of the HUD PIH Notice 2021-10and agrees to comply with all the conditions of the HUD-PIH Notice 2021-10 and the applicable HUDrequirementsgoverningthe useofFUP/FYI Special Feesgrant funds. B.Pursuanttothe HUDPIH Notice2021-10,Subcontractorisrequiredto: i.Perform the work in accordance with Federal, State and Local housing and buildingcodes, asapplicable. ii.Maintain at least the minimum State- thoseemployees who will perform thework oranypart ofit. iii.Maintain,asrequiredbylaw,unemploymentinsurance,disability insurance,andliabilityinsuranceinanamountthatisreasonableto compensateanyperson,firmorcorporationwhomaybeinjuredor damaged bythe Subcontractor in performing the work or anypart ofit. iv.Agree to include all the terms of the HUD PIH Notice 2021-10 in each subcontract. 5.INDEPENDENTCONTRACTOR Subcontractor shall, during the entire term of this FUP/FYI Special Fees Agreement, be construed to be an independent contractor and not an employee of the Contractor.This FUP/FYI Special Fees Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the Contractor to exercise discretion or control over the professional manner in which Subcontractor performs the services which are the subject matter of this FUP/FYI Special Fees Agreement; however, the services to be provided by Subcontractorshallbeprovidedinamannerconsistentwithallapplicablestandardsand regulations governing such services. Subcontractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall beresponsible for all applicable withholdingtaxes. 3 EXHIBIT 3 6.OWNERSHIPOF MATERIALS This FUP/FYI Special Fees Agreement creates a non-exclusive and perpetual license for Contractor to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Subcontractor under this FUP/FYI Special Fees Subcontractor shall require all subcontractors to agree in writing that Contractor is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this FUP/FYI Special Fees Agreement.Subcontractor represents and warrants that Subcontractor has the legal right to license any and all Documents & Data.Subcontractor makes no such representation and warranty in regard to Documents & Data which were provided to Subcontractor by the Contractor.Contractor shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposesintendedbythis FUP/FYISpecialFees Agreementshall be atsolerisk. 7.INSURANCE Prior to undertaking performance of work under this FUP/FYI Special Fees Agreement, Subcontractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a.CommercialGeneralLiabilityInsurance.Subcontractorshallmaintain commercial general liability insurance naming the Contractor, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protectionagainstclaimsarising frombodily andpersonalinjury,including deathresulting therefromanddamagetoproperty,resultingfromanyactoroccurrencearisingoutof operationsintheperformanceofthisFUP/FYISpecialFeesAgreement, including, without limitation, acts involving vehicles.The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resultingtherefrom,andpropertydamage,inthe totalamountof$1,000,000per occurrence,with $2,000,000intheaggregate.Suchinsuranceshall(a)nametheContractor,itsofficers, employees,agents,andrepresentativesasadditionalinsured(s);(b)beprimaryandnot contributory with respect to insurance or self-insurance programs maintained by the Contractor; and(c)contain standardseparation ofinsureds provisions. b.Businessautomobile liability insurance,orequivalentform,witha combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage forowned, hired and non-owned automobiles. c.In accordance with the provisions of Section 3700 of the Labor Code, Subcontractor, if Subcontractor has any employees, is required to be -insurance.Prior to commencingtheperformanceoftheworkunderthisFUP/FYISpecialFeesAgreement, 4 EXHIBIT 3 Subcontractoragreestoobtainandmaintainanyliabilityinsurancewithlimitsnot lessthan $1,000,000 peraccident. d.If Subcontractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of notless than $1,000,000 per claim with $2,000,000 intheaggregate. e.Thefollowingrequirementsapplytotheinsurancetobeprovidedby Subcontractorpursuant to this section: i.Subcontractor shall maintain all insurance required above in full force and effectfortheentireperiodcoveredbythisFUP/FYISpecialFees Agreement. ii.CertificatesofinsuranceshallbefurnishedtotheContractorupon execution of this FUP/FYI Special Fees Agreement and shall be approved bythe Contractor. iii.Certificates and policiesshall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty(30)days priorwritten noticeto theContractor. iv.Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this FUP/FYI Special Fees Agreement, the amounts provided by the certificates of insurance shall be incorporatedbyreferenceinto theFUP/FYISpecial FeesAgreement. v.Subcontractorshallsupply Contractorwitha fully executed additional insuredendorsement. f.If Subcontractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the Contractor with required proof that insurance has election, to forthwith terminate this FUP/FYI Special Fees Agreement.Such termination shall notaffectrighttobepaidforitstimeandmaterialsexpendedpriorto notification of termination. Subcontractor waives the right to receive compensation and agrees to indemnify the Contractorfor any work performed prior to approvalof insurance by the Contractor. 8.INDEMNIFICATION Subcontractor agrees to defend, and shall indemnify and hold harmless the Contractor, its officers, agents,employees, contractors, special counsel,and representatives fromliability:(1) for personal injury, damages, just compensation,restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligentoperations of theSubcontractor, its subcontractors, agents,employees, orotherpersonsactingonitsbehalfwhichrelatestotheservicesdescribedinsection1ofthis 5 EXHIBIT 3 FUP/FYI Special Fees Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arisingfromthisFUP/FYISpecialFeesAgreement.Thisindemnityandholdharmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable reliefsuffered,orallegedtohavebeensuffered,byreasonoftheeventsreferredtointhis Sectionorbyreasonofthetermsof,oreffects,arisingfromthisFUP/FYISpecialFees Agreement.The Subcontractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the Contractor, including fees and costs for special counsel to be selected by the Contractor,regardingany actionby athirdparty challenging thevalidity ofthisFUP/FYI SpecialFeesAgreement,orassertingthatpersonalinjury,damages,justcompensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from thisFUP/FYI Special Fees Agreement.Contractor may make allreasonabledecisionswithrespecttoitsrepresentationinanylegalproceeding. Section2782.8,theabove indemnity shallbe limited,to theextentrequiredby CivilCode Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willfulmisconduct of theSubcontractor. 9.RECORDS Subcontractorshallkeeprecordsandinvoicesinconnectionwiththeworktobe performed under this FUP/FYI Special Fees Agreement.Subcontractor shall maintain complete andaccuraterecordswithrespecttothecostsincurredunderthisFUP/FYISpecialFees Agreement and any services, expenditures, and disbursements charged to the Contractor for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Subcontractor under this FUP/FYI Special Fees Agreement.All such records and invoices shall be clearly identifiable.Subcontractor shall allow a representative of the Contractor to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this FUP/FYI Special Fees Agreement during regular business hours.Subcontractor shall allow inspection of all work, data, documents, proceedings, and activities related to this FUP/FYI Special Fees Agreement for a period of three (3) years from the dateoffinalpaymenttoSubcontractorunder thisFUP/FYISpecialFeesAgreement. 10.CONFIDENTIALITY IfSubcontractorreceivesfromtheContractorinformationwhichduetothenatureof such information is reasonably understood to be confidential and/or proprietary, Subcontractor agreesthatitshallnot use or disclose suchinformationexceptinthe performance of this FUP/FYI Special Fees Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. includesnotonlywritteninformation,butalsoinformationtransferredorally,visually, electronically, or by other means.Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this FUP/FYI Special Fees Agreement. Theforegoingobligationsofnon-useandnondisclosureshallnotapplytoanyinformationthat (a)hasbeendisclosedinpubliclyavailablesources;(b)is,throughnofaultoftheSubcontractor 6 EXHIBIT 3 disclosed in a publicly available source; (c) is in rightful possession of the Subcontractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Subcontractor without reference to information disclosed by the Contractor. 11.CONFLICTOFINTEREST CLAUSE Subcontractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified underthis FUP/FYISpecial FeesAgreement. 12.NON-DISCRIMINATION Subcontractor shall not discriminate because of race, color, creed, religion, sex, marital status,sexualorientation,age,nationalorigin,ancestry,ordisability,asdefinedandprohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or otheremploymentrelatedactivities.Subcontractoraffirmsthatitisanequalopportunity employerandshallcomplywithallapplicable federal, state andlocal laws andregulations. 13.EXCLUSIVITYANDAMENDMENT This FUP/FYI Special Fees Agreement represent the complete and exclusive statements between the Contractor and Subcontractor, and supersede any and all other agreements, oral or written, between the parties.This FUP/FYI Special Fees Agreement may notbe modified except bywritteninstrumentsignedbytheContractorandbyanauthorizedrepresentativeof Subcontractor.The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to,the terms and conditions hereof, shall not bind or obligate Subcontractor or the Contractor. Each party to this FUP/FYI Special Fees Agreementacknowledgesthatnorepresentations,inducements,promisesoragreements,orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodiedherein. 14.ASSIGNMENT Inasmuch as this FUP/FYI Special Fees Agreement is intended to secure the specialized services of Subcontractor, Subcontractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the Contractor and any such assignment, transfer,delegationorsubcontractwithouttheContractor'spriorwrittenconsentshallbe considered null and void. Nothing in this FUP/FYI Special Fees Agreement shall be construed Special Fees Agreement performed by Contractor personnel or by other Subcontractors retained byContractor. 15.TERMINATION ThisFUP/FYISpecialFeesAgreementmaybeterminatedbytheContractoruponthirty (30)dayswrittennoticeoftermination.Insuchevent,Subcontractorshallbeentitledtoreceive 7 EXHIBIT 3 andtheContractorshallpaySubcontractorcompensationforallservicesperformedby Subcontractorpriorto receiptofsuch noticeof termination,subjectto thefollowingconditions: a.Asaconditionofsuchpayment,theExecutiveDirectormayrequire Subcontractor to deliver to the Contractor allwork product(s) completed as of such date, and in such case such work product shall be the property oftheContractor unless prohibited by law, deemsappropriate. b.Payment need not be made for work that fails to meet the standard of performance specifiedin theRecitalsof thisFUP/FYISpecialFeesAgreement. 16.WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted bythe provisions of this FUP/FYI Special Fees Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writingso specifies. 17.JURISDICTION-VENUE This FUP/FYI Special Fees Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this FUP/FYI Special Fees Agreement shall be determined and governed by the laws of the State of California.Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of thisFUP/FYISpecialFeesAgreement. 18.PROFESSIONALLICENSES Subcontractorshall,throughoutthetermofthisFUP/FYISpecialFeesAgreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, theStateofCalifornia,theCityofSantaAnaandallothergovernmentalagencies. Subcontractor shall notify the Contractor immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be causefor termination ofthisFUP/FYISpecialFeesAgreement. 19.NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this FUP/FYI Special Fees Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communicationin themanner providedin thisSection, tothefollowingpersons: 8 EXHIBIT 3 CONTRACTOR:SUBRECIPIENT: HongloanJ HullBecksHeyhoe OperationsSupervisorExecutiveDirector CityofSanta AnaUnitedtoEndHomelessness CommunityDevelopmentAgency(M-25)Orange County United Way 20CivicCenterPlaza18012 Mitchell South P.O.Box1988Irvine,CA92614 SantaAna, CA92702-1988(949)263-6112 (714)667-2247becksh@unitedwayoc.org (714)547-5411FAX hhull@santa-ana.org A party may change its address by giving notice in writing to the other party.Thereafter, any communicationshallbeaddressedandtransmittedtothenewaddress.Ifsentbymail, communication shall be effective or deemed to have been given three (3) days after it has been deposited inthe United Statesmail,duly registeredorcertified,withpostageprepaid,and addressed as set forth above.If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above.For purposes of calculating these timeframes, weekends, federal, state, CountyorCityholidays shall beexcluded. 20.MISCELLANEOUSPROVISIONS a.Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this FUP/FYI Special Fees Agreement, and shall indemnify Contractor fully, including reasonable costs and at such authority or poweris not, in fact, heldbythe signatoryor is withdrawn. b.All Exhibits referenced herein and attached hereto shall be incorporated as if fully setforth in the bodyof thisFUP/FYISpecial FeesAgreement. {Signaturesonfollowingpage} 9 EXHIBIT 3 INWITNESS WHEREOF, thepartiesheretohave executedthisFUP/FYISpecial FeesAgreementonthe dateand yearfirstwrittenabove. ATTESTHOUSING AUTHORITY OF THE CITY OFSANTA ANA DAISYGOMEZSTEVENA. MENDOZA RecordingSecretaryExecutiveDirector APPROVEDASTO FORMORANGECOUNTY UNITEDWAY SONIAR.CARVALHO AuthorityGeneral Counsel By:_ RYANO.HODGEEmileeTello AssistantCounselChiefFinancialOfficer We have no further revisions to this agreement. 10 EXHIBIT 3 EXHIBIT A U.S.DEPARTMENTOFHOUSINGANDURBANDEVELOPMENT WASHINGTON,DC20410-5000 OFFICEOFPUBLICANDINDIANHOUSING SpecialAttentionof:PIHNotice2021-10 OfficeDirectorsofPublicHousing; RegionalDirectors:PublicHousingIssued:March24,2021 Agencies Expires:Thisnoticeremainsin effect until amended, superseded, or rescinded. Cross References: P IH Notice 2021-08, PIH Notice 2020-17, PIH Notice 2020-04, PIH Notice 2020-19,PIHNotice2020-01, PIHNotice2019- 01/H-2019-02,PIHNotice2019-20,PIHNotice 2018-12,PIHNotice2018-09, PIHNotice2017- 06,PIHNotice 2015-17,PIHNotice 2013-28, PIHNotice 2011-28 SUBJECT: Implementation of the Federal Fiscal Year (FFY) 2021 Funding Provisions for the Housing Choice Voucher Program, and Availability of FFY 2020 Housing Assistance Payments (HAP) Set-Aside Funds for Second Round Per Unit Cost (PUC) Increases due to Unforeseen Circumstances 1.Purpose. This notice implements the Housing Choice Voucher (HCV) program funding provisionsoftheConsolidatedAppropriationsAct,2021(P.L.116-260),referredtohereafter methodology for calculating housing assistance payments (HAP) renewal funds, new incrementalvouchers and administrativefees. This notice also sets forth the second-round application process for HAP set-aside funds remaining from the Further Consolidated Appropriations Act, 2020 (P.L. 116-94, hereafter increasesthatoccurredin calendaryear(CY)2020 asaresultofunforeseen circumstances, includingbut not limited to theCOVID-19pandemic. 2.Organization. This notice is grouped into two parts. Sections 3 through 16 describe the funding made available under the 2021 Act, the 2020 Act HAP set-aside second round, and provisions related to the allocation of that funding. Sections 17 through 23 provide other HCVProgram. 3.Summary provided through the 2021 Act, which HUD allocates to PHAs in accordance with such Act asdescribedinthisnotice.The2021ActrequiresHUDtoproviderenewalfundingbasedon validated Voucher Management System (VMS) leasing and cost data for the prior calendar year (CY) (January 1, 2020 December 31, 2020). The CY 2021 total amount appropriated byCongress tofund the HCVProgramis split upby budgetlineitemsas follows: EXHIBIT 3 2 CY2021Appropriations 1 HAPRenewalFunding$23,075,000,000 2 TenantProtectionVouchers$116,000,000 AdministrativeFees$2,159,000,000 1 TribalHUD-VASH$5,000,000 MainstreamVouchers$314,000,000 VeteransAffairsSupportiveHousing$40,000,000 FamilyUnificationProgram$25,000,000 HousingStabilityVouchers$43,439,000 TotalAvailableCY2021Appropriations$25,777,439,000 This notice provides information on how HUD calculates HAP renewal funding for the calculations attached. If a PHA has questions related to the calculations or this notice, the PHA should contact its Financial Analyst (FA) at the FinancialManagement Center(FMC). PHAs administering the HCV Program and/or Mainstream Vouchers are encouraged to pay particular attention to the set-aside funding provisions (listed in Section 5 and Section 13 and Appendix H,Application for $110 Million Set-Aside for Categories 2b Portability; 3- Project-Based Vouchers (PBVs); 4 HUD-VASH; and/or 5Lower-than-average Leasing. Appendix G, Application for $110 Million Set-Aside for Category 2a Unforeseen Circumstances; and Appendix J,Application for $110 Million Set-Aside for Category 6 - Disaster). 4.CalculationofCY2021HAPRenewalFunding.The2021ActrequiresthatHUDapplya re-benchmarking renewal formula based on validated leasing and cost data in VMS for CY 2020 The renewal provisions of the Act are stated in Appendix A, Consolidated Appropriations Act,2021 (PublicLaw 116-260). HUDisprovidingrenewalfundingasfollows: Step1:AnewHAPfundingbaselineisestablishedbasedonallvalidatedleasingandcost data(nottoexceedunitmonthsavailableundertheAnnualContributionsContract 1 The2021Actprovidesthatof the$23.08billionforHAPRenewalFunding,up to$5millionisforTribalHUD- VASHrenewalgrants.Theamountfor HAPRenewalshasbeenreducedhereaccordingly. 2 replacement of housing units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project-based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financedbetween1959 and 1974 thatarerefinanced pursuantto PublicLaw106569, as EXHIBIT 3 3 3 (ACC)inVMSforCY2020). Step 2: As required by the 2021 Act, HUD adjusts allocations for the first-time renewals of tenant protection vouchers and special purpose vouchers (SPVs), such as HUD Veterans Affairs Supportive Housing (HUD-VASH) vouchers, Family Unification Program (FUP), Foster Youth to Independence (FYI), and Non-Elderly Disabled (NED) vouchers for which the initial increment expires in CY 2021. Affected ndicate the amount of additional funding provided for CY 2021 for first-time increments not initially funded for twelve months. Note: Reissuance of vouchers originally issued to families under the Disaster Voucher Program/Disaster Housing Assistance Payments-IKE (DVP/DHAP-IKE) is not permitted. For DVP/DHAP-IKE vouchers, as with vouchers issued under the sunset provisions identified in Section 6 ofPIH Notice 2018-09, Annual Contributions Contract (CACC) unit authorizations and CY 2021 renewal funding allocations reflect a reduction in units based on the number of such families underassistanceas reported in VMSas ofDecemberof2020. Step 3: The Renewal Funding Inflation Factor (RFIF), adjusted for localities, is applied to th-month renewal requirement after all adjustments have been Policy, Development and Research (PD&R) and can be found at https://www.huduser.gov/portal/datasets/rfif/rfif.html. Step 4: HUD determines the total HAP renewal funding eligibility for all PHAs and compares that amount to the total HAP renewal funds available per the 2021 Act to 2021 eligibility. A proration of less than 100% is applied if the nationwide eligibility exceedstheavailableHAP renewal funding. Step 5: -held program reserves (in accordance with VMS data in CY 2020 that is verifiable and complete), as determined by the Secretary. PIH will perform a small offset (impacting a limited number of PHAs) for reallocation in CY 2021 to ensure the national HAP prorationiscloserto100%.GiventhefundingprovidedfromtheAmerican RescuePlan Act (ARPA) for the adjustment of PUC cost increases and to prevent the termination of rental assistance for families as the result of insufficient funding, PIH may reconsider to offsetaportionoftheprogramreservestosupplement theHAP shortfallcategory. Detailed calculations of the offsets will be provided to impacted PHAs in the renewal allocation enclosure. Offsets will come from excess program reserves reconciled December 31, 2020 and will protect multiple categories of eligibility. In accordance with PIH Notice 2020-17, amounts originating from CARES Act HAP awards are not included with program reserves. Appendix B to this notice,CY2021 Offset Reallocation,is anexampleoftheoffset enclosuresthat willbeprovided 3 In rare instances where vouchers weretransferred from one PHA to another during the re-benchmarking period, the leasing and cost data of the PHAs will be adjusted to ensure that the leasing and costs represented by the transferredvouchersareproperlyaccountedfor intheeligibility determinations. EXHIBIT 3 4 to PHAs and specifically describes this calculation as well as the protected categories of eligibility. 5.Set-aside of up to $110 million to Adjust PHA Allocations. HUD has authority to provide or the categories outlined below. Awards will be made to eligible PHAs in accordance with need, as determined by HUD, following an application by the PHA as described in Section 13 of this notice. Awards could be reduced, in whole or in part, if PHAs have available reserves RNP and/or HUD-held reserves) above a reasonable threshold, as defined by the Secretary, and/or prorated if the $110 million is insufficient to cover all awards. Additionally, HUD reserves the right to fund one, some, or all of the categories. Set-AsideCategories: Category1:PreventionofTerminationsDuetoInsufficientFunding(Shortfall) Category2a:UnforeseenCircumstances Category2b:Portability Category3:Project-BasedVouchers(PBV) Category4:HUD-VASH Category5:Lower-than-averageLeasing Category6:Disaster The above numbering of the categories does not reflect priority; however, HUD reserves the righttoprioritize or limitCategory1:Preventionof TerminationsDue toInsufficient Funding. Please refer to Section 13 of this notice for more details about the set-aside categories, eligibility requirements, and submission deadlines. PHAs may apply for more than one category of funding and the funding provided within categories 2 6 does not impact the awardamount oftheothercategories(applicableonlyto categories 26). PHAs administering Mainstream Vouchers may apply for categories 1, 2a, and 2b. For additionaldetails on how toapply, pleasereferto Section13. 6.TenantProtectionVouchers(TPVs). a.Definition. TPVs are provided to protect HUD-assisted families from hardship as the -Rent) and Multifamily Housing portfolios. Therefore, if the PHA applies for and is awarded replacementTPVs,itmustofferthereplacementTPVsintheformoftenant-basedoras 4 project-basedassistancetoeligiblefamiliesimpactedbytheconversion.Undercurrent HUDpolicy,asfurtherdescribedbelow,replacementTPVsarealsoprovidedforvacant unitsthatwereoccupiedbyanassistedfamilyintheprevious24months.Relocation 4 Thisstatementsupersedesthelastsentenceinfootnotes5and6ofPIH2018-09,whichstatedthataPHAcannot offerimpactedresidentsanotherformofcomparablehousing(i.e.anotherpublichousingunit,aRADunit)ifit applies forandreceivesTPVsforthePublicHousingaction.WhilethePHAisrequiredtoofferthereplacement TPVtotheeligibleimpactedfamily,inthecontextofPublicHousingconversions,thePHAhasdiscretion,atthe time oftheTPVoffer,toinformallfamiliesthatthefamilyis notrequiredtoaccepttheTPV,andthat,ifthe familychooses,atthesolediscretion,nottoaccepttheTPV,thePHAintendstoofferthefamilyanother formofhousing. EXHIBIT 3 5 TPVs must only be used by the family impacted by the conversion action as described in 5 Section6 ofPIH2018-09. b.Funding.Asnotedabove,the2021Actprovides$116millionforTPVs. c.Continued Applicability of PIH Notice 2018-09. Except as specifically revised in Section6aand6dofthisnotice,theprogrammaticandpolicyguidanceinSection6of PIH Notice 2018-09, Implementation of the Federal Fiscal Year (FFY) 2018 Funding ProvisionsfortheHousingChoiceVoucherProgram,continuestoapplytoTPVs. d.Eligibility for Replacement TPVs (Vacant Units) in PIH 2018-09, was to provide replacement TPVs only for occupied units. This policy was revised in the FY 2019 HCV Funding Notice and continues to apply under this notice, so that, in addition to providing replacement TPVs for occupied units, HUD will also provide replacement TPVs for vacant units that were occupied by an assisted family within the previous 24 months that are no longer available as assisted housing, subject to theavailabilityoffunding.Theexamplesbelowexplainhowthis policywill work: i.For Public Housing Actions, vacant units that were occupied by an assisted family withintheprevious24monthsfromthetimeoftheSpecialApplicationCenter(SAC) approval or the Choice Neighborhoods Initiative (CNI) award date. For example: on February 1, 2021, PHA A was approved for demolition/disposition of 25 public housing units. Of 25 units in property A, 5 of those units were last occupied on February 1, 2019. The remainder of the units continue to be occupied. Replacement TPV funding may be provided for all 25 units (vacant and occupied) because the 5 vacantunitswerelastoccupiedlessthan24monthsfromtheSACapproval. ii.For Multifamily Housing Actions, vacant units that were occupied within the previous 24 months from the eligibility event. For example: on February 1, 2021, the prepayment of a section 236 mortgage in property A triggered eligibility for TPVs. Of 25 units in property A, 5 were last occupied on February 1, 2019. The remainder of the units continue to be occupied. Replacement TPV funding may be provided for all 25 units (vacant and occupied) because the 5 vacant units were last occupied within24months from theeligibility event. e.TPV Set-Aside. The 2021 Act provides that at least $5,000,000of the $116 million appropriated for TPVs may be set-aside to provide TPVs to certain at-risk households in low-vacancy areas. On February 15, 2019, HUD issuedPIH Notice 2019-01/H-2019-02, FundingAvailabilityforSet-AsideTenantProtectionVouchers.HUDhasdeterminedthat the continued use of this notice is fully consistent with congressional directives on this subject. 5 TPV allocations qualify as neverincludevouchersforvacantunits.ForinformationonreplacementandrelocationTPVallocations,seeSection 6 ofPIH 2018-09. EXHIBIT 3 6 6 f.TPVFunding.HUDcalculatesTPVfundingforalleligibleTPVactions(including thoseinthePublicHousingandMultifamilyHousingportfolios)basedontheaverage PerUnitCost(PUC)intheHCVprogram.IfthePHAthatwilladministerthe TPVshasconcernsregardingthesufficiencyoftheTPVfundingbasedonitsaverage PUC,thePHAcaneither:(a)requestanupfrontincreasedPUCalongwiththeTPV fundingapplication,or(b)requesthigherTPVfundingafterthePHAhasalready submittedtheTPVfundingapplication,ifatthetimethatthePHAsubmitstheTPV fundingapplicationthePHAisunsureifitwillneedadditionalfunding(e.g.thePHAis unsureoftheactualcoststhatjustifyanincreasedPUC).Ineithercase,thePHAmust submittherequestbyemailtothePortfolioManagementSpecialistattheHUD PIHFieldOffice,withcopytotheFieldPublicHousingDirector.IfthePHA doesnotknowtheirassignedPortfolioManagementSpecialist,thePHAmayemailthe FieldPublicHousingDirectorforassistance.ThePHAmustjustifythe requestedincreasebyprovidingevidenceofrentamountsthatresultinhigherHAPcosts andajustificationexplainingthattherentsarereasonable.7 Ataminimum,thePHAmust submititsrentreasonablenessanalysisandabudgetauthoritygapanalysisthatincludes thefollowingdata: UnitType/BedroomSize CountofUnitsbyType/BedroomSize ContractRent UtilityAllowance(ifownerpaid) MonthlyTotal(ContractRent+UtilityAllowance) ResidentRent Monthly/Annualsubsidyneedbyunitandproperty and/or projected subsidy costs are appropriately calculated and may follow-up with the PHAifadditionalinformationisneeded.IftheFieldOfficedeterminesthattheincreased PUC is appropriate, they will notify HCV FMD of the revised need via a Field Office documentation (and the TPV funding application, if applicable), to PIHConversionActions@hud.gov. The following additional requirements also apply where the PHA is submitting its request forincreased TPVfunding subsequentto theTPVaward: The following additional information must be submitted with the request: Housing Assistance Payments contract(s), Monthly/Annual subsidy provided in the TPV award,and ACC letterreflecting theTPVaward. PHAscanapplyforhigherPUCsduringthetimeoftheirinitialfundingincrement. The effective date for TPV increments is provided in the amended ACC letter sent from the FMC to PHAs. Once the initial funding increment is renewed, no additionalPUC will beprovided. 6 The provided in this section applies to all TPV actions, including those in the Public Housing and Multifamily Housing portfolios. 7 Rentreasonablerequirementsarefoundinregulationat24CFR982.507and24CFR983.303,asapplicable.Rent reasonablenessguidance maybe found intheRentReasonablenessChapter oftheHCV Guidebook. EXHIBIT 3 7 Note that all additional TPV funding is subject to available appropriations. Questions concerning the TPV adjustment process described above may be sent to PIHConversionActions@hud.gov. g.FosterYouthtoIndependencenolongerfundedthroughTPVs.OnJuly26,2019, HUDissuedNoticePIH2019-20,TenantProtectionVouchersforFosterYouthto IndependenceInitiative.ThenoticeannouncedaninitiativetoprovideTPVsforyouth eligibleundertheFamilyUnificationProgram(FUP)incommunitiesthatdonot administerFUP.HUDisnolongerprocessingrequestsforTPVsunderthatnoticefor FUP-eligibleyouth.TPVsawardedunderNoticePIH2019-20mustcontinuetooperate under therequirementsofthenotice.Thisincludesturnoverrequirementsandthe requirementtoinformHUDshouldayouthnotuseavoucherorleavetheprogram.On October6,2020,HUDissuedNoticePIH2020-28,FosterYouthtoIndependence Initiative,whichexplainstheeligibilityandapplicationrequirementsforFYIvouchers tobemadeavailableforeligibleyouthnon-competitively.Additionally,HUD announcedtheFYICompetitiveNoticeofFundingAvailability(NOFA)onJanuary19, 2021,making$20millionavailablecompetitivelyforFYI,withanapplicationdeadline ofMarch 22,2021. 7.Funding for Administrative Costs. The 2021 Act provides $2,159,000,000 for administrative expenses of PHAsadministering the HCV Program (see Appendix A for Appropriations text). Of the appropriated amount, no less than $2,129,000,000will be availableforongoingadministrativefeesandfeesfornewvouchersandupto$30,000,000 will be made available to allocate to PHAs that need additional funds to administer their COVID-19eligibleexpensesasauthorizedinCY2020bytheCARESAct. A.Ongoing Administrative Fees and Administrative Fees for New Vouchers. Ongoing administrative fees and administrative fees for new vouchers are allocated based on leasing. These administrative fees are calculated for CY 2021 as provided for by Section 8(q) of the United States Housing Act,and related Appropriation Act provisions, as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act (QHWRA) of 1998 (P. L. 105-276). Under this calculation, PHAs are allocated a fee amount for each voucher that is under HAP contract as of the first day of each month. Administrative fees for new incremental vouchers are alsoallocated based on leasing. 1.Proration and Reconciliation of Administrative Fees: HUD is developing and will post administrative fee rates for each PHA to enable PHAs to calculate potential fee eligibility. An announcement will be made when they become http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housin g/programs/hcv. HUDdisbursesadministrativefeestoPHAseachmonthbasedonactualleasing eligibility is reconciled after every quarter based on actual reported leasing, adjusted by an estimatedprorationbasedontotalannualfundingforadministrativefees.HUD EXHIBIT 3 8 national th eligibility for administrative fees to one quarter (1/4) of the appropriated amount available for ongoing administrative fees. HUD will disburse any amount due to the PHA and will offset any amount due from the PHA via a reduction from a subsequent administrative fee payment. A final reconciliation will be completed after the December 2021 leasing data is reported in VMS, at which time the final pro-ration for the calendar year (CY) will be determined. It is likely that HUD will start using IMS-PIC leasing data to determine HAP and administrative fee monthly disbursements as we transition to the Enterprise Voucher Management System (eVMS) in CY 2021. HUD will alert each PHA when their payments will becalculated based onIMS-PICleasing data. 2.BlendedRateAdministrativeFeesandHigherAdministrativeFeeRates: a.BlendedRateAdministrativeFees:PHAsservingmultiple administrativefeeareasmay,inlieuofthefeedeterminedfortheir agency, request a blended rate based on the actual locationof their assisted units.Theblended ratewill beused fortheentireCY2021. How to Submit Requests (new):Due to the COVID-19 pandemic, PHAs must submit applications electronically as HUD employees are currently on mandatory telework and are not able to access regular mail on a consistentbasis. ElectronicMail(email)Requests: PHA requests for Blended Rate Fees must be submitted to HUD at the followingmailbox:PIHFinancialManagementDivision@hud.gov. Thesubjectlineofthe e-mailmustreadas follows: PHA Number, Request for Blended Rate Administrative Fees (e.g., TX001,2021Request forBlended RateAdministrativeFees). Deadline to Submit Requests: Requests for Blended Rate Administrative Fees must be received Friday,May 28, 2021. b.HigherAdministrativeFeeRates:APHAthatoperatesoveralarge geographicarea,definedastwoormorecounties,mayrequesthigher administrativefees.Anapprovedhigheradministrativefeeratewillapply onlytoCY2021andisapplicabletotheHCV ProgramandMainstream Vouchers.ThePHAwillberequiredtosubmitevidenceofactualcostsat theendoftheCYtoenableHUDtodetermine iftheentireapproved increasewasneeded.ExcessfundswillbeoffsetbyHUDviaareductionin afuturedisbursement. Submission Requirements for Higher Administrative Fee Rates (New): To request higher fees, an agency must submit the following financial documentationto theFAat theFMC: EXHIBIT 3 9 Actual Unrestricted Net Position (UNP) (formerly referred to as Unrestricted Net Assets or administrative fee reserves) balance as of December31, 2020. Actual administrative costs for the HCV Program for CY 2020 insufficient detail to allowforreview. anticipated reasonable and necessary administrative costs broken out in sufficient detail to allow for review (positions and salaries, detailed travel costs, overhead and pro-rations, etc.). There is no HUD form, nor amandated format, forthis budget. An explanation of why the unit month and budget authority utilization in CY 2020 was below 95 percent of the unit month and budget authorityavailableforrenewal units (ifthis occurred). If the PHA has made withdrawals from the Administrative Fee reserves per official guidance provided inPIH Notice 2015-17:Uses and ReportingofAdminFeeReserves, certificationisrequired.Shouldthere be no withdrawals at this point, a statement that none were made is required. An explanation as to why the projected CY 2021 administrative fees areinsufficienttocoverexpectedprogramoperating costs. CertificationbytheexecutivedirectorofthePHAthatthedataisaccurate. HUDreservestherighttoreducethedocumentationrequired. To request a higher administrative fee rate, PHAs must provide the above information to the FMC. The required information must be received no later .PHAs must submitapplications electronically. Electronic Mail (email) Requests: PHA requests for a higher administrativefee ratemust besubmittedtoHUDatthefollowingmailbox: FinancialManagementCenter@hud.gov.Subjectlinemustreadas follows:PHA Number, (e.g., TX001) 2021 Request for Higher AdministrativeFee. B.SpecialFees.Asstatedabove,HUD willmake upto$30,000,000availabletoallocate to PHAs that need additional funds to administer their Section 8 programs. A portion of the $30,000,000 set-aside may be used for ongoing administrative fees to increase the national fee proration, should HUD determine during the course of the calendar year (after the submission deadlines outlines below) that the entire $30,000,000 may not be needed for extraordinary costs. HUD will consider requests for other unanticipated increases in Administrative Fees on a case-by-case basis. Please note that requests for additional fees because of a lower national fee proration will not be accepted. Special fees are not applicable to Mainstream Vouchers. These funds may beprovided forthefollowing non-exclusivepurposes: EXHIBIT 3 10 1.HCV Homeownership Fees: HUD provides a $200 special fee for every homeownership closingreportedinthePublicHousingInformationCenter (PIC) for HCV families who have become homeowners through the HCV Homeownership program, Moving To Work (MTW) Homeownership program, and the Family Self-Sufficiency program (HCV only). These special fees are allocated to the PHAs administering the vouchers, or FSS participation, after the gs are reported in PIC and closing dates are provided to the FMC staff. PHAs do not need to apply for these funds as HUD provides these fees automatically based on PIC data and closing dates confirmations. HUD will also fund a one-time $500 special fee foreach newly created HCV HomeownershipProgram at any PHAin CY2021. 2.SpecialFeesforPHAsthatAdministerTPVsinConnectionwithMultifamily Housing Conversion Actions: For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event. PHAs do not need to apply for these funds as HUD provides thesefeesautomaticallybasedonPICdata.Thisspecialfeewillalsobeallocated to PHAs that agree to administer vouchers on behalf of a Multifamily Choice NeighborhoodsGrantee. 3.SpecialFeesforPortability:ReceivingPHAswithnumbersofportability vouchersthatcompriseasignificantportionoftheirvouchersunderleaseare eligibleforaspecialfee.PHAsmusthavebeenadministeringanumberofport- invouchersequalto20%ormoreofthetotalnumberofleasedvouchers asofDecember31,2020tobeeligiblefor specialportabilityfees.Foreach eligibleport-invoucher,thereceivingPHAwillreceive12monthsoffunding equalto15%ofthe2021ColumnArateforadministrativefees.Thisis aone-timeawardofspecialfeesandwillbecalculatedbasedonPHAportability datafoundinPICforactionsthroughDecember31,2020andleaseddatafrom theVMSasofDecember31,2020(fromthe sameVMSdatabaseusedto determine the2020HCVrenewalallocations).PHAsdonotneedtoapplyfor thesefundsasHUDprovidesthesefeesautomaticallybasedonPICdataandthe VMSdatausedforthe2020renewalallocation.PHAswereadvisedviaemail onFebruary9,2021,ofthedeadlinedateofnolaterthan5p.m.,perthe st timezone,Monday,March31,2021toensureallPICdataisupdated and successfullysubmitted. 4.SpecialFeesfor AuditCostsforDeclaringMajorHCVProgramsper Notice 2021-08, and for HCV Voluntary Transfers per PIH Notice 2018-12: Please refer to Section 4,PIH Notice 2021-08or a superseding notice published by HUD: Financial Reporting requirements for the HCV Program Submitted through the Financial Assessment Subsystem (FASS) for Public Housing and the Voucher Management System (VMS), and Section 6,PIH Notice 2018-12: Process for PHA Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream Vouchers, PBV and Project-Based Certificates, for the eligibilityrequirementsandprocesstorequestspecialfeesunderthiscategory. PIHNotice2021-08,Section4.Forthosegeneral-purposegovernmentsthathave notdeclaredtheirHCVrelatedprogramsasamajorfundforfinancialstatement EXHIBIT 3 11 purposes or as a major enterprise fund under Code of Federal Regulations (CFR), Title 2, Subtitle A, Chapter II, Part 200, Subpart F; Audit Requirements, the audit obtained may not be sufficient for HUD to properly monitor its financialandcompliance interest in theseentities. Therefore, for HUD to gain an acceptable level of assurance, these PHAs may be directed to procure Independent Public Accountant (IPA) services for financial and compliance proceduresasspecifiedby HUD.Thisadditionalworkis Housing Voucher Programs (OHVP), Financial Management Division (FMD) at PIHFinancialManagementDivision@hud.govto confirm whether they must procure an IPA service. If the PIH OHVP, FMD determines that IPA services must be performed, HUD will provide set-aside funding, if available, to reimburse the agency for any additional audit costs unless sufficient Unrestricted Net Position (UNP) exists, in which case these funds may be used for the special purposeaudit cost. PIH Notice 2018-12, Section 6. While reviewing the transfer of UNP to the receiving/consolidated PHA, the HUD Field Office will ensure the divesting PHA has properly procured and entered into a contract with an independent public accountant to conduct its close-out audit, and has the funds available to cover it, HUD may assign extraordinary administrative fees (EAF). This is subject to availabilityoffundsandjustifiablecircumstances,fromtheAdministrativeFeeset- aside funds to cover close-out audit costs and may conduct a final close-out or forensic audit of a divesting PHA, either prior to or following to the transfer/consolidation. The HUD Field Offices must contact the Housing Voucher Financial Management Division at PIHFinancialManagementDivision@hud.govto confirmavailabilityofEAF;however,thedivestingavailableadministrative fee,UNP,and/orothernon-federalfundsmustbeconsideredfirstandrestrictedfor thispurpose. 5.Special Fees Needed for Administration of Section 8 Tenant-Based Rental Assistance Program: PHAs experiencing increased administrative expenses that need additional funds to administer their Section 8 HCV Programs, including as a result of administration of tenant protection rental assistance, disaster related vouchers,HUD-VASHvouchers,andotherspecialpurposeincrementalvouchers, as shown in this section under Guidance for Special Fee Applications Per Category,canrequest special fees. To qualify for additional funding under these categories, PHAs must experience increased administrative expenses as a result of the administration of tenant protectionrentalassistance,HUD-VASHvouchers,FUPincludingFYI,disaster- related vouchers, and other special purpose incremental vouchers. Requests for other unanticipated administrative fee funding increases will be considered on a case-by- applicableapplicationcriteriawhenpreparingyourapplicationforthesefunds. EXHIBIT 3 12 Please note, HUD will limit the total award amount for all categories combined maximum percentage of the award will be below: Maximum Number ofAward PHASizeUnitsPercentage Small1-24912% Medium2504996% Large500ormore4% Additionally,HUDreservestherighttodenyorlimittheawardamountbasedon administrative fee reserves to ensure fair and reasonable distribution of funds.HUDreservesthe right tofund one,some, orall thecategories. Reporting and recording of awarded Special Fees are included as part of theHCVadministrativefinancialrecordsunderCFDA14.871. Applications for Special Fees under the HUD-VASH and FUP categories must be received 2021. Applications for Special Fees under the Discretion categories must be time zone, Friday, October 29, 2021. All applications must be sent to 2021SpecialFees@hud.gov.ThesubjectlineoftheemailshouldincludethePHA Number and the specific Special Fee category of applications, for example, clarification of items provided with the application. Clarifications or corrections mustbereceivedby HUDwithinthetimeframe specifiedin thenotification. The following information must be included for each category the PHA applies tobeconsideredforfunding undereach requestedcategory: The application page that identifies the categories for application that iscertifiedbysignature(formatAppendix Ctothis document); A letter signed by the appropriate PHA official, clearly indicating the amountbeingrequested, thecalculationusedtodeterminetheamountof the request, andthe estimated UNP (Administrative fee reserve) balance asoftheday oftherequest; Astatementdescribinganactivitythatisbeingproposed,underwayorhas beencompleted; Adescriptionofthelocalneedthattheactivitywillserve; Dataonthenumberoffamiliesthattheactivitywill help; How the activity will lead to an increase in leasing success rates and/or reduceprocessing time; Documentation to support the cost of the activity; the supporting documentationcouldbeaninvoice/receipt,jobposting,anestimatebased EXHIBIT 3 13 on what the activity has cost in a prior year along with documentation of theprioryearcosts, etc.;and Budget justification to support the request. The budget justification must supporttheneedforadditionaladministrativeexpenses.Theexpensesmust ongoingadministrativefeesfortheyear.Foryourconvenience,anexample budgetjustificationisprovidedinAppendixDtothisdocument. GuidanceforSpecialFeeApplicationsperCategory: A.Category1HUD-VASHSpecialFees PurposeoftheHUD-VASHProgram: For eligible homeless veterans and their families, the HUD-VASH Program combines the HUD HCV rental assistance program with case management and clinical services provided The Department of Veterans Affairs (VA) at its medical centers and community clinics. HUD-VASH assists homeless veterans and their families afford decent, safe, and sanitary housing through the distribution of housing vouchers. Beneficiaries are selected based on certain requirements including health care eligibility, homelessness status, and income. Award Information. HUD will reserve up to $5,000,000 for HUD-VASH Special Fees (HUD-VASH). Eligible Activities/Expenses. Under this notice, PHAs may apply for HUD-VASH Special Fees to support necessary additional or extraordinary related administrative expenses incurred to increase lease-up success rates or decrease the time it takes for a veteran to locate and move-into a unit. To apply for these funds, applicants must justify ordocumentactions specificallyforadministeringtheHUD-VASHprogram. Underthisnotice,eligibleactivities/expensescouldinclude,butarenotlimitedto: Hiringtemporarystaffto processRequestforTenancyApprovals(RFTA)forms; HiringtemporarystafftoconductHousingQualityStandards(HQS)inspections, orpre-inspect unitsthat HUD-VASHclientsarelikelyto rent; Hiring temporary staff to provide HUD-VASH clients with housing search assistance; Hiringtemporarystafftoserveas aPortabilityCoordinatorforHUD- VASHclients; -VASH-stopresource for intake,issuingprovisional vouchers,etc.; Hosting Landlord Recruitment Fairs and other activities to engage landlords to participatein theHUD-VASHprogram; HoldingextrabriefingsforHUD-VASHclients;and OtherservicestoensurethatHUD-VASHclientscanmoveintotheirnewhomes withavoucherin theshortest time-period possible. EXHIBIT 3 14 B.Category2FamilyUnificationProgramSpecialFees PurposeoftheFUP: FUPisaprogramunder whichHCVsareprovidedtotwodifferentpopulations: 1.Familiesforwhomthe lackofadequatehousing isaprimaryfactorin: a.Theimminentplacementofthechildorchildreninout-of- homecare, or b.Thedelayinthedischargeofthechildor childrentothefamilyfrom out-of-homecare. 2.For a period not to exceed 36 months, otherwise eligible youths who have attained at least 18 years and not more than 24 years of age and who have left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act, and is homeless or is at risk of becoming homeless at age 16 or older. PHAs administer FUP in partnership with Public Child Welfare Agencies (PCWAs) who are responsible for referring FUP families and youths to the PHA for determination ofeligibility forrental assistance. 3.The 2020 and 2021 Acts included assistance to be targeted to foster youth. HUDreferstothistargetedFUPassistanceastheFosterYouthtoIndependence (FYI) program. FYI is a program under which HCV assistance is provided for a period not to exceed 36 months, to otherwise eligible youths who have attained atleast18yearsandnotmorethan24yearsofageandwhohaveleftfostercare, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act, and is homeless or is at risk of becoming homeless at age 16 or older. PHAs administer FYI in partnership with PCWAs who are responsible for referring youths to the PHA fordetermination ofeligibility forrental assistance. AwardInformation.HUDwillreserveupto$5,000,000forFUPSpecialFees,to include FYI. Additional funds may become available for FUP Special Fees at the discretionoftheSecretary. Eligible Activities/Expenses. Under this notice, PHAs may apply for FUP Special Fees to support necessary additional or extraordinary related administrative expenses incurred toachieveeitherofthefollowing activities: Full(100%)FUP/FYIvoucherutilization;and Increaseaccesstotheprogramfor FUP-eligibleyouth. To apply for these funds, applicants must justify or document actions specifically for administering the FUP/FYI. Under this notice, eligible activities/expenses could include, butarenotlimitedto: Establishing a new/revised Memorandum of Understanding (MOU) with thePCWAand otherpartners; EXHIBIT 3 15 Working with community partners to establish and implement a system to with the Continuum of Care (CoC), including integrating the prioritization and referral process for eli localCoC's coordinatedentry process; Hiringtemporarystaffto processRFTAforms; Hiring temporary staff to conduct HQS inspections or pre-inspect units thatFUP/FYIclients arelikelyto rent; Hiringtemporarystaffto provideFUP/FYIclients withhousingsearchassistance; -stop resource for intake, issuing provisionalvouchers, etc.; Hosting Landlord Recruitment Fairs and other activities to engage landlords to participatein FUP/FYI; HoldingextrabriefingsforFUP/FYIclients; OtherservicestoensurethatFUP/FYIclientscanmoveintotheirnewhomes withavoucherin theshortesttimeperiod possible; and Training PCWA, CoC, and other community partners on FUP/FYI and the HCV Program. C.Category3DisasterRelatedSpecialFees In the event of a future allocation of disaster vouchers during CY 2021, PIH will provideeligibilityandapplicationguidancefordisasterrelatedspecialfees atthattime. D.Category 4 Application for other Special Fees under The Discretion PurposeoftheDiscretionSet-aside: The purpose of this set-aside is to provide Extraordinary Administrative Fee (EAF) to cover administrative expenses incurred as the result of a situation outside of the specific categories described within this notice. HUD will consider requests for other unanticipated increases in Administrative Fees on a case-by-case basis. Please note that requests for additional fees because of a lower national fee proration willnot beaccepted. Award Information. HUD will reserve up to $5,000,000 for other unanticipated increasesin AdministrativeFeesona case-by-casebasis. Eligible Activities/Expenses. Activities and expensesconsidered eligible under Administrative Fees that are not covered under another special fee category are eligibleforfunding undertheDiscretion. Due to the limited nature of Special Fee funds available, payments made directly toassisted families or individuals, such as transportation reimbursement, security depositassistance, etc.,arenotconsidered eligibleexpenses. EXHIBIT 3 16 8.HUD-VASH Funding. The 2021 Act provides $40,000,000 for new incremental vouchers fortheHUD-VASHprogram.Asprovidedbythe 2021Act,voucherswillbeawardedbased on geographic need and PHA administrative performance. HUD will issue comprehensive guidanceon the2021 HUD-VASHallocationatalaterdate. All PHAs are responsible for tracking new units and funding for special purpose vouchers (SPVs), such as HUD-VASH vouchers, to include new incremental vouchers and renewals. HUD-VASH funds can only be used for the intended purposes and are not subject to MTW fungibilityprovisions. 9.Tribal HUD-VASH Renewals. The 2021 Act provides up to $5,000,000 of the amounts forHAPRenewalsfortheTribalHUD-VASHprogram,whichprovidesrental assistance and supportive services to Native American Veterans who are homeless or at- risk of homelessness living in Indian Country. Guidance on the Tribal HUD-VASH programis providedbyOfficeofNativeAmericanPrograms. 10.Mainstream Vouchers. The 2021 Act provides $314,000,000 for renewal funding and administrative fees for Mainstream units. The renewal funding will be re-benchmarked during CY 2021. Renewals are calculated based on validated Mainstream Vouchers leasing and HAP expenses reported in VMS for the period January 1, 2020 to December 31, 2020. PHA funding for Mainstream units is limited to such calendar year eligibility and HUD-held Mainstream reserves. As with the regular voucher program, PHAs may not over-lease. (See Section 22, below, for more information on over-leasing.) As in previous appropriations Acts, the 2021 Act further clarifies that all existing Mainstream Voucher assistance shall be provided to non-elderly persons with disabilities upon turnover.PIH Notice 2020-01 providesfurtherguidance. AdministrativefeesaredisbursedbasedonthemostrecentMainstreamVoucherleasing data in VMS and fee reconciliations are performed on a quarterly basis. In addition, the 2021 Act requires that the administrative and other non-HAP expenses of the PHAs administering these vouchers shall be funded under the same terms and be subject to the same pro rata administrative fee reductions that apply to all other PHAs administering vouchers under the HCV Program. Consistent with the HCV Program, PHAs are not eligible to receive reimbursementforhard-to-housefees and audit costs. AllPHAs are responsible for tracking new units and new funding for SPVs. Mainstream funds can only be used for the intended purposes. These funds are not subject to MTW fungibilityprovisions. The 2021 Act provides that the $110 million HAP set-aside for regular HCVs may also be used to make adjustments to Mainstream Voucher renewal allocations for the followingeligibility categories: (1)Category1Prevention ofTerminationsDuetoInsufficient Funding(Shortfall); (2)Category2aUnforeseenCircumstances;and (3)Category2bPortability. EXHIBIT 3 17 Please see section 13 below for further details and the Mainstream PHA applicationrequirements. 11.Family Unification Program (FUP). The 2021 Act provides $25,000,000 for new incrementalvoucher assistancefor theFUP.Ofthisamount,$20,000,000islimitedtouse on behalf of FUP-eligible youth under FYI, up to $10,000,000of which may be made available non-competitively. HUD included the $10,000,000 in the Foster Youth to IndependenceCompetitive Notice of FundingAvailability (NOFA), published on January 19,2021.Anyamountstobemadeavailablenon-competitivelywillbeannouncedthrougha PIH notice under the FYI initiative (See Section 6). The remaining $5,000,000 will be used to make awards under the 2019 FUPNOFA. These funds may be used on behalf of FUP- eligiblefamilies and FUP-eligibleyouth. The 2021 Act also provides that any PHA administering voucher assistance appropriated in a prior Act under the FUP, or competitively under the 2021 Act, that determines that it no longer has an identified need for such assistance upon turnover, shall notify the Secretary, and the Secretary shall recapture such assistance from the agency and reallocate it to any other PHA(s) based on need for FUP voucher assistance. This includes assistance made non-competitive amounts and awards and will recapture and reallocate any unused amounts inaccordancewiththe2021Act.HUDwillimplementtheseprovisionsthroughguidanceat alaterdate. All PHAs are responsible for tracking new units and new funding for Special Purpose Vouchers.FUPfunds,includingthosemadeavailableundertheFYIinitiative,canonlybe usedfortheintendedpurposes.ThesefundsarenotsubjecttoMTWfungibilityprovisions. 12.Housing Stability Vouchers. The 2021 Act provides $43,439,000for new incremental voucherstargetedtoindividualsandfamiliesexperiencinghomelessnessandthoseat-risk ofhomelessness as those terms are defined in the McKinney Vento Homeless Assistance Act.HUDwill provide additional information at alaterdate. 13.InstructionsforApplyingforFundswithinthe$110MillionHAPSet-Aside. HOW TO SUBMIT REQUESTS-PHAs must submit requests via electronic mail (email)withtheappropriatesignedAppendicesF,G,H,I,andJalongwithallrequired documentation and calculations (if applicable) must be submitted to HUD at the followingmailbox: 2021Set-AsideApplications@hud.gov. The subject line of the email must include the following: PHA Number, 2021 Set-Aside Application(e.g., TX001, 2021 Set-AsideApplication). HUD will automatically reject incomplete applications, including those missing signatures. PHAs may resubmit complete applications within the application acceptance period. Additional Information as the 2021 Set-aside Relates to the American Rescue Plan Act(ARPA)-HUDhasauthorityunderARPA(P.L.117-2),whichwasenactedon EXHIBIT 3 18 funding allocation, including mainstream vouchers, for public housing agencies that experience a significant increase in voucher per-unit costs due to extraordinary circumstances or that, despite taking reasonable cost savings measures, would otherwise Accordingly, HUD will use its discretion to prioritize the 2021 HAP set-aside or ARPA funds for Shortfall Prevention and PUC Increases (referred to as Category 1 Prevention of Terminations Due to Insufficient Funding (Shortfall) and Category 2a Unforeseen Circumstances in this notice). Finally, the FMD will accept both Appendices under the 2021 HCV Funding Notice HAP set aside, Appendix F for Category 1 and Appendix G for Category 2a) and the forthcoming ARPA Notice for these purposes, to ensure PHAs donot haveto resubmit applicationsunderPUCIncreaseorShortfalls. SET-ASIDECATEGORIESANDELIGIBILITYANDSUBMISSION REQUIREMENTS: A.Category 1 Prevention of Terminations Due to Insufficient Funding (Shortfall) This category of HAP set-aside is for PHAs that, despite taking reasonable cost savings measures as determined by the Secretary, would otherwise be required to terminate participating families from the program due to insufficient funds, also known as funding shortfalls. Note that there are two options related to shortfalls for which PHAs may be eligible for funding under this category: the regular HCV Programand/orMainstream Vouchers. To be eligible for funding under this category, the PHA mustmeet the criteria outlined below andmust submit 2021 Appendix F PHA Application for Category1,PreventionofTerminationsDueto InsufficientFunding(Shortfall)and PHA Certification of Reasonable Cost Savings Measures Undertaken to Prevent TerminationofHCVParticipants DuetoInsufficientFunds. In addition to preventing terminations in the regular HCV Program due to insufficient funding, this set-aside funding is also available to prevent terminations of Mainstream Vouchers. A PHA administering Mainstream Vouchers may apply for and receive shortfallfunds inaccordancewith therequirements described below. In cases where the Mainstream PHA also administers regular HCVs, the shortfall determination is program specific (e.g., in determining whether the PHA is in a confirmed shortfall with respect to Mainstream Vouchers, only Mainstream Voucherfundingistakenintoconsideration,nottheregularHCVfunding). A PHA that is experiencing a shortfall in the regular HCV Program and Mainstream Vouchers must indicate the application is covering a request for funds for both Mainstream and regular HCVs by checking both boxes on Appendix F Set-aside funding awarded to the PHA is specific to either the Mainstream Vouchers or regular HCVs and may not be used interchangeably by the PHA. For example, shortfall funding awarded for Mainstream Vouchers may not be used for regular HCVs. HUD willindicatethespecific amountandthetypeofvoucherthe fundingisdesignatedfor intheaward letter. EXHIBIT 3 19 Note: In determining a shortfall for HCV and/or Mainstream Vouchers and the amount of funding to be provided, HUD will use the HCV Two-Year Projection Tool. PHAs should refer to Appendix E of the notice, which provides the criteria HUD will use to determine if the PHA has a HUD-confirmed shortfall and the calculat-Year Forecasting Tool and the instructions for it can be found through a link on theOffice of Housing Vouchers website. Depending on the number of applications and amount of total eligibility, HUD reserves the rightto prioritize awards for the Prevention of Terminations Due to Insufficient Funding (Shortfall) category and may need to prorate eligibility for other categoriesoftheset-aside. Inegregious situations, for PHAsnot followingHUD Shortfall Prevention Team(SPT)guidanceonvoucherreissuance,HUDreservestherighttofurther requireaPHAtorescindrecentlyissuedvoucherstoattainfullset-aside eligibility. PHAs with specific questions related to the calculation and determination of a HUD- confirmed shortfall should contact the SPT at: 2021ShortfallInquiries@hud.gov.The subjectlineoftheemailmustincludethenumber(for example,TX001). PHAs applying for shortfall funding must send their application to 2021Shortfallapplications@hud.gov.The subject line of the email must include the Application -HCV) and indicate if the application is for the regular HCV Program and/orMainstream Vouchers orboth. SUBMISSION:AppendixFasapplicable. DEADLINE:The application period will remain open. PHAs may apply at any time during the applicationperiod. PHAs that receive set-aside funds based on their current HAP costs may find additional funding is needed later in the year; however, theydonotneedtoreapplytoreceive additionalfunding.TheSPTwillautomatically ity for additional funding and HUD will provide the additional funding in accordance with its established set-aside funding priorities and available funding. PHAs that have concerns about potential shortfalls should be in contact with the HUD field office or SPT, regardless of whether they are currently in ashortfall situation. B.Category 2a -Unforeseen Circumstances: PHAs should be aware that an unforeseen circumstance is an occurrence within or after the re-benchmarking period which the PHA could not adjustments for this category are based on cost increases occurring in CY 2021. MainstreamVouchersareeligibleto applyforthiscategoryofset-aside funding. EXHIBIT 3 20 i.PHA Eligibility. The 2021 Act provides that the cost increase must be significant, as defined by the Secretary, for the PHA to be eligible for the unforeseen -aide. HUD is establishing the followingcriteria forsignificantcost increase: Thelatestvalidated2021PUCperVMS mustbe102percentorgreater (theCY2021 Renewal PUC)to beeligibleforfunding. ii.Funding Award Calculations for PHAs. For PHAs (both Non-MTW and MTW),thefundingaward amountwill becalculated asfollows: a. CY 2021 HAP renewal PUC. The increased PUC is calculated by dividing HAP costs by unit months leased (UMLs) for the most recent month of total HAP based on the most recent month provided by the PHA as part of the HCV renewal Enclosure A, line 28, described as CY 2021 Inflated PerUnit Cost. amounton the b. and then by the remaining months in 2021 to determine the total funding amount. In the absence of PUC and UML data provided by the PHA, HUD will use the mostrecentvalidatedVMS data availableto calculatePHAeligibility. PHAExample:UnforeseenCircumstancesHAPSet-asideAward In the absence of the PHA providing the most recent Most Recent Month's PUC month'sPUC, HUDwilluse the provided by the PHA (in this most recent validated month of 1example,$500 VMSreporting MTW renewal enclosures have a CY2021PUC(2021HCV different format. PUC RenewalEnclosureA,line28for informationcanbe foundbythe Non-MTW,describedasCY2021 2$405proratedeligibilityamount. InflatedPerUnitCost) 3DifferencebetweenthePUCs$95 Is the difference between to the 2 PUCs 2% or greater than the CY 2021PUC(Line1dividedbyLine 42,mustbegreaterthan1.02)?23% In the absence of the PHA providing the most recent month's UML, HUD will use themost recentvalidatedmonth ofVMSreporting 5MostRecentMonth'sUnitsleased300 EXHIBIT 3 21 Unit months leased (Line 5 * 6Multiplied by the number of 61,800 Months)month'sremaininginCY2021. 7TotalRequest(Line3*Line6)$171,000 meets the eligibility criteria for application review due to significant increased costs. The PHA is eligible for $171,000. The next step is to ascertain if this is a Priority Application -) or a RegularApplicationtodeterminewhenthefundingwill bemadeavailable. iii.Priority Status expenses,the PHAapplicationqualifiesforprioritystatus.Forthisexercise, reconciled December 31, 2020 HAP reserve balance and adjusting it to account for the validated CY 2021 VMS data for HAP expenses and the budget authority disbursed to the PHA for the same period. HUD will then take the most recent validated month of expenses from VMS or the expense data provided by the PHA (if it was included within their application) and adjust it by adding a 2 percent margin to calculate adjusted HAP expenses. The adjusted reserve balance is divided by the adjusted HAP expenses to determine if the PHA reserve balance is lessthan theequivalentoftwo (2)months of HAPexpenses. HUD will fully fund the priority applications before considering applications that do not qualify as priority applications. If funding is insufficient to fully fund the priority applications, HUD will prorate the funding awards for the priority applications and will not fund non-priority applications. If there is funding remaining after the priority applications have been fully funded, HUD will prorate the funding for the non-priority applications if the remaining funding is insufficientto fully fund thoseapplications. withfour(4)months ormoreofreserveswill notbeconsideredforany fundingunderthis category at this time. SUBMISSION:To be eligible for funding under this category, a PHA must submitthefollowing: a.Completed Appendix G Application for $110 Million Set-Aside for Category 2aUnforeseenCircumstancestoincludePUCinformationwiththe providedtables. b.If the PHA is applying for a PUC increase related to an unforeseen circumstance other than COVID-19, the PHA must also include a written narrative describing the unforeseen circumstances that significantly increased renewal costs in CY 2021. This narrative is not required if the unforeseen circumstanceis related toCOVID-19. For applications under the unforeseen circumstances Category 2a, it is important to notethatPHAsmustsubmit allitems(a.andb.)abovebytheapplicationdeadlinefor EXHIBIT 3 22 the application to be considered. Failure to provide any of the required documents and informationwill resultin denial oftheapplication. 2021. B.Category2b -Portability:Tobeeligibleforfundingunderthiscategory,thePHAmust have experienced a significant increase in renewal costs due to portability for tenant- basedrental assistanceunderSection8(r)oftheAct. The 2021 Act provides that the set-aside is also available to assist PHAs that have experienced a significant increase in Mainstream renewal costs due to portability. A PHA may apply for and receive set-aside funds for Mainstream Vouchers under this portabilitycategory. In cases where the Mainstream PHA also administers the regular HCVs, the increased cost due to portability determination is voucher funding specific (e.g., for Mainstream Vouchers, HUD will consider only Mainstream Voucher portability costs and A PHA that is experiencing increased renewal costs due to portability for both the regular HCVs and their Mainstream Vouchers must check off both types on their applicationattachment. Set-asidefundingawardedtothePHAisvoucherspecificandmaynotbeused interchangeably by the PHA. For example, HAP set-aside portability funding awardedforMainstreamVouchersmaynotbeusedfortheirregularHCVs. To determine eligibility and calculate funding under this category for regular HCVs, HUD will compare the average HAP Per Unit Cost (PUC) for the re-benchmarking period(January1,2020toDecember31,2020)to theaveragePort-outVouchersHAP PUC based on year-to-date reporting in PIC (as of April 1, 2021). If the portability average HAP exceeds 110% of the HCV Program-wide average HAP PUC for the re- benchmarking period, the PHA will be eligible for set-aside funding. The difference between the portability average PUC and 110% of the program-wide average PUC is multiplied by the year-to- reported in PIC, extrapolated to12 months. To determine eligibility and calculate funding under this category for Mainstream Vouchers, HUD will follow the same process, only all the PUCs and UMLs used will beforMainstream Vouchers insteadoftheregularHCVs. SUBMISSION: HUD calculates eligibility under this category, therefore, no additional documentation will be required or accepted other than Appendix H, which mustbecompleted, signed andsubmitted by thedeadlinedate. 2021. EXHIBIT 3 23 C.Category 3 -PBVs: To be eligible for funding under this category, a PHA must show that vouchers were withheld from use during the CY 2020 re-benchmarking period to be available to meet a commitment for PBV assistance under Section 8(o)(13) of the Act. Adjustments only apply to vouchers withheld pursuant to a PBV Agreement to Enter into a Housing Assistance Payments Contract (AHAP) for newly constructed or rehabilitated housing. Adjustments do not apply to existing housing, as there is no waiting period for existing housing PBV commitments and accordingly, there is no need to withhold vouchers for such commitments. Adjustments will not be made under any circumstances forunitsunderanAHAPcommitmentthat,whenaddedtounitsunderleaseforCY2020, been able to lease those withheld vouchers during CY 2021 due to the restriction on over- leasing.) MainstreamVouchersarenoteligibleforset-asidefundsunder category3-PBVs. The 2021 Act provides that in addition to vouchers that were not in use during the previous 12-month period in order to be available to meet a PBV commitment, an expended in the previous calendar year for a MTW-eligible activity to develop affordable housing for an agency added to the MTW demonstration under the expansion authority provided in section 239 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2016 (division L of Public Law 114 because the first PHAs selected for the MTW expansion under the 2016 Act did not formally join the MTW demonstration until CY 2021, no such MTW-eligible activity funding obligation could have been made in CY 2020. Consequently, this expansion MTW PHA adjustment will not factor into the FY 2021 HAP renewal set-aside funding award process. It is anticipated that this category will be available in CY 2022, subject to appropriations.Additional informationwill beprovidedat alaterdate. SUBMISSION:PHAsaretosubmitthedocumentsbelowasfollows: 1.AHAP:ForeachPBVcommitmentforwhicha requestisbeingmadeunderthis category, the PHA must provide, fromPart 1 of the executed Agreement to Enter into a HAP Contract (AHAP) for New Constructions/Rehabilitation, thefollowing: a.The page which identifies the parties to the AHAP (both the Housing Authorityand theowner); b.Identificationoftheproject; c.Section1.1Awhichidentifiestheeffectivedateof theagreement; d.Section1.1Bwhichidentifiesthedateofthecommencementofthe work; e.Section1.1Cwhichidentifiesthetimeforcompletionofthework; f.Exhibit C which identifies the units by size and applicable initial contract rentsfortheunits to beproject-based; g.If the project is to be completed in stages: Exhibit E that identifies the schedule of completion of stages (if applicable). (This exhibit shall identify theunits in each stage.);and EXHIBIT 3 24 h.SignaturepagethatprovidesthesignatureofboththeHousingAuthorityand theownerandthedates theAHAPwas signed. 2.HAP Contract: To be eligible for set-aside funding, the HAP contract must be executed within CY 2021. If the HAP Contract has not been executed by the application submission date, the PHA must state when the HAP contract will be executed. If the HAP contract has been executed by the application submission date, the PHA must provide, fromPART 1 of the HAP Contract forNewConstructionsorRehabilitation,thefollowing: a.The page which identifies the parties to the HAP Contract (both the Housing Authorityand theowner); b.ExhibitAwhichidentifiesthetotalnumberofunitsintheproject coveredby the HAP Contract; the initial Contract Rent to owner, and the number and descriptionofthecontract units; c.If the project is to be completed in stages: in addition to item b. described in also identify the units to be completed in each phasecovered by theHAP Contract; d.Exhibit B which identifies the services, maintenance and utilities to be providedby theowner; e.ExhibitCwhichidentifiestheutilitiesavailableinthecontractunit,including a listing of utility services to be paid by the owner (without charges in additionto therent toowner)and utilitiesto bepaid by thetenant; f.Section2awhichidentifiestheinitialtermofthecontract;and g.Signature page which provides the signature of both the Housing Authorityandtheowner andthedatestheHAPwassigned. 3.CompletedandsignedAppendixI,PBVData(foreachproject-based commitment). 2021. E.Category 4 -HUD-VASH: For PHAs administering HUD-VASH vouchers that can demonstrateaneedforadjustmentfundingforatleastoneofthefollowingsituations: 1.PUC Increase: For PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD-VASH HAP PUC, based on their latest HUD- VASH HAP expenses in CY 2021. HUD will calculate eligibility under this category. Eligibility is determined by comparing the highest HUD-VASH PUC for CY 2021 to the program-wide funded prorated HAP PUC, then multiplying thedifferencebetween thePUCs by thefundedUMLs. 2.Leasing Increase: For PHAs whose total HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewal funding, plus the leasing that will be supported by the RNP and HUD-Held Program Reserves, HUD will calculateeligibilityunderthiscategory.Eligibilityisdeterminedbyadding EXHIBIT 3 25 UMLs for all the CY 2021validated VMS data available to a projection for the remainder of the CY and comparing that total to the initial funded HUD- VASH UMLs (limited to 100% of the PHAs UMAs), then multiplied by the CY2021 PUC. SUBMISSION: No additional documentation will be required or accepted other thana completedand signed AppendixH. DEADLINE: No later than 5 p.m., per t 2021oruntil funding isdepleted. F.Category 5 Lower-than-average Leasing: To be eligible for funding under this category, the PHA must be leasing a lower-than-average percentage of their authorized vouchers, have low amounts of budget authority in their net restricted assetaccountsandHUD-heldprogrammaticreserves,relativetootheragenciesand arenot participating in theMTWdemonstration. Eligibility for this category of set-aside funding will be determined using December 31, 2020 leasing and reserves, by first separating PHAs by size, small (0 249 units), medium (250 499 units) and large (500 or more units). Second, determining the average leasing as well as average reserves based on PHA size. Next, the eligibility th will be limited to PHAs that are below both the 25percentile of average leasing and th below the 25percentile of median reserves based on PHA size. Regardless of PHA orized units. PHAs must lease additional vouchers with this award. If PHAs need assistance withthenumberofvouchersforreissuance,theymaycontacttheirlocalFieldoffice representative. The field will be able to assist with developing a leasing plan to maximize the use of this award. PHAs receiving awards under the Lower-than- average Leasing category that also experience a Shortfall in CY 2021, please see the list ofexceptions provided in Appendix F. Note: The link that accompanies this noticeprovides a list of PHAs that are eligible toapply forthis categoryofset-asidefunding. TheawardamountwillbedeterminedbyofPHAneed. SUBMISSION: To be eligible for funding under this category, a PHA must submit thefollowing: a.SignedAppendixHApplicationfor$110MillionSet-AsideforCategory 5 Lower-than-AverageLeasing; b.A written narrative that describes leasing need. This narrative will include the following: 1.The amount of inventory of units in their jurisdiction, withthe source ofthis information identified; 2.Thetotalnumberoffamiliesontheirwaitinglist;and EXHIBIT 3 26 3.Assertion that the PHA has the administrative capacity to issue the vouchersand get thefamilies intotheunits. DEADLINE: No later than 5 2021. NOTE: PHAs that apply for Category 5 set-aside funding may come in for that do not have the required administrative capacity nor the administrative reserves necessary to get these vouchers leased. Please refer to the following section for detailsonhow toapply:Section7.FundingforAdministrative Costs,B.Special Fees, 5. Special Fees Needed for Administration of Section 8 Tenant-Based Rental Assistance Program, D. Category 4Application for Other Special Fee Under The Discretion. G.Category 6 Disaster: To be eligible for funding under this category, the PHA must have experienced increased costs or loss of units in an area for which the President declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) in CY 2020 or CY 2021, except for the COVID-19 declaration. The funding provided through this category will addresstheimpact disasters havehad on CY2021expenses. 1.Loss of Units Due to Disaster. This adjustment is provided to assist the PHA in authorizedunits,tohelpaddresshousingneedsintheimpactedcommunity.HUD willusethemostrecentlyreportedandvalidatedVMSdatatodetermine the number of units currently under lease. HUD will use the higher of: (1) the - monthaverageforthemostrecentreportedandvalidatedVMSdatatodetermine the PUC to calculate the funding adjustment. However, if the PHA requests and s request for an increased PUC, the approved PUC will be used to calculate the increased leasing adjustment, as well as to make the increasedPUCadjustmentfortheHCVProgramasawhole. SUBMISSION: To be eligible for funding under the Loss of Units due to Disastercategory, aPHAmust submitthefollowing: a.Appendix J CY 2021 Housing Choice Voucher Program Request for DisasterSet-aside; b.Written narrative, detailing the impact of the disaster that has caused a loss of assessment of the availability of rental housing stock in the PHAsjurisdiction,adescriptionofanyplansinthe jurisdictiontoincrease - base additional vouchers to increase the supply of units available to voucher andifthewaiting listiscurrently open orclosed; c.Evidencetosupportthenarrative;and d.Thenumberofmonthsimpacted in CY2021 by theloss ofunits. EXHIBIT 3 27 2.Increased Costs. The PHA may request an adjustment for a higher PUC. The requested PUC must be higher than the higher of the most recent reported and validated PUC in VMS or the most recent three-month average reported and validated in VMS. The requested adjustment must be supported by documentation that the PHA is required to include with their application. For example, the PHA may provide data supporting the higher requested PUC by providingPICdataforrecentnew admissionsand/orrecentmoversorotherdata supportingits requestforafunding adjustment. SUBMISSION: To be eligible for funding under this category, a PHA must submitthefollowing: a.AppendixJCY2021HousingChoiceVoucherProgramRequestforDisaster Set-aside; b.Written narrative detailing the impact the disaster had in causing the increased costs,thePUC requested; c.Evidence to support the narrative (how the requested PUC was determined); and d.Thenumberofunit monthsimpactedby theincreasedcosts. For applications under the disaster category, category 6, it is important to note that PHAs must submit all items (a. through e.) above by the application deadline for the application to be considered. Failure to provide any of the required documents, including the PHA calculation of the increased costs, will result in denialoftheapplication. 2021 or until funding has been depleted. The Secretary reserves the right to accept additional applications for this category of HAP Set-aside for PresidentiallyDeclaredDisasters thatoccurafterOctober1,2021. QuickReferenceand TimelineSheet forHAP Set-AsideFunds: CategoryDeadlinePHAsmustsubmitAre Mainstream VouchersEligible? Yes 1.ShortfallFundsWillremainopen 2021Appendix F Yes 2a. Unforeseen 05/14/2021 2021CompletedAppendix G Circumstances WrittennarrativedescribingtheU/Cincases wheretheU/CisnotrelatedtoCOVID-19 2b.Portability05/14/2021Yes 2021Appendix H No 2021Appendix H 3.PBV 05/14/2021 AppendixI for eachproject EXHIBIT 3 28 AHAPForeachPBVproject: Identification of the project; fromPart1of theAHAP; ThepagethatidentifiesthepartiestotheAHAP (boththeHousingAuthorityandtheowner); Section 1.1A which identifies the effective date of theagreement; Section 1.1B which identifies the date of the commencementofthe work; Section 1.1C which identifies the time for completionofthe work; Exhibit C which identifies the units by size and applicable initial contract rents for the units to be project-based; If the project is to be completed in stages: Exhibit E which identifies the schedule of completion of stages (if applicable) (This exhibitshall identify theunitsineachstage);and Signature page which provides the signature of both the Housing Authority and the owner and the datesthe AHAP wassigned. HAP Contract: Tobeeligibleforset-asidefunding, the HAP contract must be executed within CY2021. If the HAP Contract has not been executed by the application submission date, the PHA must state when the HAP contract will be executed. If the HAP contract has been executed by the application submission date, the PHA must provide, fromPART 1 of the HAP Contract for New Constructions or Rehabilitation,the following; The page which identifies the parties to the HAP Contract (both the Housing Authority and the owner); Exhibit A which identifies the total number of units in the project covered by the HAP Contract; the initial Contract Rent to owner, and the number and descriptionof the contractunits; If the project is to be completed in stages: in addition to item b. described in the above AHAP section that states the requirement for the also identify the units to be completed in each phasecoveredby the HAPContract; Exhibit B which identifies the services, maintenance and utilities to be provided by the owner; Exhibit C which identifiesthe utilities available in the contract unit, including a listing of utility services to be paid by the owner (without charges in addition to the rent to owner) and utilities to be paid bythe tenant; Section 2a which identifies the initial term of the contract;and Signaturepagewhich providesthe signature ofboththeHousingAuthorityandtheowner andthedatestheHAPwassigned. EXHIBIT 3 29 CategoryDeadlinePHAsmust submitAre Mainstream VouchersEligible? Note:Failuretoprovidetherequireddocumentation listedabovewillresultin denialoftheapplicationfor fundsunderthiscategory. 4.HUD-VASH 10/1/2021No AppendixHwith a. and/orb.marked. a.Per Unit Cost Increase: For PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD- VASH HAP PUC based on their latest HUD-VASH HAP expenses in CY 2021, HUD will calculate eligibility under this category. Therefore, no additional documentation will be required or accepted other than Appendix H, which must be completed, signed and submitted bythedeadlinedate. and/or b.Leasing Increase: For PHAs whose HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewalfunding,plustheleasingthatwill be supported by the RNP and HUD-Held Program Reserves, HUD will calculate eligibility under this category. Therefore, no additional documentation will be requiredoracceptedotherthanAppendix H, which must be completed, signed and submittedbythedeadlinedate. 5. Lower-than- 05/14/2021No Signed Appendix H Application for $110 Averageleasing Million Set-Aside for Category 5 Lower-than- AverageLeasing; o A written narrative that describes leasing need. This narrative will include the following: Theamountofinventoryofunits in their jurisdiction, to include thesourceofthisinformation; The total families on theirwaitinglist;and Assertion that the PHA has the administrative capacity to get the familiesintothe unit. resultinarejectionoftheapplicationforLower- than-Averageleasing. EXHIBIT 3 30 Are Mainstream CategoryDeadlinePHAsmust submit VouchersEligible? 6.Disaster 10/1/2021 No LossofUnitsCategoryofDisaster:Completed Appendix J CY 2021 Housing Choice Voucher ProgramRequestforDisasterSet-aside; Written narrative, detailing the impact of the disasterthathascausedalossofunits,the assessment of the availability of rental housing stock in the PHAs jurisdiction, a description of any plans in the jurisdiction to increase the availabilityofrentalstock,whichmayincludethe plantoproject-baseadditionalvouchersto increase the supply of units available to voucher families, and the number of families currently on theHCVwaitinglistandifthewaitinglist iscurrentlyopenorclosed; Evidencetosupportthenarrative;and The number of months impacted in CY 2021 by the lossofunits. Increased Costs Category of Disaster: CompletedAppendixJCY2021HousingChoice VoucherProgramRequestforDisasterSet-aside; Written narrative detailing the impact the disaster had in causing the increased costs, the PUCrequested; Evidencetosupportthenarrative(howthe requestedPUCwasdetermined);and The number of months impacted in CY 2021 by thelossofunits. Failuretoprovidetheitemsidentifiedabove,WILL resultina rejectionoftheapplicationfor Disaster. 14.FY2020HAPSet-AsideFundsPUCIncreasesduetoUnforeseenCircumstances Round2:ELIGIBILITYANDSUBMISSIONREQUIREMENTS A.Background. The Further Consolidated Appropriations Act, 2020 (P.L. 116-94, to set-aside up to $100 million of the HAP renewal appropriations to make funding the eligible categories for set-aside HAP funding under the 2020 Act was an adjustment for PHAs that experienced a significant increase, as determined by the Secretary, in renewal costs of vouchers resulting from unforeseen circumstances or portability.PIH Notice 2020-04,Implementation of the FFY 2020 Funding Provisions for the HCV Program, issued March 31, 2020 provided details about the set-aside categories, eligibility requirements and submission deadlines. The deadline to submit an application for a funding adjustment for a significant increase in voucher costs resulting from unforeseencircumstances(category2aunderPIH Notice2020-04)wasMay15,2020. EXHIBIT 3 31 Increasedcostsattributabletoportabilitywereaddressedthroughaseparateapplication andfunding process, 2b-Portability,underthePIHNotice-2020-04. Approximately $60 million remains from the $100 million originallyset aside by HUD with the 2020 Act. Due to the unprecedented increase in voucher costs during CY 2020 and the continued impact of the COVID-19 pandemic, HUD has decided to provide a 2020 HAP costs may be eligible to apply for and receive funding from the CY 2020 set- asidefunding underthissecond round. This Second Round 2020 Unforeseen Circumstances funding is available to provide adjustments for increased costs that the PHA experienced in CY 2020. PHAs that experience increased costs in CY 2021 must apply for an adjustment for those increased costsfromtheCY2021HAPset-aside(seesection13.B.,Category2a,above).Sincethis funding is being awarded after the calendar year for which the funding adjustment is beingmade,HUDisrevisingtheprocesssetforthforinPIHNotice2020-04forboththe VMSforCY2020todeterminetheadjustmentnecessarytocovertheincreasedcosts. B.Applications.PHAswillbeconsideredforSecondRound2020Unforeseen Circumstancesfunding in oneoftwo ways: 8 (1)Unfunded CARES Act applications.In this instance, the PHA previously submitted an eligible application for CARES Act supplemental HAP funding for HCV PUC increases in accordance withPIH Notice 2020-17but the application was not funded because there was insufficient CARES Act funding remaining to do so. These PHAs will automatically beconsidered for Second Round 2020 Unforeseen increased costs in CY 2020 must meet the increased cost threshold described below. Additionally,thefundingawardissubjecttoalltherequirements,includingthe fundingcalculationandprioritystatusdetermination,outlinedlaterinthissection. Mainstream Vouchers are not eligible for adjustments under the 2020 set-aside. Consequently,requestsforMainstreamVoucherPUCadjustmentsarenoteligiblefor Second Round 2020 Unforeseen Circumstances funding, regardless of whether the PHApreviouslysubmittedanunfundedCARESActapplicationunderPIHNotice 8 Congress appropriated $400 million in supplemental HAP funding inthe Coronavirus Aid, Relief, and Economic SecurityAct(CARESAct)(PublicLaw116-136),enactedonMarch27,2020.ThissupplementalHAPfundingwas made available for PHAs that either (1) experience a significant increase in voucher PUC due to extraordinary circumstances, or (2) despite taking reasonable cost saving measures, as determined by the Secretary, would otherwise be requiredtoterminaterentalassistanceforfamiliesasaresultofinsufficientfunding.HUDissuedPIHNotice2020-17, CARESActHousingChoiceVoucher(HCV)ProgramHousingAssistancePayments(HAP)SupplementalFunding, onJuly30,2020,whichprovidedinformationonhowPHAscouldapplythatfunding.TheCARESActsupplemental HAPfundinghasbeenawardedinaccordancewiththatnotice,however,HUDwasunabletofundalleligibleapplications forincreasedPUCbecausetheneedexceededtheavailablefunding. EXHIBIT 3 32 2020-17. PHAs that submitted a CARES Act application that covered both regular HCV and Mainstream Vouchers will be considered for Second Round 2020 Unforeseen Circumstances funding but only with respect to the 2020 increased costs fortheirregularvouchers. (2)Appendix K application submitted by the PHA. All other PHAs may choose to apply directly for Second Round 2020 Unforeseen Circumstances funding in accordance with the application submission requirements listed below, with the exception of PHAs wishing to apply for increased costs for Mainstream Vouchers. MainstreamVouchersarenoteligibletoreceive2020 HAP set-asidefunds. The PHA may apply for funding for its HAP cost increase in CY 2020 if the unforeseen circumstance was COVID-19 or if the unforeseen circumstance wasunrelated to COVID-19. Applicationsubmissionrequirements.ThePHAmustsubmit: A completed and signed Appendix K, Second Round CY 2020 HAP Set-Aside Remaining $60 Million for Category 2aUnforeseen Circumstances, which is attachedto this notice. If the PHA is applying for a PUC increase related to an unforeseen circumstance other than COVID-19, the PHA must also include a written narrative describing the unforeseen circumstances that significantly increased renewal costs in CY 2020.ThisnarrativeisnotrequirediftheunforeseencircumstanceisCOVID-19. DEADLINE:Nolater than5p.m.,perthetimezone,Friday,May14,2021. HOW TO SUBMIT REQUESTS -PHAs must submit requests via electronic mail (email) with the signed Appendix K along with all required documentation (if applicable)to:2020COVIDHCV@hud.gov. The subject line of the email must include the following: PHA Number, CY 2020 Set-AsideApplicationSecondRound(e.g.,TX001,CY2020Set-AsideApplication Second Round). C.IncreasedCostThreshold.The 2020Actprovidesthatthecostincreasemustbe significant,asdeterminedbytheSecretary,forthe PHAtobeeligibleforset-aside fundingduetounforeseencircumstances.FortheSecondRound2020Unforeseen Circumstancesfunding,HUDisestablishingthefollowingcriteriaforthecostincrease to besignificant: UMLs reported and validated in VMS) must be 102 percent or greater than the PUC HUD used to RenewalPUC)to beeligibleforfunding. EXHIBIT 3 33 D.FundingAwardCalculationsforPHAs.Thefundingawardamountwillbecalculated asfollows: HUD determines the difference between CY2020 HAP renewal PUC. TheActual2020PUCiscalculatedbydividingthetotalCY2020 HAPcosts by total CY2020 UMLs. renewalEnclosureAonline29,whereitisdescribedastheCY2020 InflatedPUC. fundingamount. If the PHA was previously awarded funding under either the CY 2020-Unforeseen Circumstances category or the CARES Act HAP Supplemental Funding for PUC Increases,thepreliminaryfundingamountwillbereducedbytheamountoftheprevious fundingaward(s)to determinethefundingeligibility. ExampleFundingEligibilityCalculation 1Actual2020PUC$800 2CY2020 PUC(2020HCV$705 RenewalEnclosureA, line29, described as CY 2020 Inflated Per Unit Cost) 3DifferencebetweenthePUCs$95 4Isthe difference between to the twoYes 13.4% PUCs 2% or greater than the CY (800/705=1.134) 2020PUC(Line1dividedbyLine2, mustbegreaterthan1.02)? 5CY2020UnitMonthsLeased4800 6EligibleFunding(Line3*Line5)$456,000 7PreviouslyAwardedCARES$0 ActHAPSupplementalFunding and 2020 Set-aside Round One UnforeseenCircumstances 8Fundingeligibility(Line7Line8)$456,000 E.Priority Status that would have 12/31/2020 HAP reserve balance. HUD will then divide the total validated 2020 HAP expenses from VMS by 12 to determine the CY 2020 average monthly HAP expenses. If thatamountmultipliedby2exceedsthe2020HAPreservebalance,thePHAapplication qualifiesforPriority Status. EXHIBIT 3 34 HUD will fully fund the priority applications before considering applications that do not qualify as priority applications. If funding is insufficient to fully fund the priority applications, HUD will prorate the funding awards for the priority applications and will not fund non-priority applications. If there is funding remaining after the priority applications have been fully funded, HUD will prorate the funding for the non-priority applicationsiftheremainingfundingisinsufficienttofullyfundthoseapplications. 15.Moving To Work Agencies determined pursuant to their Standard MTW Agreements and appropriations requirements. HUD is directed by the 2021 Act to apply the same proration factor to the HCV HAP renewal allocations and administrative fee eligibility for MTW agencies as is applied to all other PHAs. All MTW agencies may utilize their funds in accordance with their Standard MTW Agreements ortheMTWOperationsNotice. 16.ExcludedPrograms.Theprovisionsimplementedbythisnoticedonotapplytorenewal fundingfortheModerateRehabilitationProgramorSingleRoomOccupancy(SRO). 17.HCV Financial Management. HUD is focused on ensuring that PHAs appropriately manage their HCV Programs within the funding provided for the CY and existing Restricted Net Position (RNP) and HUD-Held Program Reserves. PHAs are encouraged to use the Two-Year ForecastingTool to assist them in theirbudgeting and leasing plans. 18.HAP Disbursements and Frontloading. PHAs receive monthly disbursements from their budgetaryallocationsinaccordancewiththecashmanagementprocedures inPIHNotice2017- 06.PHAs may request a frontload when monthly disbursements and available RNP and HUD- held reserves willnot cover expenses for the month. PHAs may request a frontload via the two- year tool or by submitting a request to the FMC FA. PHAs will be required to provide HAP expenses not yet reported in VMS and actual HAP expenses for the period requested. The frontload will be limited to the amount necessary to cover the actual HAP expenses. PHAs in need of a frontload during the year and have excess SPV funding available in their RNP, will be provided with a frontload that does not consider their available SPV funds as SPV funds may only be used for their intended purposes. PHAs must remember that frontloading early in the CYaffects theamounts availablein latermonths in theCY. 19.UseofHAPandHAPRNP/HUD-HeldProgramReserves.PHAsareremindedthatfunds inthe HAP RNP account and HUD-Held Program Reserves shall only be used for eligible HAP needs in the current CY. CACC requires PHAs to use HAP funding to cover housing assistance payments. HAP and/or PHA reserves (HAP RNP and HUD-held reserves) shall not under any circumstances be used for any other purpose, such as to cover administrative expenses or be loaned, advanced, or transferred (referred to as operating transfers due to/due from) to other component units or other programs such as the Low-Rent (PublicHousing) program. Use of HAPforanypurposeotherthaneligibleHAPneedsisaviolationoflaw,andsuchillegalusesor transfers may result in sanctions and possible declaration of breach of the ACC. Current year fundingmaynotbeusedforprioryearcosts,includingbyMTWagencies. IninstanceswhereaPHAisfoundtohavemisappropriatedHAPand/orHAPRNP/HUD-held reservefundsbyusingthefundsforanypurposeotherthanvalidHAPexpensesforunitsupto thebaseline,HUDrequirestheimmediatereturnofthefundstotheHAPorHAPRNP/HUD- EXHIBIT 3 35 held reserves account. HUD may take action, including suspension and debarment, against a PHA or any party that has used HAP funds and/or the HAP RNP/HUD-held reserves account fornon-HAP purposes. 20.UsesofAdministrativeFees.ForproperusesandreportingofAdministrativeFeesand -17:Use and Reporting of Administrative Fee Reserves. 21.VMS/FASSReportingandDataIntegrity.PHAsmustcontinuetosubmitrequired financialdocumentsincluding,butnotlimitedto,monthlyVMSandannualFASSelectronic submissions.PHAsthatdonotsubmittherequireddatabythereportingdeadlinemaybe sanctionedasprovidedby24CFR982.152(d),andinaccordancewiththeproceduresoutlined inPIHNotice2021-08oranysuccessornotice.PHAsthatfailtomeetthesubmission requirementsmaybesubjecttoadministrativeactions,includingbutnotlimitedto,an impositionofapenaltyagainstthemonthlyadministrativefeesuntilthePHAcomplies withtheserequirements.ThispenaltyrepresentsapermanentreductionforthecurrentCYthat shallnotbereversed. 22.Prohibition on Over-leasing. The 2021 Act prohibits the use of appropriated HAP funds by any PHA, except for PHAs in the MTW demonstration, to lease units above their CACC baseline units during any CY, even if the PHA has sufficient budget authority (BA) and/or RNP to support the additional units. If a PHA engages in over-leasing, it must identify other eligible sources to pay for the over-leasing, and the PHA must take immediate steps to eliminate any current over-leasing. Renewal funding allocations will not include over-leased units. Renewal funding eligibility will be reduced based on the number of over-leased unit months and the average PUC during the re-benchmark period. PHAs must still report all over- leasinginVMSandmust alsoreport$0 HAPsintheappropriatecategoriesinVMS. 23.Use of Outside Sources of Funds. HUD issuedPIH Notice 2013-28,Guidance on the Use of Outside Sources of Funds in the HCV Program. HUD recommends that all PHAs carefully reviewtheinformation contained in thenotice. 24.Paperwork Reduction Act. The additional information collection requirements contained in this document are approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number is 2577- 0169.InaccordancewiththePaperworkReductionAct,HUDmaynotconductorsponsor, and a person is not required to respond to, a collection of information unless the collection displaysacurrently valid OMBcontrol number. EXHIBIT 3 36 25.FurtherInformation.AnyquestionsconcerningthisNoticeshouldbedirectedtoHousing VoucherFinancialManagementDivision,Office ofPublicHousingandVoucherPrograms,at (202)708-2934(thisisnotatoll-freenumber). Personswithhearingorspeechimpairmentsmay accessthesenumbersviaTTYbycalling thetoll-freeFederalInformation RelayServiceat (800)877-8339. /s/ DominiqueBlom GeneralDeputyAssistantSecretary forPublicandIndianHousing EXHIBIT 3 37 Appendix A FurtherConsolidated AppropriationsAct, 2021(PublicLaw116-260) Tenant-BasedRentalAssistanceOverallFundingandRenewals: For activities and assistance for the provision of tenant-based rental assistance authorized under the not otherwise provided for, $21,777,439,000, to remain available until expended, which shall be available on October 1, 2020 (in addition to the $4,000,000,000 previously appropriated under this heading that shall be available on October 1, 2020), and 5 $4,000,000,000, to remain available until expended, which shall be available on October 1, 2021: Provided, That the amounts made available under this heading are provided as follows: (1) $23,080,000,000 shall be available for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act) 14 and including renewal of other special purpose incremental vouchers: Provided, That notwithstanding any other provision of law, from amounts provided under this paragraph and any carryover, the Secretary forthe calendaryear2021 fundingcycleshallproviderenewalfundingfor eachpublichousing agency based on validated voucher management system (VMS) leasing and cost data for the prior calendar year and by applying an inflation factor as established by the Secretary, by notice published intheFederalRegister,andbymakinganynecessaryadjustments forthecostsassociatedwiththe first time renewal of vouchers under this paragraph including tenant protection and Choice Neighborhoods vouchers: Provided further, That none of the funds provided under this paragraph may authorized levelofunits under contract,exceptforpublichousing agencies participatinginthe Moving to Work (MTW) demonstration, which are instead governed in accordance with the requirements of the MTW demonstration program or their MTW agreements, if any: Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified under this allocation otherwise established pursuant to this paragraph: Provided further, That except as provided in the following provisos, the entire amount specified under this paragraph (except as otherwise modified under this paragraph) shall be obligated to the public housing agencies based on the allocation and pro rata method described above, and the Secretary shall notify public housing agencies of their annual budget by the latter of 60 days after enactment of this Act or March 1, 2021: Provided further, That the Secretary may extend the notification period with the prior written approval of the House and Senate Committees on Appropriations: Provided further, That public housing agencies participating in the MTW demonstration shall be funded in accordance with the requirements of the MTW demonstration program or their MTW agreements, if any, and shall be subject to the same pro rata adjustments under the previous provisos: Provided further, That the Secretary may offset public -held programmatic reserves (in accordance with VMS data in calendar year 2020 that is verifiable and complete), as determined by the Secretary: Provided further, That public housing agencies participating in the MTW demonstration shall also be subject to the offset, as determinedby the Secretary, excluding amounts subject to the single fund funding allocation: Provided further, That the Secretary shall use any offset referred to in the previous two provisos throughout thecalendar yearto preventtheterminationof rentalassistanceforfamilies as the result of insufficient funding, as determined by the Secretary, and to avoid or reduce the proration of renewal funding allocations: Provided further, That up to $110,000,000 shall be available only:(1) for adjustmentsin the EXHIBIT 3 38 allocationsforpublichousingagencies,afterapplicationforanadjustmentbyapublichousing agency that experienced a significant increase, as determined by the Secretary, in renewal costs of vouchers (including Mainstream vouchers) resulting from unforeseen circumstances or from portability under section 8(r) of the Act; (2) for vouchers that were not in use during the previous 12- month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act, or an adjustment for a funding obligation not yet expended in the previous calendar year for a MTW- eligible activity to develop affordable housing for an agency added to the MTW demonstration under the expansion authority provided in section 239 of the Transportation, Housing and Urban Development,andRelatedAgenciesAppropriationsAct,2016(divisionL ofPublicLaw114113); (3) for adjustments for costs associated with HUDVeterans Affairs Supportive Housing (HUD VASH) vouchers; (4) for public housing agencies that despite taking reasonable cost savings measures, as determined by the Secretary, would otherwise be required to terminate rental assistance for families,including Mainstream families, as a result of insufficient funding; (5) for adjustments in the allocations for public housing agencies that (i) are leasing a lower-than average percentage of their authorized vouchers, (ii) have low amounts of budget authority in their net restricted assets accounts and HUD-held programmatic reserves, relative to other agencies, and (iii) are not participating in the Moving to Work demonstration, to enable such agencies to lease more vouchers; and (6) for public housing agencies that have experienced increased costs or loss of units in an area for which the President declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.): Provided further, That the Secretary shall allocate amounts underthepreviousproviso based onneed,asdeterminedby theSecretary; TenantProtection: $116,000,000 shall be for section 8 rental assistance for relocation and replacement of housing units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses (including victims of violent crimes) in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project-based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financed between 1959 and 1974 that are refinanced pursuant to Public Law 106569, as amended, or under the authority as provided under this Act: Provided, That when a public housing development is submitted for demolition or disposition under section 18 of the Act, the Secretary may provide section 8 rental assistance when the units pose an imminent health and safety risk to residents: Provided further, That the Secretary may 23 provide section 8 rental assistance from amounts made available under this paragraph for units assisted under a project--Based units pose an imminent health and safety risk to residents: Provided further, That to the extent that the Secretary determines that such units are not feasible for continued rental assistance payments or transfer of the subsidy contract associated with such units to another project or projects and owner or owners, any remaining amounts associated with such units under such contract shall be recaptured and used to reimburse amounts used under this paragraph for rental assistance under the previous proviso: Providedfurther,Thatoftheamountsmadeavailableunderthisparagraph,atleast$5,000,000may be available to provide tenant protection assistance, not otherwise provided under this paragraph, to residents residing in low vacancy areas and who may have to pay rents greater than 30 percent of household income, as theresult of: (A) the maturity of a HUD-insured, HUD held or section 202 loan that requires the permission of the Secretary prior to loan prepayment; (B) the expiration of a rental assistance contract forwhich thetenantsarenot EXHIBIT 3 39 eligibleforenhancedvoucherortenantprotectionassistanceunderexistinglaw;or(C)theexpiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary:Providedfurther,Thatsuchtenantprotectionassistancemadeavailableundertheprevious proviso may be provided under the authority of section 8(t) or section 8(o)(13) of the United States HousingActof1937(42U.S.C.81437f(t)):Providedfurther,ThattheSecretaryshallissue guidance to implement the previous provisos, including, but not limited to, requirements for defining eligible at-risk households within 60 days of the enactment of this Act: Provided further, That any tenant protection voucher made available from amounts under this paragraph shallnot be reissued by any public housing agency, except the replacement vouchers as defined by the Secretary by notice, when the initial family that received any such voucher no longer receives such voucher, and the authority for any public housing agency toissue any such voucher shall cease to exist: Provided further, That the Secretary may only provide replacement vouchers for units that were occupied within the previous 24 months that cease to be available as assisted housing, subject only to the availabilityof funds; AdministrativeFees: $2,159,000,000 shall be for administrative and other expenses of public housing agencies in administering the section 8 tenant-based rental assistance program, of which up to $30,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, including fees associated with section 8 tenant protection rental assistance, the administration of disaster related vouchers, HUDVASH vouchers, and other special purposeincrementalvouchers:Provided,Thatnolessthan$2,129,000,000oftheamountprovidedin this paragraph shall be allocated to public housing agencies for the calendar year 2021 funding cycle based on section 8(q) of the Act (and related Appropriation Act provisions) as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105 276):Providedfurther,Thatiftheamountsmadeavailableunderthisparagraphareinsufficienttopay theamountsdeterminedunderthepreviousproviso,theSecretarymaydecreasetheamountsallocated toagenciesbyauniformpercentageapplicabletoallagenciesreceivingfundingunderthisparagraph or may, to the extent necessary to provide full payment of amounts determined under the previous proviso, utilize unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under this heading from prior fiscal years, excluding special purpose vouchers, notwithstanding the purposes for which such amounts were appropriated: Provided further, That all public housing agencies participating in the MTWdemonstrationshallbefundedinaccordancewiththerequirementsoftheMTW demonstration program or their MTW agreements, if any, and shall be subject to the same uniform percentage decrease as under the previous proviso: Provided further, That amounts provided under this paragraph shall be only for activities related to the provision of tenant-based rental assistance authorizedunder section8, includingrelateddevelopmentactivities; MainstreamVouchers: $314,000,000 for the renewal of tenant based assistance contracts under section 811 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including necessary administrative expenses: Provided, That administrative and other expenses of public housing agencies in administering the special purpose vouchers in this paragraph shall be funded under the same terms and be subject to the same pro rata reduction as the percent decrease for administrative and other expenses to public housing agencies under paragraph (3) of this heading: Provided further, That upon turnover, section 811 specialpurpose vouchers funded under this heading in this or prior Acts, or underanyotherheadinginpriorActs,shallbe providedtonon-elderlypersonswithdisabilities; EXHIBIT 3 40 TribalHUD-VASHRenewals: Oftheamountsprovidedunderparagraph(1)upto$5,000,000shallbeforrentalassistanceand associatedadministrativefeesforTribalHUDVASHtoserveNativeAmericanveteransthatare homelessorat-riskofhomelessnesslivingonornearareservationorotherIndianareas:Provided, Thatsuchamountshallbemadeavailableforrenewalgrantstorecipientsthatreceivedassistance underpriorActsundertheTribalHUDVASHprogram:Providedfurther,ThattheSecretaryshall beauthorizedtospecifycriteriaforrenewalgrants,includingdataontheutilizationofassistance reportedbygrantrecipients:Providedfurther,Thatsuchassistanceshallbeadministeredin accordancewithprogramrequirementsundertheNativeAmericanHousingAssistanceandSelf- DeterminationActof1996andmodeledaftertheHUDVASHprogram:Providedfurther,Thatthe Secretaryshallbeauthorizedtowaive,orspecifyalternativerequirementsforanyprovisionofany statuteorregulationthattheSecretaryadministersinconnectionwiththeuseoffundsmade availableunderthisparagraph(exceptforrequirementsrelatedtofairhousing,nondiscrimination, laborstandards,andtheenvironment),uponafindingbytheSecretarythatanysuchwaiversor alternativerequirementsarenecessaryfortheeffectivedeliveryandadministrationofsuch assistance:Providedfurther,ThatgrantrecipientsshallreporttotheSecretaryonutilizationofsuch rentalassistanceandotherprogramdata,asprescribedbytheSecretary:Providedfurther,Thatthe Secretarymayreallocate,asdeterminedbytheSecretary,amountsreturnedorrecapturedfrom awardsundertheTribalHUDVASHprogramunderpriorActstoexistingrecipientsunderthe TribalHUDVASHprogram; HUD-VASHProgram: $40,000,000 for incremental rental voucher assistance for use through a supported housing program administered in conjunction with the Department of Veterans Affairs as authorized under section 8(o)(19) of the United States Housing Act of 1937: Provided, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 203 (competition provision) of 4this title, to public housing agencies that partner with eligible VA Medical Centers or other entities as designated by the Secretary of the Department of Veterans Affairs, based on geographical need for such assistance as identified by the Secretary of the Department of Veterans Affairs, public housing agency administrative performance, and other factors as specified by the Secretary of Housing and Urban Development in consultation with the Secretary of the Department of Veterans Affairs: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for (in consultation with the Secretary of the Department of Veterans Affairs), any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That assistance made available under this paragraph shall continue to remain available for homelessveteransuponturn-over; FamilyUnificationProgram: $25,000,000shallbemadeavailableforthefamilyunificationprogramasauthorizedundersection 8(x) of the Act: Provided, That the amounts made available under this paragraph are provided as follows: (A) $5,000,000 shall be for new incremental voucher assistance: Provided, That the assistance made available under this subparagraph shall continue to remain available for family unification upon turnover; and (B) $20,000,000 shall be for new incremental voucher assistance to assisteligibleyouthasdefinedbysuchsection8(x)(2)(B):Provided,Thatassistancemadeavailable EXHIBIT 3 41 under this subparagraph shall continue to remain available for such eligible youth upon turnover: Provided further, That of the total amount made available under this subparagraph, up to $10,000,000 shall be available on a noncompetitive basis to public housing agencies that partner with public child welfare agencies to identify such eligible youth, that request such assistance to timely assist such eligibleyouth,andthatmeetanyothercriteriaasspecifiedbytheSecretary:Providedfurther,Thatthe Secretary shall review utilization of the assistance made available under the previous proviso, at an interval to be determined by the Secretary, and unutilized voucher assistance that is no longer needed shallberecapturedbytheSecretaryandreallocatedpursuanttothepreviousproviso:Providedfurther, ThatforanypublichousingagencyadministeringvoucherassistanceappropriatedinapriorActunder the family unification program, or made available and competitively selected under this paragraph, thatdeterminesthatitnolongerhasanidentifiedneedforsuchassistanceuponturnover,suchagency shall notify the Secretary, and the Secretary shall recapture such assistance from the agency and reallocate it to any other public housing agency or agencies based on need for voucher assistance in connectionwithsuchspecifiedprogramoreligibleyouth,asapplicable; HomelessVouchers-DomesticViolence: $43,439,000 shall be for incremental rental voucher assistance under section 8(o) of the United States HousingAct of 1937 for use by individuals and families who are homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)), at risk of homelessness,asdefinedinsection401(1)ofthe McKinney-VentoHomelessAssistance Act(42 U.S.C. 11360(1)), fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking,orveterans andfamiliesthatinclude aveteranfamilymemberthatmeetoneofthe precedingcriteria:Provided,Thatassistancemadeavailableunderthisparagraphshallcontinueto remainavailableforsucheligibleindividualsandfamiliesuponturnover:Providedfurther,Thatthe Secretaryshallmakesuchfundingavailable,notwithstandingsection203ofthistitle(competition provision)topublichousingagenciesthatpartnerwitheligiblecontinuumsofcareorotherentities asdesignatedbytheSecretary,basedongeographicalneedofsuchassistance,publichousing agencyadministrativeperformance,andotherfactorsasspecifiedbytheSecretary:Provided further,ThattheSecretaryshallreviewutilizationoftheassistancemadeavailableunderthe precedingproviso,atanintervaltobedeterminedbytheSecretary,andunutilizedvoucher assistancethatisnolongerneededshallberecapturedbytheSecretaryandreallocatedpursuantto theprecedingproviso:Providedfurther,That,theSecretaryshallgivepreferencetoapplicantsthat demonstrateastrategytocoordinateassistancewithservicesavailableinthecommunity:Provided further,Thatnoneofthefunds providedinthisparagraphmaybeusedtorequirepeople experiencinghomelessnesstoreceivetreatmentorperformanyotherprerequisiteactivitiesasa conditionforreceivingshelter,housingorotherservices:Providedfurther,ThattheSecretaryshall issueguidancetoimplementtheprecedingproviso;and TrackingofSpecialPurposeVouchers: TheSecretaryshallseparatelytrackallspecialpurposevouchersfundedunderthisheading. EXHIBIT 3 42 AppendixB CY2021OffsetReallocation HANumber: HAName: CY2020EndofYearReserves PROTECTEDCATEGORIES A.DifferencebetweenthePHA'sEligibilityandProratedEligibility B.CY2021AmountsneededtofullyleaseVASHunits UnfundedVASHUMAs(Capped) VASHPUC TotalUnfundedVASHUMAsProtected C.Difference between higher of December 2020 UMLs x 12 or CY 2020 UMLs up to baseline on units underCACC DecemberUMLs(Capped) InflatedPUC TotalDecemberUMLsProtected D.CY2020NewincrementalBA-1/2of Eligibility E.CY2020SetAsideProtection-1/2ofEligibility F.CARESActHAPAwardsprotection-TotalEligibility G.PortionofCY2021RenewalEligibility(Basedon unitsunderCACC): 5&.611boebcpwfvojut 7&.361up!5::vojut 23&.Mfttuibo361vojut H.PHAswith CY2020inflationfactorsthatwerehigherthantheCY2020nationalweightedaverage inflator Difference of CY 2020 Inflated Renewal Funding compared to CY 2021 Inflated Renewal funding isprotected I.Protect 1/2ofRAD1HAPforProjectsin their1stFullofYearofFundingduringCY2020 J.TotalFundsAvailableforOffset K.OffsetAmount(TotalFundsAvailableforOffsetxdetermined%) .ProratedEligibilityAfterOffset PHA'sthatreceived2020ShortfallSet-Asidefundsareexemptfromthis offset. thatreceived2020Lower-than-averageLeasingfundsareexemptfromthis offset. EXHIBIT 3 43 AppendixC CY2021HousingChoiceVoucherProgram SpecialFees Application for $30 Million Set-Aside for some Categories of Special Fees 1 HUD-VASH; 2FUP;3Disaster;and/or4 NameofPHA: PHANumber: ExecutiveDirector: CHECKALLBOXESTHATAPPLY HUD-VASH FUP Disaster-Related SpecialFeesUnderTheDiscretion Documentation requirements and Deadlines for each of the above categories are contained withinthedocumentthis pageis attached. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification:Iherebycertifythatallthe informationstatedherein,aswellasanyinformation providedintheaccompanimentherewith,istrueandaccurate.Ialsocertifythatshouldfunding beawardedunderanyoftheselectedspecialfeecategoriesperthispage,thatIwillkeepclear andorganizedrecordsonhowallawardedthefundswerespentshouldHUDrequesttoreview theoutcomesofthisfeefunding.Warning:Anyonewhoknowinglysubmitsafalseclaimor makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforup to5years,fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31 U.S.C.§3729,3802). SignatureofExecutiveDirectorand Date ContactNameandPhoneNumber EXHIBIT 3 44 ExampleBudgetJustificationAppendix D TOTAL FY22 BUDGET WITH PROPOSED Proposed HUD-VASH Budget FYE EXTRA FEES 6/30/22 Extraordinary Fees Description RECEIPTS AMIN FEE EARNED 1,028,855 52,749 1,081,604 INTEREST ON RESERVE 800 800 OTHER 10,000 10,000 TOTAL OP RECPTS 1,039,655 52,749 1,092,404 EXPENSE ADMIN SALARIES 607,254 - 607,254 EMP BENEFITS 268,410 - 268,410 TEMP HUD-VASH COORDINATOR 35,360 35,360 LEGAL 2,000 2,000 TRAINING 10,000 3,784 13,784 AUDIT & ACCOUNTING 5,000 5,000 PHONES/MOBILE PHONES 10,000 600 10,600 POSTAGE 8,000 1,147 9,147 OFFICE SUPPLIES & EQUIP. 12,000 1,033 13,033 PUB. & MEMBERSHIPS 3,500 - 3,500 FSS EXPENSES 10,200 - 10,200 - PORTABILE ADMIN FEE 16,500 16,500 SUNDRY ADMIN 22,000 22,000 EXTRA HUD-VASH ACTIVITIES: 10,825 10,825 HUD-VASH DAY 3600 LANDLORD RECRUIT 2400 TRANSPORTATION 4825 INSURANCE 10,359 - 10,359 TOTAL ADMIN EXP 985,223 52,749 1,037,972 CONTRACTS 35,000 - - TOTAL ORDINARY MAINT 35,000 - - TOTAL OPERATING EXP 1,020,223 52,749 1,072,972 RESIDUAL RCPT/DEF 19,432 - 19,432 HSG ASSIST PYMTS 9,453,345 HSG FUNDS RECEIVED 9,453,345 RESTRICTED FUNDS - Calculation of Admin Fees earned @95% Lease Rate Total # of HCV (PUM) 1,444 1,372 16,462 Col A Rate Col B Rate Proration Rate Admin Fee Unit Months 7,200 9,262 CY 2021: $82.19 $76.72 79% $1,028,855 EXHIBIT 3 Appendix E Calculation ofHUD-ConfirmedShortfallandShortfallAmount The amount that a PHA will be eligible to receive from the $110,000,000 set-aside will be -Year Forecasting Tool (see link) and the most Two-Year Forecasting Tool can be found at theOffice of Housing Choice Vouchers websitethat includes alink tothetwo-yeartool instruction page. The two-year tool compares all resources available (including CARES Act HAP for PUC 2021projectedthrough theend oftheCYbasedupon thebest informationavailable. Resources are calculated using the HUD-calculated RNP as of 12/31/2020, the HUD-held 2021, and any new voucher incremental funding applicable to CY 2021 or set-aside amountsawarded orexpected to beawarded in2021. HAP expenses are calculated based on current leasing and expense data, projected through suspension of general voucher issuance; and projected -aside funds, adjusted for accuracy if the PHA has more recent information that will impact the attrition rate in future months, as reported in PIC, and considering any updated information suppliedby thePHA. The requirement to suspend general voucher issuance is subject to the following exclusions: 1.VouchersissuedtocurrentHCVparticipantstoallowthemtomove. 2.ThereissuanceofturnovervoucherslosttoattritiononlyduringtheperiodthePHA is impacted by COVID 19; however, PHAs must not exceed the number of units leased at the time of the SPT confirmed shortfall. This unit cap may only be exceededbytheSPVslistedinitem4belowandvouchersreissuedfromtheLower- than-averageLeasingaward. In general, a PHA may reissue the turnover voucher to a family from the PHA waiting list, except for eligible VASH turnovers where a referral is provided by theVeterans Administration Medical Centers (VAMC), issue the voucher to a family moving from a Project-Based Voucher (PBV) unit in accordance with 24 CFR983.261,orusethe vouchertoabsorbafamilyunderportability.However, a PBV family that has the right to move in accordance with 24 CFR 983.261 and wishesto do so has priority fortheturnovervoucher. 3.Instances in which the PHA is leasing under the HUD-VASH program up to the baseline level of units under all HUD-VASH allocations (not just recent allocations),including turnoverofHUD-VASHvouchers. EXHIBIT 3 46 4.Vouchers issued to program applicants under special-purpose voucher increments awarded in CY 2020 or CY 2021. These special-purpose vouchers (SPVs) include Family Unification Program (FUP), Non-Elderly Disabled (NED), Foster the Youth to Independence (FYI) Initiative, and Tenant Protection vouchers initially awardedin 2020 and/or2021, toincludeSet-asidefunding. 5.Project-BasedVouchers(PBV)undertheRentalAssistanceDemonstration(RAD) 1,in theirfirst full yearoffunding through theHCVProgram. 6.PHAs may allow applicants to move into PBV units to allow the PHA to meet its contractualobligationtofillPBVAHAPunitsbeingplacedunderHAPforthefirst time,andPBVunitscurrentlyunderHAPthatarevacatedbyprogramparticipants. 7. against a PHA. PHAs must request approval to continue leasing Litigation Vouchers and submit supporting documentation. HUD will review and decide on a case-by-case basis using the supporting documentation received as the basis for thedecision. 8.Vouchers issued using funds awarded under the Lower-than-average Leasing HAP Set-Asidecategory. 9.TheSecretaryreservestherighttoconsideradditionalexceptionsonacase-by-case basis. PHAs cannot issue vouchers and/or execute HAP contracts for families that do not meet any of the exceptions through the end of CY 2021, or until advised in writing by the SPT thatthey no longerhaveashortfall. The application period for shortfall set-aside funding will remain open until SPT has reconciled Shortfalls for all PHAs for CY 2021, subject to funding availability. PHAs that receive set-aside funds based on their current HAP costs are encouraged to maintain contact with the SPT to ensure all shortfall needs are met. Similarly, PHAs that do not initially qualify for shortfall funding because they have suspended leasing and expect to decrease leasing by attrition are also encouraged to maintain contact with the local Field Office and theSPTiftheattrition failsto resolvetheirshortfall. AllPHAsapplyingfortheshortfallset-asidemustbeworkingwithSPTatthetime available for 2021 and their leasing and expense data to date, to determine whether the PHA has a shortfall and the amount needed to resolve the shortfall. The PHA will continue to work with the SPT throughouttheyeartomonitorthefinancialpositionandtoimplementcostsavings measuresoutlinedinPIHNotice2011-28orasupersedingnoticepublishedbyHUDto EXHIBIT 3 47 decrease the possibility of an increased shortfall. PHAs must adhere to the eligibility requirementsdetailed inSection 13ofthisNoticeorasupersedingnotice. Factors considered by the SPT to determine the amount of a potential shortfall will be determinedas follows: a.Cash Supported Total Reserves as of 12/31/2020: SPT will use the Cash Supported Total Reserves as of 12/31/2020, which consists of the HUD-Held Reserve, and the lower of HUD-Estimated RNP, PHA Reported RNP as of 12/31/2020, or the actual amount of cash on hand to support the RNP. If there is a discrepancy with any of these amounts thePHA will be required to provide documentationas requestedbeforethis adjustmentwill bemade. b.CARES Act HAP awards for PUC increases:Unspent but available untilDecember31, 2021. c.HUD-held reserve as of 12/31/2020: SPT will use the balance reported to SPT by FMC. d.2021RenewalABA:ActualrenewalABAawardsforCY2021. e.SPV and tenant protection funding and set-asides: FMC will provide amounts to be made available to the PHA in CY 2021 for special-purpose voucher and tenant protection funding increments applicable to any portion of CY 2021, and for any set-aside funding previously awarded in CY 2021. If necessary, the SPT will make adjustments to the shortfall set-aside award to ensure that new increment funding for Mainstream, SPVs, Lower-than-average Leasing Set-aside, and/or TPVs remains available to lease the newly awarded number of SPVs and/or TPVs, rather thanbeing used to coverthegeneral shortfall. f.Unit months leased: The unit months leased (UML) for CY 2021 will be projected by taking the number of units reported in VMS in the last month available and projecting that number through the end of the year. Reductions to projected leasing willbemadetoadjustforattrition,inaccordancewiththeannualturnoverrateused inthetwo-yeartool.ThisrateisderivedfromthePICdataonfamiliesendof participation(EOP).Increasestoprojectedleasingwillbemadeforvouchersissued prior to the date of the notification by the SPT of a potential shortfall and for additional leasingresulting from the admission of families described in exception categories 2 and 3 above families receiving new special-purpose vouchers, and families moving into new or vacant PBV units. No adjustments will be made for moverfamilieswhoreceivevouchersinaccordancewithcategory1above. EXHIBIT 3 48 g.Total HAP expense: Total HAP expense for CY 2021 will be based on a projectionoftheunitmonthsleasedforCY2021(describedineabove)attheper- report, and considering any months, and the PHA again determines that it is in danger of a shortfall, an additionalshortfall awardmay bemadewithout theneed toreapply. h.Vouchers issued or projected to be issued: The number of vouchers issued as of VMS report, will be used to determine future leasing, if any, from vouchers issued prior to the date of notification by the SPT of a potential shortfall. PHAs can only reissue turnover vouchers after receiving SPT notification of a potential shortfall to maintain their leasing levels during the period the program is impacted by COVID-19. Planned issuances for vouchers exempt from the suspension will be shown in the months they will be issued. The projected HAP costs for these units will be affected by the voucher success rate provided by the PHA and average time from issuance of the voucher to the HAP effective date. HUD has the right to suspendleasing altogetherifnecessary. i.OtherPlannedAdditionsorReductionstoLeasedUnits:Thisfieldincorporates into the leasing schedule other planned additions to leasing with fixed start dates, such as the dates that PBV units currently under AHAP are scheduled to come under HAP. The calculated HAP cost for these units is not subject to the success ratecalculation. j.2021Year-EndTotalHAPReserveBalance:AnyPHAwithanegative projected 2021 year-end balance will be considered a shortfall PHA. PHAs with year-end balances of $0 or above will not be considered shortfall PHAs or eligible to receive shortfallset-asidefunds. k.Available UNP and Other Non-Federal Cash:In cases where the needed shortfall amount is hard to determine due to factors like many potential voucher lease ups still to occur, rapidly changing PUCs, unclear attrition rates, etc., the SPT will consider the availability UNP or other non-federal cash that the PHA could use to temporarily cover HAP payments and may reduce the shortfall award amount accordingly. If the shortfall award does not fully meet the need, the PHA then has UNP or othernon-federalfunds toensurealllandlords getpaid ontime, andthe SPT can provide an additional shortfall award at the appropriate time to make the HCV or Mainstream Vouchers whole, allowing the PHA to repay the UNP or other non- reduce the number of shortfall awards that areestimated and end up more than the PHAactually needed. EXHIBIT 3 49 Appendix F CY2021HousingChoiceVoucherProgramApplicationforFundsfrom the$110MillionSet-Aside PHAApplicationforCategory1,PreventionofTerminationsDuetoInsufficientFunding(Shortfall) and PHA Certification of Reasonable Cost Savings Measures Undertaken to Prevent Termination of HCV ParticipantsDue toInsufficientFunds. NameofPHA:_PHANumber: ExecutiveDirector: The above referenced agency is applyingfor Shortfall Funds and has undertaken reasonable cost savings measuresto prevent termination ofHCVParticipantsduetoinsufficientfunds. PleasecheckRegularHCVProgram and/orMainstreamVouchersfortheprogram/vouchersimpactedbythe Shortfall. The applicationmustbe signedby the appropriatePHA official. ShortfallappliestotheRegularHCVProgram,and/or ShortfallappliestoMainstreamVouchers I,,herebycertifytothefollowing: (1)At the time of application, the PHA is working with the HUD Shortfall Prevention Team (SPT) and SPT has confirmed the PHA is in a shortfall position. (PHAs that are not currently working with the SPT but believe they are in a shortfall position should immediately contact their HUD Field Officeforassistance.) (2)ThePHAhasceasedissuingvoucherstoapplicantsasofthedateofnotificationbytheSPTof a potentialshortfall.Pleasenote thatthisrestriction doesnot applyto: Vouchersissued tocurrentHCVparticipantstoallowthemtomove. The reissuance of turnover vouchers lost to attrition only during the period the PHA is impacted by COVID 19; however, PHAs may not exceed the number of units leased at the time of the SPT th confirmed shortfall. This unit cap may only be exceeded by the SPVs listed in the 4bullet point within thislistand vouchersreissued fromtheLower-than-averageLeasing award. In general, a PHA may reissue the turnover voucher to a family from the PHA waiting list, except for eligible VASH turnovers where a referral is provided by the VAMC, issue the voucher to a family moving from a PBV unit in accordance with 24 CFR 983.261, or use the voucher to absorb a family under portability. However, a PBV family that has the right to move in accordance with 24 CFR983.261and wishesto doso haspriority fortheturnovervoucher. Instances in which the PHA is leasing under the HUD-VASH program up to the baseline level of units under all HUD-VASH allocations (not just recent allocations), including turnover of HUD- VASHvouchers. EXHIBIT 3 50 Vouchers issued to program applicants under special-purpose voucher increments awarded in CY 2020 or CY 2021. These SPVs include FUP, NED, FYI Initiative, and Tenant Protection vouchers initially awardedin 2020and/or2021, toincludeSet-aside funding. PBVs undertheRentalAssistanceDemonstration(RAD)1,intheirfirstfull yearoffundingthrough theHCV Program. PHAs may allow applicants moving into PBV units to allow the PHA to meet its contractual obligation to fill PBV AHAP units being placed under HAP for the first time, and PBV units currentlyunderHAP thatarevacatedbyprogramparticipants. PHAs must request approval to continuing leasing Litigation Vouchers and submit supporting documentation. HUD will review and decide on a case-by-case basis using the supporting documentation receivedasthebasisfor the decision. Vouchersreissued usingawardsunderLower-than-averageLeasingHAPSet-Asidecategory. TheSecretaryreservestherighttoconsideradditionalexceptionsonacase-by-casebasis. Certification: I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines,and civilandadministrativepenalties(18 U.S.C.§§287,1001,1010,1012;31 U.S.C.§3729, 3802). Signature of Executive Director and Date ContactNameandPhoneNumber EXHIBIT 3 51 CY2021HousingChoiceVoucherProgramandMainstreamVouchersAppendix G Applicationfor$110Million Set-AsideforCategory2aUnforeseenCircumstances NameofPHA: PHANumber: ExecutiveDirector: CHECK ALL BOXES THAT APPLY in Sections 1 & 2. Complete the table(s) that applies to this request. PHAs applying under both programs must ensure they complete each table with the data that applies to that program. Ensure completion of the month of your request. Ensure that you check the appropriatebox inSection 2ontheapplicable circumstancefortheapplication. SECTION1: Category2a:UnforeseenCircumstancesforMainstreamVouchers. TotalHAP ExpensesandUMLsforthemonthof,2021 Most recent month of TotalUMLs for the most recentHAP Expenses divided by HAPExpensesmonthofHAPExpensesUMLs= PUC $$ Category2a:UnforeseenCircumstancesfortheHCVProgram. TotalHAP ExpensesandUMLsforthemonthof,2021 Most recent month of TotalUMLs for the most recentHAP Expenses divided by HAPExpensesmonthofHAPExpensesUMLs= PUC $$ SECTION2: UnforeseenCircumstanceisduetoCOVID-19;or, Unforeseen Circumstance is due to a circumstance unrelated to COVID-19, whichisdescribed withinattached narrative. Documentation requirements and Deadlines for each of the above categories are contained in Section 13 ofthisnotice. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification:I,, hereby certify that the HCV Program and/or Mainstream Vouchers experienced increased renewal costs in CY 2021 due to the unforeseen circumstances of COVID-19 or those described intheattachednarrative,as applicable. Iadditionallyherebycertifythatalltheinformationstatedherein,aswellasanyinformationprovidedinthe accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforupto5years, fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date ContactNameandPhoneNumber EXHIBIT 3 52 AppendixH CY2021HousingChoiceVoucherProgram Application for $110 Million Set-Aside for Category 2b Portability; 3 Project-Based Vouchers; 4 - HUD-VASH;and/or5Lower-than-average Leasing. NameofPHA: PHANumber:_________________________________________ ExecutiveDirector: CHECKALLBOXES THATAPPLY Category2b:Portability(Pleasealsochecka.and/orb.belowasapplicable): a.RegularHCVProgram,and/or b.MainstreamVouchers Category3:Project-BasedVouchers. Category4:HUD-VASH(Pleasealsocheck a.and/orb.below,asapplicable):a.PerUnit Cost Increase: PHAs whose program-wide funded CY 2021 HAP PUC is less than their current HUD-VASH HAP PUC based on their latest HUD-VASH HAP expenses in CY 2020,and/or b. Leasing Increase: PHAs whose total HUD-VASH leasing for CY 2021 will exceed the leasing level included in their renewal funding plus the leasing that will be supportedbytheRNPandHUD-HeldProgram Reserves. Category5:Lower-than-averageLeasing. DocumentationrequirementsandDeadlinesforeachoftheabovecategoriesarecontainedin Paragraph13ofthisnotice. ThiscertificationmustbesignedbytheappropriatePHAofficialandreturned. Certification: I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines,and civiland administrativepenalties(18U.S.C. §§287, 1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date ContactName and Phone Number 53 3 EXHIBIT I 20 - Dec 20 - UNITS Appendix Nov OF # 20 - DATE: BEING Oct IS 20 - DATE): Sep 20 - FUNDING Aug COMPLETION Y/N 20 - ASIDE Jul COMPLETION - RENT 20 - SET PROJECT Jun TO PBV 20 - HAP UTILITIES INCLUDED IN GROSS May REHABILITATION: NAME: OF WHICH FOR DATE PROJECT CONSTRUCTION/REHAB of 2) RENT 1 CATEGORY AHAP: NEW PROJECT OF OF EFFECTIVE (Page THIS - GROSS NAME: EACH DATE FOR (DATE FROM PHA DATA FOR I CONSTRUCTION: PBVDATE DAYS 20 - - NEW EFFECTIVE #OFEND INELIGIBLE 20 Apr ASIDE IS RENT - APPENDIX - Mar SET 20 - - HOUSING Feb PROJECTS Jan COMPLETEON 20 BEDROOM SIZE $110 MILLION - of EXISTING PLEASE UNIT UNITS: 2021 OF PROJECTTYPE: NOTE:PERIODALLOWED: CYNOTE:REQUESTED # PHA#:#INFORMATION AHAP: 54 3 EXHIBIT . returned well as any information provided in the and official PHA 2) of nes, and civil and administrative penalties (18 U.S.C. §§ 287, 2 (Page appropriate the by and accurate. #: DIRECTOR: signed be PHONE must AND EXECUTIVE herewith, is true : I hereby certify that all the information stated herein, as OF 1012; 31 U.S.C. §3729, 3802). NAME BEDROOMBEDROOMBEDROOMBEDROOMBEDROOM certification SIGNATUREDATE:CONTACT COMMENTS: ThisCertificationaccompanimentWarning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civilpenalties, including confinement for up to 5 years, fi1001, 1010, EXHIBIT 3 55 AppendixJ CY2021HousingChoiceVoucherProgram RequestforDisasterSet-aside NameofPHA: PHANumber: ExecutiveDirector: The PHA may request both the additional leasing adjustment and the per unit cost adjustment ormay request only oneadjustment. Pleasechecktheboxes that apply. PresidentiallyDeclaredDisasterthatimpactedyourPHA: LossofUnits Unitsloss,needingfunding: ThenumberofCY2021monthsimpactedby theloss ofunits: IncreasedCosts RequestedPUCAmount: ThenumberofCY2021monthsimpactedby theloss ofunits: Certification:Ihereby certifythatalltheinformationstatedherein,aswellasanyinformation provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to5years,fines,and civilandadministrativepenalties(18 U.S.C.§§287,1001, 1010,1012;31U.S.C.§3729, 3802). SignatureofExecutiveDirectorand Date ContactNameandPhoneNumber EXHIBIT 3 56 AppendixK SecondRoundCY2020HAPSet-AsideRemaining$60MillionforCategory2aUnforeseen Circumstances AdjustmentsforIncreasedCostsfromCY2020Category2a-UnforeseenCircumstances NameofPHA: PHANumber: ExecutiveDirector: CHECKALLBOXESTHATAPPLY Category2a:UnforeseenCircumstances UnforeseenCircumstanceis duetoCOVID-19. Unforeseen Circumstance is due to a circumstance unrelated to COVID-19, which is described within the attachednarrative. Documentation requirements and Deadlines for each of the above categories are contained in Section 14 ofthis notice. ThiscertificationmustbesignedbytheappropriatePHAofficialand returned. Certification:I,, hereby certify that the HCV Program experienced increased renewal costs in CY 2020 due to the unforeseen circumstances of COVID-19 or those described in the attached narrative, as applicable. Iadditionallyherebycertifythatalltheinformationstatedherein,aswellasanyinformationprovidedinthe accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makesafalsestatementissubjecttocriminaland/orcivilpenalties,includingconfinementforupto5years, fines,andcivilandadministrativepenalties(18U.S.C.§§287,1001,1010,1012;31U.S.C.§3729,3802). Signature of Executive Director and Date Contact Nameand PhoneNumber EXHIBIT 3 EXHIBIT B SCOPEOFWORK Subcontractor will utilize FUP/FYI Special Fees to WelcomeHomeOClandlordincentiveprograminhousingtheSantaAnaHousing FYIvoucher holders. WelcomeHomeOChelpshomelessindividualswithrentalvouchers tosecurehousinginprivate market apartments withthe goals of (1) increasing available rental units through landlord outreach, engagement and incentives, (2) reducing the length of time between voucher issuance ly housinghomeless households. FUP/FYISpecialFees willsupport necessaryadministrativeexpenses incurredto increaselease- upsuccess rates ordecreasethe timeittakes for a familyto locate andmove-in to aunit. Subcontractor will provide the following eligible activities with the $84,017.00 in FUP/FYI SpecialFees funding: StafftoprovideFUP/FYIclientswith housingsearchassistance Landlord Recruitment activities to engage landlords to participate in the FUP/FYI program Contractor shall make payments to Subcontractor not to exceed $14,002.83 for each FUP/FYI voucherleased, up tothe maximum amount ofeligiblefunding. Subcontractor will provide quarterly reports and invoices to the Contractor. Contractor is responsibleforreportingandrecordingofawardedSpecialFeesaspartoftheHCV administrativefinancial records under CFDA14.871 12 EXHIBIT 3 EXHIBIT C BUDGET 13