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Community Development Agency santa-ana.org/community-development Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 7, 2023 TOPIC: Amendment to FY 21-22 Agreement with Habitat for Humanity for Residential Rehabilitation Grant Program AGENDA TITLE: Approve a First Amendment to the FY 21-22 Agreement with Habitat for Humanity to Administer the Residential Rehabilitation Grant Program (Non -General Fund) RECOMMENDED ACTION Approve a First Amendment to the FY 21-22 Agreement with Habitat for Humanity of Orange County for the administration of the Residential Rehabilitation Grant Program to increase it by $11,000 for a new total agreement amount of $556,532, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On July 6, 2021, the City Council approved an agreement with Habitat for Humanity of Orange County (Habitat) to administer the City's Residential Rehabilitation Grant Program from July 6, 2021 through June 30, 2022, in an amount not to exceed $545,532 in Community Development Block Grant (CDBG) funds (Exhibit 1). The Residential Rehabilitation Grant Program improves and preserves the City's housing stock by providing grants of up to $25,000 to eligible homeowners who are low-income and earn less than 80% of the Area Median Income as defined by the U.S. Department of Housing and Urban Development (HUD). The program utilizes CDBG funds to provide eligible households with grants to address municipal code violations, undertake vital repairs, and replace and/or install major systems of the home. After approving a homeowner's application, the City will provide a grant of up to $25,000 to pay for the required rehabilitation work on their home. Properties eligible for the program must be owner -occupied and all rehabilitation work is performed by Habitat and/or their sub -contractors. After an initial inspection by a City Code Enforcement Officer, Habitat will be provided the final Scope of Work (including City inspector's notes and specifications), for which a final work write-up will be created in coordination with the homeowner. Program participants are selected on a first -come, first -served basis. The City follows the requirements under 24 CFR Part 35.930(b), of the "HUD Lead Safe Housing Rule," for rehabilitation work not exceeding $15,000 for eligible home repair City Council 21 — 1 2/7/2023