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Crrr OF SANTA ANA 20062007 ANNUAL ACTION PLAN FEDERAL MATCH REQUIREMENTS There is no federal requirement for the City to match CDBG funds with other non- federal program resources. The HOME program does require that for every HOME dollar spent, the City must provide a 25% match with non-federal dollars. Under certain circumstances, HUD will waive or reduce the match requirement. In June 2004, the City was notified by HUD that for the 2006-2007 Program Year, the City's HOME match requirement has been reduced to 0% because the City's "family poverty rate" is 125% or more of the average national poverty rate, the jurisdiction qualifies as distressed based on the family poverty rate criterion, and the City's per capita income is less than 75% of the national average. Even though Santa Ana is not required to provide HOME matching funds, the City will continue to implement its current strategy to match HOME funds by undertaking projects that blend local and private resources with HOME funds. HUD allows the City to use various resources to meet this match requirement including: • Cash Value of waived taxes, fees or charges • Value of donated land Value of donated materials and/or labor Based on past actions, HOME match resources will include the value of donated land and value of donated labor and materials, and direct subsidies with non- federal funds. As required, the City will maintain a log of current match sources including a balance of excess match (if applicable). The Emergency Shelter Grant (ESG) program also has a match requirement. The City must match ESG expenditures dollar for dollar. The City of Santa Ana requires that subrecipient of ESG funds provide verification of matching resources. An annual report of matching funds is provided to HUD as part of the Consolidated Annual Pertormance and Evaluation Report. C. ACTIVITIES TO BE UNDERTAKEN 13 a/zo/os 19D-18