HomeMy WebLinkAbout75B - PH COVID-19 RESPONS FUND AMENDREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 1, 2020
TITLE:
PUBLIC HEARING - ADOPT A SECOND
AMENDMENT TO THE COVID-19
RESPONSE FUNDING PLAN; AUTHORIZE
APPROVAL OF AGREEMENTS TO
IMPLEMENT THE PLAN; APPROVE A
SECOND COVID-19 SUBSTANTIAL
AMENDMENT TO THE FISCAL YEAR 2019-
2020 ANNUAL ACTION PLAN; APPROVE
AN APPROPRIATION ADJUSTMENT
RECOGNIZING $3,520,819 OF COMMUNITY
DEVELOPMENT BLOCK GRANT
CORONAVIRUS FUNDS
(NON -GENERAL FUND)
/s/ Kristine
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1 s' Reading
❑ Ordinance on 2od Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Adopt a Second Amendment to the COVID-19 Response Funding Plan for the allocation,
administration and implementation of federal funding to respond to the Coronavirus (COVID-
19) pandemic to add $3,520,819 in Community Development Block Grant Coronavirus Funds,
subject to adjustment by the City Manager as needed in response to shifting needs and
priorities not to exceed the amount of funds available.
2. Direct the City Attorney to finalize and authorize the City Manager to enter into negotiations,
execute agreements, and approve any other required actions necessary with various service
providers, contractors, and sub -recipients, who will implement the Second Amendment to the
COVID-19 Response Funding Plan, subject to non -substantive changes approved by the City
Manager and City Attorney.
3. Approve a second COVID-19 Substantial Amendment to the Fiscal Year 2019-2020 Annual
Action Plan in order to allocate and program $3,520,819 in Community Development Block
Grant Coronavirus Funds (identified in second Amendment to the COVID-19 Response
Funding Plan above) and $11,598,442 in Emergency Solutions Grant Coronavirus Funds that
were added as the First Amendment to the COVID-19 Response Funding Plan on August 18,
2020.
75B-1
Public Hearing -Adopt Second Amendment to the COVID-19 Response Funding Plan
December 1, 2020
Page 2
4. Approve an appropriation adjustment recognizing an allocation to the City of Community
Development Block Grant Coronavirus third round funds from the U.S. Department of Housing
and Urban Development in the amount of $3,520,819 (CDBG-CV3) in revenue account (No.
13518002-52008) and appropriating same to expenditure account (No. 13518788-various).
DISCUSSION
On April 21, 2020, the City Council adopted a COVID-19 Response Funding Plan (Plan) for the
allocation, administration, and implementation of $6,486,644 in federal and state funding to
respond to the coronavirus (COVID-19) pandemic including $1,385,224 in state Homeless
Housing, Assistance and Prevention Program COVID-19 Funds, $3,374,017 in federal Community
Development Block Grant Coronavirus Funds (CDBG-CV), and $1,727,403 in federal Emergency
Solutions Grant Coronavirus Funds. On August 18, 2020, City Council adopted a First Amendment
to the COVID-19 Response Funding Plan to add a second allocation of $11,598,442 Emergency
Solutions Grant Coronavirus Funds (ESG-CV2) awarded to the City on June 9, 2020 by the U.S.
Department of Housing and Urban Development (HUD). All funds in the COVID-19 Response
Funding Plan are subject to adjustment by the City Manager as needed in response to shifting
needs and priorities not to exceed the amount of funds available.
On September 11, 2020, HUD awarded the City with a special allocation of CDBG-CV3 program
funds in the amount of $3,520,819, as authorized by the CARES Act (Exhibit 1), increasing the
cumulative amount for all CDBG-CV allocation rounds to $6,894,836. To most effectively address
the needs of the community while complying with the eligible uses for this source of federal funds,
staff has identified the following eligible activities for the use of these CDBG-CV3 funds:
CDBG-CV3 Eligible Activity
Allocation
Subsistence Payments (Coronavirus Emergency Rental Relief for
Tenants
$1,103,328
Food Banks Food/Meal Insecurity, Food Pantries
$763,327
Power of One Food Purchase of Non -perishables & Operating Costs
$50,000
Healthcare Services Coronavirus Testing and Vaccine Distribution
$500,000
Senior Services Medical Transportation, In -Home Care
$200,000
Public Services (PPE for CDBG-funded Public Service Agencies and
Nonprofits)
$100,000
Youth Services (Project Hope Alliance WIFI Access to Unhoused
Youth
$100,000
Administrative Costs Allowance
$704,164
TOTAL
$3,520,819
These eight general activities have been consolidated into a Second Amendment to the COVID-
19 Response Funding Plan (Exhibit 2). The Plan provides more details on each activity that is
proposed to be carried out with each source of funds. However, the Plan is subject to adjustment
as needed in response to shifting needs and priorities so long as the amount of funds does not
exceed the amount available. For example, staff may need to change one eligible activity to another
eligible activity because there are insufficient funds in that activity account to fully carry it out, or
75B-2
Public Hearing -Adopt Second Amendment to the COVID-19 Response Funding Plan
December 1, 2020
Page 3
there is less need for funding in one activity relative to another activity. Staff may also need to
remove or replace an eligible activity entirely without returning to City Council for approval. The
Plan may be adjusted in response to shifting needs and priorities to most effectively respond to the
COVI D-19 pandemic on behalf of the community, but the amount of funds available for expenditure
of these new CDBG-CV3 funds will not exceed $3,520,819.
Second COVID-19 Substantial Amendment to the Fiscal Year 2019-2020 Annual Action Plan
On June 4, 2019, City Council approved the Fiscal Year 2019-2020 Annual Action plan. The City
of Santa Ana's Annual Action Plan details the funding strategy for the Community Development
Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships
programs each year. The Annual Action Plan implements our jurisdiction's Five -Year Consolidated
Plan and was developed through significant public input, analyses, and planning. The Annual
Action Plan describes in detail how these federal grant funds will be allocated and used to serve
the community. Title 24 Section 91.505 of the Code of Federal Regulations stipulates that
participating jurisdictions shall amend their approved plans whenever they make one of the
following decisions:
1. To make a change in its allocation priorities or a change in the method of distribution of
funds;
2. To carry out an activity, using funds from any program covered by the Consolidated Plan
(including program income) not previously described in the action plan; or
3. To change the purpose, scope, location or beneficiaries of an activity.
The City of Santa Ana has been awarded $3,520,819 in CDBG-CV3 funds and $11,598,442 in
ESG-CV2 funds that were not previously described in the Fiscal Year 2019-2020 Annual Action
Plan or the First COVID-19 Substantial Amendment. Per the regulations for these federal funds, a
Second COVID-19 Substantial Amendment to the FY 2019-2020 Annual Action Plan is required
(Exhibit 3).
Usually a 30 day public comment period is required under the City's Citizen Participation Plan.
HUD recognizes the efforts to contain COVID- 19 require limiting public gatherings, such as those
often used to obtain citizen participation, and that there is a need to respond quickly to the growing
spread and effects of COVID- 19. Therefore, in a memorandum dated March 31, 2020, HUD has
waived 24 CFR 91.105(c)(2) and (k), 24 CFR 91.115(c)(2) and (i) and 24 CFR 91.401 to allow the
City to determine what constitutes reasonable notice and opportunity to comment given their
circumstances. The City has determined that five days constitutes reasonable notice and
opportunity to comment given the circumstances surrounding the COVID-19 pandemic. City
Council approved an update to the Citizen Participation Plan on April 21, 2020 to allow for a five
day public comment period.
As required by HUD, the Second COVID-19 Substantial Amendment to the Fiscal Year 2019-2020
Annual Action Plan was made available for a five day public comment review period from
November 20, 2020 to November 24, 2020. A public notice was published on November 20, 2020
in the Orange County Register in English, La Opinion in Spanish, and the Ngoi Viet in Vietnamese
75B-3
Public Hearing -Adopt Second Amendment to the COVID-19 Response Funding Plan
December 1, 2020
Page 4
to inform the public of the commencement of the five day public comment period and public hearing.
Comments received will be included in the final submission of the Second Substantial Amendment
to HUD.
Following approval by City Council, staff will submit the Second COVID-19 Substantial Amendment
to the FY 2019-2020 Annual Action Plan to HUD in order to draw down the $3,520,819 in CDBG-
CV3 funds and $11,598,442 In ESG-CV2 funds.
FISCAL IMPACT
Approval of the appropriation adjustmentwill recognize $3,520,819 in the Community Development
Block Grant Coronavirus revenue account (No. 13518002-52008) for expenditure as follows:
Fiscal Year
Accounting Unit-
Account #
Fund Description
Accounting Unit,
Account Description
Amount
Community
FY 2020-21
13518788-various
Development Block
CDBG-CV3
$3,520,819
(Jan. -June
Grant-Coronavirus
Total
$3,520,819
Staff anticipates expending the full grant allocation by end of the current fiscal year. However, any
remaining funds will be carried forward to subsequent fiscal years to continue to provide services
in response to the coronavirus.
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director- Finance and Management
Services Agency
Submitted By: Steven A. Mendoza, Executive Director - Community Development Agency
Exhibits: 1. Award Letter for $3,520,819 in CDBG-CV3 Funds
2. Second Amendment to COVID-19 Response Funding Plan
3. COVID-19 Substantial Amendment # 2 to the FY 2019-2020 Annual Action Plan
75B-4
EXHIBIT 1
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
IIIIIIII WASIUNGTON,DC 20410-7000
ASSISTANT SECRETARY FOR
CDMMUNITY PLANNING AND DEVELOPMENT
September 11, 2020
The Honorable Miguel Pulido
Mayor of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701-4058
Dear Mayor Pulido:
I am pleased to inform you of a special allocation to your jurisdiction of Community
Development Block Grant funds to be used to prevent, prepare for, and respond to the coronavirus
(COVID-19). This allocation was authorized by the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), Public Law 116-136, which was signed by President Trump on March
27, 2020, to respond to the growing effects of this historic public health crisis.
The CARES Act made available $5 billion in Community Development Block Grant
Coronavirus (CDBG-CV) funds. Of this amount, the Department immediately allocated $2 billion
on March 27, 2020, the same day President Trump signed the Act, based on the fiscal year 2020
CDBG formula; this constituted the first round of CDBG-CV funds. Next, $1 billion was required
by the Act to be allocated to States and insular areas within 45 days of enactment of the Act; HUD
accomplished this on May 11, 2020, and this constituted the second round of CDBG-CV funds.
Finally, the remaining $2 billion in CDBG-CV funds was required by the Act to be allocated to
states and local governments at the discretion of the Secretary on a rolling basis; HUD
accomplished this on September 11, 2020, and this constituted the third round of CDBG-CV funds.
Additionally, up to $10 million will be set aside for technical assistance.
Accordingly, this letter informs you that your jurisdiction's allocation for the third round is
$3,520,819. Your cumulative amount for all allocation rounds is $6,894,836.
The CARES Act adds additional flexibility for both the CDBG-CV grant and, in some cases,
for the annual FY2019 and FY2020 CDBG grants in these unprecedented times. The public
comment period is reduced to not less than 5 days, grantees may use virtual public hearings when
necessary for public health reasons, the public services cap is suspended during the emergency, and
States and local governments may reimburse costs of eligible activities incurred for pandemic
response regardless of the date.
In addition, the CARES Act authorizes the HUD Secretary to grant waivers and alternative
requirements of statutes and regulations the HUD Secretary administers in connection with the use
of CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related to
fair housing, nondiscrimination, labor standards, and the environment). Waivers and alternative
requirements can be granted when necessary to expedite and facilitate the use of funds to prevent,
www.hud.g'� � �=guol.hud.gov
EXHIBIT 1
prepare for, and respond to coronaviras.
The CDBG CARES Act Federal Register Notice (FR-6218-N-01) was released on August
10, 2020. The notice describes the allocations and grant procedures applicable to the CDBG-CV
grants. It also describes the program flexibilities, waivers, and alternative requirements that apply to
the CDBG-CV grants as well as the fiscal year 2019 and 2020 CDBG grants. As further such
flexibilities become available, they will be posted on HUD's website and distributed to grantees.
The Department will also support grantees with technical assistance.
As you develop your plan for the use of these grant fimds, we encourage you to consider
approaches that prioritize the unique needs of low- and moderate income persons and the
development of partnerships between all levels of government and the private for -profit and non-
profit sectors. You should coordinate with state and local health authorities before undertaking any
activity to support state or local pandemic response. CDBG-CV grants will be subject to oversight,
reporting, and the requirement that each grantee have adequate procedures to prevent the
duplication of benefits (DOB). HUD will provide guidance and technical assistance on DOB, the
prevention of fraud, waste, and abuse, and on documenting the impact of this program for
beneficiaries.
Reminder, all CPD Grantees must ensure they maintain active Dun and Bradstreet Numbering
System (DUNS) numbers in the System for Award Management (SAM) system. Entities must have
an active and unexpired DUNS before execution of grant agreements to avoid delays in the
obligation of fimds- which will delay your ability to drawdown funds in the Integrated
Disbursement & Information System (IDIS). Grantees are required to maintain an active SAMs
registration by re -activating their DUNS number annually in the SAM system for the entire
drawdown period of their grants. DUNS numbers can be registered and renewed each year at the
following website: https://www.sam.gov/SAM/.
The Office of Community Planning and Development (CPD) is looking forward to working
with you to successfully meet the urgent and complex challenges faced by our communities. If you
or any member of your staff has questions, please contact your local CPD Field Office Director or
CPDOuestionsAnswerednn hud.Qov.
Sincerely,
/�4&
John Gibbs
Acting Assistant Secretary
for Community Planning and Development
U.S. Department of Housing and Urban Development
75B-6
iWa:11:111PA
Second Amendment to COVID-19 Response Funding Plan
As of December 1, 2020
NEWCommunity Development Block Grant-Coronavirus Round 3
Funds (CDBG-CV3)
To prevent, prepare for, and respond to the coronavirus (COVID-19).
Total
General Description
Detailed Description
1,103,328
Subsistence Payments (Coronavirus Emergency
Public services contact to assis renters impacted by COVID-19 who are
Rental Relief for Tenants)
unable to pay their rent due to loss of income
763,327
Food Banks (Food/Meal Insecurity, Food Pantries)
Food Delivery, Food Pantries
50,000
Power of One Food Purchase of Non -perishables
& Operating Costs
500,000
Healthcare Services (Coronavirus Testing and
Access, Education, Distribution
Vaccine Distribution
200,000
Senior Services (Medical Transportation, In -Home
Care
100,000
Public Services (PPE for CDBG-funded Public
Service Agencies and Nonprofits)
100,000
Youth Services (Project Hope Alliance WIFI
WIFI Access to Unhoused Youth (Educational Program)
Access to Unhoused Youth
704,164
Administrative Costs Allowance (CDA)
Recipients can use up to 20% of the allocation for administrative purposes.
3,520,819
Total Available Funds (Expenditure Deadline: September 11, 2026; must expend at least 80% of all CDBG-CV3 funds by
To prevent prepare for, and respond to the coronavims (COVID-19)
Emergency Solutions Grant Coronavirus Funds
among individuals and families who are homeless or receiving
(ESG-Cl9
homeless assistance; and to support additional homeless assistance
and homelessness prevention activities to mitigate the impacts of
COVID-19.
Total
General Description
Detailed Description
Operating costs to start up the Year -Round
$ 1,353,700
Homeless Navigation Center and Recuperative
Carnegie Shelter
Care Facility at 1815 Carnegie Avenue
30,047
Supplies for Mercy House for COVID-19 expenses
Extension of the interim 200-bed shelter at The
169,952
Link to March 31, 2021, while the new Homeless
Extension of the Link to March 31, 2021, including overlap of operating time
Navigation Center on Carnegie Avenue is under
for the Carnegie Shelter
deve lo ment
172,740
Administrative Costs Allowance (CDA) (207608)
Recipients can use up to 10% of the allocation for administrative purposes.
$ 1,726,439
JTotal Available Funds (Expenditure Deadline: September 30, 2022; must expend at least 80% of all ESG-CV funds by
To prevent, prepare for, and respond to the coronavirus (COVID-19)
Emergency Solutions Grant Coronavirus Round 2 Funds
among individuals and families who are homeless or receiving
(ESG-CV2)
homeless assistance; and to support additional homeless assistance
and homelessness prevention activities to mitigate the impacts of
COVID-19.
Total
General Description
Detailed Description
Operating costs to start up the Year -Round
$ 3,249,361
Homeless Navigation Center and Recuperative
Carnegie Shelter
Care Facility at 1815 Carnegie Avenue
Extension of the interim 200-bed shelter at The
1,424,490
Link to March 31, 2021, while the new Homeless
Extension of the Link to March 31, 2021, including overlap of operating time
Navigation Center on Carnegie Avenue is under
for the Carnegie Shelter
development
Eviction Prevention for Very -Low Income Families
Homelessness Prevention / Eviction Prevention eligible ESG activities.
5,514,747
until August 2022 (Santa Ana Vital Eviction
Prevention of evictions for very low-income families until August 2022.
Solutions - SAVES
Eviction Defense Fund for Very -Low Income
If a landlord refuses to accept payment by the City through the Santa Ana
250,000
Families quaffed under Santa Ana Zero Eviction
Zero Eviction Program, the law firm contracted by the City for this Fund will
Program
provide legal services to the family to require the landlord to accept payment.
1,159,844
Administrative Costs Allowance (CDA)
Recipients can use up to 10% of the allocation for administrative purposes.
$ 11 598,442
Total Available Funds (Expenditure Deadline: September 30, 2022; must expend at least 80% of all ESG-CV funds by
75B-7
Homeless Housing, Assistance and Prevention Program COWD-19
To protect the health and safety of homeless populations and reduce
Funds (HHAP COVID-19
the spread of the COVID-19 outbreak.
Total
General Description
Detailed Description
Tenant improvements to start up the new
$ 885,000.00
permanent emergency shelter sooner than planned
Carnegie Shelter
for COVID-19 homeless response (217750)
$ 201,447.00
Servicing the trailers from the State of CA
Retrofit and maintenance of the trailers by Mike Thompson RV and removal
of black wastewater by A&J Portables.
$ 205,000.00
Servicing the trailers from the State of CA
Services for the trailers including janitorial services by Iclean and security
services bv Santa Ana Security Services.
$ 21,364.93
Servicin the trailers from the State of CA
Generators for the trailers
$ 43,199.00
Utilities at the Trailers
Set-u of electrical infrastructure at the trailers provided by Leed Electric
$ 25,425.56
Servicing the trailers from the State of CA
ISupplies
$ 3,787.50
IServicing the trailers from the State of CA
lWeed Abatement
$ 1,385,224
JTotal Available Funds
Community Development Block Grant-Coronavinus Funds (CDBG-
To prevent, prepare for, and respond to the coronavirus (COVID-19).
CV)
Total
General Description
Detailed Description
Coronavrius Emergency Rental Relief Fund for
Public services contact with the Salvation Army to assist renters impacted by
$ 1,238,760
Tenants ("CARES for Tenants") - The Salvation
COVID-19 who are unable to pay their rent due to loss of income.
Arm 209506
Coronavrius Emergency Rental Relief Fund for
Public services contact with the Catholic Charities to assist renters impacted
705,167
Tenants ("CARES for Tenants") - Catholic
by COVID-19 who are unable to pay their rent due to loss of income.
Charities 209507
Coronavrius Emergency Rental Relief Fund for
Public services contact with the Community Action Partnership to assist
166,500
Tenants ("CARES for Tenants") - Community
renters impacted by COVID-19 who are unable to pay their rent due to loss of
Action Partnership 209508
income.
300,000
Economic Development - Small Business Incentive
Expansion of City -run Small Business Incentive Program to provide additional
Program 209501
loans and grants.
Screening and testing operation in partnership with AftaMed, a non-profit
250,000
ALTA-Med COVID-19 Evaluation Center (209503)
medical services provider. Testing, diagnosis, or other services at a fixed
location. Grant agreement with ALTAMed for up to two weeks of testing for
Santa Ana residents.
114,000
Food Distribution for Seniors and/or Residents
Grant agreement with Meals on Wheels / SeniorSery to support food
209505
distribution to seniors
Food Distribution for Seniors and/or Residents -
MOU between City and PWA to contract out with CA Barricades to provide
52,235
Traffic Control (209504)
traffic control services for food distribution servivices provided by nonprofits in
the communit
547,355
Administrative Costs Allowance (CDA) (209500)
$ 3,374,017
Total Available Funds (Expenditure Deadline: July 24, 2026; must expend at least 80% of all CDBG-CV funds by July 24,
$ 21,604,941 TOTAL
75B-8
I0:I:ILyife3
;-
r
..
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CITY OF SANTA ANA
2019 - 202o ANNUAL
ACTION PLAN
COVID-19 SUBSTANTIAL
AMENDMENT
#2
75B-9
ANIM1I:l1111111111e3
SUBSTANTIAL AMENDMENT # 2 TO THE FY 2019-2020 Substantial Amendment
ANNUAL ACTION PLAN TO ADD COMMUNITY #2
DEVELOPMENT BLOCK GRANT—CORONAVIRUS (CDBG-
CV3) AND EMERGENCY SOLUTIONS GRANT -
CORONAVIRUS (ESG-CV2) FUNDS
TABLE OF CONTENTS
PAGE
Introduction................................................................................................................. 2
Amendments.............................................................................................................. 3
PublicReview.............................................................................................................4
Exhibits
Exhibit 1-Public Hearing Notice/Summary of Comments and Responses .................. 5
1z/z0z0 1
75B-10
IWOMM11:111111[c3
SUBSTANTIAL AMENDMENT # 2 TO THE FY 2019-2020 Substantial Amendment
ANNUAL ACTION PLAN TO ADD COMMUNITY #2
DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-
CV3) AND EMERGENCY SOLUTIONS GRANT -
CORONAVIRUS (ESG-CV2) FUNDS
II'III I:is]1111611[a] kqI
The City of Santa Ana's federal Annual Action Plan details the funding strategy for the
Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and
HOME Investment Partnerships programs each year. These Annual Action Plans
implement our jurisdiction's Five -Year Consolidated Plan and are developed through
significant public input, analyses, and planning. This document is a Second Substantial
Amendment to the City of Santa Ana's Fiscal Year 2019-2020 Annual Action Plan,
which was submitted to the U.S. Department of Housing and Urban Development
(HUD) in May 2019.
Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating
jurisdictions shall amend their approved plans whenever they make one of the following
decisions:
1. To make a change in its allocation priorities or a change in the method of
distribution of funds;
2. To carry out an activity, using funds from any program covered by the
Consolidated Plan (including program income) not previously described in the
action plan; or
3. To change the purpose, scope, location, or beneficiaries of an activity.
1212020
75B-11
IWOMM11:111111[c3
SUBSTANTIAL AMENDMENT # 2 TO THE FY 2019-2020 Substantial Amendment
ANNUAL ACTION PLAN TO ADD COMMUNITY #2
DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-
CV3) AND EMERGENCY SOLUTIONS GRANT -
CORONAVIRUS (ESG-CV2) FUNDS
SUBSTANTIAL AMENDMENT
On March 27, 2020 the United States Congress passed The Coronavirus Aid, Relief,
and Economic Security Act (CARES Act), Public Law 116-136. The bill provided $5
billion for CDBG to rapidly respond to COVID-19 and the economic and housing
impacts caused by it, including the expansion of community health facilities, childcare
centers, food banks, and senior services. The bill also provided $1 billion for ESG to be
used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19)
among individuals and families who are homeless or receiving homeless assistance;
and to support additional homeless assistance and homelessness prevention activities
to mitigate the impacts of COVID-19.
The City of Santa Ana will receive a second allocation from the third round of
Community Development Block Grant— Coronavirus (CDBG—CV) Program funds in the
amount of $3,520,819 and a second allocation of Emergency Solution Grant —
Coronavirus (ESG-CV) Program funds in the amount of $11,598,442 that were not
previously described in the Fiscal Year 2019-2020 Annual Action Plan or subsequent
Substantial Amendment # 1. A Second Substantial Amendment to the FY 2019-2020
Annual Action Plan is required. Usually a thirty (30) day public comment period is
required however, the U.S. Department of Housing and Urban Development (HUD) has
waived this requirement provided that no less than five (5) days are provided for public
comments on each substantial amendment.
The CDBG-CV and ESG-CV funds allocated under the CARES Act may be used for a
range of eligible activities that prevent and respond the spread of infectious diseases
such as the coronavirus disease 2019 (COVID-19). The proposed activities must meet
one of the three National Objectives as required by CDBG regulations:
Benefit low -and -moderate income persons.
Aid in the prevention or elimination of slums or blight, and
Meet an urgent need.
City staff is recommending to allocate the funds as follows:
1212020
75B-12
IWOMM11:111111[c3
SUBSTANTIAL AMENDMENT # 2 TO THE FY 2019-2020 Substantial Amendment
ANNUAL ACTION PLAN TO ADD COMMUNITY #2
DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-
CV3) AND EMERGENCY SOLUTIONS GRANT -
CORONAVIRUS (ESG-CV2) FUNDS
CDBG-CV3 Eligible Activity
Allocation
Subsistence Payments (Coronavirus Emergency Rental Relief for
Tenants
$1,103,328
Food Banks Food/Meal Insecurity, Food Pantries
$763,327
Power of One Food Purchase of Non -perishables & Operating Costs
$50,000
Healthcare Services Coronavirus Testing and Vaccine Distribution
$500,000
Senior Services Medical Transportation, In -Home Care
$200,000
Public Services (PPE for CDBG-funded Public Service Agencies and
Non rofits
$100,000
Youth Services (Project Hope Alliance WIFI Access to Unhoused
Youth
$100,000
Administrative Costs Allowance CDA
$704,164
TOTAL
$3,520,819
ESG-CV2 Eligible Activity
Allocation
Operating costs to start up the Year -Round Homeless Navigation
$3,249,361
Center and Recuperative Care Facility at 1815 Carnegie Avenue
Extension of the interim 200-bed shelter at The Link beyond October
31, 2020, while the new Homeless Navigation Center on Carnegie
$1,424,490
Avenue is under development
Eviction Prevention for Very -Low Income Families until August
$5,514,747
2022 (Santa Ana Zero Eviction Program)
Eviction Defense Fund for Very -Low Income Families qualified
$250,000
under Santa Ana Zero Eviction Program
Administrative Costs Allowance (CDA)
$1,159,844
TOTAL
$11,598,442
In addition and for the purpose of an expedited use of the CDBG-CV3 and ESG-CV2
funding, the bill eliminates the cap on the amount of funds a grantee can spend on
public services, removes the requirement to hold in -person public hearings in order to
comply with national and local social gathering requirements, and allows grantees to be
reimbursed for COVID-19 response activities regardless of the date the costs were
incurred.
Public Review
Pursuant to HUD regulations, the City's Citizen Participation Plan and current HUD
waivers for grant programs and consolidated plan requirements to prevent the spread
of COVID-19, staff published a 5-day comment period and public hearing. Public
comments and Council's allocation recommendations will be included in the Second
Substantial Amendment to the FY 2019-2020 Annual Action Plan.
1212020 4
75B-13
[WRIM110-111 c3
SUBSTANTIAL AMENDMENT # 2 TO THE FY 2019-2020 Substantial Amendment
ANNUAL ACTION PLAN TO ADD COMMUNITY #2
DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-
CV3) AND EMERGENCY SOLUTIONS GRANT -
CORONAVIRUS (ESG-CV2) FUNDS
EXHIBIT
1
SUMMARY OF PUBLIC COMMENTS
PROOF OF PUBLICATION 5-DAY COMMENT PERIOD AND PUBLIC
HEARING SUMMARY OF PUBLIC COMMENTS
SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 5-DAY COMMENT
PERIOD AND STAFF RESPONSE:
The draft amendment was available from November 20, 2020 to November 24, 2020 for
HUD's required 5-day public comment period. A public notice was published on
November 20, 2020 in the Orange County Register in English, La Opinion in Spanish
and the Ngoi Viet in Vietnamese to inform the public of the commencement of the 5-day
g. XX comments were submitted for the
Substantial Amendment.
12/01/2020CITY COUNCIL MEETING PUBLIC HEARING:
At its Regular Meeting on December 1, 2020, the City Council approved the
SUBSTANTIAL AMENDMENT #2 TO THE FY 2019-2020 ANNUAL ACTION PLAN TO ADD
COMMUNITY DEVELOPMENT BLOCK GRANT- CORONAVIRUS (CDBG-CV3) FUNDS AND EMERGENCY
SOLUTIONS GRANT - CORONAVIRUS (ESG-CV2) FUNDS by a vote of (XX:XX).
PROOF OF PUBLICATION 5-DAY COMMENT PERIOD AND PUBLIC HEARING
12/2020 5
75B-14