HomeMy WebLinkAboutU.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) 2'" ~ A-2010-046
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U~tF: $ 201 ~`U~DING APPROVAL AND GRANT AGREEMENT FOR
MAC U NEIGHBORHOOD STABILIZATION PROGRAM 2 (NSP2) FUNDS
AS AUTHORIZED AND APPROPRIATED UNDER THE
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AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 AND THE
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
(PUBLIC LAWS 111-5 and 110-289)
NSP2 GRANTEE:
NSP2 GRANT NUMBER:
NSP2 GRANT AMOUNT:
NSP2 APPROVAL DATE:
City of Santa Ana
B-09-LN-CA-0047
$10,000,000
January 14, 2010
NSP2 EXPENDITURE DEADLINE (2 YEAR): February 11, 2012
NSP2 EXPENDITURE DEADLINE (3 YEAR): February 11, 2013
1. This Grant Agreement between the U.S. Department of Housing and Urban Development
(HUD) and City of Santa Ana (Grantee) is made pursuant to the authority of title XII of
Division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5
(February 17, 2009)) (Recovery Act) and sections 2301 - 2304 of the Housing and
Economic Recovery Act of 2008 (Public Law 110-289 (July 30, 2008)) (HERA). The
program established pursuant to section 2301-2304 of HERA is known as the
"Neighborhood Stabilization Program" or "NSP." The term "NSP2" refers to the second
appropriation of NSP funds provided under the Recovery Act. The Notice of Fund
Availability for the Neighborhood Stabilization Program 2 under the American Recovery
and Reinvestment, 2009 (Docket No. FR-5321-N-Ol , 1`'~~y 4, 2009) (NOFA); the three
Notices of Fund Availability for Fiscal Year 2009 Neighborhood Stabilization Program 2
under the American Recovery and Reinvestment Act of 2009, Correction (Docket No.
FR-5321-C-02, June 11, 2009; Docket No. FR-5321-C-03, November 9, 2009; and
Docket No. FR-5321-C-04); the Recovery Act; HERA; the Grantee's application for
NSP2 assistance (Grantee Application); the HUD regulations at 24 CFR Part 570 (as
modified by the NOFA as now in effect and as maybe amended from time to time)
(Regulations); and this Funding Approval, including any special conditions, constitute
part of the Grant Agreement. In the event of a conflict between a provision of the
Grantee's Application and any provision of this Grant Agreement, the latter shall control.
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City of Santa Ana B-09-LN-CA-0047
2. The Grantee shall comply with governmentwide guidance and standard award terms
established by the Office of Management and Budget (OMB) concerning the
implementation of the Recovery Act, including Requirements for Implementing Sections
1512, 1605, and 1606 of the American Recovery and Reinvestment Act of 2009 for
Financial Assistance Awards, 74 Fed. Reg. 18449 (Apri123, 2009) (to be codified at 2
CFR part 176) (as now in effect and as maybe amended from time to time). The Grantee
shall comply with reporting requirements established by HUD and OMB (including all
revisions to such reporting requirements), as well as section 1553 of the Recovery Act
(including implementing guidance).
3. Subject to the provisions of this Grant Agreement, HUD will make NSP2 Grant Funds in
the amount of $10,000,000 available to the Grantee upon execution of this Grant
Agreement by the parties. Of that amount, $2,500,000 must be used for the purchase and
redevelopment of abandoned or foreclosed homes or residential properties that will be
used to house individuals or families whose incomes do not exceed 50 percent of area
median income, pursuant to the Recovery Act and HERA. The Grantee shall have 24
months from the date of HUD's execution of this Grant Agreement to expend half of the
NSP2 Grant amount pursuant to the requirements of this Agreement, the Recovery Act,
HERA and the NOFA, as amended. The Grantee shall have 36 months from the date of
HUD's execution of this Grant Agreement to expend the total NSP2 Grant amount
pursuant to the requirements of this Agreement, the Recovery Act, HERA and the NOFA,
as amended. The NSP2 Grant Funds may be used to pay eligible costs arising from
eligible uses incurred after the NSP2 Approval Date provided the activities to which such
costs are related are carried out in compliance with all applicable requirements. Pre-
award planning and general administrative costs may not be paid with funding assistance
except as permitted in the NOFA, as amended. Other pre-award costs may not be paid
with funding assistance except as permitted by 24 CFR 570.200(h); for purposes of
NSP2, such costs are limited to those incurred on or after the date that the NSP2 NOFA
was published by HUD.
If the Grantee's NSP2 Grant Amount is less than the amount requested in the Grantee's
NSP2 Application, the Grantee must submit a Revised Budget and Activity List, (see
Appendix A), with the executed copy of this Grant Agreement. The Grantee is reminded
that the Revised Budget and Activity List must still comply with the requirements of the
NSP2 NOFA. Specifically, the Grantee is required to 1) return a minimum of 100
abandoned or foreclosed homes back to productive use or otherwise eliminate or mitigate
the negative effects on the stability of the target geography and 2) ensure that the target
geogrpahy in which the Grantee intends to carry out NSP2 activities has an average
combined needs index score of 18 or greater.
4. The Grantee agrees to assume all of the responsibilities for environmental review,
decisionmaking, and actions, as specified and required in regulations issued by the
Secretary pursuant to section 104(g) of Title I of the Housing and Community
Development Act, as amended (42 U.S.C. 5304) and published in 24 CFR Part 58.
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City of Santa Ana B-09-LN-CA-0047 3
5. The Grantee agrees that it will demolish or convert units using NSP2 funds only to the
extent and scope described in the NSP2 application. The Grantee agrees that under no
circumstances will NSP2 funds be used to demolish any public housing (as defined in
section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a)).
6. The Grantee agrees to comply with the Recovery Act provisions concerning tenant
protections applicable to NSP2 acquisitions of foreclosed property. The Grantee must
document its efforts to ensure that the initial successor in interest (ISII) in a foreclosed
upon dwelling or residential real property (typically, the initial successor in interest in
property acquired through foreclosure is the lender or trustee for holders of obligations
secured by mortgage liens) has provided bona fide tenants with the notice and other
protections outlined in the Recovery Act. The Grantee will not use NSP2 funds to
finance the acquisition of property from any initial successor in interest that failed to
comply with applicable requirements unless the Grantee assumes the obligations of such
initial successor in interest with respect to bona fide tenants. If the Grantee elects to
assume such obligations, it may only do so if the tenant is still occupying the property
and will provide any tenant displaced as a result of the NSP2 funded acquisition with the
assistance outlined in 24 CFR 570.606. If the Grantee knows that the ISII did not comply
with the NSP tenant protection requirements and vacated the property contrary to the
NSP requirements, NSP2 funds cannot be used to acquire such properties.
7. The Grantee further acknowledges its responsibility for adherence to all applicable terms
and conditions of this grant award bysub-recipient entities and contractors, including
obtaining a DUNS number (or updating the existing DUNS record), and registering with
the Central Contractor Registration. The DUNS number shall be provided by the Grantee
on the execution page of this agreement.
8. This Grant Agreement maybe amended only with the prior written approval of HUD.
Changes that affect program design elements that HUD considered in rating NSP2
applications may result in HUD re-rating the application. In considering proposed
amendments to this Grant Agreement, HUD shall also review, among other things,
whether the amendment is otherwise consistent with the Recovery Act, HERA, the
NOFA, as amended, and the Regulations.
9. The Grantee may not amend its Grantee Submission other than as described above;
however, such amendments will be subject to the requirements of the NOFA and any
revisions HUD may make to the NOFA (or any successor Notice or regulation).
10. The Grantee must respond in writing to any citizen complaint within 15 working days, if
feasible, and send a copy of the response to HUD. The Grantee shall at all times maintain
an up-to-date copy of its Grantee Application, including all amendments approved by
HUD, on its Internet website. Further, the Grantee shall maintain information on all
drawdowns, deposits, and expenditures of grant funds and program income under this
Funding Approval and Grant Agreement and any other records required by 24 CFR
570.506 and the NOFA, as amended, in its files and shall make such information
City of Santa Ana B-09-LN-CA-0047 4
available for auditor inspection by duly authorized representatives of HUD, HUD's
Office of the Inspector General, the Recovery Act Transparency Board or the
Comptroller General of the United States.
11. The Grantee is advised that providing false, fictitious or misleading information with
respect to NSP2 Grant Funds may result in criminal, civil or administrative prosecution
under 18 USC § 1001, 18 USC § 1343, 31 USC § 3729, 31 USC § 3801 or another
applicable statute.
12. Close-out of this grant shall be subject to the provisions of 24 CFR 570.509 or such
close-out instructions as may hereafter be issued by HUD specifically for NSP2 grants.
Special Conditions: Not applicable
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City of Santa Ana B-09-LN-CA-0047 5
This NSP2 Grant Agreement is binding with respect to HUD in accordance with its terms upon
the execution by HUD in the space provided below, subject to execution on behalf of the
Grantee.
The United States Department of
Housing and Urban Development
The Grantee a-TTEST
City of Santa Ana `~'}`~ ~v~ ~~•,~i ,c,,,-
MARIA D. HUIZAR
CLERK OF THE COI,.1~lCal_
f cti J~~ ~~l~w-•~-
Signature of Authorized Offical
David 1V. REam
Deputy Assistant Secretary
for Grant Pro ams
Title of Authorized Official
FEB 1 1 2010
Date of Sij'VED
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LISA E. STORCK
assistant City Attorney
Name of Authorized Official
City Manager
Title of Authorized Official
MAR 0 ~ ~0?~
Date of Signature
95-6000785
Grantee Tax Identification Number
083153247
DUNS Number
For HUD CFO Use Only
Current Balances Increases/Decreases Ending Balance Date
Yolanda Chavez
Name of Authorized Official